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 ekly e W
NEWS IN BRIEF Gurpratap Boparai to take over as Fiat India CEO
G
urpratap Boparai is set to take over as CEO of Fiat India Automobiles Ltd f rom Rajeev Kapoor, who is retiring from his current position as President & CEO of the company. Kapoor joined Fiat India Automobiles Limited in 2007 and has overseen the formative years of the operations to its present level and is retiring on reaching 60 years. Boparai is currently heading the Powertrain Division of the company. He possesses the requisite skills and experience and will be responsible to scale the state-of-the-art Ranjangaon facility to further heights. Having joined Fiat India in 2007 as Assistant Vice President, Manufacturing and Powertrain Division, Boparai took over as Head of Powertrain Division in 2009 where he was responsible for business development and overlooking all the functions of powertrain plants like manufacturing, finance, HR, PE and others. He has worked in various capacities at Tata Motors, Ocap Chassis Parts Pvt Ltd, Iveco and Tata Cummins Ltd.
DATA MONITOR Top 5 CV Makers Company
Jul-11
Jul-12
TML
36,298
35,897 -1.10%
Change
M&M
10,959
11,721
6.95%
ALL
6,774
9,027
33.26%
VECV EICHER
3,935
3,492
-11.26%
FML
2,281
2,106
-7.67%
Top 5 CV Exporters Company
Jul-11
Jul-12
Change
TML
4,832
4,155
-14.01%
M&M
1,334
3,272
145.28%
ALL
1,060
758
-28.49%
VECV Eicher
217
110
-49.31%
FML
12
53
341.67%
* Source: SIAM/ ** Excluding exports/ *** all sub segments considered/ ^ excluding MRPL
Vol. 12 No. 28
w w w.am o n l i n e.i n
3 September 2012
` 50
40 Pages
FOCUS
STUDY
TESTING
OUTLOOK OF EUROPEAN AFTERMARKET Pg 14-16
Pg 10
4W segment to pump Advik’s growth Nabeel A Khan New Delhi
P
u ne-ba sed component ma nufacturer, Advik Hi-Tech Pvt Ltd, after establishing a strong foothold in the twowheeler segment in the last 12 years, is looking forward to foray into the four-wheeler component business. It has entered a technical alliance with Germany-based Trochocentric Patentverwertung-GmbH and will be the sole manufacturing partner of the German research and design magnet, which claims to have over 40 IPRs for engine and transmission oil pumps. The company is setting up a new plant in Pune to manufacture oil pumps for fourwheelers with a total capacity of four million units. Eight acre has been acquired for the facility, which will be operational by January 2014. “This is a major expansion plan that we have planned. We are sure that our expertise and image as a leading global manufacturer of oil pumps for the two-wheeler
Aditya Bhartia, MD, Advik
segment will help us repeat the same magic in four-wheeler segment,” stated Managing Director, Advik Hi-Tech, Aditya Bhartia to Auto Monitor. Trochocentric has manufacturing partners worldwide including Magna in the US, SHW in Germany that supplies to Mercedes, Audi BMW and VW. Advik manufactures products like lifter tensioner assemblies, oil pumps, fuel pumps, fuel feed pumps, fuel cocks, decompression units, water pumps, one way clutches and precise machined components like
pinions, screws, nuts & control shafts for global two-wheeler OEMs. It has the license to produce an exclusive technology by HMSI—combi-brakes (front and rear brake together)—that are used in the Honda Activa. Thus the component maker perceives venturing into the four-wheeler segment as the next step forward. Worldwide, the two-wheeler market is about 50 million units per annum and Advik manufactures around ten million units per annum translating to around 20 percent share. It manufactures about eight million timing chain tensioners. Its customers include Ducati, Honda, HeroMotoCorp and Bajaj. It is in talks with Triumph Motocycles to become its supplier when Triumph kicksoff its Indian operations.
Bangalore Plant With an investment of `45 crore, a new facility will be operational near the Honda Motorcycles’ plant in Bangalore by March 2013. The greenfield facility spread across four acre will initially produce five million assemblies
a year. “All the new plants that we are putting up will have better machines and automation. We will be able reduce manpower by at least 15 percent,” Bhartia said. The company currently employs around 1,000 people across its three plants. Advik plans to invest around `150 crore by 2015 to attain a turnover of `500 crore by then. Exports contribute to around 20 percent of its revenue, while imports amount to around 10 percent of raw materials, thus limiting any siginifcant negative impact due to rupee depreciation. One of the major challenges for the company is dealing with the increasing cost of input materials. It further plans to increase its contribution in the export domain by increasing penetration in Vietnam and Indonesia and also enter Brazil. The company grew at a CAGR of 30 percent since its inception in 2000 but the current pressure has blown out its expectation and it is hoping to record a 20 percent growth this fiscal. It clocked a turnover of `200 crore in FY12 and hopes to touch around `250 crore in FY13.
Insurance cos rue unabated pricing pressure Abhishek Parekh Mumbai
I
nsurance companies are continuing to face unabated pricing pressure on motor insurance policies. The intense price competition among insurers has lead to diminished incentives for leading players in motor insurance to offer ‘innovative’ insurance products or coverage. “With low awareness of motor insurance, the scope of introducing differentiated or more complex insurance products may not be a good proposition. Basic policies with add on benefits as per requirements is what seems to be the need at this stage. One of the key issues is that customers need to be given a choice in terms of the policy that is suitable to his/her needs, but the current practice of bundling motor insurance at the time of sale of the vehicle may lead to denial of that choice,” said Member of Executive Management &
Head HR, Marketing CEM and Strategy Planning, HDFC Ergo General Insurance Co Ltd, Mukesh Kumar. He added that the current scenario of relatively standardised insurance offerings by most companies is likely to continue with few players opting to have ‘toppings’ or more specialised coverage depending on customer requirements. Insurers need to be consistent with their message and offer same pricing on insurance products irrespective of the channel of distribution. Kumar elaborated that most new players in the non-life insurance business enter the segment through motor insurance as it is mandatory for car owners. For insurance companies, motor insurance forms the bulk of the risk assured in its initial years. The proportion of motor insurance may subsequently stabilise to around 40 to 45 percent of the non life portfolio. “Different distribution channels are critical in order to impart
Mukesh Kumar, Member of Executive Management & Head HR, Marketing CEM and Strategy Planning, HDFC Ergo General Insurance
choice to customers. It is likely that the customers would lose out on a policy that may be otherwise suitable and affordable but may not be available with the concerned dealer. The choice should not be denied to customers,” said Kumar. Players also point to slower sales of new cars as a major concern for the growth of the business
in the coming months. Vice President, IFFCO Tokio, Abhay Kumar pointed out that severe pricing pressure has been leading to margin erosion for insurance players. Players need to have innovative products and distribution channels to reach out to customers in order to grow business.
EDITORIAL Kickstarting Demand
T
he uncertainty regarding the revival of vehicle sales has been growing of late. The impact of high interest rates on vehicle sales had been in the air for the last several months and has already begun to hit customers. Bankers have been expressing hope of a cut in the base rate by the central bank to enable liquidity infusion into the system. More than the actual liquidity, the customer sentiments are likely to recover with lowering of interest rates on auto loans and in turn, is likely to help customers in efforts at upgrading to a larger car or buy a car in different segment altogether. The need to revive sentiments is not altogether lost on the car manufacturers. The quantum and intensity of discounts have been consistent across most models and grown larger in case of petrol cars. It is unlikely to abate in the coming months. However, clearly such discounts and freebies are not having the desired impact on the car sales as manufacturers would have hoped. The customer is unlikely to go for a car loan in a scenario where there is an expectation of lower interest rate and ďŹ nd himself making an untimely move for getting a loan. This may well be a major reason for fewer deals closing at the dealerships and inhabiting a signiďŹ cant recovery in vehicle sales. Dealers point out that the demand
for a car is not a problem. It may be worthwhile for manufacturers to join hands with ďŹ nance companies and banks for working out sweeter options for customers in terms of reduction of paperwork, higher cash discounts and deeper penetration into relatively newer markets. It is already happening in a signiďŹ cant way and could be done on a much wider scale. This may also lead to opening up of newer markets for car makers and ďŹ nanciers alike, as an auto loan head recently pointed out. The mutual need to expand the market can help both sides and, in the process, beneďŹ t customers. Comments can be sent to am.editorial@network18publishing.com
QUOTES Martin Winterkorn, Volkswagen Chief Executive on patent infringements to Reuters
Osamu Suzuki, Chairman, Suzuki Motor Corporation on Mansar factory violence to Business Today
“If there are open questions on patents, then we will discuss those with our partner and certainly not accept this. We will protect our intellectual property with all rigour, also in China.�
“More than one month has passed. Many people have been arrested but I cannot believe that the reason for the incident is not yet clear�
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CONTENTS TESTING Custom-controlled climate on airplanes: Learnings for auto industry
14
At the upcoming ILA Berlin Air Show, researchers will be presenting an airplane seat that is able to provide for individual climate control and other settings
14
GLOBAL WATCH Infiniti LE concept meets zero emissions at Paris Motor Show
24
Infiniti’s LE Concept lined up alongside Emerg-e sports car concept and M35h production hybrid in a powerful display of “no compromise” performance motoring
Three premieres for Bentley at Moscow show
26
Bentley is presenting three new models at the upcoming 2012 Moscow International Auto Salon
Mobile perspective in regional public transportation
16
Developers from Fraunhofer’s Fokus will exhibit how to link information to mobile devices and to public displays at the IFA Consumer Electronics Unlimited trade show in Berlin
31
16
Best NCAP rating for new Volvo V40
31
The all-new Volvo V40’s protection for adults was also the best result ever recorded in a test, no less than 98 percent
32
CORPORATE Volvo Group appoints new MD for Volvo India
08
New VIPL Managing Director, Philippe Divry will supervise the resourcing and optimisation of Volvo Group’s over 4,000 Indian headcount
EV charging infrastructure lagging behind in India
12
Substantial efforts on regulatory and market front would be required to ensure wider infrastructure for electric vehicle charging in India, according to F&S
18
New Audi A3 awarded maximum rating in Euro NCAP crash test
32
Euro NCAP consortium has awarded the new Audi A3 the maximum five-star rating for passive crash safety
34
Continental to unveil advanced CV safety technologies at IAA Continental is looking to unveil technologies for enabling CVs become safer and cleaner, and networked with focus on economy and efficiency at this year’s IAA
18
Jaguar revs up product drive
34
Jaguar is in the midst of a product revolution that will increase the number of customers, the kind of cars it will build and the way it will build them
Auto Monitor
C O R P O R AT E
8
Volvo Group appoints new MD for Volvo India Our Bureau New Delhi
V
olvo Group ha s a n nou nced t he appoi nt ment of Philippe Divry as the new Managing Director (MD) of Volvo India Pvt Ltd (VIPL) and Senior Vice President, Volvo Group (Truck Joint Ventures India). Div r y w ill super v ise the resourcing and optimisation of Volvo Group. He will also oversee and chart the growth plans of the Group’s different business areas and functions and the overall performance of the
truck business in India. This appointment follows the launch of Volvo Group’s new organisation earlier in 2012, which restructured its global Trucks business and created a new Division, Truck Joint Ventures, focusing on the two biggest markets of the world, India and China, where the Volvo Group has signif icant partnerships. This division is led by Executive Vice President and a member of the Volvo Group’s Executive Team, Pär Östberg. Divry will be based in Bangalore, India and will repor t d i rect ly to Pär Östberg.
Fiat India kicks off training programme Our Bureau Mumbai
F
iat India Automobiles Ltd recently kick-started its technical skill development progra mme ‘Diksha’ by joining hands with Don Bosco Vyawasaik Prashikshan Kendra, Pune. The primary objective is to offer respectable livelihood to orphans, disadvantaged and poor students who otherwise are deprived of good educational facilities. The company has supported financially and intellectually to set up the skill training centre at Don Bosco, Chinchwad, Pune. This initiative will use the immense knowledge, concentration and training available with Fiat to offer quality vocational training to the students interested
3 SEPTEMBER 2012
in making a career in the manufacturing world. With such a refined style of vocational training the students would be skilled to work in the auto industry. Don Bosco will be responsible for student selection, conducting the course and to get accreditation to all the courses from the Govt of India and Fiat will provide on the job training at their factory, in dealership network and train the trainer programme that would include courses like multi-brand basic automobiles awareness for four-wheelers—a short term programme of four months and Centre of Excellence, a twoyear programme. Both programmes will have accreditation from the National Council for Vocational TrainingNew Delhi and Joint Certification from FIAT and Don Bosco.
Seventh generation Toyota Camry launched at `23.8 lakh Our Bureau New Delhi
T
oyota Kirloskar Motors (TKM) has launched the seventh generation of its f lagship sedan, the Camry in India at an introductory price of `23.80 lakh (ex-showroom Delhi) that will be revised later this year. The new Camry will be assembled at Toyota’s Bidadi plant in Bangalore that now becomes the 11th plant globally to assemble the Camry. Camry will get a new 2.5L dual VVT-I petrol engine mated to a six-speed automatic transmission. While the seventh generation Camry will be manufactured in India, the price of the car has gone up. Deputy MD, Marketing, TKM, Sandeep Singh justified
the negligible change in price by saying, “When the 6th generation Camry was launched in India, the $ was at `46. However with changing times, the rupee has dropped considerably. On the other hand, Yen has also appreciated. Hence, though Camry would be produced in India, there won’t be a big price difference”. Singh also mentioned that the Camry is offered worldwide
with a gasoline engine only and Toyota doesn’t have any plans to introduce a diesel engine in the India-bound Camry. He said, “We are doing a feasibility study for diesel engines but are not able to convince Toyota headquarters. Apart from lack of policies, we believe once a decision is made (on offering diesel in the Camry), its will not be easy to change.” On the kind of sales numbers Toyota would be looking for, he added, “We are not looking at large numbers. We’ve received 50 odd bookings without even announcing the prices and are confident of better response now”. TKM is confident about Camr y’s QDR (Qua lit y, Durability and Reliability) factor and its wide dealer network that will make it a success.
Mahindra Reva’s new plant gets platinum rating Bhargav TS Chennai
M
a h i nd ra Reva Electric Vehicles has received the ‘Platinum’ rating from the Indian Green Building Council (IGBC) for its all-new plant in Bangalore, which has been inaugurated recently. With this, the plant becomes the first automobile manufacturing facility in India to receive this certification. The IGBC Green Factory rating system is a measurement system designed to rate both new and existing factory buildings.
Credits are awarded for adhering to mandatory requirements, site selection and planning, water, energy and material conservation, indoor environment quality, occupational health, innovations and design process. Ea rlier spea k ing to Auto Monitor, the company’s Chief of Technology and Strategy, Chetan Maini said, “The plant has natural lighting and ventilation and solar energy will be used significantly to generate electrical energy. Each car that would be produced would get its first charge from solar which, is our philosophy of Born Green.” Mahindra Reva’s 30,000 units
per annum capacity plant will be among the greenest buildings in India. It has the mandate to be a completely eco-friendly plant—to manufacture cars with the lowest possible dust-to-dirt carbon footprint. An efficient rainwater harvesting system provides water and soil conservation strategies prevent erosion. To keep consumption of electricity low, the building optimises natural ventilation and lighting. For instance, a translucent honeycomb mesh covers the eastern side of the building to block out heat from the morning sun and minimise the need for fans and air-conditioning.
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Auto Monitor
3 SEPTEMBER 2012
STUDY
10
Outlook of European aftermarket Michael Book, Eric Ellul Cornelia Ernst, Benjamin Frowein, Ewald Kreid, Rafael Rilo, Georg Sticher & Hadi Zablit
T
he automobile industry in Europe has been subject to EU Regulation 566/2011 since June 2011. With this, the EU Commission is systematically pursuing a range of regulatory amendments to create a competitive landscape in Europe in which independent repair shops and authorised repair shops compete to serve different customer needs and segments. The idea is to strengthen the customer’s position and to encourage intense competition on all levels of the repair and parts value chain. With the new enforcement of regulations, manufacturers are expected to release electronic data enabling the exact identification of replacement parts for vehicles. Consequently, this will strengthen the position of independent service providers in the aftermarket sector, a sector that includes automotive services, parts, and the maintenance business. In the future, independent operators will thus have the same access to electronic repair and diagnostic information enjoyed by authorised repair shops. So far, the Commission seems to have been successful in realising this goal: Independent service providers have in recent years further expanded their parts and service businesses at the expense of OEM; traditional authorised repair shops are experiencing (price) pressure from large independent service providers; and in the meantime, non-traditional players have also entered the market: Insurers, fleet operators, and leasing firms have long since begun to strike exclusive agreements with independent repair shops, effectively lowering their costs and channelling customers to contractually agreed independent service providers. Brisk competition and price pressure have been advantageous for European customers. The European aftermarket has thus been transformed, in terms not only of prices, but also of customer satisfaction—just as the EU Commission wanted. In summer 2011, the European Automobile Manufacturers Association (ACEA) contracted BCG to perform a detailed analysis of the aftermarket in Europe with the view to establishing the facts around the state of competition in the sector and overall customer satisfaction in this area. BCG has investigated the current market dynamics and identified trends that will shape the coming decade. Our analysis was based on three central questions currently being asked by both market players and the EU Commission: How do customers benefit from the changes? How intense is competition now? And in what direction will the market develop? Building on our industry expertise we conducted extensive interviews with automotive industry experts from across the aftermarket business spectrum. A statistically relevant survey of over 1,500 customers in five European countries—Germany, France, Spain, Great Britain, and Poland—provided the customer perspective. Analysing the
results, we developed forecasts about the trends that will characterise the market. Based on these results, we were able to identify opportunities and challenges facing the various market players. Within the highly fragmented overall market for automotive ser v ices, t wo channels can be differentiated: The first, the “authorised” channel, is comprised vehicle manufacturers (VMs), their country organisations, dealer networks, and repair shops, both single- and multi-brand. The second, “independent” channel is comprised independent service providers (or independent operators). The central players in wholesale are independent distributors and purchasing networks comprising numerous players that join forces to bundle volume and realise better prices. Finally, the independent channel also includes companies that collect, process, and sell data. On the retail level, independent service providers can be broken down into three types of repair shops: (1) franchises that offer a full range of services and are part of a dealer network or franchise system; (2) automotive centres and “fast fitters,” ie repair shops with standardised and often limited service offers that frequently include parts retail; and finally, (3) small, “corner” repair shops that offer the full range of services and function completely independently.
Market Transparency European drivers are profiting from increased market transparency and lower service costs. The cost of auto repairs and parts has declined steadily in Germany in recent years: From 2003 to 2010, maintenance costs per year and vehicle sank by an average of 21 percent. This significant reduction is less the result of intensified competition among service providers than of better-quality parts and thus longer maintenance intervals. At the same time, the cost of parts has risen only slightly. In addition to cost advantages, the structural developments in the aftermarket have made for a highly transparent market. For each repair or service event, customers can choose the offer that best fits their individual requirements and personal criteria. This level of market transparency and the steady decline of costs have resulted in high customer satisfaction. Nearly all of the surveyed customers indicated that they are highly satisfied or satisfied with the performance of their repair shops, including initial price quote, final price paid, time to get an appointment, value for money, time needed for repairs, different part options, technical quality, and adherence to schedule. The survey showed which criteria are most important for customers to select a repair shop: At the top of the list are value for money and parts quality. Customers feel that they get the best value for their money from automotive centres, fast fitters, and independent repair shops, but when it comes to parts quality, customers prefer franchise repair shops and traditional authorised repair shops.
Brand Recognition
Customers are well aware of the wide range of service offers: Our survey, which was conducted in summer 2011, shows that nearly all European car drivers— nine out of ten—know the names of the big independent service providers in Western European countries. Of the independent service providers, Carglass is the most well-known brand in France, with name recognition of 90 percent. In Spain and Great Britain Kwik-Fit is the most recognised with 86 percent recognition, and in Germany A.T.U is the most recognized with 85 percent recognition. Brand name recognition is considerably lower in Poland than in the surveyed Western European countries: Only every third respondent knows Autoglass, the most familiar service chain there. The reason for the low market penetration of large independent service providers in Poland is the country’s still highly fragmented market, characterised by small independent repair shops. Across all countries, Carglass is the most widely known player, showing highest or second highest awareness level of customers. Broad satisfaction across all channels Customers in Western Europe favour independent repair shops. In seven of the ten criteria for customer satisfaction, these repair shops came out on top. Customers especially like the value for money in the independent channel.
Customer Loyalty After purchasing a vehicle, many customers first stay with an authorised repair shop. Loyalty to authorised repair shops is highest among new-vehicle owners and business customers. Reliability, good quality, and warranty are the reasons that two thirds of these respondents named for taking their vehicles to authorised repair shops when they need repairs or maintenance. But a different picture emerges among owners of used and older vehicles. The majority favour independent repair shops—with price as the deciding factor. This also goes for loyalty to a certain repair shop; generally, customer loyalty is strongly influenced by price, while “soft factors” such as
time needed for repairs, service quality, and time needed to get an appointment are additional “nice-to-have” factors that are seldom central to decisions to switch repair shops. Customer loyalty is significantly higher in markets that are less consolidated. In Poland and Spain, trust and a personal relationship count even more than price; here, unlike in Germany and France, the willingness to switch repair shops declines with the age of the vehicle rather than increasing. Overall, the results of the customer survey make it clear that the aftermarket in Europe has changed dramatically for the better for vehicle owners and drivers—numerous service providers with different strengths offer customers a wide service selection based on their personal priorities and specific requirements. The introduction of new vehicle materials such as aluminium, carbon, and UV paint require special tools, instruments, and increased training requirements as well. Smaller independent operators are not equipped to surmount these obstacles and are forced to either exit the market or to join a larger franchise. In Germany, the number of small independent repair shops has been sinking for years, even though the “death rate” has slowed considerably. With a total of ~ 38,000 repair shops in Germany in 2010 (~ 18,000 of them authorised and ~ 20,000 independent), the decline from 2009 to 2010 was 0.8 percent for authorised repair shops and 0.5 percent for independent repair shops.
New Challenges The clear winners in the independent channel are big service chains. Franchise operations, fast fitters, and automotive centres have three major advantages: (1) Due to their size, they have accordingly larger purchasing volumes, which they are able to translate into cost advantages and pass on to customers as lower prices. (2) to 2010, from three to 15 percent; during the same period in the Netherlands, the share of exclusive contract repairs rose from 45 to 65 percent. This phenomenon poses new
Customer loyalty is significantly higher in markets that are less consolidated. In Poland and Spain, trust and a personal relationship count even more than price; here, unlike in Germany and France, the willingness to switch repair shops declines with the age of the vehicle rather than increasing challenges for both traditional players in the market and for the costumers themselves who have little or no choice with regard to repair shop selection, and the parts used for repair. Traditional factors such as vehicle age and customer personal choice have less and less influence. In today’s environment, it is primarily the independent repair shops that are profiting from partnerships with insurers, fleet operators, and leasing firms. Authorised repair shops lag behind and their current market share will slide unless they find an entré into this segment.
Increasing Consolidation Intense competition is accelerating industry concentration. The German market, where the top ten independent operators have a market share of 30 percent (measured by number of outlets), has the highest level of concentration—with an 11-percent increase since 2007. Similarly, the level of concentration in France is 29 percent. The aftermarket in UK, Spain, and Poland is less concentrated: In UK, the ten largest players have a market share of 16 percent, in Spain 13 percent (an 18 percent increase since 2007), and in Poland 12 percent (for a nine percent increase since 2007). In the coming decade, concentration in these countries is expected to rise to the level in Germany and France. Consolidation on the retail level is the result not only of
Contd. on page 22
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C O R P O R AT E
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EV charging infrastructure lagging behind in India Our Bureau Mumbai
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ubstantial efforts on regulatory and market front would be required to ensure wider infrastructure for electric vehicle charging in India, according to a recent analysis by Frost & Sullivan. The F&S survey pointed out that the EV market is yet to gain ground in India and is at a very nascent stage with 1,676 units sold in 2010. Government subsidies and incentives provided are not enough to woo the customers due to associated restraints like lack of infrastructure and measures to ensure high quality. High costs, inability to cope with the manufacturing standards, lack of facilities for maintenance of advanced technology of critical components, operation issues, and competing pressures from alternate powertrain technologies like Compressed Natural Gas (CNG), are other issues deterring growth of EV market in India. Power being an essential component for EVs, another critical concern is the mismatch between power con-
sumption and generation in India, which will lead to further deficit in states of Maharashtra, Karnataka, Andhra Pradesh and Punjab. “Success of EVs in India will depend on availability of electricity, charging infrastructure, cost of charging batteries, and overall vehicle maintenance,” according to an F&S analyst. India has plans to generate 1,022,200 MW of power from 2012-2017. Timely implementation of planned projects will see surplus power in many states. Also, improved power situation and growth in charging infrastructure in homes, as well as public places like malls, could lead to huge potential for the EV market in India. The survey further points out that the Electric Vehicle (EV) charging station market in North America has grown immensely, helped along by favourable factors such as government-level (federal, state and municipal) incentives and subsidies toward purchase of EVs. The US Government is extending these plans to the installation of charging station and funding programs such as ECOtality’s EV
project, which is trying to install EV charging infrastructure in six major states. Frost & Sullivan analysis finds that there will be approximately 4.1 million charging points by 2017. Level 1 charging stations will be most popular, as every EV sold will have a level 1 charging cord included in the vehicle. Level 1 charging station can be plugged in a household socket, which takes approximately eight to ten hours to charge the vehicle and does not involve any installation cost. About 71 percent of charging stations are expected to be level 1, followed by level 2, which will account for around 27 percent of the market share by 2017. Nearly 87 percent EVs in the US are expected to be charged in residential locations, as they will be parked in garages for 10-12 hours in a day. “As they are more expensive than conventional vehicles, the Federal Government is granting customers as much as $7,500 in incentives to purchase an electric vehicle,” added F&S analyst. “Incentives include discounts on purchase of EVs, tax credits or exemptions, and other advan-
tages such as usage of heavy occupancy vehicle (HOV) lanes and free parking.” The charging infrastructure is expected to grow at a compound annual growth rate (CAGR) of 128.12 percent. A major reason for this is volatility of oil prices, which is popularizing the ‘green’ concept. Attracted by the potential and low entry barriers in the EV market, participants are emerging from multiple industries such as technology, vehicle manufacturers, and utilities. Even while offering substantial opportunities, the EV-charging infrastructure market is plagued by issues typical to a nascent market. Participants are looking for solutions to ensure standardisation of charging systems in vehicles, charging stations, and business models. EV owners are also inconvenienced by minimal access to charging stations and long hours needed to charge vehicles at level 1. However, ongoing research and development will help overcome these challenges over the next two to three years. As the EV charging infrastructure market in North America is still
High costs & manufacturing standards, lack of maintenance of advanced technology of critical components, operational issues, and competition are issues deterring growth of EV market in India evolving, participants are in the process of identifying the scope of development of technologies and economically-viable business models. “Participants are introducing various strategies such as providing EV-charging facilities in restaurants, leisure places, and malls, as a value-added service to customers. They also adopt various business models such as subscription and pay-per-use to attract more buyers and make the most out of the market’s potential,” notes the analyst from Frost & Sullivan.
Average number of months’ income for car purchase remains unchanged: JD Power Our Bureau Mumbai
T
he average number of months of income required to purchase a small car in India, 10 months, has remained unchanged during the past five years, according to a recent JD Power Asia Pacific 2012 India Sales Satisfaction Index (SSI) Study. Among the 12 brands ranked in the study, Honda ranks highest with an overall score of 835 and performs well across all seven factors. Hyundai ranks second with a score of 829, followed by Maruti Suzuki at 824. Mahindra is the most improved make, achieving a 17-point increase from 2011. Although the average income level and transaction price of vehicles have increased in India, the financial stretch made by the customers to own a small car remains unchanged. This is driven primarily by customer aspirations to own higher-priced small cars.
India SSI Study “Over the past several years, automakers in India have continuously strived to offer higher value to their customers, especially for highly competitive small cars,” said Executive Director, JD Power Asia Pacific, Singapore, Mohit Arora. According to Arora, an increase in average household income and consumer preferences for better styling and feature contenting have driven vehicle shoppers to buy higher-spec small cars, resulting in owners’ income stretch remaining unchanged. The study also finds that high petrol prices are driving consumer interest in diesel vehicles, as 43 percent of consumers are purchasing a diesel in 2012, up 11 percent from 2011. With increased demand come longer wait times for vehicle delivery, as customers indicate waiting 17 days, on average, for a diesel vehicle, nearly double the wait time in 2011. Now in its 13th year, the India SSI Study examines seven factors that contribute to newvehicle buyers’ overall satisfaction with the sales experience (listed in order of importance): delivery process, delivery timing, salesperson, sales initiation, dealer facility, paperwork and deal. Overall sales satisfaction is 820 index points on a 1,000-point scale, which is a decline of two points from 2011. Satisfaction in each factor declines year over year, most notably in salesperson (down by six points).
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3 SEPTEMBER 2012
TESTING
Custom-controlled climate on airplanes: Learnings for automotive industry
T
he indoor climate on airplanes is a frequent source of complaints. In the future, passengers should be able to set their own individualized climate and temperature controls and also be able to adjust air supply to their own personal preference. At the upcoming ILA Berlin Air Show from September 11-16, researchers will be presenting an airplane seat that is able to provide for these settings. Start your vacation as soon as you walk into the airplane. But the indoor environment inside these metal birds often leaves much to be desired: while it‘s too cold for him, it‘s too dry for her; is there more fresh air, and can you make it cooler? Also the low humidity may still cause dissatisfaction among several passengers. This may all change in the future: until now, indoor climate could only be set by the main controls, but soon, the
passenger will be able to modulate it individually—from the temperature, to the speed at which fresh air f lows in, and even the humidity in the air. Because t he temperat u re and humidity that d i f ferent people f ind comfor table varies widely. The technologies that are needed for this purpose is currently being developed by the researchers at the Fraunhofer Institute for Building Physics IBP in Va l ley, working in a consortium—together with nine partners from universities and the aviation industry— through iSpace, a
project funded by the EC. “You need various components that we engineered within the consortium. Humidifier units deliver greater humidity; air purifier technologies filter unwanted substances from the air; optimised vents allow fresh air to flow in, and the passengers can set their own personal comfort temperatures through the seat heaters, just like the ones we find in cars today. And there is seat ventilation that draws in heat and moisture between body and seat, thus keeping the seat comfortably cool,” said Dr Gunnar Grün, head of department “indoor climate” at IBP. Fraunhofer researchers have devoted their attention primarily to the supply of fresh air. Until now, passengers could only manipulate an air jet in the ceiling. The majority of passengers shut these off right when the f light begins, because it blows air directly onto their
Fraunhofer researchers have devoted their attention primarily to the supply of fresh air. The scientists have now developed alternatives: they have integrated air inlets into the seat’s armrests, into the back rests of the seat in front and, in first class, also into the gooseneck cables that currently house the reading lamps heads, creating heav y drafts and additional noise. The scientists have now developed other alternatives: they have integrated air inlets into the seat’s armrests, into the back rests of the seat in front and, in first class, also into gooseneck cables that currently house the reading lamps. Researchers initially simulated the airstreams that blow out of the various air inlets. Which geometry is best suited for these air inlets? How fast should the air f low out, so that it does not blow on the passengers or cause their skin and mucous membranes to lose too much moisture from the blowing speed, while allowing the optimal exchange of ambient air? Here, the researchers identified an area that allows passengers to regulate the air current themselves. In addition, the scientists have simulated and studied the “age” of air particles and studied how long the air remains within a certain region with particular ventilation systems. The systems that delivered the most promising results in the simulations were then subjected to a practice “live” testing by the researchers, at the Flight Test Facility in Valley. Located in an enormous hall is a 30-metre long low-pressure tube that, in turn, houses the front end of an Airbus A310. The low pressure tube makes it possible to drop the pressure to 150 hectopascals —and thus, replicate an altitude of up to 13,000 meters. Even the temperature and humidity during the “flight” are set so that they simulate those that would be found on a real flight. The researchers and their partners have installed their engineering advances into this airplane. To test these technologies, about 50 test subjects participated in each of three different “flights.” Inside the airplane cabin, at an ordinary “cabin pressure altitude” of 2,100 metres, the “passengers” could test which system best enabled them to attain their personalised indoor climate settings. (Courtesy: Fraunhofer Institute)
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TESTING
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Mobile perspective in regional public transportation
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e v elop er s f r om Fraunhofer’s Fokus will exhibit how to link information to mobile devices and to public displays at the IFA Consumer Electronics Unlimited trade show in Berlin. The project is a collaborative effort with VBB Verkehrsverbund Berlin Brandenburg GmbH, the business entity that coordinates services of around 40 public transport companies in the capital area of Germany. The goal is to make the use of public regional transit more convenient and more appealing. In a project with the VBB, developers at the Fraunhofer Institute for Open Communication Systems Fokus are processing data on the latest traffic flow via the VBB‘s programming interface, so that they can report to passengers—resident and tourist alike—not only the current location of the bus or streetcar, but also alternative routes, or even if it would be cheaper to transfer to a car-share or bike-share program, and if interesting sights or events are nearby. “With the scenario on display at IFA, we intend to exhibit the
potential that is available if traffic and transit information are intelligently intertwined,” explained Robert Kleinfeld of Fokus. “That’s why we developed software that takes data from the display sign at a stop—like the route schedule, for instance—and can simply transmit it to a smartphone, so you can take it with you.” One example might look like this: The passenger plans his route from his current location, Berlin’s Brandenburg Gate, straight through the city to Kastanienallee in Prenzlauer Berg, a nightlife district. He can put the routing together at the bus stop display. It is automatically converted into a QR code that he is able to scan using his smartphone. That way, he has the connection data for his route through the city directly on his cellphone. When he passes by a sight, he obtains the corresponding information about it. This also tells him about nearby restaurants or current events that lay directly on his route. If the passenger is a Berlin resident, then he can request different information, such as locations of vehicles in a car-share or bike-share pro-
gramme, which are displayed for him on a city map. The user selects ‘tourist’ or ‘resident’ at the beginning of the route planning process on the public screen. In both cases, plans call for displaying real-time data about buses or trains, their current location, the scheduled arrival time, as well as any delays in the transit network. Then the system
would offer recommendations on alternative routes. The developers at Fokus are using VBB’s data to provide an exemplary demonstration of this scenario. They converted these data into the GTFS (General Transit Feed Specification) format. This standard is there to establish and enable the connection of services that access real-time transit data.
The multiscreen solution is one example that will be presented at IFA. Visitors can plan a route at a bus stop in the exhibition booth using the public display screens, scan them with their smartphones—provided they have the corresponding app uploaded onto their device—and then take the connection data with them on their trip.
Mazda launches fleet communication channels
SIAM
M
2012
Auto Industry: India in Changing World Order CONVENTION
DATE:
All roads lead to Delhi for India’s most important automotive event – The SIAM Annual Convention 2012. The theme of this year’s Convention, ‘Auto Industry: India in Changing World Order’ seeks to explore the changing dynamics of the global auto industry and the role India has to play. Join policy makers, global experts, Industry CEOs and senior representatives from the Indian & Global OEMs as they address the opportunities and challenges the Industry has to face now to make the journey ahead a rewarding one.
THEMES FOR DISCUSSION
Auto Industry: Thriving, Growing & Leading
6 th September 2012 TIME:
9.30am - 5.30pm VENUE:
Taj Palace Hotel, Sardar Patel Marg, New Delhi
Role of India in Global Auto Economy
Managing Growth Challenges in an Environment of Paradox
For registration please contact: +91 11 4710 3010 or email: siamacam2012@siam.in
SPEAKERS Kamal Nath*
Praful Patel
Jitin Prasada
Hon’ble Minister of Urban Development, Government of India
Hon’ble Minister of Heavy Industries & Public Enterprises, Government of India
Hon’ble Minister of State, Ministry of Road Transport & Highways
Saugata Roy
A K Upadhyay*
S R Rao
Hon’ble Minister of State, Ministry of Urban Development
Secretary, Ministry of Road Transport & Highways
Commerce Secretary, Ministry of Commerce & Industry
S Sundareshan
Sudhir Krishna
S Sandilya
Secretary, Ministry of Heavy Industries & Public Enterprises
Secretary, Ministry of Urban Development
President, SIAM & Chairman, Eicher Motors Ltd - Unit Royal Enfield
Vikram S Kirloskar
Felix Kuhnert
Gary Johnson
Vice President, SIAM & Vice Chairman, Toyota Kirloskar Motor
European Automotive Leader, PricewaterhouseCoopers
Vice President, Manufacturing, Ford Asia Pacific and Africa
Goetz Klink
Pete Kelly
Philippe Divry
Global Automotive Practice Head, A T Kearney
Managing Director, LMC Automotive
Sr. Vice President, Truck Joint Ventures, Volvo AB and Board Member, VE Commercial Vehicles
SPONSORS PLATINUM
DIAMOND
GOLD
Adept/SAC/2012/12
* invited
azda is embracing web-based smartphone technolog y to increase communication with fleet decision-makers and company car drivers. A ‘made for smartphone’ fleet website—Mazda’s fleet-specific mobile phone website which went live this month—has been ‘right-sized’ to make access and usage efficient and straight-forward. Mazda is further expanding its communications with fleet customers—both fleet decision-makers and company car drivers— as well as prospects by utilising LinkedIn, the world’s largest professional network on the internet with more than nine million members in the UK and sponsoring the Fleet Academy—a webbased forum where fleet professionals can share news, views and opinions with others in the fleet industry. “Technology and methods of communication are changing rapidly and the fleet-dedicated initiatives we are introducing enable two-way interaction with existing customers and prospects at times convenient to them and while they are on the move,” said Manager Fleet and Used Car Marketing at Mazda UK, Michael Stewart. He further explained, “Few if any motor manufacturers have a dedicated fleet site that has been specifically designed for smartphone use. Most sites are not designed for mobile phone use and many use incompatible technology. The site contains up-to-date details on the comprehensive Mazda range including images and video footage, a section on new models such as the recently launched Mazda CX-5 compact crossover SUV featuring breakthrough Skyactiv technology, special vehicle offers, information on Mazda Contract Hire and details on how to contact the Mazda Corporate Support Centre and the marque’s franchise dealer network. The new LinkedIn site also goes live this month and has two facets—a Mazda fleet profile section highlighting its complete model range and new launches. It has forum sections with one targeted at employees with fleet responsibility in small and medium sized companies and another at full time fleet professionals. Information will be available on Mazda and its model range and key industry issues and topics such as: tax, legislation, fuel pricing, telematics, service maintenance and repair costs and vehicle funding. Stewart added, “We want to encourage debate, questions and dialogue from the fleet community and specifically fleet managers as well as employees in SMEs with fleet responsibility.
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TECHNOLOGY
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Continental to unveil advanced CV safety technologies at upcoming IAA
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ontinental is looking to unveil technologies, products and services, with which the manufacturers of commercial vehicles can make their vehicles safer, more economical and cleaner, as well as network them more intelligently with focus on economy and efficiency at this year’s IAA. Some of the technologies include driver assistance and braking systems, vehicle networking and operating concepts, drive technologies, sensors, interior trim materials and tyres. “Only when trucks, vans or buses are less involved in accidents, keep their fuel consumption as low as possible and have clever data exchange with the driver and environment, can they actually be operated economically with reduced operating costs and thereby achieve the effectively lowest overall costs,” said Chairman of the Executive Board, Continental, Dr Elmar Degenhart.
Dr Elmar Degenhart, Chairman of the Executive Board, Continental
The company will display tyres of the third generation that would be gradually introduced to the market from mid-2013. These third generation tyres will simplify the work of those in charge of vehicle f leets—from tyre selection to service solutions.
Continental will display tyres of the third generation that would be gradually introduced to the market from mid-2013. These third generation tyres will simplify the work of those in charge of vehicle fleets—from tyre selection to service solutions The company’s fleet management system Conti 360° Fleet Services offers modular services, which enable individual and expert tyre management specific to the needs of the customers. The fleet operator thus ensures that the condition of his vehicles’
tyres is constantly optimised, the administrative workload and expenses are low, and the costs are easily calculable. Meanwhile, the mobility service for fleets with international operations is available in 13 European countries. In the ‘Safety’ megatrend area at the company’s booth at the IAA, the focus is on driver assistance and braking systems. The highlight is the MK 100 ESC XT electronic braking system, which Continental will present at the IAA for the first time. Volume production of the system is slated to get underway in 2015. It is an extension of the modular and scalable MK 100 product family, which allows the use of the AntiLock Braking System (ABS) and electronic stability control (ESC) in all vehicle categories and thereby even saves space and weight. The MK 100 ESC XT was specially developed for heavy vehicles or vehicles transporting heavy loads with a focus on supporting
active safety by enhancing braking dynamics. The MK 100 ESC XT thus offers all standard ESC functions right up to adaptive cruise control (ACC) and, as an extra in the premium versions, full speed range ACC (FSA). The premium version can be used in hybrid vehicles with an efficiency of 98 percent in braking energy recovery. This offers the customers full installation compatibility for ICVs and hybrids. Products and solutions aimed at reducing CO2 emissions are presented in the ‘Environment’ megatrend area. The company is hoping to demonstrate systems expertise with solutions for exhaust gas aftertreatment, which help in complying with exhaust standards such as Euro VI (2013) and US10 /Tier4f. The selective catalytic reduction (SCR) of nitrogen oxides (NOx) and diesel particulate filters (DPF), which remove particulate emissions from truck exhaust fumes, play a key role.
Only when trucks, vans or buses are less involved in accidents, keep their fuel consumption as low as possible and have clever data exchange with the driver and environment, can they actually be operated economically with reduced operating costs and thereby achieve the effectively lowest overall costs—Dr Elmar Degenhart, Chairman of the Executive Board, Continental In SCR, a watery urea solution (AdBlue) is injected in the exhaust gas flow to be able to transform nitrogen oxides in a catalytic converter. Continental delivers important components for this purpose: From 2013 onward, newly developed AdBlue injectors with air cooling for light-duty use will enter mass production. At the same time, Continental is developing a water-cooled version for use in trucks. ContiTech’s heatable hose line modules also form part of the SCR systems expertise. The newly developed fuel quality sensor can be used to determine the quality of fuel and thus optimize fuel injection. New types of air spring systems with plastic pistons save up to 12 kilograms of weight per axle and thus cut fuel consumption. The use of renewable resources for interior trim materials in driver’s cabs is an additional contribution to a more environment-friendly vehicle. The ‘Information’ megatrend area is primarily devoted to vehicle networking and operating concepts. The company will be presenting an intelligent camera system for commercial vehicles at the IA A. With this camera system, the driver receives 360-degree visibility around his commercial vehicle in real time. This will help truck drivers during manoeuvring, bus drivers during safe departure from crowded bus stops and drivers of construction vehicles in the centimetre-accurate positioning of their machines. An efficient control computer that adds up the digital signals of the cameras to a 2D or 3D image works in the background. The new system thus gives the commercial vehicle driver an optimum bird’s-eye view in critical situations. Continental is a leading supplier of brake systems, systems and components for powertrains and chassis, instrumentation, infotainment solutions, vehicle electronics, tires and technical elastomers.
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Auto Monitor
STUDY
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Outlook of ..................... Contd. from page 10 organic growth, but primarily as a consequence of the brisk pace of M&A activities. In 2011, for instance, the Japanese tire specialist Itochu Group acquired 1,500 Kwik-Fit locations from the British fast fitter in order to gain access to its market.
Market Prognosis In the decade until 2020, the European automotive services market will continue to come under pressure from various sides. Market volume growth in Western Europe is not expected in coming years: Vehicle density is already so high that the number of vehicles can hardly change significantly. Of the countries analysed for the study, only Poland can be seen as a growth market. Its comparatively low market volume—only 10 percent of the German market— will grow at a rate of 5.7 percent per year in nominal terms— until it is on a par with Western European countries. Another factor in the rising competitive pressure in automotive services are the technical
3 SEPTEMBER 2012
In the decade until 2020, the European automotive services market will continue to come under pressure from various sides. Market volume growth in Western Europe is not expected in coming years: Vehicle density is already so high that the number of vehicles can hardly change significantly. Of the countries analysed for the study, only Poland can be seen as a growth market developments in vehicle manufacturing and parts production. Improved parts quality will mean longer part lifetimes and accordingly longer service and
repair intervals. At the same time, repair shops will also need to invest to address the rise in vehicle electronics. This applies both to information requirements and to ongoing training for employees to stay up to date on technical developments. Longer term, electrical vehicles and hybrids—which require considerably less maintenance than traditional combustion motors—will further change the automotive services market. Along the entire value chain and range of services, the competitive situation for repair shops will intensify. This goes for both authorised repair shops as well as for independent service providers and chains, which will be able to expand their market shares only with squeeze-out competition. Creative strategies will be needed to address the opportunities and risks of market developments early on.
positions. They can strengthen their procurement power by forming large purchasing alliances, thus retaining their most important competitive advantage—cost leadership. They can profit from rising price awareness among customers who—as in many other sectors—are increasingly better informed about quality and value for money, and consequently in a position to select the best offer for every type of repair and service. Because many independ-
ent providers do not offer a full range of services, they can follow a competitive strategy of specialising on either services with higher margins or services with high volume; authorised repair shops, in contrast, usually offer a full range of repair and maintenance services. Perceived gaps in quality (from the customer perspective) between independent and authorised repair shops will probably also narrow: Study results show that many independent repair shops and chains are
Independent Repair Shops Independent repair shops and chains have a number of options for securing their future market becoming increasingly professional, thanks to better access to repair and maintenance information, better parts logistics, and investments in diagnostics technology.
Authorised Repair Shops In coming years, OEMs and their authorised repair shops will actively use cost and price strategies to assert themselves in the highly competitive market. Customers perceive authorised repair shops as being considerably more expensive than independent repair shops. The development of strategies that enable attractive prices for customers while simultaneously avoiding the erosion of margins may be one of the biggest challenges of the service business for OEMs. Also, they and their service networks belong to large companies: In competing with small, flexible, and agile service providers, they will face a different set of challenges when it comes to aligning their business models, price strategies, and service offers to the needs of the market. OEMs and their authorised repair shops will have to focus on consistently utilising their current competitive strengths: They are perceived by customers as a guarantee for quality and thus enjoy their trust. As affiliates of the OEMs, they also profit in regard to new technologies, such as new, fuel-efficient drive technologies and electronics. Continuing advances in “networked vehicle communications” also represent an opportunity to strengthen customer loyalty and earn points for offers of remote diagnosis and other services.
Developing Competitive Environment We believe that the development of the competitive landscape will allow independent service providers to expand their market share, though slightly. Thanks to their cost advantages, they are in the best position to address customers’ increasing price awareness. This applies primarily to large independent service chains. Small independent repair shops will be increasingly challenged by know-how and investment barriers, so that we see a further decrease in outlet numbers until 2020. Also, longer maintenance intervals and generally higher quality will have a negative effect on customer loyalty to authorised repair shops. And non-traditional market players such as insurers, fleet operators, and leasing firms will partner primarily with independent service providers in order to reduce their own costs. In Western European markets, the market share of independent service providers will rise by up to 6 percent. Only the market in Poland, where independent repair shops enjoy a traditionally high market share of 70 percent, is expected to remain stable in this regard. (Authors work with Boston Consulting Group. Reprinted with permission)
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G L O B A L WAT C H
Infiniti LE concept meets zero emissions at Paris Motor Show
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epresenting the next stage in Infiniti’s quest for performance luxury motoring in a sustainable way, the Infiniti LE Concept is a true Infiniti with just one thing missing—a tailpipe. Making its European debut at the Paris Motor Show, the LE Concept lined up alongside the award-winning Emerg-e sports car concept and M35h production hybrid in a powerful display of “no compromise” performance motoring. “The Infiniti LE Concept is a ‘production intent’ concept and most of what you see will become a reality,” said Vice President of Infiniti Europe, Middle East, India and Africa, Bernard Loire. “It is too early to confirm exactly when and where it will go on sale, but we are heartened by recent moves to encourage electric cars, such as France raising the purchase incentive from 5,000 to 7,000 per car. It is fitting that the LE Concept should make its
European debut in Paris.” “Infiniti believes the future of luxury lies in sustainable luxury and we intend to continue taking a leadership role to achieve it”, added Loire. In f i n it i LE Concept : Combining driving appeal with zero emissions in a dramaticallystyled compact saloon body, the all-electric LE Concept is being shown in Paris with a pledge that a production version will be on sale in selected markets in around two years’ time. The showroom model will not only share the LE Concept’s advanced powertrain but also much of its design character—one that shouts “dynamic luxury” rather than “electric vehicle”. Also in line for production are its highly crafted cabin and user-friendly technology—including the possibility of a ground-breaking wireless recharging system. An all-new design, the fourdoor saloon body combines dynamism and elegance with
signature Infiniti design cues and the latest Infiniti design language. The proportions are typically well balanced, the high rear deck injecting a sensation of movement. Up front, there’s the expected double-arch grille but here it also features a charging port hidden beneath the illuminated centre Infiniti emblem. The LED headlights and taillights echo the design direction of Infiniti’s recent concepts, as do the crescent-cut rear pillar and strong shoulder line to express flowing movement. Front spoiler, rear diffuser and side aero fins—all glowing with integrated illumination— contribute to an impressive Cd (Drag Coefficient) of 0.25. At around 4.7m long, the LE Concept is a similar size to the Infiniti G Saloon, supporting Infiniti’s belief that zero emissions does not have to mean small. Nor does it mean plain: the cabin is that of a true luxury car, capitalising on the
silence of the electric drivetrain to provide a tranquil ride at all speeds. Next-generation instrumentation and connectivity are previewed by LE Concept, but being an Infiniti, hospitality—evidenced by its soft lighting, excellent visibility and welcoming openness—is just as important. The LE Concept does not compromise either
on roominess or comfort. The advanced packaging solution of placing the lithium-ion batteries under the floor not only provides a no-compromise approach to luggage and passenger room, but also contributes to the vehicle’s low centre of gravity, enhancing handling. The battery system is a proven laminated 24 kWh lithium-ion
(Li-ion) design with a ChaDeMo DC50kW quick charger that can deliver an 80 prcent charge in 30 minutes. This uses a coil safely encased in the charging pad to charge the battery via inductive energy flow. The Intelligent Park Assist feature will automatically align the vehicle over the charging pad for optimum charging and the driver can walk away, with no cables to connect. The high-frequency, non-contact charging, controlled by the car’s display or by smartphone, is safe for children and pets and can be installed easily in a home garage. The LE Concept’s zero emissions credentials and pure approach to luxury define a new class of compact premium electric vehicles that Infiniti intends to lead when a production version goes on sale, scheduled for 2014. Infiniti Emerge Concept: The Paris show will be the first public appearance of the Emerg-e concept since being nominated as one of the winners in the concept category of the Automotive Brand Contest, an important international design competition organized by the German Design Council. The Infiniti Emerg-e is the ultimate expression of Infiniti’s inspired performance. This 402bhp (300kW) mid-engine, twin motor, electric motors powered sports car is capable of accelerating from 0-60mph in just four seconds —and from zero to 130mph in a single, seamless 30 second burst. Infiniti Emerg-e also provides a fresh expression of Infiniti’s design language applied to a potential high performance, midship sports car for the first time. Infiniti M35 Hybrid: Alongside the Emerg-e concept on the stand and summing up Infiniti’s approach in production form, the M35h is being shown in Paris in its latest, even cleaner guise with 159g/km of CO2 - while still able to accelerate from 0-100km/h in just 5.5 seconds, making it the world’s fastest accelerating hybrid saloon, as recorded by Guinness World Records. Infiniti FX Vettel Edition & RBR F1TM Car: Performance of a more traditional kind - courtesy of a 420PS five-litre V8 - will be displayed in Paris, the Infiniti FX Vettel Edition, developed in association with Formula One Double World Champion Sebastian Vettel. Just 50 examples have been made available for Western Europe, costing from £100,800, with many already spoken for. Infiniti G, EX and FX: Completing Infiniti’s display in Paris will be the extravagantly well equipped Premium versions of the FX30d luxury SUV and EX30d crossover, both powered by Infiniti’s highly efficient and torque-rich 3.0-litre diesel V6. The Infiniti G range will be represented by the G37 Cabriolet, the two-door sports coupé with all features as standard, including a potent and musical V6 engine and electrically retractable hard-top for a seductive open-air driving experience.
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3 SEPTEMBER 2012
G L O B A L WAT C H
Three premieres for Bentley at Moscow show
B
supercar performance with effortless overtaking capability. A close-ratio, eight-speed automatic transmission and a unique chassis setup result in a sportier and even more engaging Bentley driving experience.
ent ley is presenting t hree distinct a nd excit ing new models at the 2012 Moscow International Auto Salon (MIAS) today. The three cars represent the fastest, the most luxurious and the sportiest models the company produces, and reinforce Bentley’s pinnacle positioning in the automotive sector. The new Continental GT Speed making its global motorshow debut today is the fastest road car the company has ever produced. It is joined on stage by the Mulsanne Executive Interior model, which offers state-of-theart multimedia connectivity while on the move, and the athletic new Continental GT V8, both making their Russian market premieres.
Connectivity Meets Craftsmanship
A New Performance Flagship As Bentley’s new performance flagship, the Continental GT Speed coupe appeals to driving enthusiasts who place a high value on outright performance and agile handling. The GT Speed’s 205 mph (329 km/h) top
speed and 0-60 mph sprint time of just four seconds put it at the very top end of automotive performance, yet the new model retains the peerless craftsmanship and contemporary luxury associated with Bentley cars.
The hand-crafted cabin of the GT Speed features Bentley’s Mulliner Driving Specification as standard as well as a number of signature Speed design cues that combine contemporary luxury with a distinctly sport-
ing character. At the heart of the new model is Bentley’s unique si x-litre t w in-turbocha rged W12 engine. For GT Speed, the engine produces 625 PS (616 bhp/460 kW) and 800 nm of torque to deliver thunderous,
First showcased as a concept at the 2011 Frankfurt Show, the Mulsanne Executive Interior is today being presented for the first time in Russia at the MIAS. The car is offered in two Specifications, Theatre and iPad (the latter displayed at Moscow), for state of the art multimedia connectivity on the move. The iPad Specification offers office level functionality and connectivity. Two beautifully crafted, electrically-deployed veneered picnic tables for rear passengers provide a soft hide writing surface, colour-matched to the seats of the Mulsanne, and at the press of a button twin iPads with wireless keyboards are revealed. With the Mulsanne Theatre Specification, passengers in the rear cabin can enjoy a wide
range of entertainment—choosing between DVD movies, television programmes, or music - which is offered via a 15.6-inch centrally located HD LED screen or eight-inch screens fitted within the front seat headrests. Business users can take full advantage of the powerful processing capability and connectivity of the boot-mounted Apple Mac computer.
V8 Power For A Distinctive Sporting Soundtrack Also making its Russian debut at the MIAS is the Continental GT V8. Powered by a new 4.0 litre, twin turbocharged V8, the Continental GT coupé and its GTC convertible variant achieve exceptional standards for power-toemissions in the high luxury sports car sector. The new engine delivers maximum power of 500 bhp (507 PS / 373 Kw) at 6,000 rev/min and an extraordinary peak torque of 660 nm (487 lb ft) which is available across virtually the entire rev range, providing exhilarating performance and effortless power delivery in the Bentley tradition. This translates into a 0-60 mph sprint time of 4.6 seconds for the GT coupe (0-100 kmh in 4.8 seconds) and a top speed of 188 mph (303 kmh). At the same time, the new V8 Continental models achieve outstanding levels of fuel efficiency and CO2 emissions for the luxury performance sector and are capable of travelling over 500 miles (800 km) on a single tank of fuel. The instantly recognisable growl of the new four-litre V8 engine sets it apart from its Bentley stablemates. Commenting on the company’s attendance at the MIAS, Chairman and Chief Executive, Bentley Motors, Wolfgang Dürheimer said, “These three models illustrate the strength and breadth of the Bentley brand and are sure to appeal to automotive enthusiasts across the region. In 2011, our sales in Russia increased by 45 percent, making Bentley the best-selling luxury car brand, and the recent establishment of a new, exclusive sales company, Bentley Russia, is a reflection of our commitment to strengthening and expanding our presence in the market, attracting new customers and enhancing the brand experience for existing Bentley owners across the region.”
3 SEPTEMBER 2012
TECHNOLOGY
ZF unveils next-generation automatic transmission for CVs
Z
F recently unveiled its new automatic transmission system for heavy trucks with a completely new basic transmission and a modular concept ‘TraXon’. It offers more torque, without compromises with regard to the power-to-weight ratio, has a higher gear spread with improved noise quality, and it can not only be driven by a dry clutch but also by a hybrid module, dual-clutch module, or a torque converter clutch. For the new transmission, ZF developed the PreVision GPS shifting strategy, which works in an anticipatory and fuel-saving way thanks to GPS connection and an interface to navigation data. With the TraXon and accompanying transmission hardware and the control software, ZF has sought to set new standards and enable functional diversity in the commercial vehicle transmission. “With the TraXon we aim at sustainability”, said Member of the Board of Management, Commercial Vehicle Technology division, ZF, Rolf Lutz. The solution comprises a basic transmission featuring very compact dimensions with a splitter group, main group, and range change group, as well as two countershafts and one main shaft. It is this space-saving design in combination with the newly designed gearsets that turns the TraXon into a benchmark in terms of the power-to-weight ratio. The new ZF transmission can transmit torques considerably above 3,000 newton metres and is therefore also attractive for markets where trucks with a gross vehicle weight of 60 tonnes are used. TraXon is available with 12 or 16 speeds— both are available as Direct Drive or Overdrive versions—the latter with a particularly long ratio of the highest speed. All versions of the TraXon basic transmission have very high transmission spacing, enabling the driver to manoeuvre the truck in a balanced and comfortable way without the transmission becoming more prone to wear. ZF development engineers managed to considerably reduce the noise development of the TraXon compared to the AS Tronic by an average of 6 dB by introducing a new gearing design, innovations for the transmission housing, and by integrating an anti-rattling damper. Furthermore, the transmission concept allows for two additional reverse gears. ZF offers the TraXon with a total of four reverse gears as additional option. These enable
TraXon Test Vehicle
longer, quicker reversing for special applications, such as trucks which are used at highway construction sites. The TraXon basic transmission with efficiency of about 99.7 percent (Direct Drive) is well positioned compared to the competitors. One essential advantage of TraXon is its modular transmission design. This makes it possible to combine the basic transmission with three starting or shift modules, respectively, which make the transmission more economical in practice, give manufacturers and fleet operators the best possible flexibility for every application, and increase the comfort for the driver. In addition to the single and twin plate dry clutch for applications with particularly high torque requirements, ZF will offer the “TraXon Hybrid” for the first time for heavy commercial vehicles.
With the TraXon and accompanying transmission hardware and the control software, ZF has sought to set new standards and enable functional diversity in the commercial vehicle transmission An electric motor with 120 kW power and a separating clutch enable all hybrid functions— such as recuperation, electric driving, boosting, and the startstop function. For special transports, the electric motor can also be used for the power supply of additional units. Also electric consumers in the driver’s cab can keep running with the TraXon Hybrid even when the combustion engine is shut down. “Studies have shown that the use of hybrid drives in heavy trucks bears considerable savings potential,” said Head, Truck and Van Driveline Technology at ZF’s Commercial Vehicle Technology Division, Bernd Stockmann. “It is true that the approximate five
TraXon Modules
percent fuel savings are below the savings that can be achieved in delivery traffic. With the considerably higher mileage and fuel consumption of heavy trucks, hybrid technology is nevertheless an economical solution that goes easy on resources and pays off within a reasonable time period.” In order to save fuel, very long rear axle ratios can be installed that distinctively reduce the engine speed in the highest gear. However, this would increase the shift frequency with ordinary automatic transmission systems because the next lowest gear already has to be selected on slight uphill gradients. With the dual clutch module, it is possible to perform these downshifts and upshifts under load and without torque interrupt—as opposed to the shifting process in conventional automatic commercial vehicle transmissions. It is installed between the transmission and vehicle engine following the sandwich principle and it is especially attractive for commercial vehicles where the auxiliaries require very high torques regardless of the vehicle speed – for example for special fire trucks, mobile cranes, and concrete pumps. ZF engineers have developed a standard software platform for the transmission control unit that can be used in all TraXon variants. It draws back on a number of sensors to determine the pitch, direction of rotation, or speeds, thereby enabling innovative transmission functions such as the anticipatory shifting strategy, rolling function, and more comfort when manoeuvring or starting. ZF gives truck manufacturers the opportunity to link up the transmission with GPS data and digital map material. With the corresponding integration in the vehicle, PreVision GPS prevents gearshifts that may be unnecessary within the context of the terrain – for example when a conventional transmission control unit shifts up a gear before an uphill gradient or a narrow bend, just to shift down to a lower gear shortly after. On slightly sloping freeway or rural roads, the transmission goes out of gear, the driveline is decoupled during the rolling phase, and the engine is running idle—possible drag losses are avoided, leading to corresponding consumption and emission savings. On the other hand, the topography-based control immediately detects steep slopes and applies the engine and transmission brake instead of the rolling function in order to preserve the service brakes.
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3 SEPTEMBER 2012
G L O B A L WAT C H
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31
Best NCAP rating for new Volvo V40
T
he all-new Volvo V40 has received the top rating of ďŹ ve stars in the Euro NCAP collision test. “We are very proud to have one of the world’s safest cars and we’re taking yet another important step toward our 2020 target—that nobody should die or be seriously injured in a new Volvo,â€? said Senior Technical Advisor Safety, Volvo Car Corporation, Thomas Broberg. As of 2009, European safety institute Euro NCAP has presented an overall rating for each car model whose safety it tests. Separate tests are carried out in four different sub-categories, which are then ranked to produce an overall grade. The four categories are adults occupant protection, child protection, pedestrian protection and safety assist. It is not only the overall result that is a record-high. The all-new Volvo V40’s protection for adults was also the best result ever recorded in a test, no less than 98 per cent. During the development of the all-new Volvo V40, the goal was to build in the same safety level as in larger cars. The holistic approach, a strong structure
and systems such as the WHIPS whiplash protection system form the basis for the excellent result. In the safety assist category, the Volvo V40 scores maximum points. “The new Volvo V40 was launched as the most intelligent and the safest car in its segment, and it is truly packed with active safety systems such as auto brake, Pedestrian Detection to shield pedestrians, Lane Keeping Aid which helps the driver stay within his or her lane, and BLIS which helps the driver detect vehicles in the offset rear ‘blind spot’,â€? said Thomas Broberg. In the pedestrian protection category too, the Volvo V40 sets a new record. One important factor here is the innovative, unique pedestrian airbag. Sensors in the front of the car detect any contact with a pedestrian. A pyrotechnical charge releases the bonnet hinges and elevates the bonnet with the help of an airbag. The inated airbag’s cushioning effect combined with the increased distance to the hard components in the engine compartment help protect the pedestrian’s head in any impact. The Euro NCAP description of the
system says, among other things, that “the system worked well, the bonnet offering good protection in all areas likely to be struck by a pedestrian’s head, making the V40 the ďŹ rst car to score maximum points in this area.â€? Volvo Car Corporation had
Bentley speeds up Russian sales drive
T
he Russian market is a relatively small one for Bentley alongside America, China and the UK. But it could soon become the largest in Europe for luxury cars, and gives Bentley huge potential, said the Board Member for Sales, Marketing and Aftersales, Kevin Rose. The Crewe company expects to claim 25 percent of Russian luxury car sales expected to total 1,000 sales this year, but is already looking further ahead. “We are 43 percent up in Russia this year and 28 percent up overall,â€? says Rose. “Our strategy is to get in early and develop the network, organisation and customer base.â€? Globally, the luxury car market—Rose includes Rolls-Royce, Ferrari, Lamborghini, Maserati as well as topend Mercedes and Porsches—is only 45,000 cars a year. “Generally, the luxury car market is static or falling everywhere,â€? says Rose. “Russia is one of the few places where it is up.â€? America remains the company’s major market with 2,600 sales a year, but is coming under pressure from China (2,000), with the UK third on around 1,500. Bentley hopes to sell slightly more than 8,000 cars this year compared with 7,000 in 2011 as it starts to edge back towards its best-ever, pre-banking collapse total of 10,000. It might seem a surprise, therefore, that the company chose the Moscow show rather than Paris next month or Los Angeles in November to unveil the fastest-ever road-going Bentley, the 205 mph Continental GT Speed. But Rose says the Speed is “a good car for Moscowâ€?, and says Bentley has other irons in the ďŹ re for Paris and LA. “We have plenty of product news to come,â€? he added. The Speed is by powered by a 616bhp 6.0-litre W12 engine driving through the eight-speed ZF automatic gearbox that is now standard across the Bentley range. The new gearbox makes a signiďŹ cant contribution to a 12 percent reduction in fuel consumption compared with the previous Speed.
already previously received the Euro NCAP Advanced Award for its City Safety system, which is ďŹ tted as standard in all versions of the V40. City Safety operates at speeds of up to 31 mph, which is more than any other car manufacturer offers in similar systems.
“We work continuously on improving the already high safety level of our cars through ongoing research into the reasons behind road accidents and by gaining in-depth understanding of the results of actual collisions,� stated Thomas Broberg.
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3 SEPTEMBER 2012
G L O B A L WAT C H
New Audi A3 awarded maximum rating in Euro NCAP crash test
T
he Euro NCAP consortium has awarded the new Audi A3 the maximum five-star rating for passive crash safety. The results for adult occupant protection in a frontal, rear, and side impact as well as child safety and pedestrian protection make the new Audi A3 one of the safest cars in its class. The test engineers awarded the A3 the best rating for driver and passenger in the frontal and side impact collisions. Children are also afforded very good protection in the new Audi A3. Euro NCAP also singled out the seat belt reminder for the front and, in particular, the rear seats. The Audi A3 comes as standard with both systems. Pedestrian protection is a key issue for Audi and the car maker has delivered an outstanding solution in the A3—a specially designed front end incorporating an active bonnet, which is raised in the event of a colli-
The test engineers awarded the A3 the best rating for driver and passenger in the frontal and side impact collisions. Children are also afforded very good protection in the new Audi A3 sion using a pyrotechnic release mechanism to help mitigate the consequences of an accident. These features help the Audi A3 to score some very good marks in this discipline as well. Audi also values active safety above and beyond the measures assessed by Euro NCAP. Standard halogen or LED daytime running lights, depending on version, make the Audi A3 more visible to pedestrians, for example. Other driver assistance systems such as the standard rest recommendation
function built into the Driver’s Information System, and the optional speed limit display, Audi adaptive cruise control with pre sense front, Audi active lane assist and Audi side assist systems are now also available to drivers of the compact-class model. The same also applies to lighting systems such as the adaptive headlight range adjustment and full-LED headlights, which will filter down to certain A3 variants from the executive class in the near future. In addition, the A3 also comes as standard with the multi-collision brake—a safety function that received the 2012 Yellow Angel award from German motoring organisation ADAC. This function can assist the driver in an accident to reduce the danger of skidding and the risk of further collisions during the accident by means of automatically triggered braking. The all-new A3 is now available to order priced from
£19,205 OTR, and UK deliveries will begin by 15 September. Established in 1997, the Euro NCAP consortium is made up of international representatives from European transport ministries, motoring associations,
insurers and consumer organisations. It extensively tests the crash performance of new cars. Euro NCAP’s demanding test requirements far exceed the standards set by the European lawmaker.
All-new Ford B-MAX achieves five-star Euro NCAP safety rating
T
he all-new Ford B-Max has been awarded the highest safety rating by independent crash test authority Euro NCAP. The Ford B-Max compact multi-activity vehicle achieved an overall protection score of 83 percent, after scoring 93 percent for adult protection and 84 percent for child protection.
“Safety is a fundamental Ford value and we are delighted to achieve the maximum five-star rating from Euro NCAP,” said Ford’s European safety project manager Tom Overington. “The team has worked very hard on making sure B-Max meets the safety standards our customers expect from every Ford vehicle.” Ford subjected the B-MAX to more than 5,000 computer simulated crash tests during development, no less than 40 complete crash tests and a further 100 tests which involved the car being mounted on a sled and fired into a barrier. High strength and ultra-high strength steels form more than 58 percent of the B-Max body and are used in brackets, called crash-catchers; these lock the ingenious Ford Easy Access Door System in place if the vehicle suffers a sideimpact. B-Max is equipped with seven airbags and the front-end is carefully engineered for optimised pedestrian protection. It also features Ford’s Active City Stop system—a segment-first designed to help motorists avoid low speed collisions with stationary or slower moving traffic. Better connected than any vehicle in its class, B-Max features Ford’s voice-activated, incar connectivity system, Sync, with Emergency Assistance, designed to assist the car’s occupants to call for help in the event of a crash. “Only vehicles offering all-round protection can be awarded a five-star rating under Euro NCAP’s new test protocol,” said Euro NCAP Secretary General, Michiel van Ratingen. “Ford B-MAX is an example of how this can be achieved by an innovative design, system engineering and smart technologies such as Active City Stop.”
Auto Monitor
3 SEPTEMBER 2012
G L O B A L WAT C H
34
Jaguar product drive gathers momentum
J
aguar is in the midst of a product revolution that will increase the number of customers it is able to reach, the kind of cars it will build and the way it will build them. The four-wheel-drive XF and XJ, introduced at the Moscow show and destined for America, China, Russia and the Alpine regions of Europe, are just the start of a policy to meet local needs through a more flexible model strategy, said Adrian Hallmark, the head of the brand. “In five years or so we will have developed new engine families that will be flexible in how we use them and new platforms that will allow us to do whatever we want with them,” he promised.
More Market Coverage “They will be highly efficient and totally modular. The engines will be suitable for north-south or east-west installation, while the platforms will allow us to build large cars or small cars. They will be developed for Jaguar, but there will be synergies with what is happening at Land Rover.”
But first, Jaguar has to leverage more market coverage out of the models already on its books, and has recently announced plans to fit a two-litre four-cylinder turbo engine, driven by the taxation regime in China, and a three-litre supercharged V6 to selected versions of the XF and XJ ranges. “Adding the two-litre and three-litre engines takes our coverage of the market segments from 10 percent to 70 percent,” said Hallmark.
Future Plans The three-litre V6 produces similar power to the company’s normally aspirated five-litre V8 and will gradually replace it in many markets, said the Chief Programme Engineer of the new four-wheel-drive models, Andy Dobson. Its next home will be in the F-type two-seater sports car, due to be unveiled at the Paris show next month. “It will be the most exciting car in our modern history; our first two-seater for more than 50 years,” said Hallmark. “Its bloodline runs through the C-type, D-type and E-type. We
have been away from that segment for far too long.” Jaguar is also on the verge of launching the XF Sportbrake, its first large estate car. But longerterm Hallmark wants Jaguar to enter the compact premium car
market dominated by the BMW 3 Series, Audi A4 and Mercedes C-Class, and the new platform and powertrain strategy will allow it to do this. “I’m not going to say what body types we might produce, but if
you look at the sector, saloons take the largest share, SUVs are the fastest-growing and coupes are the most glamorous,” he said. “We are pursuing the right position and will decide according to the business case.”
Chrysler ties for second spot in Strategic Vision’s Total Quality Index
C
hrysler Group climbed to second place in Strategic Vision’s 2012 Total Quality Index (TQI) study. The company’s results were boosted by the Dodge brand’s 26 point year-over-year improvement. This is one of the most substantial increases in Total Quality since the inception of the study in 1995, according to Strategic Vision. Three Chrysler Group models won TQI Awards. The Fiat 500 led the Small Car segment, Dodge Charger ranked highest in the Larger Car segment and Jeep Grand Cherokee took the top spot in the Medium SUV segment.
According to Strategic Vision, TQI reflects all aspects of buying, owning and driving a vehicle as a holistic measure. TQI encompasses positive and negative experiences including reliability, driving excitement, emotional attachment and overall sales and service satisfaction According to Strategic Vision, TQI reflects all aspects of buying, owning and driving a vehicle as a holistic measure. TQI encompasses positive and negative experiences including reliability, driving excitement, emotional attachment and overall sales and service satisfaction. “TQI recognises that quality and satisfaction can mean different things to different customers,” said Senior Vice President-Quality, Chrysler Group, Doug Betts. Chrysler Group manufactures brands like Chrysler, Jeep, Dodge, Ram, Mopar, SRT and Fiat vehicles. The Fiat alliance builds on Chrysler Group was established by Walter Chrysler in 1925, and Fiat’s complementary technology that dates back to its founding in 1899.
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3 SEPTEMBER 2012
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