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 ns Tur w o N
Vol. 12 No. 11
kly e e W
7 May 2012
w w w.amonl ine.in
40 Pages
FOCUS
` 50
INTERVIEW
TESTING
‘WE ARE LOOKING TO GROW BEYOND FINANCING BMW CARS’ Pg 9-10
Pg 8
Dan DeChristopher, MD & CEO, BMW Financial Services India
Made-in-India power for European cars Nabeel A Khan New Delhi
The engine has its blocks & head made of aluminum alloy instead of cast iron, which makes it lighter in weight. What’s more, its light weight combined with high speed empowers it to deliver more power Photograph: Nabeel A Khan
C
K Birla Group’s auto engine and transmission component manufacturing company, Avtec Ltd will be exporting two litre or below Euro V compliant diesel engines to an undisclosed European carmaker soon. The company is in advanced stage of discussion. Avtec had showcased Euro IV and Euro V engines during the Auto Expo held in New Delhi early this year. The engines have been developed with the technical design support from its European partner, Peugeot Citroën Moteurs (PCM). “We are to fi nalise the exports of Euro V complaint engines to a European carmaker and are exploring more customers for the engines there. The engine can be used in both sports utility vehicle and passenger cars. We would be able to finalise it by H1 (first half of the fiscal),” revealed Managing Director, Avtec,
Prabhakar Kadapa, MD, Avtec
Prabhakar Kadapa. The engine will be manufactured at the company’s Pithampur plant with around 90
percent localisation. The company is also planning to offer the Euro V engine in the US and other Asian markets where Euro V
emission norms are applicable. The engine has its blocks and head made of aluminum alloy instead of cast iron, which consequently makes it lighter in weight. What’s more, its light weight combined with high speed (around 6,000 RPM) empowers it to deliver more power. Avtec claims that the engine has been designed in such a way that it is compact in terms of size. The component manufacturer is
also talking to a number of carmakers in India to supply the Euro IV engine and might be able to bag a deal in the near future. With this, Avtec has taken its relationship with PCM to the next level. At the fi rst stage, the Indian component maker had developed two engines for gensets with support from PCM. As in the fi rst quarter of the fi nancial year, overall exports from India went down, the company has also felt a flat momentum in the exports. “We are observing a dip in the exports especially to the US market. But we hope that by the second quarter of the fiscal we would be seeing a better situation,” Kadapa anticipated. The company had expected a year-on-year growth of 40 percent in FY13, but till the fi rst quarter it had noted flat exports. Yet, based on the upcoming expansion and newer business, it hopes to achieve a growth of 40 percent in exports. Its exports revenue in the fi rst quarter stood at around $four million.
Fiat, Tata end distribution alliance Our Bureau Mumbai
Fiat is looking to establish a separate entity to take charge of the distribution and network development for Fiat branded cars in the Indian market. Development of the new Fiat dealer network for India will start progressively
T
ata Motors and Fiat have decided to put an end to their ‘bitter’ distribution alliance in India.
DATA MONITOR Top 5 3W Makers Company
Mar-11
Mar-12
Change
Bajaj
17,773
17,441
-1.87%
Piaggio
17,644
14,319
-18.84%
M&M
5,769
5,089
-11.79%
ATUL
1,989
2,514
26.40%
Scooters
1,825
1,812
-0.71%
Top 5 3W Exporters Company
Mar-11
Mar-12
Change
Bajaj
15,576
17,226
10.59%
Piaggio
1,521
2,177
43.13%
TVS
2,917
1,152
-60.51%
M&M
252
116
-53.97%
Atul
18
60
233.33%
* Source: SIAM/ ** Excluding exports/ *** all sub segments considered/ ^ excluding MRPL
Fiat’s engine production line at Ranjangaon
Italian car major Fiat is looking to establish a separate entity to take charge of the distribution and network development for Fiat branded cars in the Indian market. The partners will however continue to have manufacturing alliance with joint car and engine manufacturing capacity at Ranjangaon near Pune. As part of the growth plans and in order to provide greater focus
on the Fiat brand, Tata Motors will hand over the distribution and service responsibility for Fiat cars in India to a Fiat Group owned company being formed for the purpose. Development of the new Fiat dealer network for India will start progressively and the 178 existing Fiat-franchised Tata dealers in 129 cities will be encouraged to form the foundation of the future
network. Fiat will establish a separate entity for assuming responsibility for all commercial and service related activities from the current Tata-dedicated team assigned to manage the Fiat brand. Both, Fiat and Tata Motors will endeavor to ensure a smooth transition of sales and service support to customers and the dealer network, according to a company statement.
Announced in 2006, the Fiat-Tata joint venture also encompasses manufacturing activities located in Ranjangoan. The manufacturing plant uses technology by Fiat to produce Fiat and Tata cars in addition to engines and transmissions for both the domestic and export market. Fiat recently announced a contract to supply its small diesel engine to Maruti Suzuki and is looking to add other customers for its 1.3 litre multijet engine. In its five years of operation, the industrial JV has produced some 190,000 cars and 337,000 powertrains. Fiat manufactures and sells vehicles under the Fiat, Alfa Romeo, Lancia and Abarth brands and light commercial vehicles under the Fiat Professional brand. Fiat Group Automobiles comprises five companies: Fiat Automobiles, Alfa Romeo Automobiles, Lancia Automobiles, Abarth & Co and Fiat Light Commercial Vehicles. All these companies are 100 percent owned by Fiat Group Automobiles SpA.