Auto Monitor 26 August 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. 31

www.a mo nl i ne.i n

26 August 2013

CV

Pg 16-27

SPECIAL

48 Pages

Pg 18 FEATURE Pg 20 INTERVIEW “We aren’t here for the Heavy metal short term” Varroc’s first component for CVs is Nalin Mehta, MD and CEO, MTBL

a crankshaft.

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No sting in StingRay StingRay offers little that can excite a sluggish market or help leapfrog MSIL’s sales volume, says Nabeel A Khan.

A

s the country’s largest car manufacturer Maruti Suzuki India (MSIL) is at full throttle to maintain its supremacy. It needs to do this because Hyundai Motor, the country’s no 2 in terms of automobile sales, is chippy and getting too close for comfort at least in the compact segment.

The Korean automobile major is expanding its i10 range and gearing up to launch Grand i10 early September.

To outbid this, MSIL launched the WagonR StingRay in keeping with its growth strategy. But will it work well for them? And this at a time when the Indian automobile industry is going through a roller coaster ride and the company’s market share is shrinking to give way to new players.

Looking at the glum automobiles market situation, MSIL has cut FY14 domestic growth forecast by one-third. Passenger vehicle sales posted its worst slide this fiscal with an 8 percent fall in July. MSIL is forced to offer discounts that are in the range

of at least 20 percent higher than what it offered last year. The company’s average discount is about Rs 14,600.

Will the StingRay help the company in these desperate times? Maybe so, considering that the investment incurred in tweaking the WagonR will compensate in retaining customers if not help in adding new ones.

StingRay will co-exist with the WagonR which has done well.

MSIL claims to have sold around 1.3 million units of WagonR since its launch in December 1999.

Speaking at the launch, Kenichi Ayukawa, Managing Director & CEO, MSIL, said, “With Stingray, we carry forward our focus to make our bestsellers even more attractive. The aggressively designed Stingray reinforces the fact that compact cars high on utility and reliability can also be premium and stylish.

For the young customers who aspire for a bold and aggressively styled car, the Stingray will be a delightful choice.”

At a time when rivals are cre-

ating miracles with the EcoSport, Amaze and Duster, MSIL seems content with ‘the 9th product in its compact car portfolio’.

StingRay doesn’t evoke excitement in terms of price or look.

The vehicle’s design appears well-grown up and a merely bulky version of WagonR with some additional features thrown in.

Very little has changed in terms of the engine and engineering aspects, and the modifications are confined to the interiors and the exterior that gives a loud look especially at the front bumper grill.

MSIL has not bothered to challenge its traditional competitive pricing prowess with the StingRay. The vehicle is available in three variants with the basic model LXi for Rs 4,09,999, VXi for Rs 4,37,999 and top model VXI (O) Rs 4,66,99 (ex-showroom Delhi).

The prices are introductory.

StingRay is costlier by Rs 20,000 than the WagonR while being targeted at young customers. MSIL top management admitted that a falling rupee applied pressure

Straying from the script Car buyers are not swayed by the marketing spiel of dealers anymore, although they do rely on them for understanding. Simultaneously, they will also look up the car online and prefer suggestions.

D

ealers are expected to create a seamless transition between digital home and digital dealership and provide a complete, digital retail experience. Customers are increasingly spending less time in purchasing a vehicle. Moreover, dealers get fewer opportunities for face-toface interaction and OEMs must control the increasing complex-

ity of the new channel mix. This was a part of the takeaways that emerged from the Capgemini report, Cars Online 2012/2013, which focused on digital consumer behavior during the interest phase, the buying phase and ow nership/re-purchase phase. The survey was conducted across eight countries. However, most of the learnings from this report are based on patterns

noticed in the Indian market.

The increasing use of web is also aiding in supporting the purchase decision for those customers planning to buy a car within a year. There is a general increase in demand for user-generated content. About 72 percent of Indians surveyed expect high quality and fast responses to their requests from dealers and manufacturers or they will look elsewhere.

Kenichi Ayukawa, MD & CEO, MSIL with Mayank Pareek, COO Marketing & Sales at the unveiling of Stingray

on the pricing, but declined to accept that it’s passing on the burden to the customer.

The launch appears to be a strategy to create some excitement what with the festive season nearing. “Looking at the current macro-economic condition, I think the upcoming festive season will boost sales but not as strong as last year,” said Mayank Pareek, COO, (Marketing & Sales), MSIL. The StingRay is powered by a 998cc three-cylinder K-series engine. The K-10 engine on the Stingray delivers a power of 68PS @6200rpm and a high torque of 90Nm @3500 rpm. It will return a fuel efficiency of 20.51 kmpl of petrol (Certified as per rule 115 of CMVR1989). The car will soon

have CNG variants in line with the old WagonR. The car hardly has little potential to lure customers of any other manufacturer’s cars. However, it could take in some of the WagonR customers who will shuttle between the two models. With the increase in diesel prices, the price gap between petrol and diesel cars have narrowed and with it the demand for petrol engine cars. The company did not confirm a diesel variant for StingRay any time soon.

“The industry average is about 54:46 between diesel and petrol now. In 2-3 quarters we can expect it to be 50:50,” Pareek added. In July, MSIL posted 10.88 percent increase in domestic passenger car sales at 63,040 units.

In terms of service, while there’s a general satisfaction with the service portfolio of dealers and OEMs among customers thus leading to loyalty, customers would prefer if they suitably altered the design of service contracts that would ensure their future visits to the dealer. It’s generally well known that customers look askance when dealers turn a deaf ear to their service requests –sales or after-sales. Customers prefer that service be offered as a complete package. According to the survey, though satisfaction with sales and after-sales services has risen in 2012, last year’s results show that customer loyalty is volatile. Dealers also need to develop modular service contracts for different regions.

The streamlined digital experience also has implications for OEMs. Manufacturers would do

well to enable dealers to engage in the digital consumer purchase experience by ensuring the below mentioned points: Ensure integration of online and off line consumer touch points (web + dealer); Adapt new digital technologies in dealers’ showrooms; Align showroom and web experience; Enable the dealer to take full advantage of limited opportunities to engage with consumers; Incorporate user-generated content on own web pages, thereby enabling control and management of content; Focus on quality, not on quantity, when implementing features; and make sure to be leading clearly and intuitively through purchasing process (incl. interest phase) on your website.

Contd. on Pg 12

EDITORIAL Require that extra boost

T

here is little we can say that’s confidence inspiring except for - maybe a year later things will be different.

And it’s not just us. Almost all quarters of the CV industry have resigned to the fact that the slump will continue at least till the first half of next year and it isn’t hard to realise that it coincides with the general elections. Industry as a whole has borne the brunt of shoddy governance. That has to change. If India has to continue to bear the image of a fast developing economy, a part of the role will have to be played by conducive conditions created for business.

For two years, the CV industry has been waiting and watching and this has cost a de-growth of almost 50 percent. Despite that there is hope for a turnaround soon. What manufacturers have learned is to become lean for the mean times so when there is a reversal in fortunes, the benefits are higher. At such times, it is encouraging to see a few who are growing their portfolio of products as you will read in the following pages.

Another positive is that everyone has looked long and hard at their business in the past two years and come up with strategies and solutions for a turnaround. So if you see a change in market conditions next year, which we hope we do, expect a highly

competitive and well oiled auto sector trying to outrun the pace at which the country is growing. That means infrastructure has to pick up pace soon or a positively imploding sector could create chaotic conditions for the country.

It’s all plans and less action for now. That will change too. We always expect the months before the Auto Expo to be a buzz of activity albeit behind closed doors. We are working hard to unravel these plans. Watch this space.

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QUOTABLE QUOTES Anna Schneider, Vice President- VW Group of America on incentivising usage of diesel in the US

We’re not feeling the love. Putting these vehicles on the road should be incentivized and not penalized, and that’s our goal.

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CONTENTS 16

WHAT’S INSIDE

Of tippers and trucks

08

TSI Group is looking to focus on higher capacity utilisation, renew focus on exports.

Locally made fourth-gen Terrano to hit roads

10

The Terrano marks Nissan’s foray into the lucrative compact SUV segment in India and will be offered at a special introductory price of sub-Rs 10 lakh.

Bumpy ride ahead

16

The fall in truck sales is a reflection of the economic slowdown, SCV sales recovery is expected in coming months.

18

“We aren’t here for the short term“

18

Interview with Nalin Mehta, MD and CEO of Mahindra Trucks and Buses Ltd., following the buyout of Navistar.

Heavy metal

20

Component maker Varroc’s strategy for the CV segment.

The situation at hand

22

The current gloomy situation of the CV and automobile industry yet holds a silver lining.

Industry News

32

A look at what’s happening in the auto industry: launches, mergers and financial reports.

24

THE OTHER SIDE

46

Blog: Two approaches to sourcing auto parts

38

Views on the auto industry from the internet.

Global Watch

41

Auto industry news from around the world.

Ford Mustang is off to the Races with Eaton Supercharger

42

The lightweight aluminum-block engine with the next-generation Eaton supercharger helps the 2013 Shelby GT500 generate 662 horsepower and 631 pound-feet of torque.

Kithur Mohamed, MD, Knorr-Bremse Systems

An IIT alumnus of B. Tech and M.S., Kithur has over 33 years’ professional cross-functional experience.

Auto Monitor

8

26 AUGUST 2013

NEWS

Of tippers and trucks TSI Group to focus on higher capacity utilisation, renew focus on exports.

Abhishek Parekh Mumbai

P

une-based TSI Group is planning to leverage its acquisition of Chennai-based Automotive Coaches and Components Ltd (ACCL) to enlarge its customer base in Southern India as well as deepen presence in defence segment. ACCL sells tippers and special application bodies under the brand name ACCL and PL Haulwel.

“Our priority is to fully utilise the assets of ACCL and also enlarge its ground presence as a solution provider among truck and tipper operators through an elaborate retail network.

Additionally, we would be able to better service the needs of Southern OEMs like Ashok Leyland and Bharat Benz through a facility that is located close to them and provides them with logistical cost advantage,” said Anand Singh, Director, Transport Solutions India (TSI). He added that the acquisition of ACCL would enable both companies to

tap opportunities in the defence sector in a co-ordinated manner as well as ensure timely deliveries to customers across most markets or clusters.

The immediate priority is to achieve higher capacity utilisation at facilities in Chennai and Puducherry as both facilities are underutilised as well as develop newer customers, according to Singh. There is no immediate plan for capital expenditure or discontinue with existing brands of ACCL. TSI acquired ACCL from Jamshedpurbased Hardrock Fabrication Pvt Ltd in March this year even as the commercial vehicle sector started its plunge with month on month reduction in sales across vehicle segments. ACCL was promoted by Ashok Leyland (ALL) as an exclusive supplier of tipper and special application bodies and has two facilities located in Chennai and Puducherry in Tamil Nadu.

“The performance of the company fell significantly as the new owners were unable to capitalise on the advantages of location as well as technology to the maximum extent. It did not help

that the market environment was not conducive either,” said a former senior ACCL official on condition of anonymity.

With customer preference for fullybuilt solutions that can be delivered within a short timeframe, TSI Group is looking to expand the product range at ACCL as well as tap additional Southbased customers apart from ALL. It is also looking to offer newer products and customised offerings with added cost advantage in terms of lower logistical cost.

TSI was established in 2006 in Pune.

It manufactures tankers, trailers and tippers, curtainsiders and bulkers on vehicle chassis manufactured by most of the leading commercial manufacturers like Tata Motors, MAN, AMW, Hino and Mahindra International at its facility in Chakan near Pune. It offers several custom made products and solutions including flat beds, low beds, tippers, cement bulkers, grain silos, steel and stainless steel tankers.

The group’s activities comprise three joint ventures and three wholly owned

business units. It has a JV with France’s Lohr Industries for manufacturing car and truck carriers and defence logistics equipments. It also has a JV with Groeneveld Group from Holland for development and manufacturing automated maintenance, centralised lubrication and active safety. The Group’s third JV with Germany’s Mosolf Group focuses on logistics operations globally. The Group has operations in India, the Middle East, South East Asia, Northern and Central Africa. It notched up a turnover of around Rs 205 crore last fiscal.

Audi Q3 S Edition hits Indian roads

A

udi, the German luxury car manufacturer, today introduced the Audi Q3 S Edition – a sporty version of its SUV. Creating a new market sub-segment, the S Edition is priced at INR 24,99,000 (ex-showroom New Delhi) and will be available at all Audi dealerships across India from end of August.

“The Audi Q3 is not only the most awarded luxury 5UV in its segment, but also the most successful. We are the market leaders in the luxury SUV segment and the Audi Q3 further consolidated that position for us. Our customer feedback revealed a growing inclination of our younger customers towards a more engaging drive. The Audi Q3 S Edition is our answer to this ever increasing demand for luxury mobility with the thrill of self-controlled driving. We are confident that the Audi Q3 S Edition, will be yet another successful addition to our success story in India,” said Michael Perschke, Head, Audi India.

The Audi Q3 S Edition is our answer to this ever increasing demand for luxury mobility with the thrill of self-controlled driving.

The Audi Q3 S Edition features the 2.0 TDI four-cylinder engine that combines direct injection with turbo charging, and delivers a fuel efficiency of 17.3 2 kmpl. Audi combines this engine with a front-wheel drive, which works with a hydraulic multi-plate clutch. It features a six-speed manual transmission.

Auto Monitor

26 AUGUST 2013

NEWS

10

Nissan launches its first Compact SUV The Terrano marks Nissan’s foray into the lucrative compact SUV segment in India and benefits from the popularity enjoyed by current favourites Duster and EcoSport.

Our Bureau Mumbai

N

issan has fina lly unveiled its compact SUV a few months after it released the digital sketches of the Terrano.

At the unveiling the company announced that pre-bookings for the Terrano will commence from September 1 at select deal-

erships across the country.

Initially the compact SUV will be offered at a special introductory price of sub-Rs 10 lakh.

The strategy is to cash in on buyers during the festival season which witnesses a sales peak.

After the initial price offer, the Terrano will cost around Rs 50,000 more than the similar Duster variant. The deliveries of the vehicle are slated to start from October

onwards and Nissan is positioning it as a premium offering. The higher price also avoids a direct price war between the two badgeengineered vehicles. The Terrano brand was first launched in 1986.

Nissan claims that the Terrano has been locally developed for the Indian market. Even the entire design process was done in-house by the company’s designers. This will be the Japanese auto major’s fourth vehicle in the Indian market and will be manufactured at its Oragadam plant in Tamil Nadu.

Nissan ex pec t s t he Terrano to play an instrumental role in increasing sales volume in the Indian market. It expects the compact SUV segment to grow by around 30 percent till 2016.

The design The front grille and headlamps easily identifies the Terrano as a Nissan product. The chrome finish grill and

four-pod design headlamps along with the angled strut grille are a testament to Nissan’s V-Motion design signature. The bonnet features two lines which blend into the grille. All body panels have been re-designed except the roof and rear quarter glass that it shares with the Duster.

The Terrano’s exterior design is inspired from the design of its existing SUV line-up.

The blacked out B and C pillars along with 16-inch chrome coated and machined alloy wheels arm this compact SUV with an attractive side profile. The rear gets wide-spaced tail lamps with horizontal white graphic detailing that creates a distinct identity for the Terrano. Visually this vehicle looks appealing and those who aren’t aware about badge-engineering will not believe the Terrano is based on the Duster at first glance.

The interiors reveal that Nissan has taken effort towards positioning this as a premium compact SUV. The dashboard design is different and gets rectangular AC vents on the side and chrome surrounds for the centre AC vents.

There is also a new storage bay above the central AC vents. Apart from the wood trim on the inner door handles the cabin upholstery is offered in light-coloured beige.

It continues to share some bits with the Duster like the controls

for the ORVM’s which continue to be located underneath the handbrake.

After unveiling their new offering Kenichiro Yomura, President India Operations, Nissan Motor India Private Limited, said, “The Terrano marks our entry into the compact SUV segment, which is one of the fastest growing segments in India today. It follows the same design language as our Pathfinder and Patrol SUV’s.”

“The buzz about Terrano has already got consumers excited.

Terrano is set to venture into a segment of its own -- that of a premium compact SUV with sedan like comfort at an affordable price and best-in-class fuel efficiency. We are confident that this new vehicle from Nissan will meet consumer aspirations and set new benchmarks in India’s SUV segment,” said Nitish Tipnis, Director Sales and Marketing, Hover Automotive India.

Nissan officials are confident that the Terrano and Duster will not end up cannibalizing each other’s sales as the compact SUV market in India is largely untapped. Despite the overall automobile industry facing a slowdown, SIAM statistics show that sales of compact SUV’s are still not hit as badly as vehicles in other segments.

Auto Monitor

NEWS

12

26 AUGUST 2013

Straying from the script Contd. from Pg 1

Called to a meeting Over the last years, consumers have rediscovered dealers as a fundamental part of their research process besides their family and friends. Since consumers have not finalized their purchase decision even two months before the purchase, and this gives dealers ample opportunity to persuade the consumer.

Dealers have little time to influence the purchase decision and have to create a decisive difference in order to beat their competitors. In order to create a decisive difference, the showroom needs to be integrated in the digitalized research process of consumers and must provide a digital experience.

Especially in India, in order to create a decisive difference, the showroom needs to be integrated in the digitalized research process of consumers that will allow them a digital experience. There are some trends here. These range from Virtual test drive stations to interactive touch screens to data transfer to mobile device to 3D virtual vehicle configurator to Wi-Fi hotspot, among others.

For customers although there are several attractions from where they could garner information about the pur-

chase they are planning. While social media plays an important role, official and public sites like manufacturer and dealer websites remain the primary online source for most consumers. The enlightened consumer today is also likely to look for a particular car and study it in-depth before buying or looking at any other car. The time that the OEM or dealer takes to respond also plays a role that the consumer holds in regard.

The importance and influence of user-generated content is especially high in developing markets such as India and has further increased since 2010. Thus it is crucial for OEMs and dealers operating in the Indian market to integrate a consistent social media strategy in the overall CRM concept and to consider proactive analysis and management of user-generated content. In India alone, there has been an increase of 5 percent to 82 percent of users who will purchase based on internet comments.

Actual buy In the purchase phase, a willingness to purchase vehicles online has stabilized on a high level (52 percent). About 51 percent could imagine buying a car

directly from manufacturer instead of dealer. Expectations still focus on price discount (42 percent) while main obstacle is missing test drive (38 percent).

In terms of continuing demand for alternative mobility solutions, demand is significantly higher in India (70 percent) than in other developing markets (57 percent). Flexibility (28 percent) and availability (21 percent) are main driv-

ers for adaption of alternative mobility solutions.

There continues to be a strong but decreasing enthusiasm for e-vehicles. Almost 60 percent of customers expect full e-vehicles to become a viable option within two years, while some customers prefer other alternatives, such as alternative fuel (24 percent) or hybrid vehicles (17 percent).

Some reasons for and against online purchase of vehicles are because almost half of all customers state an anticipated price discount as the key reason for purchasing vehicles online (2011 India: 35 percent). Others say the major reasons for not buying a car through the internet are the missing opportunity to test-drive the vehicle and the inability to see the vehicle from the in- and outside, including videos and pictures from the engine. What OEMs need to do is find a way to generate the ‘feel’ of all aspects of the purchasing experience.

In terms of green vehicles, Indian customers are more likely to consider buying a “green vehicle” than customers in other developing markets and in mature markets. Reducing costs through fuel economy is the most prominent reason for purchasing a green vehicle—but the high purchasing costs feature as the strongest argument against it. In comparison to other developing markets Indian customers are still very optimistic about the future of green vehicles, 59 percent of Indian customers expect full electric vehicles to become a feasible buying option within the next two years (other developing markets: 36 percent).

During the ownership/re-purchase phase, there is a continuing willingness to purchase parts and accessories online say 59 percent of customers (25 percent in 2011). Indian customers choose manufacturer websites for after sales products because of expected price discounts.

Customers attach high importance to service contracts for their loyalty. Brand and dealer loyalty are on a high level in India and have increased moderately. Contract design influences the purchasing decision of customers (India: 87 percent) and is a critical success factor for customer loyalty.

In terms of the market potential for Connected Car services, customers seek enhanced safety and an improved driving experience and a high willingness to share data. OEMs, on their part, need to work out certain modalities. They need to revise their strategy for online parts and accessories shops by becoming a serious player in online sales aftermarket and make of current open market, and also consider multi-channel sales systems that integrate dealer organization and independent partners.

In terms of a comparison between online sales of vehicles, parts and accessories, customers are more likely to buy accessories and parts online since the purchasing barriers for vehicles (e.g. ability to test drive, investment) are far higher.

Main reasons for purchasing online are anticipated price discounts, ease of transaction and availability of products. But the questions that remain are is if and how OEMs should involve dealers in online sales channel.

In terms of service locations, dealers have increased their dominance from 56 percent in 2010 to 61 percent in 2012 in India. Multi-brand dealer and full-service stations come next in line as popular locations for vehicle servicing, while specialty service shops (2010: 6 percent) and other options, such as self-service (2010: 3 percent), have decreased in importance during the last two years.

Auto Monitor

NEWS

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26 AUGUST 2013

RR to open five dealerships in India Our Bureau New Delhi

I

t’s not gloom but boom for super-luxur y car brand Rolls Royce which sees India to be its largest market among all emerging markets.

The company recently launched its third product in the country, Wraith, at Rs 4.6 crore. Over the next three months, the company will showcase the new car at various locations across India.

Rolls Royce also plans to set up five more dealerships across India by the end of this year.

This will make India to have the highest number of dealerships in any countries in South East Asia.

This is the seventh model in the Rolls Royce range.

The company sells other two models Ghost and Phantom for Rs 3.6 crore and Rs 6.1 crore respectively. Delhi will celebrate the start and finish of Wraith’s tour across India. Rolls-Royce’s latest model will be the centrepiece of various events that will be held for customers and media in cities including Mumbai, Chandigarh and Hyderabad.

“Today we are proud to reveal the most dynamic and powerful Rolls-Royce ever built,” commented Herfried Hasenoehrl, General Manager for Emerging Markets - Asia, Rolls-Royce Motor Cars. “Rolls-Royce has enjoyed a great and lengthy history in India, and we’re happy to greet our customers here with this exceptional new model.

Wraith offers luxury, perfor-

mance and refinement. All with the Rolls-Royce quality and craftsmanship expected of its pinnacle cars.”

The India story Looking at the growth in sales for such customised vehicles, the company will also expand its dealerships network by adding one each in Ahmedabad (by end of this month) and Chandigarh (in October), he added.

Wraith boasts of a twin-turbo V12 engine mated to an 8-speed automatic ZF transmission. It produces 624 bhp/465 kW and 800 Nm of torque from only 1,500 rpm, with a 0-100 km/h sprint achieved in 4.6 seconds.

Rolls Royce sold 3,575 cars globally last year. It has sold 250 cars in India since 2005.

Herfried Hasenoehrl, General Manager for Emerging Markets - Asia, Rolls-Royce Motor Cars.

MX150™ Interconnects

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Commercial Vehicles

Auto Monitor

16

Special

26 AUGUST

ride ͳΦΞΡΪ͑​͑​͑​͑​͑ΒΙΖΒΕ The fall in sales of commercial vehicles is a reflection of how the economy is faring.

And considering the slump in the market, the situation is grim. Currently, while GDP growth slowdown has impacted the CV sector, SCV sales recovery is expected in coming months Abhishek Parekh reports.

O

rderly block plant closures and rationalisation of work force point towards controlled and well calibrated handling of the ensuing downturn in truck sales. The anticipated downturn appeared to be a long drawn one with industry players not willing to hazard a guess on any recovery signals at this point in time. Moreover, not only medium and heavy duty trucks but even light commercial vehicles too appeared to be feeling the heat of the slowdown.

Heavy truck sales touched a record low last fiscal. Total industry volume dropped to around 261,505 units last fiscal as compared to 348,701 units notched up in the previous year, a drop of around 25 percent.

Within the heavy duty commercial vehicle segment, overall medium and heavy truck sales fell by around 27 percent to 215,180 units compared to 294,909 units registered in the previous year, according to industry estimates and presentations made to analysts by a vehicle manufacturer.

Total sales in 4X2 Haulage segment fell by 15 percent to 26,884 units as compared to 31,745 units notched up in the previous fiscal. Tipper sales fell by around 28 percent to 45,375 units compared to 62,762 units in the previous year. Heavy duty tractor-trailor sales fell by 33 percent to touch 18,593 units compared to 27,626 units registered in the previous fiscal.

Sales in the passenger transportation segment have also softened, though to a lesser extent. Overall bus sales fell by six percent to 46,325 units last fiscal as

compared to 49,240 units in the previous fiscal. Bus sales to private operators fell by around nine percent while industry sales to state transport undertakings fell by around 24 percent. The mini bus segment notched up marginal gains last fiscal due to continued buoyancy in sales and greater emphasis on safer school buses, according to industry sources.

“A weak macroeconomic environment has affected overall demand for CVs and passenger vehicles. Competitive pressures and lower net realisation affected our margins and performance significantly in the last quarter (June quarter),” said C Ramkrishna, Chief Financial Officer, Tata Motors in his address to analyst and reporters after the announcement of the June quarter results.

The company has been proactively undertaking plant shutdowns over the last couple of months to avoid inventory pile ups in the supply and delivery chain. It took an 11 day shutdown to carry out maintenance of equipments at its Jamshedpur plant in March.

“It’s better (block closure at any auto manufacturing facility) from a company’s as well as employee perspective to opt for block closure as such approach not only saves cost but can also be utilised for minor and major maintenance related work in the facility. Employees too can plan and take a forced holiday,” said Dr Pawan Goenka, President Automotive and Farm Equipment Sectors, M&M. Chennai-based Ashok Leyland has reportedly laid off

around 1,300 temporary workers and effected salary cuts across the board to rationalise costs. Its debt burden has soared to around Rs 5,500 crore in the June quarter from Rs 4,300 crore at the end of the March quarter and it reported a net loss for the last reported quarter at around Rs 141.25 crore.

The company has been looking to diversify its revenue steam beyond its core business - medium and heavy commercial vehicles - to enter areas such as engines, gensets and critical aggregates like transmission and defence and light commercial vehicles.

The Dost, which was launched in 2011, sold around 35,000 units in the first year of the business alone. The company claims that Dost now has around 19 percent market share in its segment. Four more products are in the pipeline and their launch is expected to boost the company’s share in the LCV (Light Commercial Vehicle) /SCV (Small Commercial Vehicle) segment further. The company recently launched a new multi purpose vehicle ‘Stile’ and is gearing up for a pan-India launch of Dost soon. The vehicle has been launched in only 11 states for lack of production capacity. The company is evaluating on setting up a greenfield facility near Chennai, for Dost’s production.

Slow moving giants Slowing industrial growth and weakening investment sentiment across sectors appears to have negatively impacted CV demand since the second half of 201112. While in 2011-12, the growth in the domestic CV industry slowed down to 18.2 percent compared to the previous year, the industry volume growth entered into the negative territory in 2012-13 as macro-economic environment continued to remain weak which coupled with high-base led to contraction of two percent in new CV sales, according to a report from rating agency ICRA. While in 2012-13, segment-wise performance was characterised by a wide dispersion in growth rates with the LCV segment witnessing a growth of 14 percent and M&HCVs declining by a sharp 23.2 percent, the current year has begun with broad based slowdown. In the first quarter 2013-14, LCV sales declined by 3.9 percent on a Y-o-Y basis largely led by slowdown creeping into the SCV segment, which has been a bellwether for the industry over the

past few years.

The Medium & Heavy Commercial Vehicle segment continues to bear the brunt of slowing industrial activity, weak investment sentiment and the impact of significant fleet capacity addition over the past three years. Within the M&HCV segment, the demand for the higher tonnage category of trucks such as tippers, tractor trailers and multi-axle vehicles (MAVs) was the most impacted in 2012-13 and it continues to reflect similar trend in the first quarter 2013-14.

Industry players point out that there no signs of revival yet with weak visibility on cargo availability being the key factor.

From a transporter’s viability standpoint, the current CV cycle has been characterised by reduced cargo volumes, stiff competition owing to surplus capacities (M&HCV sales doubled from lows of 2008-09, bringing down the average age of M&HCV population to a ten-year low) and rising operating costs, especially in the wake of the recent hike in diesel prices.

Analyst and industry players point out that although the freight rates have inched upwards in recent weeks following hike in diesel prices, the extent of rise in freight rates has not been adequate as it continues to be influenced by demand-supply dynamics in each market.

Additionally, high level of discounts, which have been steadily rising and now covering even LCVs have also not been able to stimulate demand. Over the past two to three quarters, the financing environment of CV industry has also started showing signs of weakness, largely reflected by the rise in delinquency levels.

The only silver lining so far has been that credit availability continues to remain stable. “A major difference between the last slowdown seen in 2008 and the current slowdown is that availability of liquidity is stable at this point of time as opposed to tight or absence of liquidity in 2008,” said Dr Goenka after M&M’s June quarter result announcement.

A slow recovery process The fiscal 2012-13 was marked by a market share loss for industry leader, Tata Motors, especially in the M&HCV segment as some of the other OEMs have managed to offset the impact of slowdown to an

Contd. on Pg 23

Commercial Vehicles Special

Auto Monitor

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26 AUGUST

“We aren’t here for the short term” In Mahindra’s first interaction with Auto Monitor post the buyout of Navistar, Nalin Mehta, MD and CEO of Mahindra Trucks and Buses Limited (MTBL) spoke to Anand Mohan on its plans of entering new segments, the equation with Navistar and MTBL biggest trump card, Mahindra’s well established network that will help the trucking business benefit over its competitors.

You have given yourself three years to turn the business around and enter the fast growing ICV and MCV space. How are plans shaping up?

The three year timeframe is a little played out by the media. What we are actually saying is that we are committed to the business and we are not here for the short term. We also want to enter the ICV and MCV segment and have already started feasibility studies to increase the range in these segments. As the environment improves, we will invest over Rs 300 crore in this business.

What is the equation with Navistar?

Where is their involvement post the buyout?

Most of the trucks are built by components sourced in India. The ownership of all the IPs was with Mahindra Navistar.

These IPs now rest with us. All new product development will not require any involvement from Navistar. We have complete capability to develop ICVs and MCVs with our pool of highly talented engineers.

In addition we can bank on Mahindra Research Valley for further support. In terms of engines we are using Navistar

designs and for that we have a perpetual technology assistance agreement with Navistar. As long as we use these engines to make trucks under our own brand, we can do anything with them.

When the BSIV emission norms are enforced, will Navistar have to work on the engines to qualify for these norms?

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You have mentioned before that you will have a partial freedom for exports. What does that exactly mean?

If we want to enter the Americas, we will have to do it with Navistar. Rest of the world is open to us to enter independently or in any way we wish.

Since you are finding a foothold in the Indian market, would it be premature to think about full-fledged exports?

You are right. But there are a few markets that we are already looking at like South Africa for example where we are testing our products.

Will the 49 tonne tractor-trailer be one of the first product with which you will enter South Africa?

What is the status on the 49-tonner?

No. The South African market is ideal for 16-25 tonne CVs. The 49-tonne tractor-trailer is under development with a launch slated for Q1 2014.

Any more products besides the 49-tonne tractortrailer that you plan to launch?

We are looking at launching a lot of variants in the next four months. Then, as we have mentioned, we will enter the ICV and MCV space. The MCV segment is diminishing but there isn’t too much investment required for the segment since it is incremental from an ICV and a LCV.

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You will require a new set of engines for the ICV and MCV segment. What are your plans?

For the LCV segment we are well covered and for the two new segments we are looking at engine partners but anything further cannot be mentioned as of now.

One advantage MTBL has is the Mahindra network. How do you plan to leverage it?

We actually have a unique advantage in this aspect. The car and UV business is well established and so is the tractor business. The network developed also deal in cars and tractors so they have the confidence in the brand and are part of our dealer family for a while. So in terms of training, they are well educated to deal with sales and service. As of now, any Mahindra truck on the golden quadrilateral has a turnaround time of 48 hours with service personnel reaching the truck within four hours.

Our multilingual 24x7 call centre is equipped with engineers so the driver can call and explain in his language the problem he is facing. This ensures accurate diagnosis which in turn saves time when the technician reaches the truck.

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How do you see the CV industry shaping up? The past couple of years have seen an almost 50 percent drop in sales...

It has. So acceptance of products from fairly new players is lesser as transporters don’t want to try new things. When the market improves, customers will be willing to look at alternatives. With us in the reckoning and a few more CV manufacturers in the country, established players have had to up their game and so the customer is the one who has benefitted the most. In spite of two downturns last five years, the CAGR has improved.

I believe in the India growth story and Mahindra will be a prominent player in the industry.

Commercial Vehicles

Auto Monitor

20

Special

26 AUGUST

Heavy metal Varroc’s first component for CVs is a crankshaft.

Anand Mohan Pune

W

hat do you do when you ace a subject? You pick up a new one! After graduation you do your masters, and if that isn’t enough you go on to do your Ph.D. If there is a Ph.D in the automotive business, the folks at Varroc group must be on the first bench.

The Varroc group till a few years ago was known as a two-wheeler supplier.

They then ventured into four-wheelers with the acquisition of Visteon and while their inorganic growth was on a steep learning curve, the company was organically chalking a path for the CV business. Earlier this year, Varroc set up a plant at Waluj where they already have a strong presence as a supplier to Bajaj.

The plant was the first of its kind for the company as it marked their foray into the commercial vehicle business with

the manufacture of crankshafts.

Muralidharan, President of the metallic division at Varroc, said, “We wanted to enter other segments and found a few niche areas in the CV industry, one of them powertrain components, especially crankshafts.” Elaborating, he said, “If you see the crankshaft business, there aren’t many players. Bharat Forge is the biggest and besides them there aren’t many. Secondly, since there are large gaps in infrastructure in India, we believe it is just a matter of time for the infrastructure industry to start growing and so the commercial vehicle industry will also start growing.”

The crankshaft is the heart of a powertrain. Not many players can come in because there is an investment barrier, reasons Muralidharan. Since it is a niche product, profits are higher and secondly the switching costs from one supplier to another are very high. He says, supplier longevity with an OEM is better making the business secure once established.

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“OEMs do not change crankshaft suppliers very often because the testing and establishment costs of vendors are long and it therefore acts as a barrier for any other vendor to enter the business.”

Crankshafts in particular aren’t easy to manufacture unless you have deep pockets and the capacity to wait it out for a few years till the product gives you good returns. Muralidharan says, “The product has a long gestation period – establishing a mass production facility, developing credibility as a reliable supplier to OEMs. Product testing and collaborative testing with customers is also required and thus the investment starts paying off after considerable time,

say 2.5 to 3 years.”

Another aspect that played in the Group’s favour was an investment incentive in the form of subsidy from the local government in Aurangabad to set up a plant.

Bharat Forge is the largest player in the crankshaft business. They are well established. But Varroc gets a foot in the door since the BSIV emission norms are coming up and that not only allows them to enter the current market but also the crop of new engines that are being developed to meet these norms. It creates a level playing field for anyone who is competent. And so says Muralidharan, “We are confident that if we have the quality, cost and delivery time met, then we can make good business sense out of the whole project.”

Varroc considered entering this business about four years ago. On the research the company did, he says, “There were different kind of studies we did in terms of the market – new entrants who are coming in, the emission norms are going to change, the population of the existing market, the growth potential of the transport industry in India and the capacity of our competitors.”

Back then, market conditions were different and so the predictions for growth and RoI would have been different. The slump in the market actually benefitted the company in the CV business. Muralidharan comments, “It was in a way good for us because if the demand had picked up and we weren’t ready, the competition would have taken the market. Because of the downturn, there is surplus capacity in the country. In this time we have established our processes and trial runs of our products are done.”

The company expects demand to pick up by June 2014 by when their products will be validated by OEMs. “Our products are under testing with prospective customers should be completed end of this year. By April 2014 we will be able to begin with a good level of mass production at the Waluj plant.”

The company has the capability to produce crankshafts for 4-cylinder and 6-cylinder engines in segments ranging from two tonnes to 11 tonne capacity. In terms of powertrains, Varroc is looking at something up to 140hp and in terms of crankshaft weight, between 30-80kgs.

This segment happens to be the one with the highest numbers.

Amit Dakshini, Chief Strategy Officer of the Varroc Group who is in charge of realising the group’s target to be a Rs 20,000 crore company by 2020 says that being present in every segment of the auto sector is important to realize these targets but the CV business will still play a smaller part compared to its other businesses. He comments, “It is an important area for the metallic division but in the overall scheme of things, it was always be a relatively small part compared to our two-wheeler business.”

After establishing itself as a credible crankshafts supplier, Varroc plans to become a systems supplier. In the automobile industry, car and twowheeler OEMs have developed a proper tiered approach and so system suppliers are quite common. But in CVs, it’s not as well structured.

Despite that, says Amit Dakshini, “we want to be ready when OEMs demand of such a role from CV suppliers.”

Varroc may be a fairly new entrant into the CV segment but it seems to have its strategy sorted out in terms of the type of component targeted and the scope of work in the business. Lessons learned in the auto business can be applied to every segment. It starts with crankshafts but who’s to say there aren’t other components in the pipeline. Large suppliers in the CV industry with lucrative businesses, be worried.

Commercial Vehicles

Auto Monitor

22

Special

26 AUGUST

The situation at hand Nabeel A. Khan New Delhi

T

he wheels of the Indian economy are stuck in a ditch.

The rupee’s unprecedented decline has added to the woes while double-digit inflation and rising interest rates are crushing demand. The fiscal deficit continues to widen despite government measures to cut import of goods such as gold.

The currency chaos in India and other emerging markets mainly began when the American Federal Reserve hinted at reducing its purchase of treasury bonds. Add to that a government mired in scandal, and dysfunctional in policy making, and you have the current depressed business sentiment in the country. It must be noted however that other emerging economies have been affected as well. India’s currency

fell 13 percent against the dollar this year, but the Brazilian real has plunged 15 percent in the same period. Current account gaps range from 3 percent in Brazil and 4.8 percent in India to 6.5 percent in South Africa. But the overall growth performance of India is not at par with these countries.

India’s foreign exchange reserves have barely grown in the last five years.

Compared to China which has over US$ 3 trillion dollars in reserves, India has just around US$280 billion, and that at a time when her external debt is a staggering $390 billion.

The transportation sector Transportation plays a vital role in business activity. The automotive industry in general and commercial vehicle (CVs) in particular are directly connected with the country’s economic health, and have been at the receiving end of the current economic decline.

The slow pace of infrastructure develop-

ment and stalled policy making around important sectors like mining has seriously affected the sales of medium and heavy duty commercial vehicles, among others.

The idea that India has a huge lack of skilled manpower is partially true, but there have also been lapses on the government’s part. For example, the industry has been seeking GST for some years now, but the government has ignored this important policy change.

The Society of Indian Automobile Manufacturers (SIAM) has been seeking the introduction of a vehicle scraping policy and stringent emission norms which would allow boost demand, but nothing has moved on that front.

The CV industry continued to slip into the negative over the last fiscal.

The negative trend continued in the first quarter of FY13-14. Cumulative domestic sales in April-July 2013-14 (FY14) of the CV industry (which includes LCV

and M&HCV) de-grew by 9 percent at 2,23,634 units compared to 2,48,225 units in the same period last fiscal, according to SIAM data. Market leaders in the CV segment, Tata Motors, Ashok Leyland and Volvo Eicher Commercial Vehicles have been forced to cut vehicle production, and almost all vehicle manufacturers are struggling with large inventories.

Let’s understand the ambient factors which created this situation in the automotive industry and specifically the CV sector. Industries such as mining and quarrying, which are directly connected with the CV industry contracted by 3.1 percent during the fourth quarter of last fiscal, as against a growth of 5.2 percent in output in the same period of 2011-12. The fall in the mining sector remained unchanged at 0.6 per cent in 2012-13 over the previous fiscal. Farm sector output expanded by just 1.4 per cent in JanuaryMarch this year, as against 2 per cent in the same quarter of 2011-12. These factors heavily impacted the automobile industry as a whole, and particularly the CV segment. Decline in CV sales was not due only to business cycles, but also to the changing economic situation in the country.

Sales in the M&HCV category have been in continuous decline since the beginning of the last financial year. While year-on-year volumes were down 11.6 percent in April 2012, the fall was 10.6 percent in May, 13.6 percent in June, 14.8 percent in July, 8.9 percent in August, 14.8 percent in September, 22.9 percent in October, 33.2 percent in November and 38.34 percent in December.

SIAM has been asking for a stimulus plan from the government for the CV segment for more than year but nothing has taken shape. The industry body requested the government to increase institutional buying from the municipality, paramilitary and other government bodies. The GDP growth of the country in the fourth quarter of the last fiscal touched an all-time low of 4.8 percent, while for the entire FY13 the GDP grew at 5 percent, which was the lowest in a decade. The manufacturing sector grew at 2.6 percent.

Meanwhile, the government has been passing the buck and blaming the international crisis, but we can hardly ignore the internal policies which led to the mess. The government had announced plans to build 20 km of roads everyday, which has not been achieved, while the quality of the roads being constructed is also not good enough.

But despite the pressure situation industry leaders remain optimistic about the long-term.

“Of course, we are going through a tough time and it is not possible to guess what kind of recovery we can have. But I am sure the long-term story is still positive” said Siddhartha Lal, Managing Director, VECV. The silver lining here is the huge and unexplored markets the country offers.

Minebea enters India

N

MB-Mi nebea Ind ia Pr ivate Limited, a wholly-owned subsidiary of Minebea Co., Ltd., a world-leading manufacturer of miniature and small-sized bearings and precision components, announced commencement of its operations in Gurgaon, India. The company will focus on strengthening Minebea’s business operations and expanding its sales activities for the new clients in Indian market, where government too is placing increased emphasis on manufacturing activity.

Until now, Minebea’s marketing activities had been carried out through its representative office in Chennai. However, going forward, upon the establishment of its subsidiary NMB- Minebea India, the company will start its full-fledged business operations.

NMB-Minebea India will be head quartered in Gurgaon, with branch offices in Chennai and Pune.

26 AUGUST 2013

Commercial Vehicles Special

ͳΦΞΡΪ͑ΣΚΕΖ͑ΒΙΖΒΕ͟​͟​͟ Contd. from Pg 23 extent with expanded dealership network and wider model offerings.

Volvo Eicher JV gained market share, on a lower base, on the back of increasing acceptability in the heavy-duty trucks segment, while Mahindra (erstwhile Mahindra Navistar) also performed better than the industry on low volumes.

Even as profitability pressures are unlikely to abate, product developmentled initiatives remain core investment plans for OEMs in the coming months.

With weak M&HCV sales and high levels of discounts being offered by OEMs, the profitability indicators of industry participants came under pressure in 2012-13.

As operating cash flows came under pressure, credit metrics of some OEMs also deteriorated over the prior year. Compared to the prior slowdown, the industry participants however managed their inventory levels in a much better fashion as reflected by only a marginal rise in working capital intensity during 2012-13, according to the ICRA report.

Having concluded capacity expansion plans over the past couple of years, OEMs are currently investing in developing new products, engine technologies and even pursuing diversification plans in other sectors. Most of the investments plans at present are not associated with capacity expansion. For some of the OEMs, the investment plans are sizeable and in view of weak cash flow generation would require funding support to maintain a stable credit profile.

With weak macro-economic indicators and currently stretched viability for fleet operators, M&HCV sales are expected to

remain weak in the near-term. The recovery prospects also appear to be gradual during the current down cycle given the surplus fleet capacity on ground which may put pressure on new CV sales even as freight availability improves.

Pick-up in cargo volumes and improvement in freight rates would be the key indicators to gauge signs of improvement, according to a report from CARE. M&HCV volumes are expected to decline by around five percent in 2013-14 and start witnessing growth from 2014-15 onwards on back of low-base and expectations of improvement in economic environment.

Analysts are of the opinion that GDP growth may gradually pick up by around 2013-14 fiscal compared to the previous year. The growth in GDP along with potential for further interest rate cuts would be positive for the CV industry. Additionally, revival in capex cycle and infrastructure development will be critical to sustain demand for CVs over the medium term.

The bus segment, which in general is not influenced by the environment could grow faster as it will start seeing benefits of the budgetary allocation towards Jawaharlal Nehru National Urban Renewal Mission (JNNURM) with plan to add 10,000 buses.

The proposed order will be spread over the next two years and contribute significantly to M&HCV bus sales in each of the next two years.

The demand for LCVs is likely to grow above industry average over the mediumterm as it would need to match the extent of capacity added by M&HCVs trucks over the past few years. The growth will be led

by SCVs, which are increasingly being

favoured over their three-wheeler counterparts and costlier LCVs on grounds of better power, manoeuvrability and cost economics. The replacement demand will also start contributing to the overall growth in LCVs. Assuming an average age for SCVs to be around seven years, many of the SCVs bought during 2005-06 period would get replaced with newer vehicles. The growth momentum in the LCVs is likely to remain strong over the medium term at around 11-13 percent. Factors like growing input costs for the M&HCV transport operators like increase in diesel prices, driver salaries and toll charges have also contributed to the negative sentiments. On the other hand, the load availability for the transport operator has come down owing to excess capacity in the system.

Some harsh realities As per ICRA’s estimates, operating cost for transport operators have gone up by 30 percent during the period over the last two to three years, while a corresponding increase in freight rates during this period is only around 12 percent. As a result, a high tonnage vehicle is finding it difficult to generate adequate cashflows for meeting the EMI payment on its own.

Consequently, the delinquency levels in the CV loan portfolio have been on an upward trend over one year. Within the M&HCVs, assets deployed in certain sectors like mining, cement, steel, infrastructure, auto and ancillaries have been

Auto

23

impacted more than others. Similarly, tippers and tractor trailers (largely deployed in mining related activities and as auto carriers respectively) have been impacted more than the other asset models.

ICRA’s analysis suggests that while the used or pre-owned CV segment is underperforming compared to the new CV segment, the increase in delinquency levels witnessed in the used CV segment is in line with that of the new CV segment or of a lesser degree for financiers. Also, considering the lending rates in the used CV segment (usually six – 12 percent higher than the new CV segment), risk-adjusted returns in the used CV segment has been far superior compared to the new vehicle segment over the past few years.

Most manufacturers are counting on a pick-up in economic activity and initiatives from the government’s side for any meaningful revival in the segment in coming months.

Commercial Vehicles

Auto Monitor

24

Special

26 AUGUST

Keep it turning Srivats Ram, Managing Director, Wheels India Ltd., talks about the company’s business, challenges, and recent foray into the lift axle market, in an interview with Pradeb Biswas.

How many manufacturing plants do you have and what is the combined annual production capacity?

There are six wheel manufacturing plants, two fabrication plants, one air suspension plant and three wheel and tyre assembly plants. The capacity across wheel types is for 15 million wheels per annum. The capacity on air suspension is for 18,000 kits per annum.

The capacity in fabrication is 12,000 tons per annum.

Any plans to expand this capacity further?

There is currently no immediate plan for capacity enhancement.

What does your product portfolio comprise of? Which product brings in the most revenues?

The wheel business generates 90% of the sales, with the balance being between air suspension and fabrication. The largest segment in the wheel business is the passenger car type wheel business which forms 30% of the total revenues.

Which OEMs do you supply your products to?

We supply to most of the major OEMs in the industry.

Can you tell us a bit about your TVSWILRIDE air suspension system? Do you offer it only to OEMs or is it available in the aftermarket as well?

TVS-WILRIDE is offered only for retro-fitted vehicles both to STCs and private operators. It is offered only in the aftermarket. The product is marketed as WIL to OEMs. How much does the aftermarket contribute to your revenue currently? Any plans to increase your share in the aftermarket?

The aftermarket currently contributes between two to three percent of our sales and has the potential to grow to five percent of our sales over the next three years.

We market the product under the WILGO brand.

What is the current state of your distribution network? What are your plans for strengthening it?

We currently distribute products through TVS distribution companies who have over 250 outlets. In addition to the outlets, we have also opened distribution warehouses in the 4 zones.

When did you begin exporting your products? How much are exports contributing to your revenue? Which are the countries you are exporting your products to?

Wheels India started exporting wheels from the seventies. Exports are approximately 18% of our turnover. Our exports are to Japan, Korea, USA, UK, Egypt, Europe, Brazil, Mexico, Argentina, South Africa, Indonesia and Thailand.

What are your manufacturing, design and product development capabilities?

The company has in-depth design, testing, product development and manufacturing capability in all industry segments for wheels and air suspension.

In fabrications, we have product development and manufacturing capability.

What is your strategy to counter the current cyclic downturn?

The company is spread across different segments - automotive, commercial vehicles, agricultural tractors, construction & mining equipment, thermal power equipment, wind power equipment, domestic and exports in all categories. This broad product range does to some extent reduce the negative growth in any one segment.

However, we are still exposed to general economic conditions. The company also has an active cost reduction review mechanism and works constantly at being competitive in all segments.

What are your priorities and challenges as a steel wheels manufacturer?

Managing cost at a time when there is little to no growth in volumes with inflationary conditions prevailing.

Can you tell us a bit about your technical pact with EGE Endustri of Turkey and the strategy to enter the lift axle market. How lucrative is the lift axle market for Wheels India?

The technology agreement with Ege Endustri of Turkey is essentially for lift axle related technology. We believe that this could grow to Rs 100 over 3-5 years and will complement our strong poistion as the leader in bus air suspension systems.

What is the current market share of Wheels India and revenue.

The company is currently the largest domestic supplier of steel wheels in the country in all segments of the industry. Our revenues in 2012-13 were Rs 1,927 crore.

26 AUGUST 2013

Commercial Vehicles Special

“The priority is to manage costs” What does your product portfolio comprise of?

At Rane TRW there are two divisions, one is called Steering Gear Division and the other is called Occupant Safety Division. In the steering division we make complete hydraulic steering systems for passenger cars, utility vehicles, small commercial vehicle and medium commercial vehicle range. In the occupant safety division we make seat belts and airbags for the passenger car, commercial vehicles and utility vehicle systems.

Which OEMs does Rane TRW Steering Systems supply its products to?

For the steering operations our main customers are Tata Motors Renault, Mahindra, Ford and Ashok Leyland. Our main customers for the occupant safety division are Mahindra, Tata, Ford, Renault and Eicher. We are the exclusive supplier of power steering for some of the major models launched in the last 18 months including Renault Duster, Ashok Leyland Dost, Tata Super Ace, Safari Storme and Mahindra Quanto.

How much has the slowdown impacted Rane TRW Steering Systems? What business strategy have you adopted to counter the current downturn?

As far as the market is concerned there is a significant slowdown across all segments including passenger vehicles, utility vehicles and commercial vehicles. This has definitely impacted us. The slowdown began last year and is still con-

tinuing. There has been a de-growth of around five-six percent and we expect it to continue. Initially we were expecting growth to start this year but the current market conditions suggest zero growth for this year too or even a fall. Right now ‘cost management’ is what we are focusing on mainly. While we are trying to increasing our exports to offset the situation, that won’t happen overnight or in, say, two months’ time. Cost cutting is what we are trying to achieve and we are taking certain initiatives to better manage our variable and fixed costs.

Your company currently has five plants in India. Any plans to increase production capacity?

As of now we already have a huge production capacity and the market prospects are really low. Our plants are not operating at maximum capacity. For passenger car steering our manufacturing capacity is almost close to 750,000 units and similarly we have huge production capabilities for commercial vehicle steering systems. But the capacity utilization right now is hardly 60 percent so there are no expansion plans for now.

Which countries do you export your products to? How much do exports contribute to your revenue?

Exports contribute around 18-19 percent of our revenue. The countries that we export to are in Europe and South America.

Last fiscal your company started manu-

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Rane TRW Steering Systems, a 50:50 joint venture between Chennaibased Rane Group and American company TRW Automotive, manufactures hydraulic streeing sytems, seat belts and airbags across its five plants in India. Its Steering Gear Division manufactures fully integrated hydraulic steering gears, hydraulic pumps, power rack and pinion, power steering fluid including plastic reservoir. The Occupant Safety Division manufactures safety seat belts and air bags. Pradeb Biswas finds out more about the company’s business plans from Harish Lakshman, Managing Director, Rane TRW Steering Systems Ltd. facturing airbags. How attractive is the market in terms of growth and revenue?

What is your strategy to increase market share?

For passenger cars, in most countries across the globe there is legislation making airbags compulsory. In India there is no legislation yet on airbags but seatbelt legislation exists for passenger cars and utility vehicles. It is inevitable that at some point in the future airbag legislation will happen for passenger cars and utility vehicles in India. As far as airbags in commercial vehicles are concerned, it is not legally mandated anywhere in the world. So we don’t think there is a possibility of airbags in CVs happening anytime soon. Owing to this lack of legislation the market right now is quite small. It is only 10-15 percent of the passenger and UV car market. The number of cars being sold with airbags is gradually increasing as consumers become more aware about them. Once legislation comes in this entire market will have airbags. As far as our strategy is concerned we are planning to bring in more localization to offer superior technology at a competitive cost to our customers. We are supplying airbags to Mahindra and will be starting supply to Ford shortly.

What are your priorities as the MD of Rane TRW Steering Systems?

With the current downturn in the market the priority is to manage costs. Apart from that I am working on long-term busi-

ness development opportunities so that once the upturn arrives we are able to get more business.

Gujarat is emerging as an auto hub and OEM’s and vendors are setting up plants there. Are you evaluating setting up a plant there?

Not in the immediate future, as we have the capacities at our existing plants.

But yes, once we run out of capacity and are considering future investments then Gujarat will be one of the options that we will consider.

ADVERTORIAL

“We take ownership in everything we do” Vinay Rajadhyaksha, Managing Director of Axalta Coating Systems (formerly DuPont Performance Coatings), talks about the company’s recent acquisition by the Carlyle Group, its product pipeline and future plans for India.

With the Carlyle group acquiring Axalta Coating Systems, how much of a business strategy shift can be expected for Axalta Coating Systems?

Our independence means that Axalta Coating Systems today is the only global company dedicated 100 percent to the development, manufacture and sale of liquid and powder coatings. Our singular focus will enable us to take our customers to the next level. Going forward we will enhance both the products and services that we can offer them. Streamlining our business means faster response to customer needs and an ability to bring innovative new products to market more quickly. Satisfying our customers is how we will be able to grow our business in Refinish, Industrial and Automotive plastic coatings segments.

What are your expectations from the Indian coatings market in the automobile sector? How does it compare with

other emerging markets like Brazil and China?

The Indian Coating market - especially the Refinish coating segment - has been growing in double digits and we expect our diverse portfolio of brands to retain its current customer base as well as attract new customers in the future. We expect the refinish market to shift to more environmentfriendly products both waterborne or low emission solvent based products in the future like Cromax Pro, Standohyd and Centari LE. Also, with limited capacities in A-class body-shops especially in metros, there is a growing focus on productivity improvements which has triggered demand for productivity improvement products like faster clears and technologies like Quick Repair systems. In the emerging markets like China, the car parks are five-six times higher than us and their new car sales are also growing very fast. They have good infrastructure and firm growth plans for next

five years in the automotive sector. Axalta just announced a $50 million investment to expand production in China to keep pace with the expansion of OEMs in the central and southern provinces. In Brazil, Axalta just celebrated its 50th year of doing business and the growth of that economy holds great opportunities for us looking ahead.

What are your growth plans and business development strategy going forward?

We are the market leaders in automotive refinish OEM body shops and also in the transportation industry like the bus segment in India. We’re confident we can maintain the leadership position in OEM body shops by introducing newer technology to help our customers improve productivity which in turn with help their businesses grow.

What is your product portfolio in the Indian market? Will your third generation waterborne systems which are environment-friendly be offered here?

Our product portfolio covers the entire range of requirements of the refinish market. We have well established brands like DuPont Refinish, Standox, Duxone,

and Lucite . We have recently introduced Nason brand in 2K PU products especially for non-OEM approved garages which is well received by the market. With regards to our waterborne system we have started with Standohyd brand in India and now the third generation Cromax Pro range is being evaluated by OEM’s in selective body shops and we expect to get the approvals soon.

What are your dealer/distribution network expansion plans for the replacement market?

We have a strong network of distributors and dealers in India; going forward the auto aftersales market is likely to expand in B&C class cities and hence we will be focusing more on penetrating these markets to service the new body shops.

In the refinish segment of the car market, Axalta claims to be the largest global supplier of paint to collision and body shops. How do you intend to retain the No. 1 slot?

We plan to introduce new products and technologies into the market to meet the market requirements. These products will be environment-friendly to meet global environmental demands. The new generation products will help our customers with better shade matching, improved productivity and faster service under the Axalta brand.

We will continue to adapt and improve our services to help our customers grow their business by improving productivity, processes, enhancing application skills with proper technical training etc.

In India, where are you plants’ production facilities located? Do you have a training centre?

We have a production base in Savli (Baroda, Gujarat) which has enough capacity to cater to the increase vehicle production demand in India for the next five years. We have our state-of-the-art training center in Gujarat for west customers, in Gurgaon for North and Bangalore for South. We are also in the process of starting new training centre in the east for eastern customers. We are also associated with training centers of some of the OEM companies in India.

How does Axalta offer value to its customers in comparison to competitors?

With Axalta, we take ownership in everything we do and we always put our customers first. Axalta offers best-in-class product offerings that are built on advanced technological requirements to improve productivity. Axalta also offers its customers reliable and robust support to drive efficiency and reduce waste reduction across the value chain on a regular basis. Every customer is unique and Axalta recognizes this by customizing its services based on customers’ requirements. We provide Training support to all our customers along with Key account management for all the big body shops. We also offer Quick Repair Services (QRS) for taking out faster turnaround time to meet the demand of our customers.

What are your recent innovations and resource allocation in terms of R&D? At Axalta we innovate with purpose and are driven to perform better every day. We have started a technology centre in Savli last year and our R&D facility is well equipped with all the latest equipment for development and testing of paints.

Our main focus will be to develop and design products to meet the requirement of local customers. In addition to this we have access to our global R&D centres in China, Europe and USA which helps us to service our global customers in India. We just announced a $5 million expansion at the Coatings Technology Center which is our principle R&D facility and located in the US. The facility will accelerate product development capabilities for both traditional and environment-friendly coatings. For more on this development, please see our press release at Axaltacoatingsystems.com

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Commercial Vehicles Special

Hi-tech testing

repository from multiple vehicle platforms is available to many OEM departments such as powertrain, diagnostics, network or calibration maximizing, etc.

Such data collection is very useful when planning for new vehicle launch in new markets.

Similarly, tier suppliers can test their prototype electronically controlled systems in new markets or vehicles example studying performance of AT/MT in India driving scenario.

What are the benefits for the CV segment?

One benefit we have seen is for CV manufacturers who need accurate driving scenario data under different conditions. The motivation is the huge cost associated with developing a vehicle which might or might not meet the end customer’s expectations of cost and efficiency.

A way to address some of these unknowns is to conduct studies

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Intrepid Control Systems India’s service business is highly automotive-oriented. The company recently introduced mobile technology into the world of vehicle testing with the neoVI PLASMA. Allowing the flexibility to be used in wireless mode and PC mode with VehicleSpy, the products have been developed after careful analysis of the performance of commercial vehicles and a driver’s report. Interview with Samir Bhagwat, MD, Intrepid. like driver’s operation of vehicle, vehicle and engine performance under different load scenarios such as up-hill or down-hill driving, and fuel economy studies, among other use cases. Such data is extremely useful for tuning and calibrating vehicle performance as per use case.

What exactly is Remote Wireless Engineering Data Acquisition?

How does it help test vehicle fleets?

Intrepid’s Remote Wireless Data Acquisition System allows data to be uploaded from vehicle engine control units (ECUs) connected to in-vehicle bus systems such as a controller area network (CAN) to a data server using wireless technologies. This data can be accessed by engineers right from their desks. This system comprises three components – data logger unit (neoVI Plasma or neoVI ION) placed inside the vehicle, server software and website (wirelessneovi.com) installed at OEMs’ servers and data logger configuration software (VehicleSpy).

Our customers benefits in many ways. They can collect key engineering data across many vehicle driving scenarios like test track, city driving, or highway driving, etc. This large data

Auto

When was the technology developed? How much did the R&D cost?

Intrepid developed this technology over three years at our US headquarters.

Please explain how the proprietary technology, CoreMini, can log all data simultaneously.

An interesting benefit of Intrepid’s CoreMini technology, which is part of all our data logger systems, is to be able to remotely configure the data logger system on the fly. This means when engineers decide to change what data is to be logged or a new trigger for automated upload of data, then they do not need to wait for the vehicle to come back nor do they need to be physically present in the vehicle. They can upload a new configuration and get the new data from the vehicle remotely.

CoreMini technology essentially runs our proprietary executable inside the remote data logger units allowing many functions to be executed directly in the hardware

resulting in highly accurate data logging. While our technology takes care of intricacies, for the end-user (engineer) it is as simple as a few clicks to configure the logger or extract data from the server in the format they need.

Many OEMs find it useful to log data from multiple vehicle bus systems like CAN and LIN or MOST simultaneously, so that they can study all the subsystems together for overall efficiency gains. Intrepid’s multi-network support allows data to be acquired from many buses simultaneously, or even analog/digital data from different vehicle sensors along with CAN network data.

How does this work in remote locations that have no wireless connection?

There are cases where there might not even be a 2G network.

Intrepid has addressed this situation at the design phase itself by providing a huge on-board memory on the data logger unit itself, and a very robust queued upload sub-system. Thus all pending upload events resume upload as soon the neoVI Plasma or neoVI ION ‘sees’ a wireless network available. So not even a single piece of data is lost.

At a time when fleet operators are unwilling to spend, how do you convince customers

about the benefits of the neoVI PLASMA/neoVI ION? The neoVI Plasma/ION system is targeted at OEM engineers in areas of vehicle validation, engine performance, test engineers in field testing, diagnostics engineers and other R&D teams.

Thus, the solutions are not meant for aftermarket fleet operators.

If one looks at the current scenario, engineering hours spent and cost of an instrumented test vehicle for performing even basic data acquisition, and compare it with Intrepid’s wireless data logging solution the benefits are tremendous. The highly accurate data our system has been able to provide very reliably and with almost no human intervention justifies the investment. We have been able to provide this system at a very reasonable cost.

The benefits that CV OEMs can derive by building a longterm database of vehicle on-road or off-road performance data can definitely help in launching the right products for new markets or improving the current vehicles.

Since it calls for specifically using Android, how about those using other platforms?

The use of the Android OS is not visible to the end users. So it does not matter to end-users as they only interact with a GUI on the PC to acquire the data.

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AUTONOMICS

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Stronger financial health enabling small component makers to tide through downturn

L Geoffrey D’cunha Manager, CRISIL Research

Ajay Srinivasan Director, CRISIL Research

arge auto component companies enjoy an edge over smaller counterparts due to their revenue diversity, technological prowess, easier access to capital and relatively stronger balance sheets. However, since the downturn in 2008-09, medium and smaller component manufacturers have also focused on strengthening their capital structure, by curbing capital expenditure and utilizing assets better. This relentless focus along with stronger cash flows (thanks mainly to buoyant growth in 2009-10 and 2010-11) has considerably improved the financial health of smaller companies. Consequently, they have become more resilient to economic downturns. We expect automobile sales to recover gradually during the second half of 2013-14, but if the slowdown persists, the financial wherewithal of smaller companies could be tested. In this article, CRISIL Research has analysed structural differences between component manufacturers of different sizes and trends in their financial risk profile to draw inferences on the road ahead.

Technology, diverse client base and easy access to funds make large players stand apart The Indian auto component industry comprises tier 1 players who supply complete component modules to vehicle manufacturers (OEMs); tier 2 players who cater to tier 1 players and tier 3 manufacturers, who supply sub-

Chart 1: Comparison across structural and financial parameters

components to tier 2 players. The scale of operations has a telling effect on the performance, profitability and financial risk profile of the three sets of players.

Of the above, large manufacturers are the strongest both in terms of profitability and financial risk profile. Strong relationships/collaborations with

OEMs, wide product offerings, diverse client base, large scale of operations, technologically

Contd. on Pg 30

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Stronger ďŹ nancial health...

Contd. from Pg 28 superior products enable stable and relatively higher EBITDA (earnings before interest, taxes, depreciation and amortisation) margins. Moreover, they are largely unaffected by the cyclicality in one vehicle segment or deviations in a single OEM’s performance. This enhances their ability to constantly invest in R&D and align their expansion plans along with those of automakers.

Medium-si zed ma nufacturers are not too farther than their larger counterparts in terms of EBITDA margin level.

Their technical competence is improving. However, a concentrated (OEM-led) client base and a limited product portfolio make them vulnerable to business cycles and weaken their credit proďŹ le. Despite having strong technological prowess, a relatively smaller capital base

restricts their ability to innovate and establish relationships with multiple OEMs.

High fixed costs stunt the cost structure of small players For small players, the story is exactly the opposite of large players. A diverse client, product portfolio and a signiďŹ cant presence in the aftermarket, has reduced the volatility in revenues for small component manufacturers. However, low technological competence limits their pricing power and inhibits their ability to develop strong relationships with OEMs. Furthermore, difďŹ culty in access to capital stunts the scale of operations and drives up cost of key ďŹ xed inputs like labour and power.

Consequently, EBITDA margins of smaller component

manufacturers are considerably lower. A diverse & fragmented client base and few ďŹ xed supply contracts push up selling & distribution costs, further weakening proďŹ tability. Their working capital requirements are also relatively higher because of weak bargaining power with OEMs and large component makers.

Table 1: Average cost structure across categories (2002-03 to 2011-12)

Gearing levels vary inversely with size, but difference has shrunk since 2008-09 The stark contrast in between the proďŹ tability of large and small players also implies that smaller players have a weaker debt servicing ability. Small players have traditionally had high gearing levels, as they are largely unable to meet funding requirements internally. The small players have used high ďŹ nancial leverage to prop up returns as they operate in lower margin segments. Large players have stronger capital structure and interest coverage ratios as they are able to ďŹ nance expansions through internal accruals,

Chart 2: Companies considered for the purpose of this study

rely on global parents and OEM partners for ďŹ nancial support.

Stronger cash flows and asset sweating has improved leverage levels since 2008-09‌ However, post the 2008-09 economic crisis, the debt servicing indicators of players across categories have improved markedly and also differences between the three sets of players have narrowed. Strong growth in the automobile industry during 2009-10 and 2010-11 and improved cash ows along with greater discipline (better production planning by OEMs, better utilisation of existing assets, and prudent planning of capex) has brought about this change. Consequently, the ability of smaller players to withstand a slowdown, as has been the case in the last couple of years, has improved signiďŹ cantly.

Medium, small players’ financial risk profile

improving; but structural risks remain Overall, though revenue growth prospects for players across the three sets remains similar, large players have a better standing due to their technological and operational strengths, higher and relatively stable margins and a stronger ďŹ nancial risk proďŹ le. The risk proďŹ le and capital structure of medium and small players has also improved, which has enabled them to withstand the current downturn.

We expect automobile sales to recover gradually during the second half of 2013-14, but if the slowdown persists, the ďŹ nancial wherewithal of some smaller companies could be tested.

(Please note that the views expressed here are those of CRISIL Research and not of CRISIL’s Ratings division. CRISIL Research operates independently of and does not have access to information obtained by CRISIL’s Ratings Division.)

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Note: The revenues of the companies in our set accounted for almost 40 per cent of the overall domestic industry revenues in 2011-12. The set of companies is common across 10 years (2002-03 to 2011-12).

Note: Cost structures in above table are for aggregates of each set.

OPMs stand for EBITDA margins

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26 AUGUST 2013

NEWS

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Michelin tyres to equip the Ferrari 458 Speciale

Tyre sizes for the new Ferrari 458 Speciale:

Castrol & Tata launch fuel saver additive

ichelin have announced that it has been Michelin Pilot Sport Cup 2 245/35 ZR 20 91 Y in the front selected as the exclusive worldwide suppli305/30 ZR 20 103 Y in the rear er of tyres for the new Ferrari 458 Speciale.

In developing the alliance between the new Michelin Pilot Sport Cup 2 tyre and the new Ferrari sports car, the tyre manufacturer and the carmaker pooled their cutting-edge engineering resources, wheel assembly expertise, passion for performance, measuring technology and the skills and analytical capabilities of their developers and test drivers.

The simultaneous co-development of the tyre and the car, through tests on both the simulator and the track, led to superior performance in three specific areas that were identified prior to the start of the project: faster lap time on dry asphalt, consistent performance lap after lap and optimal grip on wet roads.

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Ravi Pisharody (L) and Karl Slym of Tata Motors with Ravi Kripalani (R) of Castrol.

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astrol India Limited have launched the Castrol RX Super Max Fuel Saver, in association with Tata Motors. Castrol RX Super Max Fuel Saver, co-engineered by Castrol India Limited and Tata Motors Limited, is designed to increase the fuel efficiency of Tata trucks by 1.5 percent (over SAE 15W40 engine oil of similar performance credentials) and save substantial amounts of diesel as well as operating cost.

The Indian commercial vehicle industry is becoming more conscious of Total Cost of Ownership (TCO), which includes not just the capital cost but also the operating cost. Diesel constitutes just over 50 percent of the Total Cost of Ownership (TCO) in the Indian CV industry. The constant increase in diesel prices is a serious cause for concern for the automobile industry and the consumer. Castrol RX Super Max Fuel Saver claims to be able to save almost Rs 20,000 per annum (for a truck which travels about 100,000 km a year, given the current diesel price of Rs 58/litre).

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xpanding its integrated science capabilities at the DuPont Knowledge Center (DKC) in Hyderabad, India, DuPont has opened an Application Development Center focused on integrating advanced material science with other scientific disciplines for the automotive industry, enabling solutions for light-weighting, engine performance, comfort and safety. These capabilities also are relevant to other industries such as railways, electrical/electronic components, food processing, agriculture, irrigation, textiles and many more.

“The integration of scientific disciplines in advanced materials, such as high-performance polymers and elastomers, are critical to developing cost-effective and sustainable solutions to some of the big challenges that our company is focusing on, for example, reducing our dependence on fossil fuels,” said DuPont Performance Polymers President Diane H. Gulyas. “Materials are only part of the story. The application development process is how we work with customers to get ideas into the market cost-effectively. It is the engine of innovation for the polymers business and centres such as this new one in India help customers innovate and find more sustainable solutions in collaboration with DuPont scientists and engineers”.

The new Application Development Center at the DKC houses thermoplastic and elastomer processing and testing equipment and leverages existing analytic equipment shared with several DuPont science disciplines. It complements the manufacturing facilities in Savli, Gujarat, and the DuPont India Innovation Center in Pune. It expands their capabilities to support predictive engineering, including computer-aided engineering (CAE), 3D surface computer-aided design (CAD), mold-flow, warpage, structural, impact and NVH (noise, vibration, harshness) analysis. By connecting with DuPont scientists and engineers at key automotive-based laboratory sites in the United States and Europe, this new centre can build on the current predictive engineering power of CAE capabilities with speed-to-market excellence to advance the growing market in India.

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Minda Valeo wins Mahindra award

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inda Valeo Security Systems Pvt Ltd, Pune, has been awarded the ‘B’ level certificate under the MSES (Mahindra Supplier Evaluation Standard) on 29th July 2013 at Mahindra & Mahindra (M&M), Mumbai.

MSES is a stringent supplier evaluation model based on the Renault ASES global model. The evaluation criteria for this award include: 1. Quality Policy and Quality Assurance System, 2. Analysis of Quality concerns for current products, 3. Quality Assurance at Process Development Stage, 4. Quality Assurance at Pre-Production stage, 5. Quality Assurance at Production stage, 6. Sub Supplier Management.

Out of total 75 suppliers audited, only 16 qualified.

MVSSPL was ranked 5th overall. The MSES level ‘B‘ rank is the key requirement for future business with M&M. It can also help the company become a supplier to Nissan, who follow the same evaluation methodology.

Shell & Putzmeister co-launch hydraulic oil for concrete machinery

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hell Lubricants, the global market share leader in finished lubricants in collaboration with Putzmeister, world’s leading manufacturer of high capacity concrete machines from Germany, has jointly launched a specially formulated lubricant, the Shell Putzmeister Premium HO 68, a hydraulic fluid developed for the hydraulic requirements of Putzmeister concrete machineries. The product was unveiled in Delhi in the presence of company representatives from both sides.

The hydraulic oil was developed to achieve extended oil and equipment life for Putzmeister concrete machines and increased efficiency. Speaking on the occasion, Nitin Prasad, MD, Shell Lubricants India said, “As part of Shell

26 AUGUST 2013

NEWS

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Lubricants’ commitment to developing superior lubrication solutions, we work closely with our OEM partners to broaden our understanding of future operational, equipment challenges and to provide technology solutions in developing advanced oils which help our customers get a competitive edge. This association with Putzmeister is yet another milestone for us in this direction.”

Fiat India achieves production milestone

F

iat India Automobiles Ltd (FIAL) have announced the rollout of their 250,000th car and 500,000th engine from their Ranjangaon plant in Pune.

FIAL is a joint venture between Fiat S.p.A and Tata Motors. The company supplies petrol and diesel engines to leading automobile companies in India like Maruti Suzuki, Tata Motors and Premier Automobiles Ltd. The Ranjangaon manufacturing facility is spread over 200 acres and directly or indirectly employs over 4000 personnel. It is capable of producing 200,000 cars and 300,000 engines annually besides 300,000 parts and accessories.

FIAL currently manufactures Linea, Grande Punto, Tata Manza, Indica Vista and Indica V2. The investment in this facility has been in excess of Rs 4,000 crore.

Mahindra 2-Wheelers wins mfrg awards

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ahindra Two Wheelers Ltd (MTWL), a part of the USD 16.2 billion Mahindra Group, recently won three awards at the ‘CMO Asia presents Star of the Industry – Manufacturing Excellence Awards 2013’ held in Singapore. Mahindra Two Wheelers won awards in three different categories including, ‘Best in Class CSR Award in Manufacturing Sector’, ‘Best in Class Safety Excellence Award’ and ‘Best in Class Carbon Footprint Award’.

Nirmal Matharu, Senior Vice President & Plant Head, Mahindra Two Wheelers said, “Mahindra Two Wheelers is delighted to receive these prestigious awards at CMO Asia 2013. It shows our commitment towards incorporating best in industry practices for employee safety and also showcases our commitment towards the environment and society, by reducing our carbon footprint while taking up causes which uplift society.”

Mahindra Two Wheelers’ state of the art manufactur-

ing facility is located at Pithampur, near Indore in Madhya Pradesh. The plant incorporates ISO 9001 processes & product certification from DNV, and manufactures the Mahindra Centuro and other two wheelers.

Tata launches CV ‘Triple Benefit Insurance’

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ata Motors has launched a first-of-its-kind ‘Triple Benefit Insurance’ across its range of M&HCV, ICV & LCV trucks and tippers, a first in the Indian commercial vehicle space. The scheme primarily aims at providing full protection from loss of time and income caused due to accidents.

Launched in partnership with Iffco-Tokio General Insurance Company, the scheme is available under the Standard Motor Insurance policy with three add-on covers – Depreciation Waiver/Zero Depreciation Coverage, New Vehicle Replacement Coverage and Loss of Income/ Vehicle Hire Cost.

Depreciation waiver/Zero Depreciation Coverage: In the event of partial loss, insurance companies generally do not pay 100% of the claim. Instead the claim amount is reduced as per Standard Policy Deductible and depreciation on replaced parts, which ranges from 5-50%. However under the Depreciation Waiver/Zero Depreciation coverage, the insurance company will not deduct any depreciation amount from the claim.

New Vehicle Replacement Coverage: In the event of total loss of a vehicle, insurance companies generally pay the Insured Declared Value (IDV) of the policy, which is always lesser than the replacement value of a new vehicle, as a result customers have to bear the difference in amount.

Under the New Vehicle Replacement Coverage, at the time of purchase of a new replacement vehicle, of a similar make and model, the customer will be paid the current ex-showroom price of the replacement vehicle. In addition, the customer will also be paid the current cost of insurance and registration, subject to adjustment of refunds.

Loss of Income/Vehicle Hire Cost: A commercial vehicle being a source of livelihood for the operator accident or total loss of a vehicle has an adverse impact on the income of the vehicle operator.

Tata Motors has also recently doubled their warranty on their range of heavy trucks to four years. Another service is ‘Tata Alert’, which promises drivers on-site breakdown assistance within four hours of calling their toll-free helpline. The 24x7 Tata Alert service also promises that a vehicle will be put back on the road within 48 hours from the time restoration work begins.

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NEWS

26 AUGUST 2013

Fuel saving through waste heat recovery European Union funded PowerDriver project aims to turn waste heat from combustion engine exhaust gas into electricity, production of prototype begun.

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he PowerDriver project is a European Union funded collaborative research initiative involving major UK-based end-user organizations Jaguar Land Rover Ltd and Rolls-Royce PLC together with supply chain and research and development partners and universities.

The project is focused on the conversion of energy from combustion engine exhaust gas into electricity utilizing thermo electric

generator (TGEN) technology. Jaguar Land Rover Ltd is interested in technology capable of being applied to petrol engine passenger cars while Rolls-Royce PLC is interested in marine applications related to diesel engines.

With the completion of simulation work, the PowerDriver project will now continue to progress the production of a prototype TGEN design for a Jaguar passenger car, which will provide a reduction

in fuel consumption and a corresponding decrease in carbon dioxide emissions.

In parallel, designs will also be developed for two marine diesel applications – again, achieving a reduction in fuel consumption and carbon dioxide emissions. Both the marine and automotive installations will be designed to enable their implementation at a commercially viable cost.

In order to extract the energy from the exhaust gas flow the TGEN has to be mounted between two heat exchangers – a hot side heat exchanger and a cold side heat exchanger. This is necessary because the thermo electric materials produce energy when exposed to a large difference in temperature. In both cases the hot side heat exchanger forms part of the exhaust line

MATLAB EXPO 2013

New Cross Polo for the Indian market

M

V

ATLAB EXPO, the annual user conference hosted by MathsWorks, the leading developer of mathematical computing software, took place on August 21 in Bengaluru. MATLAB EXPO is in its fourth year in India and was attended by over 700 engineers, scientists, and MATLAB and Simulink enthusiasts from across the Aerospace and Defence, Automotive, Communications, Electronics and Semiconductors (CES), Energy, Industrial Automation and Machinery (IA&M), and Technology Services industries.

Mariasundaram Antony, India engineering leader, GE Energy Management and engineering site leader for GE Hyderabad Technology Center delivered the customer keynote entitled, ‘Simulation: A Key Design Aid in the Energy Industry’. He said, “It is a design challenge to simulate complex power systems involving coal, gas, and renewables – all of which vary in their ability to deliver continuous power. The ability

to predict the reliability and availability of the total power system is crucial when different forms of energy coexist in the grid.

GE Energy Management uses advanced simulation tools such as MATLAB and Simulink to model such complex systems with the required fidelity and accuracy.”

Jim Tung, MathWorks Fellow, delivered the keynote address entitled ‘Embracing Complexity’. “We see the growing demand for superior technologies in all spheres of life. Smart phones, intelligent vehicles, intelligent medical devices and other similar high-tech devices are an integral part of the human world today. Scientists, researchers and engineers working on these advanced and complex technologies are constantly looking for faster and smarter ways to break down and manage the ensuing complexity. With MATLAB and Simulink, they are able to create and adopt new ways to master the development of complex systems and the analysis of complex phenomena,” he said.

olkswagen, Europe’s largest carmaker, have announced the launch of the new Cross Polo. The new Cross Polo has a bold, sporty design flair, aimed at customers with active lifestyles and a taste for adventure. It is priced at Rs. 7.75 lakh, ex showroom, Delhi, and will be available with a 1.2L TDI engine and a 5-speed manual gearbox.

Keeping the excitement going Commenting on the launch, Arvind

and the cold side heat exchanger forms part of the engine cooling system.

“Thermoelectric generators are a very promising technology that enables the recapture of heat energy that would otherwise be lost,” commented Dr. Barri Stirrup, of European Thermodynamics Ltd. “The PowerDriver project is an important European research collaboration that aims to help bring this technology much closer to commercial realization. With the simulation work of the automotive TGEN system indicating a power output equating to a very significant fuel saving over the NEDC, the project will now progress the design of prototype systems aimed at providing cost-effective implementations of this technology.”

Saxena, Managing Director, Volkswagen Passenger Cars, Volkswagen Group Sales India Pvt. Ltd. said, “The Polo is an important car line in the Indian portfolio and with ongoing updates we keep it relevant and exciting for our customers. The Cross Polo has been created for those looking at a premium hatchback in a sporty ‘crossover’ style.”

The Cross Polo commands features a rugged ‘Cross’ front and rear bumpers, black side cladding and wheel arches, silver painted mirrors and roof rails, 5-spoke alloys, ‘Livon’ titanium black upholstery and a 1.2L TDI engine.

Auto Monitor

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26 AUGUST 2013

BLOG

Two approaches to sourcing auto parts Marty Lariviere

I

f you look at what it costs an automaker to build a vehicle, purchased components are going to represent a big, big chunk. How an automaker deals with its suppliers and how it chooses just who is going to make what is then critical to its overall success. Automotive News has a pair of stories that highlight how two carmakers are taking somewhat different approaches to managing purchasing.

Chrysler First up is Chrysler which is opting for a kinder, gentler approach to sourcing. Specifically, it is floating the idea of assigning some parts without putting them out to bid (Chrysler pilots no-bid contracts on new minivan, Aug 5).

Essentially, Chrysler is willing to guarantee that a supplier gets the work if it is willing to share a significant amount of financial data. Chrysler Group is using its next minivan to pilot a collaborative, no-bid purchasing system that guarantees favored suppliers a profit but requires them to open up their financial books.

The presourcing arrangements between an automaker and supplier are designed to allow both to cut engineering costs, build trust and improve long-term planning. They are common among suppliers at Honda Motor Co. and Toyota Motor Corp., but haven’t caught on among domestic suppliers.

Long-term, no-bid agreements give suppliers more predictable revenue, allowing them to invest with reduced risk. And suppliers say they provide their best technology

to automakers that are loyal to them and offer the best profit opportunities. For automakers, the no-bid agreements help ensure an uninterrupted flow of parts and access to a supplier’s best technology.

A traditional argument for running an auction is price discovery. The process of bidding will reveal which supplier has the lowest cost and the buyer can then make an efficient sourcing decision.

It seems that Chrysler thinks that by getting all up into a supplier’s books that it can at least guarantee itself a good deal. It may not pick the most efficient supplier to work with but it can at least get a fair shake given the supplier’s cost structure. Presumably if it can in the process make sure that the supplier feels that it is being treated fairly, it can get some benefits that go beyond just cost. For example, it may get access to new technology or be assured that its orders will be prioritized in the event of a capacity crunch.

What does a supplier get out of this? Steady revenue is nice. It may also get better information out of Chrysler that allows it to do more efficient scheduling. However, it is not clear to me that a really efficient supplier should want to play this game. If a supplier is pretty confident that it has a significant cost advantage over competitors,

A traditional argument for running an auction is price discovery. Bidding will reveal the lowest cost and the buyer can then make an efficient sourcing decision. It seems that Chrysler thinks that by getting all up into a supplier’s books, it can at least guarantee itself a good deal. it’s not clear to me that they want to engage with Chrysler in this way. By letting Chrysler bid the work, they can win the business at a decent margin without having to drop their pants.

General Motors The second story is about GM and new verbiage it is inserting in its supply contracts (GM presses suppliers for future recall costs, Aug 5).

General Motors has adopted a new purchasing contract that would allow it to recover from suppliers the cost of safety recalls — even if a component met GM specifications, says a lawyer for suppliers. This language creates a “potentially catastrophic” financial liability for suppliers, Klein asserts. “As a practical matter, it’s not insurable,” he said.

The new GM contract has open-ended implications, stating that the supplier’s components “will not, at any time (including after expiration or termination of this contract), pose an unreasonable risk to consumer or vehicle safety.”

So one take on this is that it is good to be king.

If you can call the shots in the supply chain relationship, you can impose one-sided terms that shift risk to a weaker firm. This approach stands in contrast to what Chrysler is trying. GM isn’t aiming to build trust as much as taking advantage of its size.

However, I don’t see how this can really work.

One can imagine that the auto supply universe is divided into two types of firms. On the one hand, there are global behemoths who sell to everyone and can serve production anywhere in the world. These firms would have the deep pockets to help out GM in the event of a recall. But these are also the kinds of partners GM needs to work with worldwide. As the article notes, they likely have the bargaining power to demand more equitable terms.

At the other end of the spectrum are smaller firms that lack the resources to fight GM. They presumably are happy to get the work and accept whatever terms GM offers. But they will not have the deep pockets should something go wrong.

Yes, GM can shift the risk to the supplier but it’s not clear that this is a meaningful requirement if all it does it create the possibility of pushing the supplier into bankruptcy.

26 AUGUST 2013

80,000th Citroën LCV Trafficmaster system brings new, big screen

T

he 80,000th Trafficmaster Smartnav telematics system has just been fitted to one of Citroën’s award-winning LCVs. Specified as standard on all Berlingo, Dispatch and Relay panel vans, this unique telematics package includes Trafficmaster Smartnav satellite navigation and Trackstar (stolen vehicle tracking), as well as providing the platform for optional, low cost, Fleet Director real-time f leet management services.

Fitted to the first Relay 30 L1H1 e-HDi 130 6-speed Stop & Start van in the UK, the 80,000th Trafficmaster Smartnav system introduces a new, higher resolution colour screen. This bigger 5-inch screen replaces the 4.25-inch screen previously used. It has been introduced to provide even greater clarity for the Trafficmaster map display, as well as greater clarity of the system’s many functions displayed across the bottom of the screen.

Citroën is the only manufacturer in the UK to offer LCVs fitted with stolen vehicle tracking. In 2012, the Trackstar stolen vehicle recovery system saw 19 of the 21 Citroën LCVs stolen (76% were taken with the keys) being recovered.

As a result, 15 thieves were arrested and over £300,000 worth of vehicles were recovered.

Volvo Cyclist Detection system

V

olvo Car UK has earned industry recognition for their revolutionary Cyclist Detection system after winning the Best Car Safety System award at the 2013 BusinessCar Fleet Technolog y awards.

The success is Volvo’s fourth win in five years in the category with the Pedestrian Airbag, Pedestrian Detection and City Safety technology previously scooping the award.

The world-first Cyclist Detection system was commended for offering a unique and innovative response to the growing amount of cyclist deaths on UK roads. Last year deaths rose by 10% to 118 and Volvo wants to help reduce this figure. A cyclist swerving out in front of the car is one incident type that is addressed by the Pedestrian and Cyclist Detection, which is now available on the all-new V40, S60, V60, XC60, V70, XC70 and S80 models.

G L O B A L WAT C H

Auto Monitor

41

Demand grows for used Mazda cars

T

here’s a huge demand for good, used Mazda cars, with dealers across the UK seeking a range of stock. The surge in demand dates from some four years ago when supply of new cars was dramati-

cally reduced because of the credit crunch and subsequent recession, explains Mazda UK Sales Director Peter Allibon.

“This means there’s never been a better time for people to trade in a used Mazda for a new one because they can be confident of a competitive deal,” he said. “There is annual demand for around 70,000 used Mazda cars and we’re only selling 30,000 new ones a year at the moment, so people buying a new Mazda now can also be confident that their car will be in demand and therefore hold its value better than many other models for years to come,” said Allibon.

The latest data from vehicle remarketing specialist, British Car Auctions (BCA) shows that used car values increased yearon-year by 17.3 percent in June to an average of £7,000 with demand particularly strong for cars that are ‘ready-to-retail’ – in other words, cars that don’t require too much work to bring them up to showroom condition.

Auto Monitor

26 AUGUST 2013

C A S E S T U DY

42

The next Ford Mustang: Supercharged by Eaton

At a Glance Problem Develop a techinica lly advanced, benchmark engine that meets market demands while maintaining racetracklike acceleration.

Solution The Eaton TVS supercharger combined with a 5.8 liter V8 increases boosting volume making the vehicle more fuel efficient.

Results The Eaton TVS supercharger adds 100 horsepower while maintaining an 18 mpg EPA rating.

Background The Ford Mustang has come a long way since it was conceived in 1961 by Lee Iacocca, who at the time was vice president and general manager of Ford Division. More than nine million of the iconic pony cars have been sold worldwide since the first Mustang rolled off the assembly line in early 1964 – and the car’s success continues to grow.

Iacocca’s vision called for a four-seat design that stretched no more than 180 inches long, weighed less than 2,500 pounds and carried a sub-$2,500 sticker price. Billed as “the car to be designed by you,” the original Mustang was an instant hit and its mass appeal has continued to thrive as the car has been updated over the years.

Styles have changed, but one thing about the Mustang has remained constant: its all-out thoroughbred performance.

And if the base muscle car wasn’t enough, a stable of highperfor¬mance variants have revved up the excitement level even more.

Leading the charge was Carroll Shelby, whose name has been synonymous with the Mustang almost since the car’s begin-nings. The legendary race car driver, automotive designer and entrepreneur built the first Shelby Mustang in 1964 for Ford through his Shelby American Inc. company. These “Cobra” mod¬els, which were sold through 1970, offered racing packages with high-output engines that kicked out more than 300 horse¬power.

Challenges The oil crisis of the 1970s trig¬gered an industry shift toward fuel-efficient designs and pow¬ertrain systems. The move, which had been progressing relatively slowly, has accelerated considerably in the last decade.

Stricter fuel economy and vehi¬cle emissions standards in the U.S. and international markets call for drastic improvements in efficiency. At the same time, however, consumers don’t want to sacrifice any performance, comfort, safety or other driving characteristics and advanced features to which they’ve grownaccustomed.

While developing the fifthgener¬ation Mustang, Ford engineers were tasked to strike a balance between these seemingly con¬tradictory objectives. The goal was to create a car capable of racetrack-like acceleration and handling along with improved fuel economy and overall vehicle efficiency.

The 2005 Mustang delivered on all cylinders and tweaks in subsequent years have made the venerable nameplate a true tour de force. For the 2011 model

year the entire engine lineup was overhauled, includ¬ing a 3.7-liter V6 that generated 305 horsepower and had a U.S. Environmental Protection Agency rating of more than 30 miles per gallon for highway driving – making it the first production vehicle in history to achieve such a combination.

The Ford-Shelby Mustang partnership returned with the 2007 Shelby GT500, which was powered by a 500-horsepower, 5.4-liter supercharged V8. This was followed by several other Mustang performance models that were even more powerful.

But could the ever-increasing horsepower trend continue while still improving fuel effi¬ciency?

Solution Ford and Shelby upped the performance ante for the 2013 GT500 with a 5.8-liter V8. In addition to larger bores, the sys¬tem gets a higher compression ratio, high-lift cams, a larger oil pump, piston squirters, new fuel pumps, larger injectors and an upgraded cooling system.

One of the keys to the package is Eaton’s TVS (Twin Vortices Series) supercharger. The fifthgeneration 2300 TVS is larger and more efficient than the pre¬vious blower. Creating 2.3 liters of displacement, the GT500’s supercharger is designed spe-cifically for the car’s 5.8-liter V8 engine.

The TVS features twin fourlobe rotors that are twisted 160 degrees and have a drive ratio that spins 2.64 times faster than the previous model. This is com¬pletely different than the previ¬ous construction that had three lobes angled at 60 degrees.

The fourth lobe and increased angle creates a more efficient flow into the engine when combined with the TVS’ revised inlet air outputs, increasing volume by 33 percent. Boost has been increased to 14 psi from 9 psi.

Results T he l ig ht weig ht a luminum-block engine with the next-generation Eaton supercharger helps the 2013 Shelby GT500 generate an awe-inspiring 662 horsepower and 631 poundfeet of torque. With a top speed of 202 mph, the car is the fastest and most powerful Mustang ever built, and

is powered by the highest-horsepower engine ever pro¬duced in North America.

While the GT500’s output equals or beats that of many of the world’s top exotic “supercars,” the Ford pony car is just a frac¬tion of the cost of its exotic competitors.

It also is much more fuel effi¬cient. In fact, the 2013 model’s 18 mpg EPA rating (15 mpg city/24 mpg highway) bests that of its predecessor, despite add¬ing 100 horsepower. This also allows it to avoid hefty gas guz¬zler taxes in the U.S. Developed by Ford’s Special Vehicle Team (SVT) and licensed

by Carroll Shelby, the new GT500 follows Shelby’s mantra of “stuffing the most power pos¬sible” into the lightest package. The car marks the 20th anniver¬sary of SVT, which began with the SVT Mustang Cobra.

That vehicle featured a 235-horsepower 5.0-liter V8 engine, further demonstrating how far—and how fast—the Mustang has evolved in recent years.

“The Shelby GT500 is on the cutting edge of technology and takes muscle car performance to new heights,” said Hermann Salenbauch, director of Ford’s Advanced Product Creation. “We encapsulated every aspect of performance in this car… the daily driver also will find this car perfectly fits his or her need.”

The supercharger’s twin four-lobe rotors are twisted 160 degrees to maximize efficiency.

26 AUGUST 2013

G L O B A L WAT C H

UK transporter grows its allRenault fleet

C

ompany expansion has led UK bulk powder distributors, Damac Transporters, to add a further 10 Renault trucks to its 38-strong all Renault fleet. The Renault Premium 460.25 6x2 tractor units, with Privilege cabs and Optidriver gearbox, also feature discharge equipment and air compressors. They will transport and distribute mainly cementitious powder products nationwide, for clients in the construction industry.

Cathy Plaskitt, Managing Director, Damac Transporters, says, “This latest order follows the purchase of 21 new Renault Premiums in 2012 as we contin-

ue to expand our fleet. The Renaults are competitively priced vehicles which have proven very reliable so far. They offer lower emissions and better fuel economy than many comparable units - we have definitely seen a significant improvement in our overall fleet fuel efficiency. We have had a 100% Renault fleet since 2004 and have built up a good working relationship with the local dealer, Thompson Commercials.

A major advantage is that they undertake all of our fleet maintenance at our depot, which minimises disruption and allows us to keep our fleet working as efficiently as possible.”

Volvo Car receives approval for China plant

C

hinese government authorities have approved Volvo Car Group’s establishment of manufacturing plants in Daqing and Zhangjiakou. As a result, Volvo Cars’ full Chinese industrial footprint, including Chengdu, has been approved. The assembly plant in Daqing is under construction and the first pre-series cars will be built late 2013 for training purposes. The plant is forecast to be fully operational in 2014.

The engine plant in Zhangjiakou will become operational during the autumn of this year and will deliver engines to Volvo Cars’ manufacturing plant in Chengdu, where serial production will start in the fourth quarter of 2013. Zhangjiakou will also supply the assembly plant in Daqing.

The plants in Daqing and Zhangjiakou will be operated in the form of two joint venture companies, in which Volvo Cars initially will hold 30 per cent. The remaining part will be held by companies within Geely Holding Group.

The Chengdu plant will be operated under an extension of an already existing production license held by a Geely Holding company. The manufacturing license for Chengdu was granted in June.

The plants in China will be operated in full accordance with Volvo Cars manufacturing standards and procedures, equal to those of the company’s European plants.

Auto Monitor

43

Jaguar dealers ranked no. 1

J

aguar has once again topped the annual JD Power Dealer Satisfaction Survey, published in the October issue of What Car? magazine. Land Rover dealerships were ranked joint-fifth in the survey.

The results are based on the dealer service portion of JD Power’s 2013 UK Vehicle Ownership Satisfaction Study, which took the views of 13,511 customers who had a service experience with their dealership into consideration.

Respondents provided feedback on vehicles bought between January 2010 and December 2011 focusing on the booking process, overall staff helpfulness, dealership facilities, quality of work and how fair the service charges were.

Chas Hallett, What Car? Editor-inChief said, “For the second year running, Jaguar owners love their dealers as much as their cars, awarding their dealers top marks in the annual survey. Jaguar is in a most enviable position, where every car maker wants to be and needs to be now and in the future.”

Jaguar customers provided overwhelmingly positive feedback about their dealers, highlighting friendly advisers, flexibility in finding booking slots, quick and painless vehicle hand-over and pickup services and staff taking the time to explain technical details of work carried out. The quality of work carried out was also rated excellent or outstanding by 68% of customers.

Auto Monitor

44

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26 AUGUST 2013

The leading source for automotive parts, components & accessories.

26 AUGUST 2013

Advertiser’s Name & Contact Details

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Pg No

Advertiser’s Name & Contact Details

Pg No

Advertiser’s Name & Contact Details

Pg No

17

Ferromatik Milacron India Pvt Ltd

25

Kris Automated Packaging Systems

22

Abhijeet Dies & Tools Pvt Ltd T: +91-22-28682837

T: +91-79-25890081

E: contact@abhijeetplastics.co.in w: www.abhijeetplastics.co.in

ACE Micromatic Group

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Advertiser’s Name & Contact Details Prayag Polytech Pvt Ltd

T: +91-22-30948000

T: +91-11-47262000

E: salesfmi@milacron.com

E: anand.pednekar@krisautomated.com

E: delhi@prayagmb.com

w: www.milacronindia.com

w: www.krisautomated.com

Fiem Industries Ltd

8

L&T Cutting Tools Limited

Rohan Standox Autolack

T: +91-9991702453

T: +91-09967800456

T: +91-22-65803331

E: customercare@acemicromatic.com

E: s.narayanan@fiemindustries.com

E: SM.Haridas@larsentoubro.com

E: sales@spraytec.net

w: www.acemicromatic.net

w: www.fiemindustries.com

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w: www.spraytec.net

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Fox Solutions

5

Lanxess India Pvt.Ltd.

43

w: www.prayagmb.com

FIC

T: +91-80-40200555

ALP Overseas

Pg No

11

10

Safexpress Private Limited

6

T: 91-124-4731500

T: +91-253-6618100

T: +91-22-25871000

T: +1800-113-113

E: marketing@alpoverseas.com

E: sales@foxindia.net

E: sales.hpm@lanxess.com

E: vineet.kanaujia@safexpress.com

w: www.alpgroup.in

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Automag India Pvt Ltd

28

G W Precision Tools India Pvt Ltd

12

Legris India Pvt Ltd

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31

SIAM Annual Convention 2013

T: +91-20-22951182

T: +91-80-40431252

T: +91-124-4590600

T: +91-11-4710-3010

E: sales@automagindia.in

E: info@gwindia.in

E: legris.india@parker.com

E: siamacam2013@siam.in

w: www.automagindia.com

w: www.gwindia.in

w: www.parkerlegris.com

w: www.siam.in

Avtec Ltd

39

Godrej & Boyce Mfg. Co. Ltd.

14

Meiban Engineering Technologies Pvt 34

T: +91-11-42092222

T: +91-22-67962751

T: +91-80-26860600

E: corporate@avtec.in

E: trmktg@godrej.com

E: sales-turning@meibanengg.com

w: www.avtec.in

w: www.godrejtoolings.com

Axalta Coating Systems India Private Limited 26

Sri Yantra Engineering Agencies (P) Ltd. 27

w: www.yantraengineers. corn

w: www.meibanengg.com

Greaves Cotton Limited

35

Minda Management Services Ltd.

13

Sumitron Exports Pvt Ltd.

T: +91-9871944542

T: +91-22-24397575

T: +91-124-4698400

T: +91-11-41410631

E: mark.khanna@ind.dupont.com

E: rahul.rao@greavescotton.com

E: cc@minda.co.in

E: sumitron@vsnl.com

w: www.axaltacoatingsystems.com/en_US.html

w: www.greavescotton.com

w: www.minda.co.in

w: www.sumitron.com

Ballkings

44

ICICI Bank Limited

29

T: +91-161-2534501 E: ballkings@ballkings.com w: www.icicibank.com w

Carl Zeiss India (Bangalore) Pvt Lt

3

Igus India Pvt Ltd

Molex Incorporated

15

Tata Motors Ltd. T: +91-22-66586195

E: adam.ong@molex.com

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MREPC India

w: www.tatamotors.com

38

Texspin Bearing Limited

T: +91-80-43438102

T: +91-80-39127800

T: +603-27805888

T: +91-2711-238234

E: imtndia@zeiss.co.in

E: info@igus.in

E: mpd@mrepc.com

E: mail@texspin.com

w: www.zeiss.co.in

w: www.igus.in

W: www.mrepc.com

w: www.texspin.com

DSM India Pvt Ltd

24

J V Exports

w: www.dsm.com/air-management

Ecocat India Pvt Ltd

33

44

Nordson India Pvt Ltd

18

Tyrolit India Superabrasive Pvt. Lt T: +91-80-40953259

E: nirapjeet@ymail.com

E: india@nordsonefd.com

E: subrahmanya.kumar@tyrolit.com

w: www.jvexports.co.in

Jyoti CNC Automation Pvt. Ltd.

w: www.tyrolit.com

BIC

Paras Enterprises

30

VE Commercial Vehicles Ltd

T: +91-20-65118080

T: +91-7292-402633

E: alok@ecocatindia.com

E: info@jyoti.co.in

E: karnalkar.ayub@stringo.in

E: vjohny@eicher.in

w: www.ecocat.com

w: www.jyoti.co.in

w: www.stringo.com

w: www.eicher.in/etb

Komax Automation India Pvt. Ltd.

20

Patvin Engineering (P) Ltd

T: +91-129-4281000

T: +91-124-4599100

T: +91-22-27780310

E: pawans@elofic.com

E: info.dei@komaxgroup.com

E: patvin@patvin.co.in

w: www.elofic.com

w: www.komax.com

w: www.patvin.co.in

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

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T: +91-80-40213600

T: +91-2827-287081

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21

T: +91-9815089000

T: +91-129-4266500

Elofic Industries

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7

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32

40

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Getting Personal with Kithur Mohamed, MD, Knorr-Bremse Systems for Commercial Vehicles India Pvt. Ltd. If not in the auto industry, where would you be?

I would have been in the aviation industry as an aeronautical engineer. My course correction can be attributed to IIT, which did not allot me a branch of my choice in 1975 and I landed in mechanical engineering.

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

Well, I I’ve driven many brands – Volkswagen Jetta, Mercedes C&A classes, Maruti 800, Hyundai Santro, etc., and now back to a new Volkswagen Jetta. The longest association and drive are with VW Jetta. I think driving an automobile need not be a dream, maybe just a desire and passion. Today’s cars are released with maximised combination of comfort, safety, economy, entertainment and eco-friendly. My dream is to drive a car propelled by a water engine.

What are you currently reading?

Waiting for the Mahatma by R.K. Narayan and What Got You Here Won’t Take You There by Marshall Goldsmith are some of the short editions that made turn-arounds in my lifestyle. And newspapers provide the business and economic updates.

What do you do when not talking auto?

I think of my lovely family – one plus two, consisting of my better half, one daughter and one son.

An activity you would miss office?

Any activity for the cause of the country.

You get angry when....

When commitments are not honoured in the workplace. And when fellow drivers do not follow traffic rules in their stupid attempt to save a second for a selfish motive but culminating in several minutes of thousands of commuters on the roads.

What is the one thing you would like to change about yourself?

Any human change management has three categories in equal proportion: 1. Change yourself as advised by your family, peers, friends, well-wishers who feel this change is to improve yourself. This is possible to some extent.

Illustration: Sachin Pandit Compiled by: Pradeb Biswas

26 AUGUST 2013

OTHER SIDE

In Real Life An IIT alumnus of 1980 B. Tech batch and 1985 M.S. Batch, Kithur has over 33 years’ professional crossfunctional experience. He has expertise in handling all cross-functions like plant operations, R&D, sales & marketing, business planning, quality management & HR management in reputed companies such as Bosch, MMC, Denso, Aditya Auto and Lucas TVS (in order of length of experience).

2. Change yourself as per your own assessment – you feel this change will lead to perfection. This is possible to a great extent.

3. Changes are also imminent on certain personal traits, behaviour, attitude, personality and life style which are individual, inherent, cohesive in-born qualities. This is not possible at all.

I am constantly open to changes of the first two categories.

The best thing to have happened to you......

The best thing happened to me is joining Knorr-Bremse.

My last holiday I recently visited Ellora Caves, near Aurangabad. I always like to visit and admire the creative talents of the unknown artisans who lived hundreds or thousands of years ago without sophisticated design and process tools and wonder at their project management skills.

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: 1st & 2nd Fortnightly Issue. Date Of Publication: 28th of Every Month

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