Motown India April 2014 by Motown India

VOL-4 • ISSUE-7 • APRIL 2014 • 100

PULSE OF THE AUTOMOTIVE BUSINESS WORLD

INDIA

NISSAN

GO es

for more

KENICHIRO YOMURA President of Nissan India Operations & Managing Director and CEO, Nissan Motor India Pvt. Ltd.

DATSUN ON-DO LAUNCHED IN RUSSIA

Hyundai Xcent | Datsun GO | Bugatti Vitesse | T1 Prima Truck Racing | 109th Mahindra Great Escape

FREE 76-PAGE SUPPLEMENT ENCLOSED

EDITOR’S NOTE

he Alliance consisting of Renault of France and Nissan of Japan has just got one more brand in its kitty here in India---Datsun. To the ordinary man on the street in India, the word ‘Alliance’ may hardly make any sense. But when it comes to the cars they manufacture, they are bought for their styling,

performance and handling. Be it the Renault Duster, the Nissan Terrano, or even the recently launched Datsun GO, each has its own merits. But for the company manufacturing these cars, the Alliance brings forth a multitude of advantages, whether it is economies of scale, capacity utilisation or even cost cutting. Motown India interviewed three key officials of Nissan India-- Kenichiro Yomura, Toshihiko Sano and Ashwani Gupta. Gupta recently got posted as head of the LCV division of Renault in France. The cover report is based on these interviews. Nissan India is very optimistic and hopeful that the Datsun brand will be successful in India and the Oragadam plant near Chennai will soon be abuzz with the manufacturing of Datsun GO and Datsun GO+ cars in large numbers. Their success will be keenly watched not just in India but all over the world. Incidentally, the Motown India website www.motownindia.com is doing exceedingly well and according to the latest Alexa ranking, we are clearly No. 3 among the 17 auto titles in the country. We have beaten several B2C magazines on our way to the top. The No. 3 entity shown in the chart is not an India site, hence we qualify automatically. In a few days time, there will be general elections in the country. Hopefully, a party is elected with a clear majority. Among the candidates for the Prime Minister’s post is Narender Modi of the Bharatiya Janata Party. Modi is the most promising of the lot. For the last several years the country has been experiencing some laid back economic activities that have had a catastrophic effect on the Indian automotive industry. With a

EDITOR Punnoose Tharyan -------------------------EDITORIAL ADVISORS Salil Sharma, Alexander T., Annie Jacob -------------------------DELHI - EDITORIAL (editorial@motownindia.com) News Coordinator Jisha P Sr. Correspondents Abhijeet Singh, Rahul Kapoor Sr. Photographer Mohd. Nasir -------------------------MARKETING & SALES (sales@motownindia.com +91-9958125645) Associate Manager - Business Strategy: Anuj Srivastava -------------------------ACCOUNTS Ankit Sharma -------------------------CIRCULATION & SUBSCRIPTION (subscription@motownindia.com) Manager Dalip Singh Bagdwal -------------------------EDITORIAL DELHI OFFICE 145 B/9, First Floor, Kishangarh, Next to United Free Church, Vasant Kunj, New Delhi 110070, Tel: 011-26122758/59, Tele Fax: 011-26122757 -------------------------DISTRIBUTED BY Central News Agency, New Delhi -------------------------EDITORIAL CONTENT The publisher makes every effort to ensure that the contents in the magazine are correct. However, he can accept no responsibility for any effects from errors or omissions. Any unauthorised reproduction of Motown India content is strictly forbidden. -------------------------Motown India is printed, published, edited and owned by Punnoose Tharyan and published from 4058 / D-4, Vasant Kunj, New Delhi-110070. Printed at Pearl Printers, C-105, Okhla Industrial Area, Phase 1, New Delhi. This issue of Motown India magazine contains 60 pages including both covers and a 76-page booklet.

good political party at the helm of affairs, we can expect some positive changes.

P. Tharyan ptharyan@gmail.com www.motownindia.com

Due to unavoidable reasons we have shut our Chennai Bureau operations. A new bureau with a fresh batch of employees will soon be set up.

April 2014

CONTENTS

NISSAN INDIA

NISSAN GOes for more

INDIA REPORT: Riding high on demand, ZF aims to expand in India further

GLOBAL REPORT: RENAULT, NISSAN Alliance to converge 4 major functions globally

April 2014

TÊTE-À-TÊTE Anil Singh, Head of Manufacturing & Sourcing, AMW Motors Ltd.

TECHNOLOGY: EU approves MAGNETTI MARELLI’S ‘E-Light’ for Eco-Innovation programme

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HIGHLIGHTS

All-new BMW M6 Gran Coupe debuts at 1.75 crore New BMW training centre inaugurated The ultimate four-door high performance sports coupe from BMW, the all-new M6 Gran Coupe was launched on April 3, 2014. The company also announced the commencement of a new BMW Group Training Centre in Gurgaon, Haryana, near New Delhi. The coupe will be available in a petrol variant at an all India ex-showroom price of 1.75 crore. The BMW M6 Gran Coupe is now available at BMW dealerships across India as a completely built unit. “Seemingly unstoppable, compellingly sporty, a singular presence—the all-new BMW M6 Gran Coupe does not follow conventional rules, it sets new standards. What makes the all-new BMW M6 Gran Coupe particularly extraordinary is its combination of superior elegance with the comfort and functionality of a four-door saloon and its

prowess as a top-class highperformance sports car. With its dynamic expression and luxurious appearance, the all-new BMW M6 Gran Coupe is not just the most attractive coupe, it also provides the best everyday usability,” said Philipp von Sahr, President, BMW Group India. Meanwhile, the new training centre of BMW at Gurgaon is a benchmark amongst the BMW training centres worldwide. Built on 2.2 acres of land, the centre had the resources to provide training for all BMW Group Philipp von Sahr, President, BMW Group India brands in the

April 2014

market. It has been set up at an initial investment of 16 crore. “The training centre will allow us to provide intensive training in sales, service, parts and business systems to BMW Group India associates and our retail network to ensure customers receive best-in-class pre-and-post sales ownership experience,” said Sahr. The M6 Gran Coupe is powered by a 4.5 litre engine that develops 560bhp of power at 6000-7000rpm and a peak torque of 680Nm at 1500-5,750rpm. The engine revs to a maximum of 7,200 rpm. The BMW M6 Gran Coupe sprints from 0 to 100kmph in 4.2 seconds on the way to an electronically governed top speed of 250kmph (305kmph if the optional M Driver’s Package is specified). Fuel consumption would be a tad above 10kmpl. The performance characteristics of the car’s engine, its chassis technology, aerodynamic properties and weight balance – which the carbon fibre-reinforced plastic (CFRP) roof helps to optimise – are intertwined with hallmark M precision. The BMW M6 Gran Coupe therefore

represents not only a new experience of luxury in an M car, but also the ultimate expression of the dynamic potential embedded in the BMW 6 Series, says a company report. The front of the car is dominated by its large air intakes, standard Adaptive LED Headlights and an M kidney grille designed especially for this model. Taking care of power transfer is a seven-speed M Double Clutch Transmission with Drivelogic. The transmission’s electronic management system ensures the right gear is selected for optimum traction. It also offers the driver a Launch Control function for maximum acceleration, Low Speed Assistance for extra comfort and the Auto Start-Stop function to enhance efficiency. The M cockpit fuses sports car style with generous levels of space and a luxurious ambience. The driver and front passenger can look forward to M sports seats with integral belt guides. And the BMW M6 Gran Coupe’s standard specification also includes Merino leather upholstery with extended features.

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HIGHLIGHTS

Online deal for Mahindra Scorpio bullet-proof kits With Indian elections round the corner and politicians braving large crowds while seeking votes, it makes immense sense to move around in vehicles that are strong enough to withstand bullets. Snapdeal. com, an online marketplace, is offering bullet proof kits for your Scorpio vehicles that would keep the passengers safe from any untoward security challenge. In a strategic tie up with Defense Land Systems India, a Mahindra Company, these products will be made available on Snapdeal for the first time, especially keeping in mind the election season, according to a press release. Snapdeal is offering three packages on its site Executive, Premium and VVIP. In all three cases, an advance of 75,000 has to be made and the remaining amount needs to be paid to the seller directly. And mind you, the deals are not cheap, but considering the value of human life, it’s a deal worth your life! In the Executive package, the vehicle will have bullet proof panels on all sides, complete bullet proof glasses, anti explosion material kit for the fuel tank and a vehicle tracking device, besides free insurance for bullet proof materials. The total cost comes to 12.66 lakh here. In the Premium package, the additional fitments include a run flat system. The cost here is 16.07 lakh. The VVIP package adds-ons include bullet proof floor carpet for underbelly protection against blasts and driver side power window. The total cost for this package is 18.33 lakh. There is also a free pick

April 2014

and door deliver in all the three packages as the vehicle would be fitted at the company workshop. “Defense Land Systems India has been proving their expertise in the line of defense armory for a significant time now. This is the first time Indian customers will be able to access such a product in the online space. While the brand itself is a guarantee of product quality and cost effectiveness, we are pleased to be able to offer their range of bullet proof kits to buyers online who are looking at a credible source for such requirements and are often in doubt about the right buying platform for the same,” says Tony Navin - VP - Business Development, Snapdeal.com Sukhvindar Hayer, Sr General Manager, Defense Land Systems India, notes “We have world class design, development and manufacturing technologies and introduced products which provide a number of value for money protection-intransit solutions. We are the largest private sector supplier of light armored vehicles to

the Indian Security Forces. Keeping in view the ever increasing security issues, while we continue to improve the survivability solutions for our gallant soldiers and policemen,

our offer through Snapdeal is to provide the relevant NIJ Level 2 (protection levels against 9 mm bullets) kits for protection-intransit solutions to the citizens of the country.”

India’s first CRDe tractor from M&M The Arjun 605 Multi Application Tractor from Farm Equipment Sector (FES) of Mahindra & Mahindra is the first CRDe tractor in the country. The company is a market leader in the Indian tractor industry for the last 30 years. The CRDe technology is a modular, electronically controlled diesel fuel injection system. This technology offers customers the benefit of better fuel efficiency and enhanced performance in all applications with varying load conditions. It also gives the customer an improved driving experience with lower engine noise. The customer can quickly identify faults through the on board diagnostics system, which makes CRDe technology more robust and reliable. This technology is also environment friendly as it surpasses all current emission norms, while delivering improved field fuel economy.

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HIGHLIGHTS

Local assembly begins of new Mercedes S-Class Life in India is not all about Arvind Kejriwal and his aam admis. There are uber rich people in India driving the demand for luxury cars in the country. The surge in demand for the luxury car, the new S-class has led to Mercedes-Benz India commencing local production of the new S-Class from its manufacturing facility in Chakan, Pune. For record’s sake, the new S-Class is the most powerful luxury car to be produced in India and currently has a waiting period of approximately three months. The ex -showroom Mumbai price of the new S 500 is 1.36 crore. The exteriors of the S-class feature an arched roofline with flowing contours and a large grille with four louvers clubbed with the three-dimensional design of the chrome trim and grille interior. Then there are the all LED high performance sharply contoured headlamps and a panoramic sunroof. The S-Class has a drag co-efficient of 0.24, one of the lowest for a luxury car of this calibre. The interiors are equally

April 2014

exciting as it feature seven colour ambient lighting with a choice of five dimming options, two high-resolution TFT screens and a multi-function two-spoke steering wheel that offers all controls at one go. The dashboard is a combination of contemporary design featuring sleek horizontal lines, which along with the design wood eucalyptus trim imparts the plush touch. The COMAND online NTG5 in the S-Class comes with animated menus and 3D effects, besides an HDD to store music and videos, WLAN hotspot, SMS display, phone contact reader, radio and navigation. The S-Class offers power packed hot stone massage function with six different programmes. Occupants can choose from two intensities – low and high and the seat backrest comes with a massage mat with 14 air chambers which can be inflated or deflated via fast responding solenoid valves, developing a wave-like massage effect. The massage function can be operated via remote with durations ranging from 12 – 15

Eberhard Kern, MD & CEO, Mercedes-Benz India (R) minutes. As for the ride safety and other features, the new S-Class features an Airmatic suspension which ensures smooth ride quality. The 360 degree surround view camera along with night view assist supports the driver with improved visibility assuring minimum blind spots and intimating the driver of any obstacles ahead. Active Park Assist automatically steers the vehicle into parking spaces, relieving the driver of steering and braking effort. ESP with 8 airbags and Pre Safe assure driver and passenger safety, while the

brake assist offers better control during emergency braking. The S-Class also comes with Adaptive Brakes with Hold function, ASR and Hill Start Assist. The Keyless-GO package with hands free access allows handsoff, fully automatic opening and closing of the boot lid. The new S-Class also comes with a chauffeur package, which creates up to 77mm more rear leg room on the front passenger side with electrically extending footrest and has easy adjust luxury head restrains for driver and passenger.

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HIGHLIGHTS

MapmyIndia’s Rover helps you keep your vehicles safe With MapmyIndia’s new Rover, there’s yet another way to track your vehicle and also ensure its safety. MapmyIndia, India’s leader in digital maps, navigation and location-based service, has launched Rover, India’s first vehicle safety solution with house-level data. According to a company statement, the product allows users to live track their vehicle(s) anytime anywhere – they can use mobile and web browsers to see where their vehicles are at any given time. MapmyIndia Rover is priced at 11,990. The accurate map data (at house-level) ensures that you will always know where your vehicle is. The product can operate independently in any situation. There is a complement of features that keep it functional even if the vehicle has been disabled. An internal battery back-up has been provided to keep it operational when the engine has been turned off. The product is water/dust proof and equipped with an internal antenna. Whatever the conditions, Rover will keep you on track with your vehicle. You can get sms/email alerts across

multiple numbers/ ids of your choice. In case of a theft the vehicle can be immobilised from your smartphone. An immediate rescue operation can be launched and the vehicle’s current location be fetched by sending an SMS “FIND Vehicle Number” to 56161 from any number The product is not just limited to tracking but is loaded with intelligent features like Geo-fencing (setting geographical boundaries) and route setting that will set off alerts in case of any deviation. You will be able to take countermeasures, before the situation develops into a crisis. The product also allows you to mark important places that are visited regularly like your child’s school, pick up and drop points of employees, delivery destinations etc. The MapmyIndia Rover also facilitates optimal usage and efficient operation of your

vehicles. Get highly accurate, map linked reports for your vehicle daily/ weekly/ monthly over email automatically. The product helps you keep a check on vehicle running, over speeding instances etc. Reports on Trips & Drives/Trip & Stops, Drives by Day/ Stops by Day/ Get stops at my places etc. are valuable to see that there is compliance to the laid out guidelines and plans. Any discrepancies and inefficiencies can be immediately detected and

acted upon. The device is powered by India’s most accurate MapmyIndia maps’ latest version 8.1. These offer India’s most comprehensive, exhaustive, detailed and updated coverage with – 10.54 million unique destinations (Points of Interests), expanded coverage of over 2 million kilometers road network, 6028 cities at street level with house address level data for 52 cities, 600000 villages and 3D & 2D landmarks in 88 cities.

Modi effect: Auto shares touch frenzied heights The automotive industry is still not out of the woods but the share market seems to be already giving them the thumbs up. Call it the run up to the elections, call it the run up to Modi becoming the Prime Minister, or call it whatever, auto share prices are dancing their way to the heavens. These include vehicle manufacturers, tyre majors, component manufacturers, et al. Yes, automotive shares have been on fire in the last one year, reaching dizzying heights in the

April 2014

month of March 2014. March 2014 saw a lot of automotive companies touch their 52 week highs on the National Stock Exchange (NSE) as compared to the lows they experienced barely a few months back in 2013. Tyre major MRF Ltd touched a high of 22,588.95 on March 24, 2014 as compared to a low of 11,432 on April 10, 2013. Apollo Tyres hit a high of 166.15 on March 25, 2014 (low of 54.60 on June 21, 2013). TVS Motor Co. hit a high of 101.50 on

March 24, 2014 as compared to a low of 28.10 in July 31, 2013. Ashok Leyland is currently priced at 22.85 from its low of 11.75 attained on Aug 29, 2013. Car major Maruti Suzuki touched a high of 1,968 on March 27, 2014 from a low of 1,215 on August 28, 2013. Mahindra & Mahindra hit a high of 1,054.90 on March 18, 2014 as compared to a low of 740.15 on August 28, 2013. Tata Motors hit a high of 420.70 on March 4, 2014, as compared to a low of 251.80

on April 5, 2013. Hero MotoCorp reached 2,274 on March 27, 2014 as compared to a low of 1,435 on April 15, 2015. Eicher Motors touched a high of 6,149 on March 26, 2014 as compared to a low of 2,501 on April 2, 2013. Tyre major Ceat India had on April 9, 2013 hit a low of 87.10, but on March 25, 2014 the Ceat share hit a high of 456.65 (52-week high) on the NSE. The markets are definitely excited and seem to be expecting a miracle in the fortunes of automotive companies!

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HIGHLIGHTS

Volvo Group plans to introduce UD buses in India Like all auto majors, whether it is cars or trucks, introducing new brands is now becoming a smart and serious marketing strategy. The recent Datsun introduction in India by Nissan is a case in point. Swedish truck maker Volvo Group now follows suit with its twobrand strategy in India. The truck major has announced that it would be introducing a new set of buses in India under its UD brand name. The UD brand was once owned by Nissan Diesel of Japan and subsequently acquired by Volvo. While UD trucks continued production after the acquisition, Volvo had discontinued the making of UD buses. Now in a strategic announcement, the Volvo group said it will be introducing a UD bus range developed specifically

for growth markets. In India, UD Buses aims to develop and lead the value segment. “In India we foresee that UD Buses will take the lead in developing the value segment. There is a large potential middle segment in India, of which, the value segment targeted has a high growth potential. The Volvo Group will play a significant role in enhancing quality of transportation for an increased number of citizens,” said Akash Passey, Senior Vice President, Volvo Group’s bus operations, responsible for the international markets including Asia. This was stated during a press meeting in Bangalore attended by Håkan Agnevall, President of Volvo Group’s bus operations and Akash Passey. This will be for the first time that UD buses will be

introduced in India. Additional growth markets will follow over the coming years.The bus range will include both city buses and coaches. The new UD bus range will be developed by leveraging the Volvo Group’s global engineering network in combination with its heritage of Japanese craftsmanship and reliability. The new bus range will be supported by Volvo Group’s distribution network, providing service and parts. UD buses will offer passengers a modern transport solution while at the same time focusing on operational essentials--- fuel efficiency, reliability and optimised uptime. “UD buses have had a strong brand presence in Japan and South East Asia in the past. Now we renew and adapt the buses

for growth markets, starting with India. This is a brand with a proud heritage, marked by its core value of ultimate dependability. It will offer passengers a modern travel experience and fulfil the specific needs of the customers in the value segment. With a multi-brand approach we look forward to playing an even more important role in the Indian bus market,” said Håkan Agnevall. The Volvo Group started its bus operations in India in 2001. Approximately 5,000 Volvo coaches and city buses are in traffic in India. The production of UD buses will start in Bangalore in 2014. The first buses will reach the customers later this year. Besides serving the domestic Indian market, the UD bus plant in India will also serve as an export hub in the future.

Dr. Sumantran steps down from VC post in Hinduja Automotive Dr. V Sumantran has stepped down from the Vice Chairman post in Hinduja Automotive Ltd, the holding company of Ashok Leyland effective March 31, 2014. Dr. Sumantran has also stepped down from his position on the Board of Ashok Leyland Ltd. However, he will continue as advisor to the Hinduja Group. According to an official communication from the Hinduja group, Dr. Sumantran will pursue his interests in academia, research and consulting. Dr. Sumantran had overseen the LCV business of Ashok Leyland, through their JointVenture with Nissan. During his tenure the company had a new range of products including the successful Dost commercial vehicle and the passenger vehicle Stile. Around the 12th Auto Expo 2014, the company had launched

April 2014

the Partner LCV truck and MiTR LCV Bus. Dheeraj Hinduja, CoChairman, Hinduja Automotive Ltd said: ‘’Dr. Sumantran has played a key role in expanding Ashok Leyland’s product range and new businesses and in creating a strong partnership with Nissan. I have greatly valued his vast experience, knowledge and his advice over the past several years. I wish him all success in his new pursuits.’’ Dr. Sumantran said: ‘’When I had joined the Board, getting Ashok Leyland into the LCV business was a major objective. Now, with the launch of the Partner and Mitr, we have seen completion of the first phase of our cooperation with Nissan. This was a suitable juncture for me to look to pursuing other interests, including some work

with academia, research and consulting. I have the privilege to work with a phenomenally motivated and accomplished team, supportive share-holders

and highly experienced Board colleagues and management. I wish them every success in the years ahead.’’

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HIGHLIGHTS

AUTOMOBILE SALES FOR MARCH 2014

After the split, Hero and Honda going great guns with numbers After the two motorcycle companies Hero and Honda went their own separate ways, there is no looking back for these two two-wheeler majors. Recording its most successful year in India, HONDA MOTORCYCLE & SCOOTER INDIA PVT. LTD. (HMSI) closed the financial year FY’13-14 with record sales. Hero MotoCorp Ltd (HMCL), on the other hand, achieved the highest-ever despatch sales for any financial year, thereby further strengthening its pole position in the market. Honda recorded sales of 37.21 lakh units in FY’14 with 55,000 units sold on only one day (March 31, 2014) on occasion of Gudi Parhwa and Ugadi in West and South India respectively. HMSI added 9.67 lakh new units compared to 11.19 lakh units added to total Indian two wheeler industry in

the fiscal 2013-14. The company strengthened its position as India’s 2nd largest two wheeler company. Honda’s domestic market share has witnessed a 6pc point jump to 28pc in March, 2014. The Dream Neo and Dream Yuga saw combined sales crossing 6.3 lakh units this year. Overall, Honda grew 73pc in 100-110cc mass motorcycle segment while this segment grew at 4pc. While

April 2014

125cc motorcycle segment saw de-growth, CB Shine created new milestone. India’s largest selling 125cc motorcycle recorded highest ever sales of 7.4 lakh units in this fiscal with 94,000 units sold in March’14 itself. In 150cc motorcycle segment, powered by the Honda Eco Technology (HET), Honda reinforced its leadership in automatic scooter market. HMSI automatic scooter sales grew at 32pc in comparison to 21pc growth of domestic automatic scooter industry. HERO MOTOCORP (HMCL) sold 62,45,895 units of two-wheelers during the financial year (April 1, 2013–March 31, 2014) - a growth of 3pc over the corresponding period when

the company had sold 60,75,583 units. The company capped off the financial year 2014 with 5,24,028 units in March’14. This is a growth of 11.9pc over the corresponding month in 2013 when the company had sold 4,68,283 units. BAJAJ AUTO sold 2,70,591 motorcycles as against 2,67,037 units in March 2013 (1 pc growth), while commercial vehicle sales stood at 33,739 (34,194/ 1 pc

degrowth)) Of the total sales of 3,04,330 units, exports stood at 11,183 units, the highest ever export figure for any March. For April 2013 to March 2014, total sales stood at 34,22,416 units as against 37,57,105 units in the previous fiscal. This amounted to a negative growth of 9pc. Commercial vehicle sales for the fiscal ended march 31, 2014 stood at 4,47,674 as against 4,80,057 units, a negative growth of 7pc. YAMAHA MOTOR INDIA recorded 29pc domestic sales growth. Along with its innovative efforts, ongoing customer-centric activities, diverse product lineup with the addition of

‘Alpha’ has been instrumental in boosting sales to higher ranks. The company sold 46,052 units in March 2014 as against 35,782 units sold in March last year in the domestic market thereby registering a domestic sales growth of 29pc. In the export markets the company sold 15,187 units in March 2014 as compared to 14,691 units sold in the same month last year achieving a growth of 3.4pc. The overall sales stood at 61,239 units in March 2014 while 50,473 units were sold in March 2013, thereby registering

a 21.3pc overall growth. MAHINDRA TWO WHEELERS (MTWL), part of the Mahindra Group, reported volume growth of 152pc during March 2014 over the previous year, selling 19,591 units during the month. Domestic volume stood at 18,953 units, a growth of 165pc over the previous year. The company’s cumulative sales from April 2013 to March 2014 grew at 92pc. The Mahindra Centuro continues to generate strong demand thanks to its advanced, innovative features and very attractive price

tag, said a company statement. With the launch of new dealerships across India, Mahindra Two Wheelers has grown its sales and service network to over 1,000 touch points and are adding 2 new outlets every day in order to make the Centuro motorcycle more accessible to buyers. SUZUKI MOTORCYCLE record 19pc increase in sales Suzuki Motorcycle India Ltd has registered an 19pc increase in March 2014 sales figures as compared to March 2013. Suzuki continued on Page 20

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HIGHLIGHTS Motorcycle sold 30,594 units in March 2014 as opposed to 25,717 units in March 2013, recording a strong growth in its overall sales. Suzuki Motorcycles has maintained a consistent growth path over the last couple of years. MERCEDES-BENZ INDIA sold 2,554 units in the first quarter sales (January to March 2014). The company recorded a growth of 27pc over the corresponding period of 2013 (January-March 2013: 2009 units), a press statement from the company said. NISSAN INDIA sold 38,217 units of cars for 2013-14 fiscal as compared to 36,975 units in the pervious fiscal, thereby registering a 3.4pc growth. Nissan Terrano was the biggest contributor to sales, achieving 14,998 units since its launch in October 2013. The Micra range comprising Micra Active and Micra hatchbacks sold 12,595 units while the recently launched Datsun GO contributed 2,072 units within just 10 days of its national launch. Nissan registered sales of 7,019 units in March 2014 against 2,125 units last year, accounting for a massive 230pc growth over the same period. Tata Motors’ total sales (including exports) of Tata commercial and passenger vehicles in March 2014 were 51,184 vehicles. The company’s domestic sales of Tata commercial and passenger vehicles for March 2014 were 45,996 units. Cumulative sales (including exports) for the company for the fiscal were 5,66,695 units. The company’s sales of commercial vehicles in March 2014 in the domestic market were 33,356 units, LCV sales were 20,938 units, while M&HCV sales stood at 12,418 units. Cumulative sales of commercial vehicles in the domestic market for the fiscal were 3,78,348 units. Cumulative LCV sales were 268,117 units, while M&HCV sales stood at 1,10,231 units. Sales of passenger vehicles for

April 2014

March 2014 were at 12,640 units. Sales of the Nano/ Indica/ Indigo range in March 2014 were 9,761 units. The Sumo/ Safari/ Aria/ Venture range sales were 2,879 units. Cumulative sales of passenger vehicles were 1,38,455 units. Cumulative sales of the Nano/ Indica/ Indigo range were at 1,07,187 units. Cumulative sales of the Sumo/Safari/ Aria/ Venture range were 31,268 unnits. The company’s sales from exports were 5,188 units in March 2014. Cumulative sales from exports for the fiscal were 49,892 units. FORD INDIA sold 11,805 vehicles in combined domestic wholesales and exports in March, up 57pc from 7,499 vehicles in the same period last year. Domestic sales in March stood at 6,356 units, up from 5,271 units in the corresponding period last year. Reflecting Ford’s continued efforts to enhance India’s position as a centre of manufacturing excellence, Ford India exports continued to be strong, at 5,449 vehicles in March, up from 2,228 units last year. HONDA CARS INDIA LTD (HCIL) registered its highest ever monthly domestic sales of 18,426 units during March 2014 and registered a growth of 83.4pc as compared to 10,044 units in March 2013. March 2014. The company sold 1,456 units of the Brio, 7,374 units of the Amaze, 9,518 units of the City and 78 units of the CRV. The company also posted its highest ever annual sales of 1,34,339 units during FY 2013 – 14 recording 83pc growth over last financial year. The company had sold 73,483 units during FY 2012 – 13. The strong response from the market for the Honda Amaze and All New Honda City has been the driving force for this record achievement. The company also increased its export volumes by 121pc during FY 2013 – 14 with 5,798 units as compared to 2,622 units in the FY 2012 – 13.

MAHINDRA & MAHINDRA auto sales numbers stood at 51,636 units during March 2014. The passenger vehicles segment (which includes UVs and the Verito) sold 23,433 units in March 2014, as against 25,847 units during March 2013. The company’s domestic sales stood at 48,490 units during March 2014, as against 49,225 units during March 2013. The 4-wheelers commercial segment has sold 17,649 units, while the 3-wheelers segment clocked 6,305 units in March 2014. Exports for the month stood at 3,146 units which represents a growth of 17pc. The company ended Financial Year 2013-14, with a sales figure of 5,07,176 units as against 5,63,373 units in FY 2012-13. In the passenger vehicles segment (UVs and Verito), M&M sold 23,433 units in March 2014 as compared to 25,847 units in the corresponding period last year ( a negative growth of 9pc). The 2013-14 fiscal figures stood at 2,29,155 units as against 2,79,270 units (-18pc growth). In the 4-wheelers commercial (Passenger & Load) that includes the Maxximo, Gio, Genio and Bolero Pick up the March 2014 sales figure stood at 17,649 (17,212), a growth of 3pc. For the fiscal 2013-14, the sales stood at 1,77,587 units (1,74,233 units), a growth of 2pc. In 3-wheelers, the March 2014 figures stood at 6,305 units (4,831), a 31pc growth, while for the entire fiscal it stood at 62,614 units (65,510), a negative growth of 4pc. The performance of the trucks and busses company (MTBL) was also not good. For March 2014, the sales stood at 1,103 units (1,335), a -17pc growth. The fiscal sales stood at 8,161 units (11,902), a -31pc growth. TOYOTA KIRLOSKAR MOTOR sales went down drastically: Blame it on the strike at its two plants in Karnataka, Toyota Kirloskar Motor (TKM) could only sell 9,160 units in March 2014, compared to 21,143 units in March 2013. The

company exported 954 units of Etios series in the month. In the domestic market TKM sold 8,206 units in March 2014 as compared to 19,452 units in March 2013. HYUNDAI MOTOR (HMIL) registered domestic sales of 35,003 units (33,858), a 3.4pc growth and exports of 16,705 units (22,579), a fall of 26pc in growth for the month of March 2014. Cumulative sales stood at 51,708 units (56,437 units), a degrowth of 8.4pc. Maruti Suzuki India Limited closed the year 2013-14, with domestic sales of 10,53,689 units, up 0.3pc. Exports during the year stood at 1,01,352 units, taking the total sales to 11,55,041 units. During March 2014, the company sold 1,02,269 units in domestic market and exported 11,081 units. Total sales during the month stood at 1,13,350 units. Propped up by the Celerio, the compact segment of the company comprising Swift, Estilo, Ritz and Celerio recorded a positive 9pc growth in March 2014, registering total sales of 28,285 units as compared to 25,868 units in March 2013 The only other sub segments to record a positive growth for the month were the utility vehicles and vans. Vans comprising Omni and Eeco saw sales of 9,752 units in March 2014 (9,506), while the utility vehicles comprising Gypsy, Grand Vitara and Ertiga sold 6,499 units (6,488 units). The worst hit was SX4 in the mid size sub segment where it sold a mere 411 units (903), registering a negative 54pc growth. The Super compact segment comprising the Dzire sold 17,237 units (20,078), a negative 14.1pc). The Mini segment comprising M800, Alto, A-Star and WagonR recorded sales of 40,085 units (45,047), a -11pc growth. . In the executive segment, the Kizashi continued to score a duck. While March 2014 to March 2013 growth in passenger cars stood at -6.4pc, the cumulative figures in comparison were positive at 3.4pc.

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COVER REPORT

NISSAN

GO es

for more K Report P. Tharyan, Photography Mohd. Nasir

enichiro Yomura, President of Nissan India Operations & Managing Director and CEO, Nissan Motor India Pvt Ltd joined Nissan Motor Company just after college in 1982. He has been with the company for the last 32 years. Tough situations do not unsettle him. “I always believed that if you want to climb a tall mountain, there will be peaks and valleys, and all kinds of hurdles. In India also it is similar and in the last two years the markets have not been good and I am not surprised,” says Yomura in an exclusive interview with Motown India at his corporate office in Chennai. When he was with Nissan in China in 2004, the car market was very difficult and he and his team had to struggle a lot. “This was because of a lot of entrants in the car market including our company,” recalls Yomura. But then the Chinese experience was a different one for him. “This market started from a small car. In case of China, you find a lot of rich people, hence their preference for bigger cars. It is a

April 2014

status symbol for them. They import a lot of big cars. It is a different story in India,” he says. To begin with, Yomura admits that his company has gone way off its projected sales target. “A year ago I was saying 100000 sales is our target but we end up around 40pc of that figure,” he confesses. He had also maintained that by 2017 his company would have a 10pc share in the Indian car market. “We take reality as a starting point, and if we are going to continue to chase for the 10pc by 2017 then we need to grow three times for the remaining years. That never happens. We reviewed ourselves seriously and our 10pc aspiration has not changed. Nissan combined with Datsun will become a major player in India definitely. The 10pc will be an important milestone,” he feels. For the financial year 2013-14, Nissan India sold 38,217 units of cars as compared to 36,975 units in the previous fiscal, thereby registering a 3.4pc growth. Nissan Terrano was the biggest contributor to sales, achieving 14,998 units since its launch in October 2013. The Micra range comprising Micra Active and Micra hatchbacks sold 12,595 units while

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COVER REPORT

KENICHIRO YOMURA, President of Nissan India Operations & Managing Director and CEO, Nissan Motor India Pvt. Ltd. April 2014

COVER REPORT

Picture courtesy: Nissan India

April 2014

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COVER REPORT

the recently launched Datsun GO contributed 2,072 units within just 10 days of its national launch But there is a silver lining in every dark cloud. Nissan registered sales of 7,019 units in March 2014 against 2,125 units last year, accounting for a massive 230pc growth over the same period. There is a reason to shed off the existing gloominess. There is hope in the newly launched Datsun brand in India.

THE MERITS OF THE ALLIANCE Nissanâ&#x20AC;&#x2122;s story in India is linked to that of the Alliance. The Alliance, as everywhere else in the world, is all about Nissan and Renault. Tremendous synergies between the two companies have resulted in massive advantages to both the Alliance partners. Globally when the alliance between Nissan and Renault started in late 1990s, both companies were looking for synergies like common platforms, components, manufacturing, marketing, etc. While in different countries one brand is stronger than the other (example, Nissan is much stronger in Japan, while Renault is stronger in France), in India itâ&#x20AC;&#x2122;s a unique first model case for the Alliance. Renault and Nissan were both latecomers in the country. The manufacturing plant in Oragadam on the outskirts of Chennai is a joint venture between Renault and Nissan. In other countries you get to see Nissan plants producing Renault vehicles and Renault plants producing Nissan vehicles.

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April 2014

COVER REPORT

Toshihiko Sano, CEO and Managing Director, Renault Nissan Automotive India Private Ltd.

April 2014

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COVER REPORT “The joint venture plant in India is the first such case for us where we produce for both domestic as well as exports for both the brands. By doing that we are lowering the manufacturing costs to compete in the very cost competitive market,” informs Yomura. Yomura feels that having one plant for both companies has a lot of advantages. Now with Datsun coming in as a third brand, there is a lot of action expected at the Oragadam plant. “The advantage is simple—we can ramp up production quickly. No plant can launch different models in a short time. We chose that way. Though we have similar platforms (between Nissan and Renault) there is a certain degree of differentiation. If you see the Duster and Terrano, the degree of differentiation is more. Cross badging and sharing of platform were necessary to realise the economies of scale. But yes, we need to widen this differentiation. We have time on our hands. We have reached good capacity utilisation,” he says. Equally emphatic about the joint venture plant is Toshihiko Sano, CEO and Managing Director, Renault Nissan Automotive India Private Ltd. “The Chennai plant is the first plant of the Alliance. The next in line is Russia. Both Renault and Nissan already have synergy efficiencies. We share the cost of investment. New model launch investments are also shared. This is just the phase I. Still we have scope to increase this synergy efficiency. Both Renault and Nissan have their own unique characteristics. The customer is not bothered about how a car is produced. He is bothered about quality. Another area we can look at is sharing of parts and making it more cost effective. It would be a challenge for the design departments of both the companies. I think we still have a lot of opportunity to reduce cost and also improve quality,” says Sana. At the Oragadam plant, according to Sano, an Alliance Intelligent Manufacturing System

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(AIMS) is followed. “We have broadly two assembly lines. On the main line we can produce any type of model randomly like the Terrano, Duster, Sunny and Scala. We have unique parts for each of the vehicles so sub-assembly is different. In Sunny we have export models both right hand and left hand. The Duster is exported to UK as Dacia brand. It is also exported to South Africa. So, on the main line we can do six types of vehicles. On this line we can also produce the Evalia and Stile.

notes Sano. Currently, the plant is operating at around 250000 units per annum But the Datsun GO is like a breath of fresh air and the company is looking at even increasing its capacity at the plant. “We have already started exploring the possibility of increasing our capacity. It all depends on Datsun GO sales. If the next six months sales increase, then the management will decide on capacity expansion,” says Sano. Sano informs that there around

then Thailand. Some Indian suppliers have improved to reach global standards,” he affirms

The No.1 line has a capacity of 240000 per annum,” informs Sano. The Sunny model is exported to Middle East, Asia, Africa, New Zealand, among other countries. “The No.2 line also has a capacity of 240000 and produces Micra, Pulse and now the Datsun GO. For the European region we are exporting Micra from here. We are exporting to 102 countries. Nissan and Renault have own production ways and we have combined them here. We call it the Alliance production way,”

247 suppliers for the Alliance. “Localisation levels are increasing every month. The tier I suppliers are mainly from India. The tier II suppliers are mainly from abroad. More than 100 suppliers are close to Chennai. Three years ago we had only 97 suppliers, now we have 247,” he adds. Sano is also excited of the fact that parts exports business of the Alliance is improving. “The parts exports business is also increasing. Most of the parts are exported to Japan, followed by China and

as products and manpower. We are now increasing the manpower in distribution after taking over from Hover. It’s not going to be easy but it’s a challenge nevertheless. This is a very competitive market and we are still new. We are a very tiny player. But we will get it done,” he says. Yomura feels that the newly launched Datsun GO is the best family car in India. When he was young boy he had seen the original Datsun car in Japan. “I noticed that Datsun helped

THE INDIAN MARKET AND THE DATSUN GO Having seen the difference between the company’s sales targets and the real world figures, Nissan India is now working on a revised plan for its volumes, which Yomura refuses to divulge. “I am optimistic. Nissan has made serious investment in R&D centre and manufacturing plant, as well

April 2014

COVER REPORT motorisation in Japan. People realised their dreams of owning a car. With the new Datsun brand here in India, I like to see the same thing,” he notes. Yomura claims that though India has a much diversified market with different cultures, the basic instinct of people remains same all over the world--Everybody likes a good looking car that is powerful, fuel efficient, comfortable and affordable. Another challenge for Nissan is on the distribution front. In November 2013, the company decided to take care of Datsun distribution all by themselves. It was then distributing its existing line up of cars through Hover. On February 14, 2014 Nissan India terminated it deal with Hover. The company currently has around 129 dealers. “In future because the brand is different and the target customers are different, we may have Datsun dedicated showrooms. For Datsun customer,

peace of mind is very important, especially the after sales service. We have two more products in the pipeline (GO+ has already been showcased and is expected to be launched in 2014). Thus in the next two years we shall have three products. With one product if we established a separate dealership, it’s not viable,” points out Yomura. With the Datsun brand, Nissan India wants to first establish it in the country. “We are very new and we need to prove ourselves. Rather than chasing numbers, I like to establish my foundation. I need to establish the product, the sales network and after sales service. I

need to satisfy my customer,” he signs off. Kenichiro Yomura knows that with the Datsun GO he cannot go wrong on the sales front. He has to satisfy his customer in India come what may. It’s not just his

reputation at stake, but also the reputation of an entire team and its bossman Carlos Ghosn. But then again, Yomura has climbed steep mountains in the past and has crossed many a cliff and valley.

Datsun GO is my heart, says Ashwani Gupta

mong the hundreds and thousands who would have worked for the revival of the Datsun brand, there would have been very few who would have been so closely associated with the project as Ashwani Gupta, Global Program Director, Datsun, Nissan Motor India. In perhaps his last interview at Datsun, he spoke to Motown India from Paris. Gupta has now joined as head of the Light commercial vehicles division of Renault. “I will be located in Paris from April 1, 2014 and will report directly to Carlos Ghosn,” said Gupta. “Datsun is a global brand with a local product. The

April 2014

global brand keeps the consistency basically controlled by headquarters---Brand philosophy, brand mission and brand signature. Local involves market intelligence, product concept, engineering, purchasing, etc. In India it is in Chennai, in Russia it is Togliatti, in South Africa it is Johannesburg and in Indonesia in Jakarta. In Russia we are working with our Alliance partner Avtovaz,” he noted The Datsun story for him started somewhere in 2010 and early 2011. “We were discussing about Power 88. When we did a study on the total industrial volumes, it came up that 60pc of the TIV will be coming from

the high growth markets. And these are first time buyers,” he recalled. Gupta who enjoys Bollywood films, travel and cooking for the family, made his point clear by giving a very valid example. “It’s like localising pasta in Japan. How many meals can you have till the time you do not have sushi?” he asked. “Thus, we looked at our heritage, we looked at what we have today, and we looked at what could happen in 2015 and 2016. There was a very clear consistency between what we did years ago with our heritage which is Datsun brand and what we are doing today at Nissan which is a global

brand with global product. I as a programme director was involved with the rebirth of this concept,” he noted with pride, adding that “It’s (Datsun GO) not part of my heart, it’s my heart”. “We have a great engineering centre in Chennai and what I did I used all the young and capable engineers to do the development of the car. So along with the experts as well as these engineers we did all the work in Chennai. Now my team is very capable with the hardware as well as the software for developing a car. We started from scratch. We translated customer insights into product concept and

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COVER REPORT

(R) Ashwani Gupta, Global Program Director, Datsun, Nissan Motor (He now heads the LCV division of Renault and is based out of Paris) with Kenichiro Yomura, President of Nissan India Operations & Managing Director and CEO, Nissan Motor India Pvt. Ltd. at the launch of Datsun GO in India. then from product concept we had to do a marriage of customer discovery and technical discovery. The result is the powerful Datsun GO,” he pointed out. “This is my heart because I was involved from first day. I conceived the product, and I delivered it,” he added. Datsun cars will be produced in countries like India, Russia, Indonesia and South Africa. Yet each country will have a car suited for its own use and would be made to the liking of the local population. “When you go through the customer insight you realise

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people are looking for a very comfortable drive for their family. They are looking for big interior space. That also means good air-conditioning. They are then also looking for good acceleration because of traffic. Because they want a social recognition of their happy family, they are looking for modernity. These are the things that never come out in direct customer clinics. These are the things we have to dig out. Then you come to technical discovery wherein you decide the size of the engine, the power and fuel efficiency,” stated Gupta. The Russians, he said, are

different from India. Hence the car would be modelled accordingly. “When you talk about Russia, you have two kinds of thinking. The customer profile of those in India and Russia are different. There the customers are not going for a comfortable drive for the family. For example, in the month of September the cost of potatoes is very competitive. They go and shop four or five bags of potatoes, put it in their trunk and bring it home for storage so that they can use it throughout the winter. This means you need a very big boot. That also means you need

a very good suspension to take care of what is inside the boot. Also they need the car every Friday to go to the Dachas (a seasonal second home),” he informed. A look at the newly launched Datsun on-DO in Russia proves that point. While the Datsun GO has already been launched in India, the GO+ will also be launched in 2014, while the third Datsun car will be launched in 201516. “With the three cars we shall cover one third to half of volumes of Nissan Motor Company. This is our plan for India,” said Gupta in an optimistic note.

April 2014

INDIA REPORT

Motor Homes can be registered

Report: P. Tharyan, Photography: Mohd. Nasir

ill buyers of motor homes finally have the name ‘Motor Home’ appearing in the vehicle registration copies (RC)? Yes, very soon. Today if one were to buy a Tempo Traveller and ask DC Design to modify it and make it prettier than your bedroom, in the RC it would still be called a Tempo Traveller and a commercial vehicle. It would not get the tag ‘Motor Home’. Now that a validation norm from ARAI has been finalised for motor homes, there is a distinct possibility that on your RC you will be getting the vehicle registered as a ‘Motor Home’. Rajesh Poddar, Director-Business Development, Paracoat Products Ltd is excited about the prospects. Till recently his company was only into making motor homes on the Mahindra Genio platform. Now a separate company has been formed that would use this vehicle for tourism purposes. Commenting on the new development on classification of Motor Homes for the purpose of registration, Poddar said, “As of now there is no such classification of a motor home in an RC. One thing is that a norm has been created. We are going to iCAT soon and we shall be giving one vehicle for validation. Thereafter I am expecting that we will have one vehicle which will be validated by iCAT and which can be registered as a motor home. As per the norm once I get it validated, I have a certificate with me. Then I have to go to different RTOs with that certificate, and ask them to register my vehicle. That again is a big exercise for me. I have to go separately to every different RTO situated in different states. Each state will do its own scrutiny and then issue a certificate. We shall go only to those states which are chosen by

April 2014

us for tourism purposes”.

PODDAR SETS UP A TRAVEL COMPANY For the purpose of making use of his motor homes which his company develops, Poddar has formed a new company purely for the purpose of promoting tourism and ensuring that he is able to engage his motor homes. The name of the travel company is Caravanette Tourism India Pvt Ltd. “We are getting into caravan tourism in India. We are launching this company during the Incredible India tourism bazaar in April 2014. We make these on pick-up trucks and we have chosen Mahindra Genio vehicles. The second for us option is the Isuzu D Max. But Isuzu does not have a huge service network in India,” he says The conversion cost of making a motor home comes to around 32-34 lakh. The on road price including cost of vehicle and registration should come to around 45 lakh, he informs.

“There will be demand in the tourism industry and among select industrialists. We have different options available. We can have a four-seater ideally meant for industrialists who want to hold a small conference within their motor home or caravan that also has a wash room. We are coming with another model on a Tempo Traveller which is like an executive office. The front is office area, the middle area comprises washroom and kitchenette and the rear is the bedroom,” he says. “We did not find takers in the travel and tourism industry so we have taken the plunge ourselves. Caravanette Tourism India Pvt Ltd. will be purely focussing on caravan tourism. During the Incredible India Tourism Bazaar in Ashok Hotel, we shall be talking to at least 300 travel agents from across the world for their buyings in India. We shall try to tie up with them. The Ministry of Tourism is supporting us on this. We hope to get support from state tourism boards to promote this concept. Our target will be Rajasthan,

Kerala, Gujarat and Madhya Pradesh,” says Poddar. Poddar has grand plans for his caravan tourism. “We shall give a four-night five-day package. In the night the caravan will be parked at a hotel. My guests will be sleeping in the caravan itself. There will be an area earmarked for privacy. My guests will be using the health club and swimming pool of the hotel as a package. The F&B will be on actuals. We shall create a tourism concept in India, where four nights you see different places, and you do not check in and check out and unpack and pack,” he notes. As for his motor home business, he has appointed a dealer in Gujarat. Poddar feels that Gujarat has been the most vibrant market in the last two years. “We have been getting our maximum queries from Gujarat region,” he claims. Now with the registration process almost in place, ‘Motor Homes’ could be a popular vehicle registered with the Regional Transport Authorities.

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INDIA REPORT

Continental launches radial truck tyres in India

lobal tyre manufacturer and automotive supplier Continental has started production and distribution of radial truck tyres in the Indian market. With an initial annual production capacity of 220,000 radial truck tyres, a dealer network of more than 1,400 outlets and sales and customer service teams in more than 70 cities across India, Continental has taken the next step in expanding its reach in India after acquiring Indian tyre manufacturer Modi in 2011. Continental’s initial radial tyre product portfolio for India covers the Goods, People, and Construction segments. In the Goods segment, the HSR2 steer tyre and the HDR2 drive tyre offer strong reliability and high mileage. For the People segment, Continental launched a dedicated coach tyre, which stands out through its smooth ride, good mileage and directional stability. The high-tech construction tyre HSX2 and HDX2 offer excellent durability and strong off-road

Picture for representation purpose only

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Continental officials at a press meet in Surajkund, Haryana performance. “Introducing Continental radial truck tyres into the Indian market is a momentous occasion for us. India is the second largest market for truck tyres in the Asia-Pacific region (APAC) and we strongly believe that our premium technology products, manufactured locally and distributed through our Indian market organisation, will make

Continental a preferred partner in the tyre replacement and original equipment business,” stated Dr. Andreas Esser, Head of the Commercial Vehicle Tires business at Continental. Investing in local production capacities is part of Continental’s strategy to diversify its global manufacturing footprint and expand business in growing markets, such as India. Continental has invested heavily into the construction of a new production building alongside with machinery for making radial tires. Furthermore, Continental brought experienced staff from some of its other international production sites to India in order to train local staff on the new machinery and production techniques. Also, more than 100 local employees were sent abroad to the international production sites in Germany, Romania, China and Malaysia for comprehensive training in radial tyre production and technology.

“We firmly believe that the personal training of our local staff through experienced experts from other production sites is a key factor for the successful ramp-up of a new tyre plant. The strong manufacturing network supports excellence in operation, especially the case for the switch from producing bias tyres to radial tyres, where the technology involved is more complex and requires additional know-how,” remarks Thierry Wipff, Head of Manufacturing Commercial Vehicle Tires at Continental. The Indian truck tyre replacement market has a volume of approximately 14 million units per year, out of which almost 4 million units are radial tyres, whereas the other 10 million are bias tyres. Over the last five years, the market has not only grown by approximately 24pc, but has also seen a strong shift towards radial tyres. It is expected that radialisation will gain further momentum in the next years.

April 2014

INDIA REPORT

Riding high on demand, ZF aims to expand in India further

Report: Abhijeet Singh he rising demand of vehicles in Asia Pacific, especially countries like India and China, has seen many International manufacturers set up shop in the region for obvious reasons. All these manufacturers, be it OEMs or component suppliers, are extremely optimistic about the growth here in India. This is despite the fact the automotive industry is experiencing poor growth. German manufacturer ZF is not new to the country. In fact they have been producing in India since 1984 through ZF Steering Gear (India) Ltd. The plant is located around 28 Km away from Pune. ZF chose Pune as it sits in the lap of a major automotive hub with several OEMs present in the vicinity, such as Daimler India , Force Motors ,General Motors, Mercedes Benz, Mahindra Navistar, Tata Motors, Volkswagen, and many more. Globally, ZF is a veteran when it comes to driveline and chassis technologies and is rated under top 10 automotive component suppliers in the world. The company started making

April 2014

transmissions for airships and vehicles in the year 1915. Today it has 121 production hubs scattered across 26 countries, and employs 73,000 workers. The strength of the brand lies in the attention to the quality of its products. Considerable revenue of EUR 838 million is spent on research and development annually to create class leading and market specific products from the company. Moving on to more local developments, firstly ZF has started construction on its new plant in the Chakan industrial park. The new facility will be responsible for car powertrain and commercial vehicle technology, and will also support the administration of ZF India Pvt. Ltd. The plant area is spread out in 85,000 square metres, which will have about 16,000 square metres of building area. Total investment cost ZF has put into this plant is 150 crore, and the new facility will employ 350 workers. Piyush Munot, Managing Director, ZF Group operations India, said that the plant will be active from the 1st quarter of 2015 calendar year.

He also said that the primary focus of this plant is to service Indian customers. â&#x20AC;&#x153;ZF as a company is primarily known for its innovations and quality of the products. Knowing very well that the A and B segment of vehicles is a very cost sensitive region, we have to design and adapt our products, and optimise them according to the needs of the market. In the segments where we are currently operational, the chassis segment and the steering segment, we have been able to demonstrate that ability. We are also closely observing AMT transmissions for the lower power vehicles in the commercial category,â&#x20AC;? stated Munot. ZF India is responsible for commercial vehicle transmission, chassis components, clutches (passenger cars) and also aftermarket services. The brand is considered a byword in terms of quality and plant processes. Absolutely no

compromise is made on the quality of the products, and the latest cutting-edge technology is applied for development and production. Another major focus of the company is utilise 100pc local suppliers. While bringing out new products, much attention is paid on the local vehicle pricing trends prevalent in India. With the recent introduction of an electronic power

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INDIA REPORT steering, Tata Nano Twist has again caught the attention of Indian customers. Anybody interested in this car was put off by the sheer effort required to steer this tiny little thing. Now however the first chink in its armour, the steering, has been fixed. The Tata Nano gets a column type steering wheel by ZF Lenksysteme GmbH, which is a 50:50 joint venture between ZF and Bosch. It has been developed locally in Pune. Rudi von Meister, President Asia Pacific, ZF stated “The Tata Nano is a gift to the world. We feel very proud that ZF designed the steering rack for the

Nano.” Then are the company’s transmission components, which go from transmission systems to torque convertors to clutch and transmission actuators for automated manual transmissions. ZF’s recent development is the lightweight and compact 9-speed automatic transmission for passenger cars, which is yet to come to our shores. A familiar one is the 8-speed automatic which performs duty in BMW and Jaguar vehicles. Media persons from India got an opportunity to drives these cars arranged by ZF and the conclusion seems to be

unanimous, “the transmission is absolutely flawless”. Coming to the commercial vehicles, ZF Lenksysteme developed steering systems for the Indian market. Products available include hydraulic and electrohydraulic steering systems, alongside steering pumps and accessories. Also developed are transmission systems for backhoe loaders, which are critically important for digging and mining applications. ZF system consists of a steerable driven front axle, compact driven rear axle and a synchronised power shift transmission.

“India has seen great improvement in the recent years as far as technology is concerned in the automobile sector. Multiple external factors contributed to these changes. Emission norms have played a prime role in the up gradation of the vehicles. Our underpowered vehicles which had a very poor power-to-weight ratio showed that there was need for quick upgradation but nobody wanted to invest in those technologies. We have been successful enough to collaborate with our OEM partners to bring new technology in the Indian market,” noted Munot.

Tata Fund invests 300 crore in Varroc Group

ata Opportunities Fund (TOF), the flagship private equity fund of Tata Capital, is investing 300 Crore (USD 50 million) in Varroc Engineering Private Limited, the holding company of Varroc Group, according to a company statement. With over 6,900 Crore (USD 1.15 billion) in revenue, Varroc is a leading Indian auto component manufacturer with a large global presence. The group’s domestic businesses are geared towards two-wheel segments with a strong presence in plastics and polymers, metallic parts and electrical components. Over half of the group’s revenue accrues internationally where it is among the global leaders in automotive lighting systems for passenger vehicles. Varroc had acquired the global automotive lighting business of Visteon (formerly a division of Ford) in 2012. Apart from 21 manufacturing plants in all major auto hubs across India, Varroc has a global manufacturing foot-print in low

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cost countries spanning Mexico, China and the Czech Republic. The group has marquee clients including Jaguar Land Rover, Ford, Tesla, GM, Volkswagen, Bentley and Nissan in the global market and players such as Bajaj, Honda, Yamaha, Hero, Royal Enfield, Mahindra and Tata Motors in the domestic market. Varroc Group is led by Tarang Jain, a first generation entrepreneur, supported by strong professional management teams in India, North America, Europe and China. Speaking on the occasion, Tarang Jain, founder and Managing Director of Varroc noted, “We are delighted to embark on the next stage of our journey towards 2020 with a reputed partner. I am sure my team will be able to leverage the intellectual and infrastructural network provided by our partners in advancing the strategic agenda of the company and create value for all stake-holders. The Tata Opportunities Fund and its team of investment and operating professionals, not only bolster us financially, but also provide

us a strategic spring-board which enables us leapfrog into the next cycle of our growth”. Padmanabh Sinha, Managing Partner of the Fund’s advisory team in India said, “The Fund and its limited partners are delighted to support the Varroc Group, which is exemplary of Indian entrepreneurship on the global stage. The fund Tarang Jain, Managing Director of Varroc believes India has excellent dynamic management teams.” engineering and management The Fund seeks to play a capabilities which can be supportive role in assisting the leveraged to create global leaders highly experienced, professional in manufacturing. While retaining management team at Varroc a Tata bias in its investment in expanding its franchise with strategy, the Fund is actively existing and new customers pursuing investments into other and new segments across such companies that have a geographies. The Fund has been history of operational excellence invited to appoint nominees on and robust governance led by the Board of the company.

April 2014

INDIA REPORT

BorgWarner optimistic about new business in Asian region

Report: P. Tharyan S based BorgWarner, a $7.4 billion global leader in powertrain solutions, is extremely optimistic about new business in the Asian region, which would be primarily driven by China and other nations. In his latest annual report, James Verrier, President and Chief Executive Officer of BorgWarner has stated that “In Asia, our new business sales are expected to account for

approximately 47pc of net new business by the end of the period (2014), primarily driven by China, the world’s fastest growing market.” The European market accounts for approximately 27pc of the company’s expected new business. He stated that while Europe remains an important market for BorgWarner, the adoption of its advanced powertrain technology in other parts of the world is expected to outpace Europe over the next few years. Verrier said his company continued to make strategic investments in its businesses across the globe in 2013. This included the expansion of its already strong position in Europe with new facilities in Portugal and Poland, driven by increasing demand for environmentally friendly and fuel-efficient technologies, such as its EGR product lines. “We also expanded our presence in emerging markets, which included a new plant in India, as well as a new production facility and

James Verrier, President and Chief Executive Officer, BorgWarner

April 2014

engineering centre in Brazil, which was driven by new legislation to improve fuel economy and reduce emissions in this rapidly growing South American market,” he noted. According to Verrier, BorgWarner launched several high profile programmes in 2013 that included EGR coolers for Renault’s 1.6-litre diesel engine, available on the European Scénic and Mégane as well as Nissan’s crossover Qashqai; DualTronic control modules and clutch modules for SAIC Motor Corporation’s new six-speed wet dual-clutch transmission in China; and the world’s first electronic limited slip differential for a front-wheel drive vehicle on the 2013 Volkswagen Golf GTI with Performance Pack. ”Our backlog’s regional mix is well-aligned with global auto trends and also reflects the shift in BorgWarner’s manufacturing footprint to lower cost economies. The top five customers in the backlog are Ford, General Motors, Great Wall, Hyundai/Kia and Volkswagen, a diverse group from a geographic perspective. Eight of our top 25 customers are Chinese OEMs. BorgWarner is also diversifying from a market perspective, with five of our top 25 customers in the commercial vehicle market,” he informed. BorgWarner focuses on developing leading powertrain technologies that improve fuel economy, emissions and performance. Its facilities are located across the globe to provide local support for its diverse customer base. It operates out of 56 locations spread across 19 countries.

Basically the company operates in two groups--The Engine Group develops air management strategies and products to optimise engines for fuel efficiency, reduced emissions and enhanced performance. BorgWarner’s expertise includes engine timing systems, boosting systems, ignition systems, air and noise management, cooling and controls. The Drivetrain Group is an industry innovator in transmission and all-wheel drive technology. The group leverages this understanding of powertrain clutching technology to develop interactive control systems and strategies for all types of torque management. Around 68pc of its sales comes from the engine group, while the remaining 32pc comes from drivetrain group. Motown India met up with three key officials of BorgWarner. Details of the interview:

KARL WAGNER, Vice President, Global Sales, BorgWarner Thermal Systems, United States Have thermal systems witnessed radical changes in terms of technology in the last decade or so? Can you briefly tell us about the latest products that are there in the BorgWarner thermal stable? In general there is definitively a trend that, with more advanced emission legislation the number of thermal systems components has been increased. Therefore, the requirements in terms of space availability, packaging have changed considerably. To optimise package and underhood airflow BorgWarner Thermal has a variety of components of modules in production or under development. Examples are

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INDIA REPORT guide vanes which optimise the airflow between the fan and the engine especially for high system restriction requirements. Also fan and fan drive design have been adapted to this change of system restriction. One example would be the â&#x20AC;&#x153;Through Boreâ&#x20AC;? Fan Drive design, which is a specific low package design. Last but not least moving from airflow management into the coolant flow management with controlled coolant pumps will further reduce the space requirements for thermal management components. The western world is definitely way ahead in terms of certain innovations in engine technologies more so because of stringent norms prevailing in several countries. Does that mean countries like India are lagging behind when it comes to adopting newer technologies, or are they catching up? India was and is making huge

SUDHIR KUMAR CHAWLA, COO, BorgWarner Emissions Systems India Private Limited With emission standards getting more and more stringent world over, how difficult and cumbersome is it getting to come out with products that comply to modern day norms? Does it call for constant innovation and research? How is this handled at BorgWarner (BW)? As emissions regulations continue to get more stringent across the world, car manufacturers are demanding EGR solutions for their specific needs that fits within a limited space in the engine compartment. Our Global R&D centres are constantly working with Global OEMs on future technologies and we are proud to have

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efforts to catch up. Introducing Bharat4 on the emission side and CNG introduction for Public Transport are important steps. But still thereâ&#x20AC;&#x2122;s a huge potential across different segments such as agriculture and construction which can be tapped. In terms of adaptation of newer technologies, our experience is that the Indian OEMs have made huge efforts to increase their capabilities and competencies relative to new technologies, which results for us in a large number of projects related to introduction of newer technologies, despite a still challenging market environment. Also, among the different segments comprising passenger cars, light and heavy commercial vehicles, and off-road vehicles, etc, is this technology absorption similar when it comes to use of thermal systems? Or is it skewed more towards the heavier vehicles? Indeed the technology absorption is similar, the main drivers

been associated in not only providing customer EGR system which meets their emission requirement but also have offered customised solution with flexible packaging solutions to suit ever reducing engine sizes with newer technologies in EGR coolers as well as EGR Valves. Currently BW is producing modules for E6 emission standards in Europe and in parallel R&D centres are working with OEMs for their future emission requirements While the developed world is way ahead in terms of emission control, does that imply that products made by the Emission Division here are more dated in nature? As a solution provider we have the solutions which are ready to meet the European emission standards but since the emissions norms in India are

typically being emission legislation, fuel economy and consumers comfort. If you combine all three the technology migration typically starts with On Highway vehicles, from LV to CV, then migrates to Off-Highway (Construction, AG). How do you perceive India ---both as a domestic market and also as one with export potential? Are the products from BorgWarner Thermal Systems India produced and marketed for Indian consumption or are they exported to your overseas markets as well? The BorgWarner Thermal Mission is to deliver innovative flow control products to Improve fuel

not even at BS IV pan India level, we need to give Indian OEMs the optimum solution for the current applicable emission norms. But some of the customers have awarded us the business for their export markets programs which meets the Euro V and Euro VI programs. Our products are not plug and play types but have to be suited to customer requirements and hence we need to produce as per OEM requirements. But to be ready with future technologies in India, we continue to train and strengthen our local application engineering and manufacturing capabilities by training our engineers at global tech centres so that they are ready to give optimum

economy and consumer comfort through precise temperature management of powertrain systems. Our strategy is to supply our customers in their regions with products specifically adapted to their needs. Therefore the products manufactured in India are primarily targeted for our Indian customers.

solutions/support locally to our customers. To how many OEMs does BorgWarner supply its emission system products and does it cater to all vehicle manufacturers? We supply our products to

April 2014

INDIA REPORT almost all the major OEMs globally. Our products cater to all the market segments including passenger cars, commercial diesel â&#x20AC;&#x201C; both off-road and onroad, Gensets and Locomotives. Can you briefly take us through the technological changes that have taken place in the field of emissions, and where India is positioned? As the emissions norms become more stringent, there have been and will be a continuous drive to not only improve the emission performance of the vehicle but also improve the fuel economy and vehicle performance in general. This is where

JITEN DIVGI, Managing Director, DivgiWarner Does your Pune facility cater exclusively to OEMS in an around the region? The Pune facility supported by another facility at Sirsi, Karnataka, caters to OEMs in India and Southeast Asia (Thailand). Which segment among the OEMS (passenger vehicles, CVs, off-roads, etc) do you primarily cater to? We cater to the SUV and Pickup Truck segments primarily. Opportunities in market adjacencies such as commercial vehicles, agricultural tractors and mobile construction equipment are also in our scope. When it comes to transmissions, does the Indian market offer any challenges? Are your products produced here in sync with your global portfolio? What is the potential of the Indian market or India as a production base? The primary challenge is to bring the convenience of automatic transmissions to the vast majority of consumers in Indiaâ&#x20AC;&#x2122;s car market. The first generation AMTs are like Victorian-era telegraph

April 2014

BorgWarner is focussed upon. Our market drivers are improved fuel economy and improved performance apart from reduced emissions. There will be holistic approach taken by the OEMs to work in all these areas. As I said earlier, there is an advantage for India in terms of these technologies being already available in developed nations. However, the availability of right fuel quality with lower sulphur PPM will remain an issue in the near future to implement these technologies in India. Do let us know about your India operations in emission systems? Are all your products

compared to the 4th gen mobile telephony of modern automatic trans technology available today. The 4WD products we make here are not only in sync with global technology, but several notches higher in cost competitiveness. India has tremendous, indeed boundless, potential as a global production base given our geography, mineral and natural wealth and our vast reservoir of human talent. Maybe what will further propel fast paced growth is a visionary political leadership.

for India or do you also export? Can you give us some figures? We in India are focussed on giving our customer a complete EGR Module solution locally. Module means EGR Coolers, EGR Valves and EGR Tubes as a package. We are committed to work in this direction. With these capabilities available inhouse, BorgWarner Emissions Systems become the only EGR module supplier with design, manufacture and validation capability in India and that too with complete BorgWarner technology. BorgWarner has recently acquired Wahler

Conventional hydrodynamic planetary automatics have progressed from 4/5 speeds to 6/7/8 with 9/10 speeds under development. This coupled with more rapid shifts under precise electronic control makes the shift even more imperceptible making for an overall exhilarating driving performance. Dual clutch automatic transmissions that are able to better utilise a manual transmission manufacturing ecosystem are rapidly on the rise with both, wet and dry clutch technologies. The advent of

globally and that will strengthen us further in the same direction. Our manufacturing strategy is also aligned in the same direction. To meet this we are also strengthening our local testing and validation capabilities. We will be ready with our testing facility by the end of this year. There is also a constant focus on training our engineers and workforce. As a strategy we do not ship parts across the continents until and unless we do not have a local plant at the OEM location. Currently we are exporting to global customers but major market is still domestic and we see a good potential here.

engine downsizing along with turbo-charged petrol engines is contributing to new downsised architectures for transmissions that have significantly higher torque densities. Performance and reliability demands have considerably raised the standard of precision in alloy steel compositions, metal forming and machining, heat treatment and superfinishing. This trend promises to completely alter the transmissions manufacturing landscape in terms of manufacturing technology that gets deployed.

Briefly take us through the technological journey of progress in transmissions in the last few years globally. In the last few years, there has been rapid progress in the evolution of automatic transmissions, spurred by the diffusion of dual clutch automatic transmission technology, and the need to improve fuel efficiency and emission norms at the vehicle level.

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INDIA REPORT

IAC inaugurates two new facilities in India

eading automotive and commercial vehicle interiors supplier, International Automotive Components (IAC), has opened two new facilities in Manesar (Haryana) and Pune (Maharashtra). IAC India is part of Luxembourg based $ 5.2 billion International Automotive Components. The company is a leading global supplier of automotive components and systems, including interior and exterior trim. The new Manesar facility complements IAC’s current Manesar manufacturing operation. The Chakan facility is an 80,000-square-foot manufacturing, design and technical centre. The new Chakan facility will allow the company to expand local manufacturing support to its growing customer base in the region, which includes Mahindra and Mahindra, Mahindra Trucks and Buses Ltd., Volkswagen, Volvo-Eicher Commercial Vehicles, and Fiat. The facility utilises IAC’s global engineering, programme management and lean

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manufacturing systems. The new Chakan location, which marks IAC’s fourth facility in India overall, will employ more than 170 skilled professionals in production, engineering and administrative roles by year’s end. In addition to the existing 80,000 square feet, the company has set aside space for future growth. “Since establishment in 2007, International Automotive Components has not wavered from our commitment to India’s automotive industry and the OEMs in the region. In return, our customers have elected to align and grow together with IAC and for that we are very grateful,” said James Kamsickas, IAC President

James Kamsickas (President and CEO, IAC) -Left and Gajanan Gandhe (VP, South Asia- IAC) and Chief Executive Officer. “Any great team starts with great people. The dedicated women and men of IAC India and the supporting global team members have turned what was only a vision a few years back, into a reality today. We look forward to providing our customer partners the continued support they require to compete in the competitive automotive industry in India and globally.” The new IAC Chakan facility, referred to as Chakan Plant II is IAC’s second manufacturing facility in the Pune district. The original facility, IAC Chakan I, is located on the Mahindra & Mahindra manufacturing campus dedicated to Mahindra & Mahindra vehicle lines for supply of interior and exterior components. Chakan II is a multicustomer facility that supplies a wide range

of products including, but not limited to, headliners, instrument panels, door panels, centre consoles and exterior trim. “In today’s global economy, our customers’ success depends on transnational, refined suppliers to support their regional and global needs and this new facility showcases how IAC fulfils these needs in India and across the globe,” said Gajanan Gandhe, vice president of South Asia for IAC. “IAC’s rapid expansion in the region remains a priority as we continue supporting our growing global customer base.” The Manesar Plant II will complement the current manufacturing operation, comprising a total of 60,000 square feet between both locations. IAC Manesar produces headliners, flooring, floor consoles, instrument panel components and interior soft trim products for customers including Maruti Suzuki, Volkswagen and Volvo-Eicher Commercial Vehicles.

April 2014

INDIA REPORT

Daimler India lays foundation for bus manufacturing plant

hennai-based Daimler India Commercial Vehicles laid the foundation stone of its new bus manufacturing plant at its existing facility in Oragadam near Chennai in the state of Tamil Nadu in South India. The wholly owned domestic arm of the world’s leading commercial vehicle manufacturer already has a truck manufacturing plant at Oragadam. Dr. Wolfgang Bernhard, Daimler AG Board Member responsible for Daimler Trucks & Buses formally laid the foundation stone on March 6, 2014 in the presence of Hartmut Schick, Head of Daimler Buses and CEO EvoBus GmbH; Marc Llistosella, Managing Dirctor and CEO of DICV, Markus Villinger, Head, Daimler Buses India and a host of auto component suppliers, dealers and DICV personnel. While speaking on the occasion, Dr. Bernhard noted, “On the basis of our strong truck business, we are now moving

Picture for representation purpose only

April 2014

foward to the Indian bus market. For that purpose, we are consistently using existing vendors, our production site and our sales network in the country”. The new bus manufacturing factory is spread across an area of 27.91 acre will be constructed within the existing premises of DICV. The bus factory will manufacture and assemble vehicles under both Mercedes-Benz and BharatBenz brands. The new plant will go on stream on the second quarter of 2015. When this happens, the DICV plant at Oragadam will be the only Daimler Truck facility worldwide, that makes three brands of trucks and buses, besides the engines, all under roof. Daimler India buses will come with nine tonne, 16 tonne and above 16 tonne categores in both front and rear engine configurations. The company has

(L-R): Marcc Llistosella, Dr. Wolfgang Bernhar, Hartmut Schick and Markus Villinger envisaged 425 crore for the bus project in India with an installed capacity of 1,500 units in the first phase. Eventually, as and when the market picks up, the capacity can be further expanded to 4,000 units. Schick pointed out, “Our twofold strategy with BharatBenz and Mercedes-Benz buses allows us to cater to the different needs of Indian customers in a perfect way. In terms of safety, fuel efficiency, quality and comfort, both brands will set new standards in the Indian bus sector”. Daimler has forged alliance with Wrightbus, a global player in bus body building for its front-engined buses. Along with the new bus manufacturing facility, a state of the art bus body building unit will also be built, which will be superior in terms of technology and reliability meeting Daimler global standards of quality and efficiency. Llistosella stated, “We are confident about this new

beginning. Since inception, we have delivered on all our promises for the Indian market, and we are continuously achieving new milestones. BharatBenz, having already achieved the No.4 position in trucks in India, has now become the preferred brand for most of the truck customers, thanks to its high performance products backed by best-in-class service levels. I am confident that the new bus project will continue to deliver same level of promise and experience to the customer”. Villinger said the new bus plant would roll out the first buses by the second quarter of next year and added that the bus division would have a dedicated strength of 300 personnel besides using the synergies of DICV’s existing expertise. The existing and upcoming dealership network of DICV which caters to the BharatBenz range of trucks will also participate in the Daimler Bus business. The well-established and state-of-the-art dealerships will enhance the confidence of Indian customers. The network will ensure that every Bus customer is treated to an international service experience.

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INDIA REPORT

Erich Nesselhauf is DICV Managing Director Mitsubishi Fuso Truck and Bus Corporation (MFTBC) and Daimler India Commercial Vehicles Pvt. Ltd. (DICV), have made important personnel changes in their Board of Management, according to a press release. Since August 2013, its Asian entities MFTBC and DICV are cooperating closely under the umbrella of Daimler Trucks Asia. Marc Llistosella, currently Managing Director & CEO, DICV will become Head - Marketing, Sales & After-sales, Trucks Asia & DICV based at Tokyo, Japan, effective June 01, 2014. He continues to report to Dr. Albert Kirchmann, President & CEO of MFTBC and Head of Daimler Trucks Asia.

Llistosella has been leading DICV from a planning phase as a greenfield project. Today the company has become a fully established player in the Indian CV market. He build the company under the brand BharatBenz for the Indian market as well as Fuso trucks for markets in Asia and Africa. In his new function he will lead all Marketing, Sales & Aftersales related areas of Daimler Trucks Asia, including DICV & MFTBC, Japan and will continue to oversee DICV’s Indian operations, overall. Erich Nesselhauf, currently Vice-President - Supply Chain Management, DICV, will become Managing Director & CEO of DICV, effective June 01, 2014

and will be based in India. In his new responsibility, Erich Nesselhauf will be incharge of the entire DICV operations in India, and will to report to Marc Llistosella. Kai-Uwe Seidenfuss, currently MFTBC Senior Vice-President, Sales & After-sales, will become Head - Corporate Audit at Daimler AG, effective June 01, 2014, reporting to Dr. Dieter Zetsche, Chairman of the Board of Management Daimler AG. These changes have been decided by the Board of Management, Daimler AG, but as a formality are still subject to the approval by

the shareholders’ meeting and Board meeting in MFTBC.

Erich Nesselhauf

Maruti seeks minority shareholder view on Gujarat plant

hough not required by law, the Board of Directors of Maruti Suzuki India Limited (MSIL) in a meeting held on March 15, 2014 has decided to seek minority shareholders’ approval as stipulated in Section 188 of the Companies Act 2013, for allowing Suzuki Motor Corporation (SMC) of Japan to take over the proposed Gujarat plant project from MSIL. The MSIL board reviewed the Gujarat project in the context of the views and opinions expressed by the shareholders as well as the media. The board meeting which Osamu Suzuki, Chairman, SMC, also attended, decided among other things that as a “measure of good corporate governance” it will seek approval from minority shareholders. Early this year, the MSIL

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board had decided that the proposed Gujarat project would be undertaken by SMC of Japan and in turn the latter would do business with Maruti Suzuki Ltd. SMC had announced that it would invest $488 million (about 3,050 crore) to build a car factory in Gujarat by 2017, which was originally proposed to be set up by MSIL. The former had decided to invest in the plant through wholly-owned unit Suzuki Motor Gujarat (SMGPL). On October 29, 2011, the MSIL board had approved the purchase of land in Mehsana District of Gujarat for further expansion of manufacturing facilities. Following this decision, approximately 640 acres of land in Becharaji and approximately 550 acres in Vithalapur was acquired. The MSIL decision to allow SMC taking over the proposed plant was met with a lot of opposition

from Maruti shareholders, both major as well as minority shareholders. The latest move by MSIL to seek the minority shareholders’ views may backfire in case the shareholders feel they have more to lose and less to gain in an SIC subsidiary taking over the proposed Gujarat plant. The board also decided that the entire capital expenditure for the Gujarat subsidiary would be funded by depreciation and equity brought in by Suzuki Motor Corporation. Also, in the event that both parties mutually agree to terminate the contract manufacturing agreement, the facilities of the Gujarat subsidiary would be transferred to Maruti Suzuki India Limited at book value, the board decided. The impact of any direct or indirect taxes on account of the contract manufacturing agreement would be assessed

before finalising the agreement and the Gujarat subsidiary would function on the basis that it would neither generate surpluses nor make losses. As per the original decision of the MSIL board early this year, MSIL would enter into a contract with this subsidiary company under which all production in the subsidiary company would be in accordance with the requirements of MSIL, and the vehicles would be sold to MSIL. The Suzuki subsidiary would not sell vehicles to anybody else. The price of the vehicles to MSIL would include only the cost of production actually incurred by the subsidiary plus just adequate cash (net of all tax) to cover incremental capital expenditure requirements. The return on this investment for SMC would be realised only through the growth and expansion of MSIL’s business.

April 2014

GLOBAL REPORT

Unique Spyker bond offers B6 Venator as redemption Report: P. Tharyan Dutch supercar maker Spyker N.V may have delayed its plans to enter India but has in the meantime introduced first-ofits-kind investment opportunity to support launch of its Spyker B6 Venator. The company has created the Spyker Venator Bond that will offer individual investors three redemption options, including rolling up to one of the first produced Spyker B6 Venators. Never before has an automaker offered an investment bond of this nature, according to a company statement. The statement further noted that the Spyker B6 Venator Concept will begin production in 2014 for key markets including Europe, the Middle East, Asia Pacific and India, followed by the US in 2015. It may be recalled that Motown India had broken a story early 2013 saying that the Spyker had plans to enter India with its models. Spyker N.V. Chief Commercial Officer John Walton had told this correspondent that the company was planning to launch the Spyker brand in India in the second half of 2013. “For a number of years we have studied

April 2014

Spyker remains on track to bring the B6 Venator to our European, Middle East and Asian customers in late 2015. We are very much looking forward to launching Venator in Indian as Spyker’s debut in an ever growing market the Indian car market, and short listed potential dealer candidates. The C8 Aileron will be presented in New Delhi later this year. With the B6 Venator Concept, which was unveiled in Geneva last week, we will have a second automatic available, but also a manual version for the more traditional driver,” he was quoted saying early 2013. For reasons not yet disclosed, Spyker apparently postponed its Indian entry, now announcing that it is expected in 2015. “Spyker remains on track to bring the B6 Venator to our European, Middle East and Asian customers in late 2015. We are very much looking forward to launching Venator in Indian as Spyker’s debut in an ever growing market,” Walton told Motown India in March 2014. The company has now announced an innovative

corporate financing initiative to support the introduction and production of its Spyker B6 Venator, Spyker’s compact, 2-door mid-engine sports car, and the Spyker B6 Venator Spyder. Spyker is making 100 Spyker Venator Bonds available, at the per-bond subscription of £100,000 (and Euro/US$ equivalent) (approximately 1 crore). Each Spyker Venator Bond will be issued with a unique Spyker B6 Venator chassis number, ensuring the bond holder a first-edition car featuring a special exterior / interior colour scheme and badging. Together with a second bond on offer, the Spyker Bond, Spyker intends to raise up to £20 million (circa Euro 25 million) ( 200 crore approximately) in capital to fund production expansion primarily to meet the unexpectedly high

demand for the new Spyker B6 Venator. The Spyker Venator Bond and Spyker Bond are marketed and distributed by Central Markets Investment Management Limited, part of the Central Markets Group. Central Markets are a London-based financial services provider with a range of services for high net worth individuals and corporations. Victor R. Muller, Chief Executive Officer of Spyker stated, “I wanted to give like-minded drivers who demand the highest standards a new choice, one that delivers a rare combination of heritage, design, performance and exclusivity. That describes the Spyker B6 Venator perfectly. Now with the Spyker Venator Bond, like-minded investors can take part in a first-of-its-kind financial opportunity designed for them in the uniquely Spyker vein.”

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GLOBAL REPORT

A 7,900 tonne stamping machine installed at JLR plant in UK Jaguar Land Rover, a Tata Motors owned company based in the UK and a leading manufacturer of premium vehicles has invested £45m ( 455 crore approx.) in a new state-of-the-art servo press line at its Halewood Operations, near Liverpool, England. This was stated by the company in a press release. Halewood Operations manufactures the Land Rover Freelander 2 and the Range Rover Evoque. The plant is operating at full capacity, 24 hours-a-day, for the first time in its 50 year history. More than £230million ( 2,326 crore approx.) has been invested in Halewood since 2011 and Jaguar Land Rover has invested more than £3 billion ( 30,336 crore approx.) in UK supply contracts linked with Evoque production. The workforce has trebled in the past three years to 4,500 and over 2,200 employees have completed Apprenticeships in the past two years. The new Servo stamping line, the first of its kind to be built in the UK, is 13 metres tall and over 85 metres long. It has a combined press stamping capacity of 7,900 tonnes, making it the fastest and one of the biggest and most powerful press lines across Jaguar Land Rover, stamping both steel and aluminium panels. Installing this giant facility required a major reconfiguration of the Halewood press shop, with the plant roof raised by almost 12 metres to accommodate the new machinery. The press shop bay also had to have its footprint extended by almost 50pc, compared to the previous stamping machine. Richard Else, Jaguar Land Rover, Operations Director - Halewood, said: “This colossal new press line reinforces Jaguar Land Rover’s long term investment in UK manufacturing. Halewood is one of the most flexible, advanced

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automotive manufacturing facilities in Europe, producing two of the highest quality, largest selling Jaguar Land Rover vehicles to over 170 countries world-wide. This investment ensures we can make more panels, even more efficiently and will continue to do so for many years to come.” At the end of March, Aida, the premier global manufacturer of metal stamping presses, will complete the finishing-touches to the installation. Trial pressings will commence in April and the facility will begin stamping panels for use across Jaguar Land Rover from the Summer. By Autumn the facility will be up to full speed making up to 20 strikes per minute. This servo press is the first of its type to be used by Jaguar Land Rover. Compared to the more mechanical operation of the existing Halewood presses, the direct drive servo system can handle higher tonnages in

addition to working at higher speeds, allowing Halewood to increase the volume of stamped parts for use right across Jaguar Land Rover. The new line also uses less power and incorporates an energy recovery system that captures energy from the draw action and converts it into electricity. The design of the Aida press also allows for faster die changes (the metal molds that form the panel shapes). Changes can be achieved in under five minutes, compared to up to 55 minutes for the largest existing mechanical Halewood press line. This will improve the flexibility of the Press Shop, increase stamping

capacity, increase speed and volume of panels that can be produced at Halewood every day. The new press line will speed up the delivery of the required volume of pressed parts produced at Halewood. This will help to feed the body shops across Jaguar Land Rover which are working around the clock to meet increasing global demand for our award winning vehicles.

April 2014

GLOBAL REPORT

IGNITION SWITCH RECALL

General Motors CEO May Barra testifies before US Senate Subcommittee

General Motors CEO Mary Barra testified before the Senate Subcommittee on Consumer Protection, Product Safety and Insurance in the United States, investigating the GM ignition switch recall. “The issues raised in the hearing were tough but fair. I appreciate the intense interest by the senators to fully understand what happened and why. I am going to accomplish exactly that, and we will keep Congress informed. Meanwhile, we will continue doing all we can to repair our customers’ vehicles and rebuild their trust in GM,” Barra said in a statement to the media. Earlier, Barra said her company had retained Kenneth Feinberg as a consultant to explore and evaluate options in its response to families of accident victims whose

April 2014

vehicles are being recalled for possible ignition switch defects. Barra made the announcement in testimony before the Oversight and Investigations Subcommittee of the House Energy and Commerce Committee. “Mr. Feinberg is highly qualified, and is very experienced in the handling of matters such as this,” said Barra. “He brings expertise and objectivity to this effort, and will help us evaluate the situation and recommend the best path forward.” Feinberg is highly regarded for his handling of compensation issues related to 9/11, the BP oil spill in the Gulf of Mexico, and the Boston Marathon bombing. “My mandate from the company is to consider the options for dealing with issues surrounding the ignition switch

matter, and to do so in an independent, balanced and objective manner based upon my prior experience,” Feinberg said. In her appearance before the Committee, Barra also detailed the company’s overall response to what she called “an extraordinary situation.” “Our employees and I are determined to set a new standard,” said Barra “Our customers and their safety are at the center of everything we do.” Among the measures her company had taken to address the ignition switch recall, she said, were: Commissioned two and asked for a third production line from supplier Delphi for new parts, which will begin flowing to dealers on schedule in a week’s time;

Enhanced customer call centre staffing, to ensure minimal wait times; Providing loaner and rental vehicles to concerned customers who drive one of the recalled vehicles; Retained former U.S. Attorney Anton Valukas to lead a comprehensive internal investigation with free rein to go where the facts take him; and Appointed Jeff Boyer as new Vice President for Global Vehicle Safety whose first priority is to quickly identify and resolve product safety and customer satisfaction issues. Barra reiterated her sympathies “to everyone who has been affected by this recall” and promised “to hold ourselves accountable” once all the facts are known.

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GLOBAL REPORT

Continental acquires British Co. Zytek Automotive International automotive supplier Continental has taken over full ownership of its former joint venture, Zytek Automotive. The ownership comes into effect from February 3, 2014. Zytek is based in Fradley in the United Kingdom. Continental previously had a 50pc shareholding in Zytek Automotive, according to a company statement. Both companies have agreed not to disclose the price for the acquisition. In future, Zytek Automotive will operate as a part of the Continental Engineering Services (CES) organisation in the United Kingdom, embracing CES’s complete service and technology portfolio, and thus providing engineering services covering the chassis, the interior and the powertrain. “This acquisition allows us to meet the increasing need for engineering services. Whether it’s from vehicle manufacturers or suppliers – we are seeing an increase in requests for special customer-specific designs and for components for small-scale

production runs or niche vehicles, in areas such as electronic brakes, the chassis and the powertrain”, said Bernd Neitzel, managing director of Continental Engineering Services. The Zytek Automotive engineering company employs a workforce of some 150 at its headquarters in Fradley near Birmingham and has particularly well-developed expertise in all areas of automotive technology

and vehicle engineering. “With over 30 years of automotive experience, Zytek’s highly-qualified employees are experts in their field. They work to high standards and react rapidly and flexibly to their customers’ requests. Two experienced and highly-motivated companies such as Zytek and Continental Engineering Services make a perfect match”, added Neitzel. Zytek’s customers include well-

known vehicle manufacturers in Europe, the USA and Japan. The company’s main focus of activity has so far been on conventional, electrical and hybrid drive systems for passenger cars and commercial vehicles. Thanks to Zytek’s and CES’s strong service and technology portfolios, and now to their broader base, they will be even better placed in future to assist with local development orders for UK customers.

Lamborghini Nitro wins Red Dot Design Award 2014 Lamborghini Trattori, part of the Same Deutz-Fahr group of Italy has enhanced it medal collection with the Red Dot Product Design Award 2014. The award was won by the Lamborghini Nitro tractor, according to a company statement. The very same Lamborghini Nitro has won the Golden Tractor for the Design 2014 award in November 2013 during the Hanover Agritechnica fair in Germany. The Red Dot Design Award, considered one of the most important design awards in the

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world, has been awarded for the excellent quality of design and manufacture of products since 1955. This recognition confirms Lamborghini Nitro as the perfect combination of innovation and performance in agriculture. SDF India had, in December 2013, unveiled a 30HP tractor at a Kisan agricultural fair in Pune, the state of Maharashtra. SDF India, a wholly owned subsidiary of the Italian farm equipment major, manufactures a range of tractors at its Ranipet plant, near Chennai, in South India. The SDF group

has four brands — Same, Deutz-Fahr, Lamborghini and Hurlimann. The Indian company only sells the DeutzFahr brand in the country. “Winning the Red Dot Product Design Award 2014 is reason for great satisfaction for our Group,”

said Lodovico Bussolati, CEO of Same Deutz-Fahr.

April 2014

GLOBAL REPORT

Renault, Nissan Alliance to converge 4 major functions globally The Renault Nissan Alliance is implementing a convergence plan which will result in a minimum Euro 4.3 billion ( 36,542 crore approx.) annual synergy goal by 2016. The convergence will happen in four key areas: Engineering, Manufacturing & Supply Chain Management, Purchasing, and Human Resources. It needs to be noted that the Alliance has expanded significantly since its founding and now ranks among the world’s four largest automotive groups by sales volume. The Alliance has partnerships and joint ventures with Daimler, Mitsubishi, AvtoVAZ, Ashok Leyland and Dongfeng. The convergence in four key business functions is the latest step in the 15-year evolution of the Renault-Nissan Alliance, which was formed on 27 March 1999. Since then, the Alliance has become the longest lasting and most productive cross-cultural collaboration in the auto industry. The companies have already integrated several functions, including information technology, logistics, customs and trade, and purchasing. This converged business functions become official from April1, 2014 and the Alliance claims that these are expected to have an immediate positive effect on operational performance. The responsibility of increasing integration in each function is the responsibility of the newly appointed Alliance Executive Vice Presidents. The management teams and the boards of Renault and Nissan finalised the convergence plans following consultations with employee representatives. “Convergence within these four key business functions will result in an immediate increase in efficiency and leverage our size to achieve competitive economies

April 2014

of scale,” said Renault-Nissan Chairman and CEO Carlos Ghosn. “The synergies will then enable us to deliver higher-value vehicles to customers and stay at the leading edge of innovation.” The engineering function will see Renault and Nissan combining Common Module Family engineering, advanced research, powertrain development (including electric vehicles), systems engineering and testing facilities and services. Tsuyoshi Yamaguchi, Alliance Director of Platforms and Parts has been appointed Alliance Executive Vice President, Alliance Technology Development, for the new converged Alliance function. The Manufacturing Engineering & Supply Chain Management function will will cover global industrial strategy (including sourcing), production process engineering, production control and supply

chain management. Shohei Kimura, Nissan Corporate Vice President for Vehicle Production Engineering has been appointed Alliance Executive Vice President, Manufacturing Engineering and Supply Chain Management. As for Purchasing function, Renault and Nissan have enjoyed an integrated purchasing organisation for more than a decade. But convergence of major engineering and manufacturing activities will drive greater purchasing synergies and more economies of scale. Christian Vandenhende, Managing Director of the Renault-Nissan Purchasing Organization has been appointed Alliance Executive Vice President, Alliance Purchasing. In Human Resources function Renault and Nissan teams will implement common HR processes throughout the Alliance, including the creation of a unified “talent management”

policy across the companies’ global operations. MarieFrancoise Damesin, Renault executive vice president for Human Resources has been appointed Alliance Executive Vice President, Alliance Human Resources. In addition, Greg Kelly, Nissan Senior Vice President of the CEO Office and Global Human Resources, is appointed Alliance Executive Vice President, Alliance Talent Management. To assist with the deployment and ongoing development of the new organizational structure, a new Management Committee Alliance will be established, headed by Carlos Ghosn. In addition, Christian Mardrus, Senior Vice President and Managing Director for the Alliance CEO Office and Global Logistics, will become Alliance Executive Vice President for Renault-Nissan BV and the Alliance CEO Office.

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GLOBAL REPORT

Pictures courtesy: Nissan

Datsun on-Do model debuts in Russia

The first Datsun brand to be marketed in Russia made its debut with the introduction of the Datsun on-DO model. The Datsun brand made its first comeback in India with the Datsun GO. But this Datsun is a sedan. Power will come from a 1.6-litre, petrol engine, rated at 87 hp. The car will be priced below 400 000 Roubles (Rs 677830 approximately or Rs 6.78 lakh approx.). Detailed prices will be announced closer to the start of sales. Datsun on-DO will be built in Russia at the Avtovaz plant in Togliatti. Unlike in India where it’s only Nissan and Datsun (apart from the other Alliance partner Renault) are sold, in Russia all its three brands - Nissan, Infiniti and Datsun vehicles – will be sold, offering buyers a unique choice across virtually all vehicle segments. In a press statement, Carlos Ghosn, President and CEO, Nissan Motor, said when introducing the brand: “Today, Russia is our company’s 5th largest market in the world. In the next three years, we are aiming to triple our sales here – with the goal of doubling market share. And we expect the Datsun brand to contribute as much as one third of total sales.

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By drawing on our company’s 80 years of manufacturing and technical expertise – and by leveraging the engineering skills, market knowledge, and production capabilities of our Alliance partner, Avtovaz – we will deliver a Datsun line-up for the 21st century. And these cars will be fully in touch with the needs and preferences of Russian drivers”. The Datsun on-DO is a fourdoor, five-seat roomy family sedan (L 4337 mm / W 1700 mm / H 1500 mm) with a class-leading trunk capacity of 530L. The name reflects the car’s multicultural influences. ‘DO’ is a word deeply embedded in the Japanese psyche, meaning ‘way’, and reflects a consistent and distinctive way of doing things. It can also mean ‘moving’, so the Datsun ‘on-DO’ moniker’s overall meaning refers to the brand intention of providing mobility for all in an innovative way. ‘On’, meanwhile, is the Russian word for ‘he’, underlining the car’s strength, performance and masculinity. And both words also have clear meanings in English suggesting a positive dynamism. Styling of the Datsun on-DO was completed in Japan at the company’s advanced Global

Carlos Ghosn, President and CEO, Nissan Motor (L) and Vincent Cobee, Corporate Vice President and Global Head, Datsun at the Datsun launch in Moscow Design Center. The vehicle’s development and engineering was carried out in Russia by an international team of engineers at Avtovaz. Sales are due to start in the summer of 2014 and the car will initially be sold through a network of 25 fully-branded dealerships supported by Nissan dealer investors. Located in key regions, they will be joined by further 75 outlets over the next two years. “In markets where Datsun has been introduced so far, the brand represents modern, attractive, practical and reliable new cars as symbols of freedom and of a newly-found status. The Datsun models are new, no-compromise

designs that bring modern levels of engineering, styling and ability within the reach of a new generation of car buyers,” said Vincent Cobee, Corporate vice president and Global Head of Datsun. “We have thoroughly researched our customers’ needs and aspirations and worked hard to develop cars that are well adapted to the local environment in each market where they will be offered. The result is Datsun models which will bring a refreshing combination of accessible, reliable and enjoyable car ownership attributes to a new generation of up-and-coming customers, whom we call ‘risers,” noted Cobee.

April 2014

TÊTE-À-TÊTE

Anil Singh

AMW MOTORS LTD.

Head of Manufacturing & Sourcing, AMW Motors Ltd Report: P. Tharyan (An e-mail interaction) Can you tell us what the current capacity of the Bhuj plant is and what is the level of capacity utilisation? The current capacity of the plant is 50,000 trucks per annum. (No response on the utilisation level) The last couple of years have not been very good for the commercial vehicle segment, especially the heavy duty segment. In such circumstances, how does a plant like yours manage itself in order to keep costs from spiralling and ensuring that overhead costs do not spoil the party for the company? We have taken initiative into cost reduction through waste elimination, productivity improvement and optimum utilisation of resources. We have made a work culture where

April 2014

Kaizen, TPM and reduce cost of quality is the way of life in the organisation. Every plant works best when it is efficiently run. What are the various steps that have been undertaken to keep the AMW plant running efficiently? Are there any unique management practices being adopted to keep the plant running smooth? For efficient running of the plant we have the following strategy: a) Keep the plant up time 98pc through rigorous follow up of Preventive Maintenance and condition monitoring b) Do Kaizen for continuous improvement in Cycle time of operation c) Create safe environment for all the persons working in the plant d) JIT availability of material e) First Short OK production – we

believe quality is to be produced not to be inspected. You are head of manufacturing and sourcing, two critical areas of operations. While manufacturing involves the whole gamut of making a vehicle, how important is sourcing and what does it involve? In today’s world of operation, Supply Chain is the most critical function where our dependence on supplier partner is very high and great part of success depends on: a) Timely delivery of parts b) Good quality – we are working closely with our suppliers for continuous improvement of quality. A dedicated team of engineers are working with suppliers for better understanding of our quality needs and hand

AMW Motors Ltd. is India’s third largest manufacturer of heavy commercial vehicles and has achieved a unique position in India’s transportation sector through innovative engineering and customer orientation. AMW brought in a revolution in the HCV industry with the introduction of next generation trucks. AMW changed the concept of ‘one truck fits all applications model’ and fashioned the ‘construction and mining’ segment in HCVs in India. The company within a short span of five years has changed the duopolistic nature of the Indian CV sector. Today, AMW is the third largest by volume and has a 25pc market share in construction and mining with a growth rate of 100pc. AMW’s modern truck manufacturing facility located in Bhuj, Gujarat is spread over 600 acres. The production includes its entire range of trucks, tippers, tractors, haulage, transit mixtures, concrete pumps and fully built vehicles. The integrated manufacturing unit comprises of dedicated units for the assembly of trucks, a Cab Shop, Robotic Welding (First in India), Paint Shop, Frame Shop, Test Centre and a research and development (R&D) division.

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TÊTE-À-TÊTE holding with them to remove manufacturing bottlenecks through design improvement of parts we source from our supplier partners. c) We have also developed a process of continuous interaction with supplier for Value Engineering idea from suppliers and sharing of gains with them. Your company, if I am not mistaken, carries out an integrated approach to manufacturing wherein everything is assembled in house, like a complete package. All this involves keeping large stock of aggregates and other such stuff? What kind of policy to you adopt when it comes to stock maintenance at the factory? We have worked with our suppliers for JIT supplies and engaged transporter with high speed vehicles for transportation of parts to reduce inventory on wheel. Labour issues at plants are something that can make or break a company’s progress. How has AMW experience been on that front? We have a very cordial relationship with our associates and we have developed quarterly communication with all employees where I address them for happenings in plant, challenges we are facing and our expectations from them. It is working very satisfactorily. We have made arrangements for their residence, food and transport to and from factory. On a personal front, what are the initiatives you have taken that can be termed progressive and radical for the plant’s efficient operations? And what about your team assisting you, how efficient and competent is it? Continuous improvement in all we do is my mantra and taking people together is my philosophy. We have very competent, talented and young group of executives and officers who are given free hand in taking decision. We encourage people for innovation and out of box thinking.

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April 2014

TECHNOLOGY

100m Bosch ESP systems make driving safer worldwide Bosch has produced 100 million ESP systems since the start of series production in 1995. In the process, the company has made a significant contribution to making driving safer. Especially on slippery roads, but also in instances where vehicles drive into bends too quickly, the electronic stability program helps keep vehicles on course and prevent skidding accidents, which often have serious consequences, according to a press statement from the company. “In recent years, ESP has demonstrably saved lives,” says Gerhard Steiger, the president of the Bosch Chassis Systems Control division, summing up the findings of several effectiveness studies. “Moreover, ESP is an important building block for high-performance assistance functions and automated driving.” Bosch developed the anti-skid technology and, in 1995, was the first company worldwide to start series production of the system. After the seatbelt, ESP is the car’s most important safety system. According to studies, it can prevent up to 80pc of skidding accidents. A

detailed analysis of the comprehensive German In-depth Accident Study’s (GIDAS) database shows that in 2011, 540 lives were saved in Germany alone as a result of ESP. This year, 60pc of all cars on the country’s roads were equipped with the electronic guardian angel. And a growing number of countries are making the system mandatory for new vehicles. In Europe, it has been mandatory for all vehicles that have received type approval since October 2011. From November 2014, ESP will no longer be optional in the EU: it will become standard equipment in all newly registered vehicles. Even today, 78 percent of all newly produced passenger cars and light trucks in Europe are equipped with ESP. The system is also already mandatory for all vehicles up to 4.5 tons in the United States. It is also mandatory in Australia and Israel. In Japan, Korea, Russia, and Turkey, regulations will come into force within the next few years.

Around the world, 55 percent of all passenger cars and light trucks are currently equipped with ESP. Even in China, almost a quarter of new passenger cars rolling off the assembly lines feature the system. A look at production figures also reflects the safety system’s growing popularity. From the start of series production in 1995 to 2010, Bosch produced a

total of 50 million ESP systems. Within just four years, this figure has doubled. “Since 2010, we have been producing more ESP than ABS systems each year,” Steiger says. At present, the global supplier of technology and services manufactures the system in Germany, France, the United States, Japan, China, India, and Brazil.

Volvo tests road magnets for self-driving cars Volvo Car Group has completed a research project using magnets in the roadway to help the selfdriving car determine its position. This research has been financed in strategic co-operation with the Swedish Transport Administration (Trafikverket). Reliable and highly accurate positioning is one of the crucial issues in the development of self-driving cars. The road-integrated magnets remain unaffected by physical obstacles and poor weather conditions.

April 2014

The established positioning technologies such as GPS and cameras have limitations in certain conditions. “The magnets create an invisible ‘railway’ that literally paves the way for a positioning inaccuracy of less than one decimetre. We have tested the technology at a variety of speeds and the results so far are promising,” says Jonas Ekmark, Preventive Safety Leader at Volvo Car Group. Volvo Cars plays a leading

role in a large-scale autonomous driving pilot project in which 100 self-driving Volvo cars will use public roads in everyday driving conditions around the Swedish city of Gothenburg. “Our aim is for the car to be able to handle the driving all by itself. Accurate, reliable positioning is a necessary prerequisite for a self-driving car,” explains Jonas Ekmark. He adds: “It is fully possible to implement autonomous vehicles without changes

to the present infrastructure. However, this technology adds interesting possibilities, such as complementing road markings with magnets.”

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TECHNOLOGY

Toyota ‘i-Road’ being tested by consumers in Japan Toyota Motor Corporation will begin consumer trials of the “i-Road” personal mobility vehicle in the Greater Tokyo Area in Japan. The limited trials, which aim to gauge the effectiveness of the electric vehicle in everyday situations in urban areas, will run from March 24 through early June, said a company statement. The i-Road offers a unique riding experience, combining the convenience of a motorcycle with the comfort and stability of a car. It’s a two-in-one joy and experience. he i-Road to be used in the consumer trial in Tokyo is based on the model shown as a concept at the 43rd Tokyo Motor Show 2013. It is now available in five colours and features improved visibility, ease-of-use and maneuverability. Toyota will provide ten vehicles to around 20 test participants. They will include members of the general public to trend and industry experts. Feedback will be collected concerning driving feel, user satisfaction, ease-of-use in urban areas, and impact on destination choices. Can India learn from this experience? With its congested roads and inadequate infrastructure, this kind of vehicle will surely ease a lot of tension on Indian roads for everyone!

Now seat belts get more advanced with TRW system TRW Automotive Holdings Corp has announced that its second generation Active Control Retractor system (ACR2) has started production on the 2014 Cadillac CTS. This is the first launch of this advanced seat belt technology in North America, combining active and passive approaches to offer enhanced safety, comfort and convenience to vehicle occupants, according to a press statement from TRW. With 2013 sales of $17.4 billion, TRW Automotive ranks among the world’s leading automotive suppliers. Headquartered in

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Livonia, Michigan, USA, the Company, through its subsidiaries, operates in 24 countries and employs approximately 65,000 people worldwide. Uwe Class, senior manager of mechatronic systems for TRW’s Occupant Safety Systems, said: “ACR2 is designed to use braking and stability control sensor information to recognise critical situations before a potential accident. It reacts by helping to secure the driver and passenger by removing seat belt slack – so the occupant position is improved in advance of an impending crash. The system also offers additional convenience features such as slack removal after the belt is buckled.” The ACR2 provides dynamic driving support which has

been developed to help keep the driver in a more stable position in the seat during highly dynamic situations and during rapid deceleration. This features an advanced version of TRW’s proprietary situation management algorithm. “The ACR2 situation management algorithm continuously processes signals from the vehicle’s relevant dynamic systems such as ABS, electronic stability control, radar or camera systems,” continued Class. “The algorithm evaluates events such as braking, sliding or vehicle angle, and if a critical situation is identified, the ACR system pretensions the seat belt, helping place the occupant in a better position for a potential crash and acting as a warning to the driver that an accident may occur. Should the accident be avoided, the system automatically resets itself via the reversible actuator.” “We are pleased to bring this important safety advancement

to the North American market through close collaboration with General Motors,” said Peter Lake, executive vice president, sales and business development for TRW Automotive. “The latest generation ACR2 system represents enhanced safety and convenience features at a more affordable cost,” concluded Lake. TRW was first to market with an active seat belt system in 2002, and has continued to work to integrate the Active Control Retractor system with other advanced comfort and safety systems, including drowsy driver warning functions and interaction with radar-enabled automatic emergency braking technology. TRW Automotive products include integrated vehicle control and driver assist systems, braking systems, steering systems, suspension systems, occupant safety systems (seat belts and airbags), electronics, engine components, fastening systems and aftermarket replacement parts and services.

April 2014

TECHNOLOGY

Meritor Wabco offers new technology to North American truck market

Meritor Wabco has introduced fuel-saving electronic air processing technology to the North American truck market at the 2014 Mid-America Trucking Show (MATS) in Louisville, Ky, US. Meritor Wabco is a North American joint venture focused on the development and delivery of proven, integrated safety technology and efficiency components. These include braking systems and controls, active safety systems, and suspension and control systems for commercial vehicles in North America According to a press statement, this breakthrough connectivity technology combines innovative System Saver 1200 Plus air dryer technology with electronic fuel-saving software stored in Meritor Wabco’s anti-lock braking system. Integration of these advanced technologies with the new connectivity solution reduces system cost for OEMs and helps fleets improve fuel efficiency. Although mechanical air processing systems for commercial vehicles have been standard technology in North America, electronic air processing technology has been delivering

April 2014

higher fuel economy and lower system costs to major European OEMs and fleets. “We’ve developed a highly intelligent and cost-effective air processing system that will improve vehicle efficiency and

boost fuel savings by up to 1pc for North American fleets,” said Patrick Kealy, Director, Compression and Braking for Meritor Wabco. “The new technology is specifically engineered to the needs of North American vehicle makers and fleets.” Meritor Wabco has reported significantly increased demand from major commercial vehicle OEMs and fleet customers for its innovative System Saver 1200 Plus air dryer technology, which was

developed specifically for North American braking systems. The high-capacity dryer uses internal air for regeneration, providing a more efficient solution. Meritor Wabco’s air dryer system differentiates with best-in-class air drying capacity, lighter weight, lower maintenance costs and higher fuel savings. The System Saver 1200 Plus is now available on four major commercial vehicle manufacturer brands and is standard equipment for select models at three OEMs. “The system’s superbly engineered single electronic control unit integrates Meritor Wabco’s proprietary fuel-saving software with braking, air compression and air cartridge regeneration,” Kealy said. “We are delivering an industryleading solution for the North American trucking industry.”

Wabco, braking technology partner at T1 Prima Truck Racing event Wabco India, the domestic arm of Wabco Holdings, a leader in safety technology demonstrated its safety and efficiency technologies at the Ti Prima Truck Racing Championship on March 23 at the Buddh International Formula 1 Circuit in Greater Noida near Delhi. Tata Motors has recognised Wabco Holdings, a global technology leader and Tier-I supplier of safety and efficiency systems to the commercial vehicle industry as its braking technology partner. The 12 Tata Motors Prima model 4038.S are basically customised vehicles

that will feature a slew of safety and efficiency technologies, adopted from Wabco’s global portfolio. In a press statement, Jacques Esculier, Wabco Chairman and Chief Executive Officer stated: “As the local market leader for commercial vehicle safety and control technologies, Wabco is honoured to sponsor Tata Motors’ T1 Prima Truck Racing Championship as its official Braking Technology Partner. We are excited to display the high performance of our advanced braking systems in a racing environment, which represents the most extreme conditions

for heavy duty trucks. The five decades of experience we have gained from innovating safety and vehicle control systems here in India means that Wabco technologies are helping to protect drivers not just on the race track, but in the hundreds of thousands of trucks and buses on India’s roads every day”. The race trucks were fitted with integrated compressed air system such as Wabco’s high performance anti lock braking system, besides the high output compressor technology, advanced air processing system and braking components.

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TECHNOLOGY

Continental radar sensors production to begin in US International automotive supplier Continental will soon launch production of short range radar sensors for advanced driver assistance systems at its plant in Seguin, Texas (United States), according to a press statement from the company. “Expanding our manufacturing capacity takes us a step closer to our American customers. In the market for the market is a keystone of our strategy,” said Karlheinz Haupt, head of the Advanced Driver Assistance Systems (ADAS) business unit of Continental’s Chassis & Safety Division. A single line will handle production initially, but additional lines are in preparation to satisfy the demand of OEMs manufacturing in the U.S. “We plan to produce some three million short range radar sensors in Seguin in 2016. The numbers say something about how rapidly demand is rising for short range radar functions like Blind Spot Detection or parking assistant systems. Legislation is a driving force but also our customers’ desire for increased safety and comfort is providing

a major impetus,” Haupt remarked. Continental has experienced rapid growth in the business with sensor technologies like camera, lidar and radar. Since production began in 1999, Continental has turned out more than 10 million sensors, 4.5 million last year alone. Next year should see the 26-million mark, some The Rear Cross Traffic Alert (RCTA) system can help to avoid accidents with crossing vehicles when reversing out of a parking space. ten million of which will be radar sensors (shortand long range radars). of cars lurking in the blind spot, by no injuries and, ultimately, no However, cameras – mono, making passing and lane changes accidents at all. “Advanced driver stereo and camera systems for safer and more manageable, assistance systems and proven 360-degree surround detection – both in city traffic and in highway sensor technology are a major are also booming. Lane Departure driving. The RCTA feature detects component of automated driving. Warning, Intelligent Headlamp crossing traffic behind the vehicle Highly or fully automated driving Control plus such functions while the car is backing out, can only become a reality through as Traffic Sign Recognition helping to avoid accidents that high-performance sensors and and camera-based parking can often result in serious injuries. a reliable, accurate model of assistant systems are becoming Advanced driver assistance the vehicle surrounding”, said increasingly popular in all classes systems represent a key Haupt. From a technological of cars. technology on the road to perspective, automated driving is Short range radar sensors by accident-free driving (Vision a further development in driver Continental are indispensable to Zero). Vision Zero will become assistance system technology that Blind Spot Detection (BSD) and reality in three steps, beginning Continental has already started to Rear Cross Traffic Alert (RCTA). with no fatal accidents, followed pursue. The BSD feature warns drivers

Hella exploring a new world of lighting with OLEDS Thanks to the use of organic light emitting diodes (OLEDs) in vehicles, it will not last very long before a whole treasure trove of exciting new ideas will be unleashed on the world of lighting design. Global lighting major Hella is now significantly extending the use of such lights with its integration of bent OLED modules in a prototype for combination rear lamps. A total of 28 of these differently shaped OLED modules is thus able to produce three-dimensional, illuminated structures, stated a

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press release from Hella. This design sample has come into being as a result of collaboration with BMW and LG Chem. Organic, light emitting diodes are made up of ultra-thin, organic, semi-conductor layers, which emit a diffuse, homogeneous and glare-free light. In contrast to usual LEDs, which emit light with a spot-like effect, the OLEDs generate light over a complete area and consequently open up a huge variety of new possibilities when it comes to lighting in and

around a vehicle. The bent shape of the organic LEDs is brought about by the use of a flexible OLED substrate which, unlike the rigid glass substrates used up until now, enables virtually three-dimensional shapes to be fashioned with bend radii of just a few millimeters. HELLA is in the process of developing technologies, which allow a rigid, bent OLED module to be created out of a flexible,

organic, light emitting diode. Which means that the potential of this new innovative light source can continue to be explored and optimally exploited.

April 2014

TECHNOLOGY

EU approves Magnetti Marelli’s ‘E-Light’ for Eco-Innovation programme The European Union has approved Magneti Marelli Automotive Lighting’s ‘E-Light’ LED low beam module for its Eco-Innovation Programme. The ‘E-light’ saves energy and fuel consumption with enhanced lighting performance using about 1/6 of the energy of a traditional halogen light bulb. This technology guarantees those carmakers that fitting the E-Light gives a bonus of 1 g CO2/km per vehicle, allowing considerable potential savings on the strict sanctions set for automobile manufacturers by European regulations on vehicle emissions. The technology offered by Automotive Lighting, the Magneti Marelli business line dedicated to lighting products for the automotive market, is thus officially acknowledged as being innovative and effective in cutting down CO2emissions by automobiles, an objective sanctioned by European regulations According to the Press statement the ‘E-Light’ LED low-beam module ensures certified energy savings, allowing carmakers to obtain a credit of 1 g CO2/km for every vehicle that fits this module in its headlamps. As from 2012, if the average CO2 emissions of a carmaker’s fleet exceed the limit value set by the legislator, the carmaker will be required to pay a fine for the excess emissions of each registered vehicle. In this normative framework, the Eco-Innovations envisaged by the EU are a specific category of technologies that provide a confirmed contribution in terms of reducing CO2 emissions, certified by third-party bodies and verified in real life and in the actual road use of the vehicle (consequently outside the official

April 2014

type-approval cycle of the vehicle). According to the regulations sanctioned by the European Commission, all carmakers, upon request, can benefit from a credit of up to a maximum of 7 g/CO2 if they adopt approved and certified Eco-Innovations on each vehicle. The E-Light module made by Magneti Marelli was precisely recognised by the European Commission to contribute to reducing CO2 emissions by about 1 g/km during actual vehicle use. The innovative content of the ‘E-light’ LED low beam module lies in the advanced use of light refraction/ reflection techniques through the use of lens that concentrate, in an extremely effective way, the light beam generated by a limited number of light diode sources (LEDs) E-Light can be applied to newly developed models of cars currently in existence, and the credit of 1g CO2/km will be acknowledged for the specific model that adopts the solution as from the design phase, for greater flexibility in vehicle design from the standpoint of CO2 emissions. Eugenio Razelli, C.E.O. of Magneti Marelli states, “The decision taken by the European Commission is very important for us because it actually confirms the efficacy of the advanced LED lighting technology developed by Magneti Marelli Automotive Lighting, within the scope of the stringent regulatory framework for the reduction of vehicle CO2 emissions as of 2020”.

Razelli says “The E-Light, recently acknowledged as an Eco-Innovation by the EU is the classic “win-win” solution: it benefits the carmakers by allowing them to potentially save on CO2 levels emitted by their fleet, and it is also interesting in terms of the final customer, specifically from the standpoint of safety, reliability and reduced consumption, as well as design. LED technology is revolutionizing the world of lighting, not only in the automotive sector. Adopting this technology on automobiles requires the ability to add LEDs to the automobile system and associate them to electronics in order to optimize their operation. The use of traditional halogen lamps will gradually decrease on automobiles too: they are already gone from some of the top-of-the-range full-LED headlamps, replaced by luminous diodes arranged in a matrix and electronically activated”. The technological evolution

that derives from LED and Xenon technologies – with the 35-Watt configuration as well as with the new, highly competitive 25-Watt solution – has opened up new frontiers in the area of safety and reduction of energy consumption and CO2 emissions, at the same time offering new possibilities in terms of look and design. The most recent solutions in the lighting area in terms of technological content are the “full-LED” solutions for headlamps, with all lighting functions carried out through LED technology. Specifically, the adaptive full-LED light matrix headlamp is proof of how electronics is increasingly changing lighting technologies too. The development line, in particular for adaptive LED lighting, requires for all the mechanical functions involved in pointing the light beam to be gradually replaced by electronic functions capable of controlling the direction of the beam and the luminous intensity of the LEDs. Automotive Lighting is already producing completely electronic full-LED headlamps

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TECHNOLOGY

ZF ends making 6 speed automatic transmissions in Germany ZF Friedrichshafen AG has announced to stop making 6 speed automatic transmissions at the Saarbrücken plant in Germany after producing 70,50,232 units in a span of 13 years. According to a company statement, the last unit of the 6HP rolled off the production line for the British luxury car brand Jaguar. The transmission will be succeeded by 8HP, (8 speed automatic) which was launched in 2008, but ZF will continue to produce the 6HP transmission in the Shanghai plant for the Chinese market. The 6HP was 13pc lighter, up to 7pc more economical, with significantly reduced noise levels, and considerably better acceleration values than its predecessor with 5 gears: These were the benchmark data of the first 6HP generation when it started rolling off the assembly line at the ZF location in Saarbrücken from April 2001 onwards – after a development time of only four years. Only a few months later, the compact automatic transmission premiered at the International Motor Show installed in a BMW 7 Series sedan with an eightcylinder engine. “The demand for this innovative transmission has grown very quickly and very strongly which enabled us to win more and more customers and conquer new vehicle segments,” said Michael Hankel, Member of the ZF Board of Management and responsible for Car Powertrain Technology and Car Chassis

April 2014

Technology. “During peak periods, we produced up to 4,500 units of the 6HP in a three-shift operation; the annual record lies clearly above one million”. 11 variants of the 6HP were used by 16 different car manufacturers for their SUVs, luxury limousines, mid-sized convertibles and their sports cars which were always customised for the respective driveline setup

and torque requirements between 230 and 750 Nm for rear- and allwheel drive. The 6HP and 8HP have a lot in common. The dimensions are almost identical, and BMW was again the first customer to order the 8-speed automatic transmission which has been produced in Saarbrücken since 2008 and in Gray Court, South Carolina, USA, since 2013. However, regarding technology, the 8HP offers advantages which go far beyond the two additional gears; these also provide an explanation

why ZF currently produces approximately 8 800 units per day for automotive manufacturers worldwide. “The first generation was already designed as a flexible modular system; its weight was reduced, it was capable of start/ stop operation and allowed to reduce fuel consumption by up to 11pc compared to the 6HP,” said Hankel. With the 8HP full hybrid variant, fuel efficiency was increased by an additional 25pc. However, the leader in chassis and driveline technology is not resting on its laurels: In July 2014, ZF started volume production of the next 8HP development level. “Thanks to numerous optimisations, the second generation of the 8HP assists our customers even more effectively in meeting the increasingly stringent legal CO2 standards – and it does so in a cost-efficient way as it is combined with standard or hybridised drive systems,” Hankel emphasised.

ZF scores points in motorsports arena ZF Friedrichshafen AG is partnering with Ferrari, the Formula 1 team, to provide dampers for the 2014 Formula 1 season. Both the Ferrari drivers finished in point scoring positions in Australia and Alonso finishing 4th in Malaysia putting Ferrari in 3rd place in the Constructors’ Championships with 30 points. Fernando Alonso

now currently holds 3rd place in the Drivers’ Championship with 24 points and Kimi Raikkonen in 9th place with 6 points. ZF Friedrichshafen AG is represented by a wide-ranging motorsport programme in the 2014 season. ZF equips among others the Volkswagen Polo R WRC with drivetrain and suspension technologies in the World Rally Championship. In

the DTM, all three automobile manufacturers Audi, BMW and Mercedes-Benz rely exclusively on ZF Race Engineering clutches. In the Japanese Super GT, every car from the manufacturers Nissan and Lexus competing in the GT500 class also uses ZF clutches. The partnership with the Tudor United SportsCar Championship in North America is new in the 2014 season.

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INDUSTRY OVERVIEW PASSENGER VEHICLE MANUFACTURERS IN INDIA

(Total Domestic Sales + Exports - February 2014 = 2,02,860 Units) Toyota Kirloskar Motor 2.38%

Ford India 2.78%

Others 2.03% GM India 1.75%

VW India 4.35% Tata Motors 4.62%

Maruti Suzuki India Ltd. 46.27%

Nissan Motor India 5.70%

OTHERS • Fiat India Automobiles Pvt. Ltd. (0.64%) • Skoda Auto India Pvt. Ltd. (0.64%) • Renault India Pvt. Ltd. (0.39%) • Mahindra & Mahindra Ltd. (0.27%) • Hindustan Motors Ltd. (0.09%)

Honda Cars India Ltd. 7.26% Hyundai Motor India 22.86%

UTILITY VEHICLES MANUFACTURERS IN INDIA

(Total Domestic Sales + Exports - February 2014 = 63,253 Units)

Tata Motors Ltd. 7.06 %

Nissan India 2.22%

GM India 3.24 %

Others 1%

Mahindra & Mahindra Ltd. 33.02%

Renault India 8.68 %

Toyota Kirloskar Motor 10.20%

Ford India 10.45%

OTHERS • Force Motors Ltd (0.46%) • Honda Cars India Ltd. (0.10%);

April 2014

• Hyundai Motor India Ltd. (0.21%); • Ashok Leyland (0.08%);

Maruti Suzuki India Ltd. 24.13 %

• Hindustan Motors (0.14%); • Skoda Auto India Pvt. Ltd (0.01%)

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INDUSTRY OVERVIEW TWO WHEELER MANUFACTURERS IN INDIA

(Total Domestic Sales + Exports - February 2014 = 14,00,958 Units)

TVS Motor Company 12.15%

India Yamaha Motor 4.04%

Others 2.93%

Suzuki Motorcycle India 1.93% Hero MotoCorp 35.99 %

Bajaj Auto 19.51%

Honda Motorcycle & Scooter India 23.45%

OTHERS • Royal Enfield (1.45%) • Piaggio Vehicles Pvt.Ltd. (0.14%)

• Mahindra Two Wheelers Ltd. (1.32%) • H-D Motor Company India Pvt.Ltd. (0.02%)

THREE WHEELERS IN INDIA

(Total Domestic Sales + Exports - February 2014 = 71,030 Units) Atul Auto 4.37% Mahindra & Mahindra 6.65%

Scooters India 1.60% Force Motors 0.12%

TVS Motor Company 10.37%

Bajaj Auto 56.27%

Piaggio Vehicles 20.62%

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April 2014

INDUSTRY OVERVIEW LIGHT COMMERCIAL VEHICLE MANUFACTURERS IN INDIA (Total Domestic Sales + Exports - February 2014 = 36,758 Units)

Force Motors (3.97%)

VECVs - Eicher (2.16%)

Piaggio Vehicles (1.55%)

Mahindra Trucks & Buses Ltd. (0.93%)

SML Isuzu Ltd (0.57%) Hindustan Motors (0.06%)

Tata Motors (42.61%)

Ashok Leyland (6.24%)

Mahindra & Mahindra (41.91%)

MEDIUM & HEAVY COMMERCIAL VEHICLE MANUFACTURERS IN INDIA (Total Domestic Sales + Exports - February 2014 = 18,944 Units)

Asia Motor Works Ltd. (1.72%)

Mahindra Trucks & Buses Ltd. (1.41%) SML Isuzu Ltd. (1.25%)

VECVs - Eicher (10.81%)

Others 0.19% Tata Motors (55.19%)

Ashok Leyland (29.43%) OTHERS • VECVs - Volvo (0.17%)

April 2014

• Mahindra & Mahindra Ltd. (0.02%)

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Jamna Auto Industries is India's Largest and World's 2nd Largest Tapered Leaf Spring and Parabolic Spring manufacturer with focus on heavy commercial vehicles. JAI products are trusted by prestigious brands like Tata Motors, Ashok Leyland, Volvo Eicher Commercial Vehicles, Mahindra Trucks & Buses, Bharat Benz, Ford Motors, Volvo, Toyota Kirloskar Motors to name a few. JAI has also diversiďŹ ed into Lift Axle and Air Suspension Systems. JAI has taken the Suspension Systems to a new level in terms of technology, quality and unmatched customer support.

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