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
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NEWS IN BRIEF
S Sandilya heads IMMA Our Bureau Mumbai
4 June 2012
P
DATA MONITOR Top 5 2W Makers Company
Apr-11
Apr-12
Change
HML
503,521
534,827
6.22%
Bajaj
195,971
200,228
2.17%
HMSI
131,669
193,511
46.97%
TVS
141,619
151,181
6.75%
28,989
30,632
5.67%
Top 5 2W Exporters Company
Apr-11
Apr-12
Bajaj
126,264
142,096
Change 12.54%
TVS
22,564
20,370
-9.72%
HML
13,578
14,728
8.47%
IYM
8,663
9,637
11.24%
HMSI
4,972
5,591
12.45%
* Source: SIAM/ ** Excluding exports/ *** all sub segments considered/ ^ excluding MRPL
w w w.a m online.in
40 Pages
` 50
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TESTING
STUDY INDIAN TWO-WHEELER INDUSTRY Pg 12
Pg 8-11
Toyota to balance act by raising prices, garnering larger volumes Nabeel A Khan New Delhi
resident, SI A M, S Sandilya has been voted a nd elected as the President of International Motorcycle Manufacturers Association, Geneva (IMMA) for the period of 2012 to 2014. Sandilya S Sandilya was elected during IMMA’s recent general assembly at Madrid. IMMA represent a fraternity of two-wheeler manufacturers across the world together producing about 50 million powered motorcycles every year. This is the fi rst time in the Indian automotive history that an Indian has been elected as the ‘numero uno’ of an International Manufacturers Association. “With the increased need of urba n mobilit y across all regions of the world, the two-wheeler industr y would continue to offer optimum solutions for commuters and IMMA strives to reduce the environmental impact made by powered two-wheelers and improve all aspects of their technical safety,” said President, IMMA, S Sandilya.
Suzuki
Vol. 12 No. 15
T
oyota Kirloskar Motor is in the process of raising the price of its vehicles by up to two percent to offset the impact of the rupee depreciation. “The rupee depreciation has created severe price pressures and we are unable to hold on to the existing prices of our vehicles. There will be a hike in prices in the near term,” said Deputy Managing Director (Marketing), Toyota Kirloskar Motor, Sandeep Singh during a recent event. With petrol vehicles already suffering a demand slump due to hike in prices of the fuel, TKM may not be increasing the prices of the petrol model vehicles. The car maker is looking to sell 180,000 vehicles this year as compared to 130,000 units sold in 2011. Market saturation in developed
countries has led to Toyota shifting focus on countries like Brazil, Russia, India and China and countries in the ASEAN region to gain volumes. Over the next four years, the company wants to add new products in India, China, Russia, Brazil, Vietnam and Indonesia, to raise sales contribution by an additional 10 percent. With the price rise affecting economic growth in important markets such as India and China, Toyota’s sales from Asia are expected to increase in the near future. At present, emerging markets account for 40 percent of Toyota’s global sales. The car maker is also planning to bring multiple products in the small car segment in India to get into higher volume sales. Toyota is working on developing around half a dozen subcompact cars as part of its global strategy to increase volumes in emerging markets over the next four years. It aims to add
is an important market. We will launch more small cars in the country,” said MD, TKM, Hiroshi Nakagawa. By 2013, production capacit y in emerging markets will rise to 3.1 million vehicles a year, from 2.38 million in 2010, matching the level in Japan. In India, the company hopes to enhance capacity to sell at least 350,000 units by 2015. This is close to what the country’s second largest car Sandeep Singh, Deputy MD, Sales & Marketing, maker, Hyundai Motor Toyota Kirloskar Motor India sold in the domesto its portfolio of entry-level cars in tic market in 2011-12 (388,779 the Indian market. units). TKM had announced “We have outlined a strategy an investment of `300 crore to launch eight subcompacts in in March and of another `898 emerging markets by 2015. Two crore in July last year to increase cars on the Etios platform have capacity to 310,000 units in India already been introduced. India by 2013.
Tyre manufacturers evaluate green manufacturing tech Our Bureau Mumbai
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yre manufacturers are evaluating adoption of green manufacturing processes, solutions and materials but such objectives have their own challenges for them and customers alike. Green tyres show higher performance in traction, handling and wet grip. A better grip on wet roads results in a shorter braking distance compared to results obtained with regular tyres, according to a study conducted by Lanxess, a major rubber compound supplier to the tyre manufacturers. Tyre manufacturers are of the view that green tyres may help to reduce fuel consumption, lower exhaust emissions (lower carbon dioxide contribution to the atmosphere), reduction in waste
creation from lower numbers of discarded tyres owing to longer service life, improved safety for motorists through better handling and shorter braking distance and export opportunities for Indian tyre manufacturers. “Suppliers to the tyre manufacturers are looking to provide synthetic rubber capable of providing high performances together with the usage of safeoils. For the tyre manufacturers, using such rubbers would result in fi nished tyres having lower rolling resistance, improved traction, less tread wear and better handling. Overall, these rubbers would contribute to a much greener and cleaner environment,” said a supplier to tyre manufacturers. The main properties of a tyre that can be improved using high performance rubber, are rolling resistance, wet grip and dura-
bility. On an average 20 to 30 percent of fuel consumed by a tyre is used to overcome rolling resistance. When a car is wading its way through urban traffic or bad road conditions, it deforms to align itself to the road surface. This takes up energy transmitted by the engine and is manifested as rolling resistance, which increases fuel consumption and release carbon emissions. It also causes tyre abrasion, which pollutes the environment through particulate matter, contributing to around 10 percent of pollution caused by tyre during usage. This wear and tear shortens the life of the tyre. From a tyre manufacturer’s perspective, some initial capital investment may be required for green tyre manufacturing. From a customer’s perspective, adoption of such environmental friendly tyres may cost a little
more in terms of upfront costs but the higher cost may be compensated by reduction in fuel consumption by five to seven percent. For instance, a car owner covering around 12,500 km per year could save up to Euro 100 of fuel per year. The additional investment of Euro 20 to Euro 50 per tyre may thus be amortised within two years. The key issues that Indian tyre manufacturers facing are adoption of new mixing technologies, development of new compound formulations, upgrading of old processing equipment and reeducatiing the workforce about the new processing behaviour of compounds. Re-educating motorists on the benefits of changing over to green tyres for the Indian ecology and environment is likely to assume priority for tyre manufacturers.