I N D I A ’ S N O . 1 M A G A Z I N E F O R A U T O M O T I V E N E W S , V I E W S & A N A LY S I S
Auto Monitor
Vol. 12 No. 36
w w w.am o n l i n e.i n
29 October 2012
CORPORATE
24 Pages
SALES ANALYSIS IS
COMPONENT INDUSTRY RECORDS `210,400 CRORE REVENUES
Turnover (Bln USD)
26.5
Turnover (INR ’00 Crs)
1065
Growth rate (%) Export (Bln USD) Growth rate (%) Imports (Bln USD) Growth rate (%)
Pg 11
` 50
2007-08 2008-09 2009-10 2010-11 2011-12
Pg 14
Investment (Bln USD)
23
30.1
39.9
43.4
1,057
1,350
1,820
2,104
-
- 0.7
27.6
34.8
3.8
4.0
3.4
5.2
6.9
15.7
-
5.3
-15.0
52.9
32.7
6.2
6.8
6.5
8.5
10.6
-
9.7
-4.4
30.8
4.7
1.8
0.1
1.7
2-2.5
1.6-1.9
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Tokai Carbon to aid Makino in widening canvas Jagdev Kalsi New Delhi
Alliance with Tokai Carbon will not only enable Makino Auto Industries to benefit from its Japanese partner’s R&D capabilities but will also prove influential in its talks with Suzuki and HMSI in India
M
a k ino Auto Industries Pvt Ltd is looking to introduc e si ntere d braking technology, as opposed to the current resin based technology, and its Technology Licence Agreement (TLA) with Japan’s Tokai Carbon Company will be instrumental in this objective. The company is hoping to be enrolled as a vendor for Suzuki and HMSI for supplying disc brake pads. Tokai Carbon Company, a USD 1.3 billion company, is already supplying brakes pads to Honda and Suzuki in Japan. Alliance with Tokai will not only enable Makino Auto Industries to benefit from its Japanese partner’s R&D capabilities but will also prove influential in its talks with Suzuki and HMSI in India. “Tokai Carbon will try to do best
to contribute towards approvals from HMSI and Suzuki,” reassured General Manager, friction material division & Member of the Board, Tokai Carbon Co Ltd, Kiyonari Nakai.
Captive Consumption In order to cater to the rising OEM demands, Makino is com-
ing up with a fully automated die-casting plant in Noida with `25 crore investment that will cater to its captive consumption as well. The plant will be Makino’s fifth and is aimed at catering to HMSI, Yamaha and Hero Moto Corp. “We are in talks with Toshiba and Zatai for auto machinery and want to be a
company with lesser burdens in future. We want to be competitive and are looking at complete automation,” said Director, Makino Auto Industries Pvt Ltd, Rishubh Bhandari. Currently, Makino has been using the resin based technology for its brake pads. With the TLA, it intends to bring in the sintered
4 wheeler braking systems on Endurance’s agenda Our Bureau Mumbai
A
u ra ngabad ba sed Endurance Technologies Pvt Ltd (ETPL) recently signed a technical collaboration with the US based Beijing West Industries
DATA MONITOR Top 5 2W Makers Company
Sep-11
Sep-12
Change
HML
530,091
393,852
-25.70%
HMSI
167,918
231,455
37.84%
Bajaj Auto
255,786
206,248 -19.37%
TVS
192,027
149,191
-22.31%
Suzuki
28,520
38,003
33.25%
Top 5 2W Exporters Company
Sep-11
Sep-12
Change
Bajaj Auto
115,422
109,066
-5.51%
TVS
23,663
15,901
-32.80%
HMSI
10,546
11,671
10.67%
IYM
10,825
11,597
7.13%
HML
19,534
10,935
-44.02%
* Source: SIAM/ ** Excluding exports/ *** all sub segments considered/ ^ excluding MRPL
(BWI) for foundation braking systems for four wheelers. BWI bought over the assets of the chassis division of Delphi Corporation, North America. Delphi had been in braking business for almost five decades. BWI has retained the original Delphi management of this product line including the R&D’s, patents and manufacturing facility. It has a complete range to offer from basic foundation brakes to ABS, traction control and electronic stability control systems.
Diversification Bid “We have entered in to a technical collaboration for four wheeler brakes systems for catering to SCVs and passenger cars. There is no intent for a joint venture at the moment and no plans for any stakes,” said a spokesperson at Endurance Technologies. He added that the agreement is mainly aimed at helping ETPL strategically venture in the four wheeler brakes business. ETPL has been manufacturing two wheeler disc brakes and three wheeler drum brakes for around a decade and entering four
wheeler brakes business is a logical product line extension for the Aurangabad based component manufacturer. The company has earmarked investment of around `25 to 30 crore in the initial phase for the four wheelers business and may commit additional investments depending on customer’s requirements.
Current Capacity ETPL is a major auto components manufacturer and supplies aluminium die casting & machining, suspensions components and systems, two and three wheeler braking systems, two and three wheeler clutch systems and two wheeler alloy wheels. The company’s braking division was established in 2004 and has grown to be a leading supplier in the two wheeler disc brake systems and three wheeler brake systems in India. The company has built up capacities to manufacture around 1.5 million units of two wheeler brake systems and around 720,000 units of three wheeler brake systems per annum.
BWI bought over the assets of the chassis division of Delphi and has retained the original Delphi management of this product line. It makes basic foundation brakes to ABS, traction control and electronic stability control systems Design Capability “We are looking to focus on design and development of foundation braking systems for OEMs in India. The product range will include callipers, discs, master cylinders, boosters and drum panel assemblies. Both the companies plan to leverage their design and manufacturing expertise to create a significant presence in the Indian Market,” added the company spokesperson.
brake technology that is used in two wheelers of higher engine capacity. “The resin based brake pads are used for bikes with lesser engine capacity, but with OEMs planning to bring in their larger capacity motorcycles, we are also improving our standards,” said Bhandari. Sintered brake pads will be effective at even twice the working temperature of the resin based brake pads and will have better working life as well, however they’ll be costlier to the effect of being almost five times as expensive as compared to resin based brake pads. Makino has also been keen to improve its R&D capability in India and spent close to $500,000 in 2010-11 as R&D investments. Furthermore, it is planning to bring in two wheeler brake clutch dynamometer by 2014 and have a test rig from Japan by 2015 to size up its R&D potential.
Himatsingka takes over as FADA President Our Bureau Mumbai
M
ohan Himatsingka has taken over as the new President of Federation of Automobile Dealers Associations (FADA) for 2012-13. He is a commerce graduate from Birla Institute of Technology and Science, Pilani. He is the MD of Maurya Motors Ltd, a CV dealer for Tata Motors Ltd and also owns and manages Shankar Motors Pvt Ltd, a passenger car dealership of Tata Motors Ltd, located in Patna, Bihar. He was the Vice President of FADA during the years 2010-11 and 2011-12. KVS Prakash Rao, John K Paul and Mukesh Jain were elected as Vice President, Honorary Secretar y and Honorar y Treasurer, respectively, for the year 2012-13. FADA is the apex body of automobile dealers engaged in sale, service and spares of vehicles and has 1,500 members, including 25 state level associations.
EDITORIAL Stronger Headwinds
D
espite headwinds facing the component manufacturers across the country, the industry association Automotive Component Manufacturers Association of India (ACMA) continues to be optimistic of the vehicle manufacturing sector and continued growth in sales. There are clearly few positives visible at this stage for the hope of signiďŹ cant recovery or upturn in sales of passenger cars and CVs. The more worrying trend has been tepid growth of two wheelers, a segment that had long shown resilient over the years. Though ACMA President Arvind Kapur termed the current downturn as a prolonged one blaming downturn in investment cycle, policy paralysis and uncertainty, he still exhumed conďŹ dence in long term growth of the automotive sector. The industry body has pegged growth rate of eight to ten percent for the segment.
The ACMA President further pointed out that ‘under penetrated markets and the unfulďŹ lled mobility aspirations of the people of India are the silver lining that gives us the conďŹ dence of a steady growth trajectory.’ The remarks underline the unmistakable tendency of the industry players to continue treating Indian auto market as ‘emerging’ and hoping for brighter future ahead. Most indicators suggest that cars and two wheelers sales are likely to be in the low single digit or negative territory while CV manufacturers were already bracing up for a ‘cyclical’ downturn. It may be worthwhile for the component manufacturers to brace up for an uncertain environment and perhaps continued sluggishness and focus on innovation and cost cutting to survive in the coming months. Comments can be sent to am.editorial@network18publishing.com
In 2011-12, the component industry had revenues of around $43.5 billion while the exports stood at around $ seven billion. Imports by the component industry stood at around $10.25 billion. Incremental investments to the tune of around $1.6-1.9 billion were made in the last ďŹ scal.
QUOTES Arvind Kapur, ACMA President
Stephen Odell, Ford of Europe Chief Executive Officer
The Indian economy is experiencing not just an ordinary slowdown but a sharp downturn in investment cycle, domestic policy paralysis and uncertain trade environment
I don’t think it’s sustainable for support from governments to keep competitive companies going forward, particularly in a protracted downsized economy
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CONTENTS CORPORATE 08
BMW Group plans plant in Brazil
16
BMW is looking to invest around Euro 200 million for a production capacity of approximately 30,000 vehicles per year in Brazil and create more than 1,000 new jobs
Component industry records `210,400 crore revenues: ACMA
08
ACMA emphasised that the industry needs to partner in design, development & testing and develop affordable and innovative solutions for continued growth: ACMA report
10
JLR to harness digital technology for virtual showroom
18
JLR is looking to offer its customers virtual “hands-on” access to its model ranges, breaking free from the limitations that dictate what can be displayed in a conventional showroom
Ford plans to restructure European operations
18
Ford is looking to restructure its Europe manufacturing operations to respond to structural market changes and deliver profitable growth in the region
Vehicle sales grows five-fold in Bihar
10
THE OTHER SIDE
Bihar government is considering lifting entry tax levied on the motor vehicle for the mutual benefit of the state government and the automotive retail trade
GLOBAL WATCH Volkswagen shows compact SUV concept at Sao Paulo show
16
Volkswagen gave a preview of a small SUV based on the new small family platform with unveiling of its latest concept car, the Taigun, at the Sao Paulo motor show
Shirish Kulkarni, Director, DSK Motowheels A post graduate from Unitec University, Auckland, New Zealand, Kulkarni has been the key driving force behind DSK Group’s foray into automobile manufacturing and retailing
Auto Monitor
C O R P O R AT E
8
Component industry records `210,400 crore revenues: ACMA Our Bureau New Delhi
A
uto component industry’s turnover stood at `210,400 crore ($43.4 billion) for the period April 2011 to March 2012, registering a growth of 15.7 percent (in rupee terms) over the same period a year ago, Automotive Component Ma nufacturers Association of India (ACMA), said in the Industry Performance Review for the fiscal 2011-12.
Wider Collaboration Commenting on the performance of the auto component industr y, President, ACM A Surinder Kanwar said: “The sector grew to $43.4 billion in 2011-12. Ambiguity in the fuel price regime, high cost of capital, high interest rates, and slowing
29 OCTOBER 2012
down of investment in infrastructure, is adversely impacting the growth of the automotive industry. Today, there is need for greater collaboration between the component manufacturers, OEMs, machine tool suppliers & the raw material Industry. Our aim would be to gradually make a transition from transactional relationships to those that are synergistic in nature.”
Growth Impediments The industry witnessed a CAGR of 19 percent (in rupee terms) over the last five years. This data represents the entire supplies from the auto component industry to the on-road and off-road vehicle manufacturers and the aftermarket in India and overseas from ACMA member and non-member companies, including component suppli-
ers captive to the OEMs and the unorganized & smaller players. The sales of vehicle in India moderated in 2011-12 and this also impacted the performance of the auto components industry. Even as the uncertainty in the domestic market continues, ACMA is optimistic that the medium & long-term prospects of the component industry are intact. However, in the current fiscal 2012-13, the industry is expected to grow in the range of eight-10 percent.
Government Support The ACMA emphasised that the industry needs to partner in design, development & testing and develop affordable and innovative solutions. Further, the component industry also needs to actively consider diversifying into adjacent markets including
Summary of Findings 2007-08 2008-09 2009-10 2010-11 2011-12 Turnover ($Bn)
26.5
23
30.1
39.9
43.4
Turnover (INR ’00 cr)
1065
1,057
1,350
1,820
2,104
-
- 0.7
27.6
34.8
15.7
Growth rate (%) Export ($Bn) Growth rate (%) Imports ($Bn) Growth rate (%) Investment ($Bn)
3.8
4.0
3.4
5.2
6.9
-
5.3
-15.0
52.9
32.7
6.2
6.8
6.5
8.5
10.6
-
9.7
-4.4
30.8
4.7
1.8
0.1
1.7
2-2.5
1.6-1.9
defence, aerospace, railways, farm Implements etc. to sustain the growth momentum. Delineating his thoughts on the current policy environment and the need for supporting auto component manufacturing in the country, Vice President, ACMA, Harish Lakshman said: “The Indian Auto Component Industry is confident of scaling the target of $115 billion by 2020. To achieve this, we urge the government for longterm stable policies and export incentives that are critical for
sustaining the industry in these times of global slowdown. The government continues to push for more multi-latera l and bilatera l trade agreements, increasing the threat of imports due to a non-level playing field, in contrast many of the competitor nations are imposing non-tariff barriers on imports. The government policies pertaining to tax regimes, FTAs & infrastructure development need to be relooked for the overall growth of the auto component industry.”
The government continues to push for more multilateral and bilateral trade agreements, increasing the threat of imports due to a nonlevel playing field, in contrast many of the competitor nations are imposing non-tariff barriers on imports Harish Lakshman, Vice President, ACMA
Industry Performance Review 2011-12 Exports: Exports of auto components grew to $6.9 billion from $5.2 billion in 2010-11 growing 32.7 percent. Europe accounted for 36 percent of exports followed by Asia at 28 percent and North America at 23 percent. The exports to Europe increased to 32 percent as compared to the previous fiscal, with America and Asia registering increase in exports to 27 percent & 28 percent respectively. The key export items include engine parts, transmission parts, brake system & components, body parts, exhaust systems, and turbo chargers. Imports: imports of auto components also grew by 25 percent to $10.6 billion in 2011-12 from $8.5 billion in 2010-11; almost 85 percent of the imports were accounted for by the OEMs, the rest 15 percent by the aftermarket. Asia and Europe contributed to over 57 percent and over 35 percent of the imports respectively. Within Asia - China, South Korea and Thailand contributed to the maximum imports while from Europe the key contributors were Germany, Italy and Czech Republic. The quantum of imports has also increased due to several FTAs and other trade agreements signed by the Government. Capacity Addition: For the fiscal 2011-12 an estimated investment of around $1.6-1.9 billion was made in the auto component sector. Due to moderation in vehicle sales and depressed market sentiments, the investment in 2011-12 declined compared to the previous year. Capex in 2010-11 stood at around $2-2.5 billion. The cumulative investment (gross-block) in the auto component sector in India over the last five years stood at over $ seven billion.
Auto Monitor
29 OCTOBER 2012
C O R P O R AT E
10
Vehicle sales gallop in Bihar Dealers pitch for exemption of vehicle entry tax to maintain momentum Our Bureau New Delhi
B
ihar has registered a 500 percent growth in vehicle sales in the last five to six year. The vehicle sales which stood at 80,363 units in 2005 went up to 440,000 units in 2011-12, Bihar government informed recently. “The increasing vehicles sales indicate the state’s economy has improved. Ever since 2004-05, the state’s economy has grown at a healthy 11.5 percent. The economy is certainly on a high growth trajectory. Per capita income has gone of remarkably in the last seven years, thus increasing the purchase capacity of average residents. This is one of the reasons pushing up the vehicle sales in Bihar,” Bihar’s Deputy Chief Minister, Sushil Kumar Modi said. Modi further added that Bihar government will seriously think on lifting entry tax levied on the motor vehicle for the mutual
benefit of the state government and the automotive retail trade. He made these observations while delivering his address at the first ever Convention of Automobile Dealers at Patna, organised jointly by the Federation of Automobile Dealers Associations (FADA) and Automobile Dealers Association of Bihar (ADAB). Nand Kishore Yadav, the State’s Road Construction Minister attributed the steep growth trend in vehicle sales to the strengthening of the economy, the government’s emphasis on building good roads and the improved law & order situation in the state. A total of 13,600 km of roads has been built by the government in the past seven years leading to significant reduction in travel time. Managing Director & Chief Executive Officer, National Skill Development Corporation (NSDC), Dilip Chenoy in his presentation, referred to the acute shortage of skilled manpower in
The VAT collections in Bihar on vehicle sales have gone up from `200 crore in 2005-06 to over `1,000 crore. Auto retail contributes around `1,750 crore by way of VAT and Transport Department’s revenue alone in Bihar. Around ten lakh people are directly and indirectly employed in the auto business and auto related activities in the State the wake of economic growth in the country. Spelling out the aims and objectives of NSDC, he said that the formation of Automotive Skills Development Council (ASDC) was the first step in addressing the skill gaps in automotive sector.
Former FADA President, Nikunj Sanghi urged the State Government to remove entry tax on motor vehicles in the interest of simplification of tax regime and uniformity in taxes across States to further give impetus to the growth.
Responding to this Modi assured the dealers that Bihar government will seriously think on lifting entry tax levied on the motor vehicle for the mutual benefit of the state government and automotive retail trade. Highlighting the importance
of auto sector in the national & state economies, Sanghi said that the auto retail & service industry - having invested `35,000 crore, employing directly 7.5 lakh people countrywide and contributing significantly to the Central & State exchequers, plays a very important role in national and state economies due to its farreaching forward & backward linkages. There are around 250 automobile dealers in Bihar, who have invested close to `1,000 crore and provide direct employment to over 25,000 people, selling more than five lakh vehicles annually. Enormity of direct and indirect dependence of people on auto sector can be gauged from the fact that according to an ICRA report, a commercial vehicle generates 13.30 jobs, for every additional car, 5.3 employment opportunities are created and for every two-wheeler 0.5 jobs follow. Therefore, around ten lakh people are directly and indirectly employed in the auto business and auto related activities in the State. The VAT collections in Bihar on vehicle sales have gone up from `200 crore in 2005-06 to over `1,000 crore. Auto retail contributes around `1,750 crore by way of VAT and Transport Department’s revenue alone in Bihar. Besides, there is VAT on sales of parts, lubricants and fuel and service tax on repair & servicing of vehicles. FADA hoped that multiplicity of and variation in taxes at the regional and local levels will be removed with the introduction of GST to pave the way for faster growth of automobile industry and the economy as a whole. Similarly, there are a host of other taxes on motor vehicles, which are not only pitched at a very high level but also vary from State to State. These taxes, including road tax, registration fee and permit fees, need to be rationalized and made uniform across the country. Incidentally, incidence and cascading effect of various taxes account for 40-50 percent of the price of vehicles in India.
Auto Monitor
29 OCTOBER 2012
A N A LY S I S
14
The passenger car segment declined by 0.27 percent during the April-September period this fiscal, while the utility vehicles grew by 55.83 percent and the multi-purpose vehicles declined by 5.05 percent in this fiscal. Renault led the passenger car segment with a growth of around 831.68 percent from 483 units to touch 4,500 units this fiscal, as compared to the previous period. Renault registered the highest growth in the utility vehicle segment with 9,540.66 percent growth to touch 8,773 units in AprilSeptember 2012-13 period. Passenger Cars OEMs
2011-12
2012-13
BMW**
5,005
4,384
Fiat
8,694
4,717
Ford
42,656
40,613
GM
43,420
33,613
HM
1,559
1,006
HSCI
24,040
35,254
HMIL
180,616
183,789
M&M
8,707
7,783
Two-Wheelers
Commercial Vehicles
Passenger Vehicles
-12.41%
The overall commercial vehicles segment registered a growth of 3.71 percent in April-September, 2012-13 as compared to the same period last fiscal to touch 385,673 units. M&HCVs sales declined by 12.49 percent to touch 140,700 units compared to 160,780 units in the same period in the previous year. The LCV segment grew by 16.04 percent to touch 244,973 units in this fiscal, compared to 211,114 units in the same period last fiscal. Three-wheeler sales were stagnant at 250,497 units in April-September period compared to 249,017 units in same period last year. Passenger carriers rose by 4.29 percent in April-September while goods carriers fell by 13.21 percent. ALL registered the highest growth in the LCV segment to touch 16,220 units. TVS registered highest growth in threewheeler segment to touch 7,806 units.
-45.74%
LCVs (PC+GC) -4.79%
OEMs
2011-12
2012-13
-22.59% ALL
390,878
373,686
Merc
3,500
2,919
Nissan
9,438
Skoda Tata Tata JLR TKM
4,500
12,908
16,244
11,209
86
79
M&M
58,758
67,364
MNAL
4,896
4,097
HM 1.76%
7409.26%
-5.23% -8.14%
14.65% -16.32%
Scooter/Scooterettees OEMs
-71.01%
-4.40%
Piaggio
6,146
1,782
Swaraj
2,319
1,833
-16.60%
Tata VECV - Eicher
25.84%
Total
121,918
4,872
211,114
244,973
520,871
723,098
IYM 16.04%
M&M 2W
38,313
SMIL
2,864
4,292 30,456
2.65%
49.86%
OEMs ALL
-0.27%
AMW JCBL
UV
Daimler*
OEMs
2011-12
2012-13
Force
1,800
2,306
Ford
1,419
751
M&M
GM
11,635
9,813
HM
1,121
878
HSCI
151
186
2011-12
TVS
2012-13
36,951 5,053
3,242
-
-
80
-
0
0
MNAL
1,303
2,026
-15.66%
Swaraj
3,853
4,429
-21.68% 23.18%
Tata
96,235
77,697
VECV - Eicher
16,722
16,520
-47.01%
VECV - Volvo
252
282
ICML
231
222
-3.90%
Volvo Buses
331
385
M&M
91,930
121,367
-
12,851
135,203
164,021
21.31%
257,620
222,586
1,18,0490 1,422,047
20.46%
Motorcycles/StepThroughs -100%
OEMs 00.00% 55.49%
BAL
2011-12
2012-13
1,307,846
HDMC 14.95%
-1.21% 11.90% 16.31% -12.49%
32.02% 949.56%
50
-20.94%
-6.69%
1,220,365
0
539
HML
2,786,460
2,657,063
HMSI
346,332
567,288
IYM
172,627
159,725
-4.64%
-19.26%
434
132
3,617 58,688
-35.84%
28.11% -47.08%
Total
-2.25%
36,119
819
40,366
74,235
-13.60%
HMIL
3,846
38.82%
M&HCVs (PC+GC)
-19.93%
912,455 909,972
23.17%
-1.52%
Piaggio
38,035
Nissan
HMSI
1,087
VW
MSIL
237,186
-
Audi
Total
192,561
105,589
4.14%
-
HML
102,862
36,790
2012-13
12.79%
137,517
4,947
2011-12
BAL
-20.96% 130.21%
21,727
483
11,828
Force
831.68% Renault
16,220
46.65%
-10.61%
MSIL
216
-35.47%
Domestic two-wheelers sales witnessed a growth of 3.12 percent in this fiscal to touch 6,779,219 units against 6,574,338 units during the same period in the previous fiscal. Mopeds, motorcycles and scooters grew by 0.8 percent, -0.79 percent and 20.46 percent respectively. The motorcycle sales grew to 4,970,590 units in AprilSeptember period as compared to 5,010,317 units in corresponding period in the previous fiscal. In the Motorcycle segment, Honda Motorcycles sales were up by 63.8 percent in April-September period this fiscal, while Bajaj Auto’s sales declined by 6.69 percent to 1,220,365 units compared to 1,307,846 units in same period last fiscal. In the Scooter segment, the sales of HMSI grew by 38.82 percent while TVS Motor sales declined by 13.6 percent in this fiscal. Hero MotoCorp sales declined by 25.7 percent for September at 393,852 units over the same month last year. Bajaj Auto witnessed 19.37 percent decline in its September sales at 206,248 units against the same month in the previous fiscal. TVS Motor Company reported total domestic two-wheeler sales of 149,191 units in September registering a decline of 22.31 percent. Honda Motorcycles India registered the highest growth in domestic two-wheelers sales at around 37.84 percent to touch 231,455 units in September this year.
Total
160,780 140,700
M&M 2W RE
63.80% -7.47%
49.84% 37,136
55,645
SMIL
29,246
42,617
TVS
330,670
267,348
45.72% -19.15%
-62.12%
Total 5,010,317 4,970,590
-0.79%
9540.66% Renault
91
8,773
Skoda
803
771
Tata TKM VW
Total
19,754 30,473 4
3-Wheelers (PC+GC) -3.99%
23,008
OEMs
2011-12
2012-13
Atul
12,219
14,284
Bajaj
97,608
101,884
Force
8
1
M&M
33,149
31,016
Piaggio
92,105
88,117
Scooters
7,693
7,389
TVS
6,235
7,806
Mopeds/Electric
16.47% 54.07%
46,950
400.00%
20
16.90%
2011-12
2012-13 0.80%
TVS
-87.50% 55.83%
164,209 255,895
OEMs
4.38% 383,531
Electrotherm*
-6.43%
386,582
NA
- 0.00% 0.80%
MPV OEMs
2011-12
2012-13
-4.33%
Total
130
7
Total 31.20%
M&M
11752
15419 -24.50%
Maruti
Tata
78,365
59,166
28,648
38,304
118,895
112,896
33.71% -5.05%
Total
249,017 250,497
386,582
-3.95% 25.20%
-94.62% Force
383,531
0.59%
* Data not available since August 2008 onwards ** BMW monthly data not available
Auto Monitor
16
29 OCTOBER 2012
G L O B A L WAT C H
Volkswagen shows compact SUV concept at Sao Paulo show
V
olkswagen gave a preview of a possible small SUV based on the New Small Family platform, which underpins the up! with unveiling of its latest concept car, the Taigun, at the Sao Paulo motor show. The company will
be monitoring public reaction to this vehicle before taking a decision on whether to put the Taigun into production. Just like the up!, the Taigun is small on the outside - at just 3.86 metres long and 1.73 metres wide - but big on the inside, with
a generous 2.47 metre wheelbase. These dimensions give the Taigun short overhangs (708 mm front and 681 mm rear) and purposeful proportions, while the clear, concise exterior styling follows the Volkswagen design DNA. Powering the four-seat Taigun is a new one litre, three-cylinder turbocharged petrol engine producing 110 PS at 5,000 rpm and pushing 175 Nm (129 lbs ft) of torque through the six-speed manual gearbox. The engine is based on the latest EA211 series, and with the use of direct fuel injection and turbocharging it is able to return a combined fuel consumption of just 4.7 litre per 100km (60.1 mpg), despite being able to take the 985 kg Taigun from zero to 62 mph in 9.2 seconds and on to 186 km/h (115 mph) top speed.
The look of the Taigun is deliberately styled to emulate that of its SUV siblings, the Tiguan and Touareg. Wide tracks (1,473 mm front and rear) help give the Taigun a purposeful look, while 17-inch alloys with 205/50 R17 tyres, high ground clearance and plentiful torque enable it to deal with rough surfaces. This is, however, very much a vehicle for the urban environment: the high driving position gives the driver an optimum view in traffic, while there’s plenty of room for luggage, thanks to a practical 280-litre load space that increases to 987 litres with the rear seats down.
The interior of the Taigun is simple and spacious (headroom is 1,036 mm in front and 980 mm at the back), with controls pared back to a minimum. The front air nozzles not only individually control the direction of the air flow, but also the blower speed and the temperature, which is displayed within the nozzle. Meanwhile the central infotainment system can pair with the majority of smartphones, providing an intuitive interface. Above this are mounted auxiliary instrument gauges that display oil pressure, coolant temperature and turbo charge pressure.
BMW Group plans plant in Brazil
T
he BMW Group plans to build a new plant in Brazil subject to final approval of the plans by the Brazilian Government with the goal for production to begin in 2014. Investments over the next few years will total more than Euro 200 million. Plans call for a production capacity of approximately 30,000 vehicles per year. More than 1,000 new jobs will be created at the new production site - as well as additional jobs within the supplier network as a result of the new plant. Negotiations with the State Government of Santa Catarina are already well underway for the new facility in the Joinville region. “Brazil is a market with tremendous potential for the future for the BMW Group. For that reason, we are strengthening our long-term commitment to this country,” said Member of the Board of Management, Sales and Marketing, BMW Ian Robertson explained. “This will create the necessar y conditions for us to maintain the balance of sales between Europe, Asia and the Americas - and, therefore, for the long-term success of our company. With this move, the BMW Group is applying its strategic principle of ‘production follows the market’, which has already proved successful in markets such as the US, China and India.” The new plant in Brazil will extend the BMW Group’s production network which currently comprises 29 production and assembly facilities in 14 countries. The company has been manufacturing BMW motorcycles at its Manaus location since 2010. The BMW Group has had a local sales company in Brazil since 1995. A total of 15,214 vehicles were sold in Brazil in 2011. This represents a growth rate of almost 54 percent. BMW Motorrad also increased its sales by 55 percent in 2011 to reach a total of 5,442 motorcycles.
Auto Monitor
18
29 OCTOBER 2012
G L O B A L WAT C H
JLR to harness digital technology for advanced, fully interactive vehicle showroom
J
aguar Land Rover has harnessed advanced digital technology to offer its customers virtual “hands-on” access to its model ranges, breaking free from the limitations that dictate what can be displayed in a conventional showroom. The system, Virtual Experience, is the most sophisticated yet produced for the motor industry, enabling interaction with an almost 1:1 scale representation of any Jaguar or Land Rover model. Using a touchpad screen, the customer can select model, equipment grade and feature preferences, which Virtual Experience renders as an ultra-high resolution, real time 3D image and leveraging a ground breaking five million polygons. The customer makes natural and intuitive movements or gestures to explore all aspects of the vehicle. The technology may be sophisticated, but the equipment required to present the Virtual Experience is simple and portable. It requires a display screen and a
laptop loaded with the system to operate. This means it can easily be set up in vehicle showrooms, public spaces, even the sides of buildings, bringing Land Rover and Jaguar models to locations where there might not be enough space or access for a vehicle. Jaguar Land Rover’s technology department has led development of the system, moving on from an initial challenge set by company CEO Dr Ralf Speth in December last year. Working alongside marketing, design and engineering departments, and with external suppliers, the project was steadily refined to ensure that the technology deployed would coordinate perfectly with Jaguar Land Rover’s systems. The Virtual Experience was demonstrated publicly for the first time at the reveal of the all new Range Rover in September. Virtual Experience featured on the Jaguar and Land Rover stands at the Paris motor show, supporting the launch of the new
Equipments required to present the virtual experience is simple and portable: a display screen and a laptop loaded with the system to operate Jaguar F-TYPE and Range Rover. It is being further developed ultimately to present the entire Jaguar Land Rover model portfolio, in every variant. Nathan Summers, Jaguar Land Rover Business Relationship Director, said: “Jaguar Land Rover offers customers an exceptional breadth of choice to tailor their vehicle. Virtual Experience presents customers with the opportunity to experience their personally designed vehicle in a very real environment.” The introduction of Virtual Experience is a key element in Jaguar Land Rover’s wider digit-
al strategy for its business that is making innovative use of mobile and on-line applications and tools. In the future Jaguar Land Rover plans to invest further in the technology to enable its customers to design and save their vehicle on a mobile device at home which can be presented to the Virtual Experience to start the process.
Summers continued: “Virtual Experience is an innovation and shows where we see the future of our technology development. We are putting the customer in control as well as seeking new ways to modernise and customise their experience when choosing their new Jaguar or Land Rover.”
Ford plans to restructure European operations
F
ord recently announced a proposal to restructure its Europe manufacturing operations as part of its comprehensive plan to respond to structural market changes and deliver profitable growth in the region. Ford announced its plans to end production at a major production plant in Genk, Belgium, by the end of 2014, pending the outcome of a consultation process with employee representatives. If the plan is confirmed, Ford would resource several vehicles to more fully utilise its European plants.
If the proposed plan is confirmed, production of the next-generation Mondeo, S-MAX and Galaxy could move to Ford’s assembly plant in Valencia, Spain The plan would help to address manufacturing overcapacity stemming from a more than 20 percent drop in total industry vehicle demand in Western Europe since 2007. New vehicle sales in the region have reached a nearly 20-year low this year and are expected to remain flat or fall further next year. “The proposed restructuring of our European manufacturing operations is a fundamental part of our plan to strengthen Ford’s business in Europe and to return to profitable growth,” said Chairman and CEO, Ford of Europe, Stephen Odell. “We understand the impact this potential action would have on our work force in Genk, their families, our suppliers and the local communities. We fully recognize and accept our social responsibilities in this difficult situation and, if the restructuring plan is confirmed, we will ensure that we put in place measures and support to lessen the impact for all employees affected,” Odell said. Ford has initiated an information and consultation process with representatives of employees regarding the company’s intention to close Ford’s underutilized Genk Plant and cease vehicle production by the end of 2014 with the reduction of approximately 4,300 positions. If the proposed plan is confirmed, production of the next-generation Mondeo, S-MAX and Galaxy could move to Ford’s assembly plant in Valencia, Spain. Pending further study, production of the C-MAX and Grand C-MAX compact multi-purpose vehicles could move from Valencia to Saarlouis, Germany, in 2014 under the proposed plan.
29 OCTOBER 2012
Auto Monitor
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THE OTHER SIDE
Getting Personal with Shirish Kulkarni, Director, DSK Motowheels If not in the Auto industry, where would you be? Real Estate What car you drive? What do you dream of driving? Audi Q 7 . A Ferrari Berlenetta Your most recent indulgence? playing online poker. What are you currently reading? Sherlock Holmes What are you doing when not talking auto? Discussing or watching soccer as its my absolute love for the game and also I have a Soccer club named DSK Shivajians. Outdoor activity you would miss office for? Playing soccer. Where did you go for your last holiday? New Zealand a year back You get angry when… Im hungry What’s the one thing you’d like to change in yourself? Reduce my temper
Illustration: Sachin Pandit
Best thing to have happened to you is… I’m gonna be a father soon
29 OCTOBER 2012
In Person Shirish, a person of dynamic skills is a commerce graduate from Symbiosis g his Post Graduate Diploma p College, Pune. After completing in Business onal Development Strategy, Finance, Organizational itec University, Skills and Banking from Unitec sh currently is Auckland, New Zealand, Shirish the Director for DSK Group. Having multiple hats on hiss head Shirish ncipal for DSK Kulkarni is also the Dealer Principal Toyota having nine luxurious showrooms & rship DSK Group six workshops. Under his leadership have recently setup the biggest dealership in the West Zone for Hino, a Toyota Group company s. dealing in commercial vehicles. unning Playing an active role in running ed a soccer club, Shirish has played a crucial role for the victims off Tsunami in India along with his keen interest in welfare of animals. Kulkarni is football enthusiast and is passionate about motor racing.
An experience I won’t forget… Watching formula one live
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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