Motown India August 2013

Motown VOL-3 • ISSUE-11 • AUGUST 2013 • 100

INDIA

THE PULSE OF THE AUTOMOTIVE INDUSTRY

DATSUN GOes live!

CARLOS GHOSN, President & CEO, Nissan Motor Company

INDIA REPORT

WHEELZ & ROADZ

Heads roll as

BMW 730Ld

GM India

recalls 1.14 lakh Tavera vehicles MAHINDRA USED CAR BUSINESS

The Ritzy Behemoth HUNGARIAN GP

JK TYRE RACING SERIES

mi EDITOR’S NOTE

Two major developments hogged a lot of limelight during the month of July 2013. One was the global unveiling of the Datsun Go car by Carlos Ghosn in India. The Datsun brand was phased out in 1981 by Nissan globally. The second development was the recall of 1.14 lakh Tavera models by GM India. The recall was attributed to some emission problem

by GM India. But the Motown India report goes a bit deep into the recall incident. In fact, it was never a case of recall, rather a serious offence committed by GM India. The company wrote to the various government ministries admitting of certain lapses. Apparently, GM USA has not taken this lightly and has reportedly dismissed some of its employees who were working in GM India somewhere in the period 2005 to 2013. We tried our best to get a confirmation of the list we had with us. Despite our best efforts, GM offices in India and the US refused to comment, deny or confirm anything. We are presuming we are correct in our reportage.

The GM India episode involving the Tavera smacks of an element of scandal. The government has set up a committee to probe the events leading to the recall. It should question the senior executives of ARAI and iCAT, the two government agencies responsible for testing and approving vehicles. The next few days and weeks should reveal more.

We have also changed the structure of Motown India magazine. You will notice the changes towards the end of the magazine. I am sure our readers will enjoy it!

P. Tharyan

Editor Punnoose Tharyan Editorial Advisors Salil Sharma, Alexander T., Annie Jacob -------------------------CONTACT For editorial editorial@motownindia.com For advertising sales@motownindia.com +91-9958125645, +91-9911729429 For subscription subscription@motownindia.com --------------------------

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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, 52, DSIDC Shed, Okhla, Phase 1, New Delhi. This issue of Motown India magazine contains 88 pages including both covers.

August 2013 / 3

CONTENTS

18. Heads roll as GM India recalls 1.14 lakh Tavera vehicles On the face of it, the recall of 1.14 lakh Tavera vehicles built from 2005 to 2013 in India, may not really be a case of “Total Recall”.

Rather it is beginning to take the shape of a scandal of gigantic proportions. Heads have begun rolling at General Motors.

According to unconfirmed reports, several senior GM officials posted in India any time from 2005 to 2013 have been given the marching orders.

46. Europe’s Lamilux presents automotive standard composites

22. DATSUN GOes live!

Datsun cars were never sold in India. Yet, in a twist of corporate fate, Datsun is back and that too in India. A new small hatchback car, the Datsun GO was unveiled in India by Carlos Ghosn, President & CEO, Nissan Motor Company at a ceremony on the outskirts of Delhi.

Lamilux Super Plus Gelcoat is a GRP material developed by Lamilux for use across a wide spectrum. It is suitable for both indoor and outdoor applications. The particular strengths of Lamilux Super Plus Gelcoat make it the material of choice for the interior and exterior face sheets of sandwich panels that are used as roof and side elements in the construction of truck bodies and trailers. The outstanding properties: Corrosion resistance, optimum strength and easy cleaning.

58. 16th JK Tyre Racing Championship 2013 The historic Kari Motor Speedway in Coimbatore witnessed some exciting moments of motor racing during the 16th JK Tyre Racing Championship held from July 19-21, 2013. The championship included the newly introduced JK Racing India Series, Polo R Cup and the Formula LGB 4.

6 / August 2013

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Secondary Air Injection Valves Roll over valve

CANDID VIEWS

Death wish of RBI

W

SALIL SHARMA, Partner, Kapur Sharma & Co., www.kapursharma.com

hen the auto analysts were cheering the fact that despite the fall in sales of Maruti Suzuki, its net profits actually went up because of favorable movement of foreign currency, they forgot that foreign exchange can be like a double edged sword. The overall income of the company dropped from 10778.2 Cr (Q1 2012 – 13) to 10237.3 Cr (Q1 2013 – 14) but in the same period the profit after tax went up from 424 Cr to 632 Cr. The Yen weakened against the rupee as a consequence of which the imported raw material of the company became cheaper while the rupee weakened against the dollar and that meant higher realisation for its exports. The foreign exchange market is very complicated and cannot be depended upon by businesses to act as their ally. The same foreign exchange movement i.e. the weakening of the rupee against the dollar is hurting the automobile sales in the country. How this is happening is quite complicated and one is sure that not many automobile companies would have accounted for it when they were projecting their annual sales. The connect between the falling rupee and declining sales of automobile companies comes from the fact that to stem the fall of the currency, the Reserve Bank of India (RBI) has squeezed the liquidity from the system. The intention was

8 / August 2013

to increase the interest rate as well as the yields on government securities so that the foreign institutional investors are attracted to invest in the country’s debt market. The RBI feels that with these purchases the inflow of dollars would result in stronger rupee. The unwanted consequence of this move is that the higher interest rates reduces the demand for automobiles (as most of the buyers are dependent on loans for these purchases) and at the same time it increases the cost of borrowings by the automobile companies. This malady is not only affecting the automobile industry alone but its impact is actually throttling demand across the economy. The RBI seems determined to ensure that the rupee does not depreciate below 60 against the dollar and does not seem to be concerned about the price the economy would have to pay for it. The institution slept through April – May when 300 tonnes of gold was being imported leading to the current account deficit going above 5pc of the GDP. Now when the problem has got out of hand it has started panicking and in the process it is choking the local liquidity in order to increase the bond yields to the level where the foreign investors are forced to come back. With the bond yields shooting up to 8.42pc from 7.5pc in a space of one week, the Rupee has recovered to 59.40 to a dollar but in the process the barometer of the economy i.e. BSE INDEX has crashed by 3.7pc to

19573.

The RBI and Finance Ministry could have avoided the mayhem if they had acted in a timelier manner and attacked the root cause of the problem. These authorities should have tried to identify the source of funds which were responsible for the import of 300 tonnes of gold in a span of two months. The importing agencies are institutionalised and hence it would not be very difficult to identify their buyers. The majority of the off take would be by the jewelers who should then be questioned about their bulk buyers. The Finance Ministry has instituted the Know Your Customer norms for the stock exchange and Banks and without completing voluminous forms no one can buy or sell shares. This ensures that at any stage the identity of a buyer making unusual trades can be known. The same is not true for the bullion market. This loop hole has made gold a destination for unaccounted wealth. The authorities have chosen to upset the real economy by threatening to derail growth rather than going after the real culprits who are responsible for the ballooning current account deficit.

The auto industry being the lead industry of the economy would continue to suffer till these tight liquidity and high interest rate conditions are allowed to continue by the RBI. (Views expressed by the author are personal)

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TUTU’S FINE TUNES

Datsun, a brand with a glorious past

H

R.K. DHAWAN (TUTU)

onestly speaking, some of us who are in our fifties and sixties will definitely have some nostalgic memories of the Datsun brand. Though Datsun vehicles were never sold in India, car aficionados like me have distinct memories of the beautiful Datsun Bluebird 310. Incidentally, the Datsun brand was phased out by Nissan in 1981. By that time the company had sold 20 million cars in 190 countries.

For record’s sake, it was in 1914 that the DAT-Car (DAT-GO in Japanese) was born. Now after so many decades, the company is reviving the Datsun brand in countries like India, Indonesia and Russia. From what one could make out at the launch ceremony in Gurgaon, the Datsun GO is a small car which is going to be affordable and will be targeted at the youth and the masses.

For the youth of today, the Datsun brand will be a brand new name. By now an internet savvy generation in India would have done a massive Google search and found out everything about the Datsun brand. It will definitely not invoke any nostalgia or sentiments, because the brand was just not there when these young girls and boys were born. It will simply be another brand from the Nissan stable that would be competing with the likes of Maruti Suzuki, Hyundai, Tata Motors and the others.

It is pure common sense that Nissan wants to grab the mass market segment.

Perhaps they do not want to bring these sub `4 lakh cars under the Nissan brand.

They want to keep it separate so that there is no brand dilution. Datsun is a good name. It sounds good and is easy to pronounce. Some names have magic attached to them. When General Motors introduced its cars under the Opel brand, they hardly sold in the country. Be it Astra or the Corsa. Then they brought in the Chevrolet brand. Suddenly, everything about the name appealed to the Indians. ‘Chevy’ was an easy name that got instant recognition.

Datsun, apart from its glorious past, is also a good name. One should not forget, it’s a Japanese brand and we Indians love everything Japanese. We consider Japanese cars reliable and cost effective. Now it is to be seen how inexpensive Datsun GO turns out to be when it is officially introduced in the Indian market beginning early 2014. Carlos Ghosn, President & CEO of Nissan Motor Company, launched the brand in India. It was a global launch. He mentioned that the car would be priced significantly below `4 lakh. Does that mean that the base price could be in the region of `3 lakh? If that is so, then Datsun has got a winner in the GO. The car that was unveiled in India looks smart, compact and modern. It’s a brand new car. Now we have to wait till 2014 to find out how well the Datsun GO goes with the Indian youth and the masses!

(As told to P. Tharyan)

10 / August 2013

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sales@bigboytoyz.in

2011 Porsche Carrera S

2011 Audi R8 V10

2012 BMW X6

2011 Range Rover Sport HSE

2011 Jaguar XJL - D

2012 Range Rover Evoque 2 Door Petrol

MOTOWN INDIA HIGHLIGHTS

R.Vasudevan passes away at 66 R. Vasudevan, former News Editor of Hindustan Times, New Delhi passed away on July 18, 2013. He was 66. Vasu, as we all called him, was my News Editor in Hindustan Times when I had joined it. After my training in Hindustan Times in Patna in 1987, I was transferred to the news desk in HT, New Delhi. Vasu was tall and lanky and always had a smile on his face. My erstwhile colleague from HT Ravi Chhabra sent me an SMS that Vasu was no more. I was saddened. He never once shouted at anyone on the news desk. Javed Faridi, a senior journalist who worked with Vasu, describes him as a “focussed man who carried his team along and knew his job well. He identified the good Chief Sub Editors and left the edition to them, without interfering in their work”. He was seldom rude, was a pleasant man and was reserved to some extent.

His daily routine was office-homeoffice”, recalled Faridi.

Vasu started his career along with T.N Ninan in HT. While Vasu preferred to pursue his career on the News Desk in HT, Ninan opted for business reporting and eventually went on to become the Editor of Business Standard and one of India’s leading business editors.

I shall personally miss Vasu, because I was in my twenties when I had joined HT. A warm person, Vasu never discouraged anyone of us. I have pleasant memories of my days in HT, more so because I had a good News Editor.

- P.Tharyan

12 / August 2013

Ashok Leyland re-unveils Stile, lines up Dost-based passenger carrier Ashok Leyland Limited (ALL) has unveiled the Stile, which is essentially a badgeengineered version of the Nissan Evalia van.

To be launched before the festive season in India, the people mover has been developed to address various applications like 7-8 seat people transport in the urban and rural areas, hotel shuttles, taxi services, ambulances, panel vans, courier services, inter-city and intra-city travel. The MPV, which has been jointly developed with Nissan, will be coming in diesel and CNG versions. To be priced a shade lower than the Evalia, the vehicle will be built at its Japanese partner’s plant at Chennai. This is the second time that the Indian CV maker unveiled the Stile MPV, albeit Carlos Ghosn, the global Chairman and CEO, of Nissan and Renault did the honours this time in Chennai (a day after unveiling the Datsun in Gurgaon).

Although the details of the product remain sketchy, it is widely believed that the Stile gets a lower-powered version of the Renault-derived 1.5 liter K9K turbo diesel engine that already does the duty on the Evalia. It will also be equipped with different applications such as ambulance and panel vans.

The Stile will be retailed at Ashok Leyland’s dealerships and will be registered only as a commercial vehicle (unlike Nissan Evalia which

is primarily sold as a passenger vehicle). The company claims that the monocoque body construction makes for lower weight; while for passengers; it translates into car-like comfort, excellent ride quality and greater safety.

Dr. V. Sumantran, Vice Chairman, Ashok Leyland and Chairman, Nissan Ashok Leyland Powertrain Ltd., said, “With the Stile also in our portfolio, we are now better positioned to cater to a wider range of needs, and at the same time, address the growing expectations of the Indian consumer.”

After the Stile MPV, the next product which Ashok Leyland is betting big on is the passenger carrier version based on the Dost mini pickup truck which was also developed jointly under the Nissan-Ashok Leyland joint venture.

Dost was launched commercially in 2011 and has already been a runaway hit by clocking 50,000+ units. Speculation is rife that the passenger version of the Ashok Leyland Dost will be branded ‘Dost Express.’

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MOTOWN INDIA HIGHLIGHTS

TE Connectivity brings fuse box for two-wheelers TE Connectivity, a global leader in providing connectivity solutions to multiple industries, has announced the introduction of a two-position sealed fuse box for anti-lock braking system (ABS) applications within two wheelers. The two-position sealed fuse box provides a miniaturised solution that reduces packaging weight and size and is designed to withstand harsh outdoor environments, including water and dust. The product is based on a proven AMP MCP 2.8mm terminal.

It has a maximum current rating of 40A, a maximum terminal mating force of 6N and a maximum terminal unmating force of 5N. The product includes a spare fuse and additional features like an attached clip for easy chassis mounting.

“The two-position sealed fuse box for two-wheelers is designed and produced locally in TE Connectivity’s

manufacturing plant in Pune,” said Viswanath S., Director, Automotive for TE Connectivity in India. “We have implemented this critical safety application with a leading twowheeler OEM in India with great success.”

In India, TE’s automotive business produces connectivity and sensor products that enable critical electronic functions from power management systems and smart engine controls that increase fuel efficiency, to active and passive systems that improve safety, and navigation systems for smarter vehicles.

Baba Kalyani conferred fellowship award Baba Kalyani, Chairman and Managing Director of Bharat Forge Limited, was conferred with the “IOD Distinguished Fellowship Award 2013” at New Delhi on 19th July 2013. The award was presented

by Dr. M. Veerappa Moily, Union Minister for Petroleum & Natural Gas on Friday, 19th July 2013 at Ashok Hotel, Chanakyapuri, New Delhi in the presence of a distinguished international

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gathering of business leaders, experts, jurists, economists, legislators and policy makers on the occasion of IOD’s 24th Annual Day. The IOD Distinguished Fellowship Award was conferred on Baba Kalyani for his distinguished track record of entrepreneurship that has set extremely high standards of ethical and transparent conduct and for Bharat Forge’s contribution towards building ‘Brand India’.

Daimler India Commercial Vehicles rolls out 5,000th truck

Daimler India Commercial Vehicles Pvt. Ltd. (DICV), a 100pc wholly owned subsidiary of Daimler AG, has rolled out the 5,000th truck from its plant at Oragadam, near Chennai.

After a successful start-ofproduction of its BharatBenz range of trucks in June 2012, DICV launched its Heavy-duty trucks (3 models) on 26 September, 2012, at Mumbai. Subsequently, DICV launched its Light/Medium-duty range in February, this year. DICV also launched the new FUSO range of trucks at its plant on 23 May 2013, as part of its wellcoordinated Asia Business Model.

DICV is stabilising its production line of all its launched models. Currently, DICV produces the 2523, 3123, 2528, 914, 1214 & 1217 (Heavy, Medium/Light-duty rigid & tipper trucks) with several variants.

The truck was rolled out in the presence of Sven Graeble Vice President Operations and Manufacturing Engineering, Daimler India Commercial Vehicles and P. Sriram - General Manager Production, Daimler India Commercial Vehicle.

August 2013 / 13

MOTOWN INDIA HIGHLIGHTS

New Honda MPV likely to make India debut by 2014 P.T. Honda Prospect Motor (HPM) of Indonesia has released the global premiere of the official sketch of the brand-new Honda MPV that will be making its world debut at the upcoming 21st Indonesia International Motor Show, scheduled for September 19-29, in Jakarta, Indonesia.

This is also the MPV that could possibly make an entry into India by 2014. In India, the car would be pitted against the likes of the Maruti Suzuki Ertiga, the GM Chevrolet Enjoy and the Nissan Evalia. The new Honda MPV was developed for the Asian market

by Honda R&D Asia Pacific Co., Ltd. in Thailand and P.T. Honda R&D Indonesia. This model will be the first Honda product in Indonesia to be introduced to the entry level MPV segment, the biggest category in the Indonesian automobile market. In addition to offering seven seats in a 3-row configuration, the new MPV features an innovative design, spacious cabin, and advanced safety which is already a hallmark of every Honda product.

The new MPV will be powered by a 1.5L gasoline engine, which provides both sporty performance and good fuel efficiency.

14 / August 2013

JCB India unveils India-specific JS205LC Tracked Excavator JCB India Ltd. has unveiled the new JS205LC Tracked Excavator, developed and manufactured in India for the domestic market. With its rugged structure, operator controls and whole range of technological innovations, the JS205LC is also low on fuel consumption. The JS205LC is well suited for applications such as earthwork, quarrying, and road construction etc. The new Excavator comes with the gross engine power of 106KW and a bucket capacity of 0.8 cu.m – 1.02 cu.m.

The machine’s heavy duty boom has been designed with 22pc bigger sections for high durability and strength. Arm Sections are

12pc deeper and 7pc. JCB’s plexus oil filter system extends hydraulic oil life to up to 5000hrs which reduces the maintenance cost. The compact and easy to handle bonnet is assisted by gas cylinders and helps in easy opening and closing, making periodic maintenance easy and effortless. Another addition is the wire mesh which is provided to avoid clogging of radiator and oil cooler.

Nissan inks new MoU with Ennore Port for exports Nissan Motor India Pvt. Ltd. (NMIPL) has signed a fresh agreement with Ennore Port Ltd. (EPL) to facilitate export of their vehicles in the presence of Union Minister of Shipping, G.K. Vasan and President of Nissan India Operations, Managing Director and CEO, Nissan Motor India Pvt. Ltd. Kenichiro Yomura.

According to the new agreement, Nissan can enjoy concessions in the wharfage up to 60000 units

per annum at the rate of 0.36pc per unit, free parking space for the first 15 days and priority in handling of automobile units in the port. The agreement is valid for 10 years and can be terminated by both parties with a notice of three months from either side. It is subject to cancellation if the export of automobile units of Nissan or Renault is found through any other sea ports other than EPL or Chennai Port either in part or in full.

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MOTOWN INDIA HIGHLIGHTS

Polaris India bags first commercial order in India

Polaris India Pvt. Ltd, a wholly owned subsidiary of Polaris Industries Inc., the world leader in off-road and All-Terrain Vehicles (ATVs), has bagged its first commercial order in India from Gujarat Police. The order was given

by Gujarat Government for its model RZR S 800.

RZR S 800 is specifically designed to take on off-road terrain. It has a 760cc twin-cylinder engine that puts out 54bhp. The engine is placed behind the passenger seat to give the vehicle a lower centre of gravity.

This placement also makes the RZR S 800 a sharp handler with good rough-terrain stability.

The scope of the order includes on and off site training, maintenance and after sales support. The vehicle will help the Gujarat Police in areas like routine patrol in inaccessible terrains, coastal patrol and vigilance, rough terrain, rapid pursuit operations, maintaining vigil around sensitive and hi-security

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zones to name a few. The model holds tremendous potential to be a dependable and effective force multiplier.

Speaking on the development, Pankaj Dubey, MD, Polaris India noted, “ATVs are utilised by police forces across the globe. This is for the first time our ATVs will be used

by Police in India. Our vehicles are sturdy, reliable and effective over the toughest of terrains. Polaris has demonstrated various All Terrain Vehicles to the Defence, Police and paramilitary forces, as these can be used in beach patrolling, dense forest, marshy land, rocky and rough terrain”.

“This is an opportunity for us to showcase the range of Polaris ATVs and ORVs unmatched ruggedness and versatility in harsh, hostile and demanding conditions and also demonstrate the strong after sales support. We at Polaris are proud to have the Gujarat Police Force, induce Polaris ATVs,” he added.

Ford EcoSport logs 30,000 bookings in 17 days The all-new Ford EcoSport has garnered over 30,000 bookings in just 17 days of its launch.

Having witnessed unprecedented enquiries and growing order bank for the Ford EcoSport, Ford India is working hard to optimise deliveries and reduce the waiting time for delivery.

Since the launch of EcoSport last month, Ford India is experiencing a significant rise in footfalls at dealerships across all regions and most dealerships are witnessing record levels of daily bookings, with enquiries extending to other Ford nameplates as well. Out of the 260 dealer touch points in 138 cities, 40pc cover Tier II and III, and these have been in readiness for this overwhelming demand for the Ford EcoSport.

Joginder Singh, President and Managing Director, Ford India said, “We had high expectations of the Ford EcoSport and the unabated response post the launch has been truly gratifying.

Consumers are appreciating the value-for-money proposition that we are offering in the EcoSport’s compelling and smart package.

We thank our customers for their overwhelming response and appreciate their patience. The Ford India team is working closely with the suppliers at our Chennai facility to enhance output of the EcoSport to reduce the waiting period and to meet the high demand.”

August 2013 / 15

MOTOWN INDIA HIGHLIGHTS

56,082 units of Yamaha Ray recalled

India Yamaha Motor has announced to voluntarily recall 56,082 units of its scooter ‘Ray’.

The company has taken this voluntary step after it detected insufficient strength in the handlebar of some scooters due to inadequate welding. There is a chance in extreme cases that this might impact the steering operation. As a part of an exercise to rectify the problem, the company will reach out to each individual customer in possession of such scooter to process the recall. However, the company has categorically maintained that the recall is applicable to Ray Scooters only and all ‘Ray Z’ scooters are completely unaffected by this potential problem.

As per the statement issued by the company, “The fault in Ray was identified during one of the field studies. During the extensive study of the product the company found that the handlebar fitted in few Ray scooters were affected by this potential issue. Having identified all such vehicles with this issue, Yamaha has therefore, decided to voluntarily replace the handlebar in all such scooters.

The replacement will be free of charge.”

16 / August 2013

Mercedes Benz India launches B-Class diesel for 22.6 lakh Close on the heels of launching the A-Class diesel in the country, Mercedes-Benz India has now launched the oil burning version of its B-Class model. Priced at 22.6 lakh, the B-Class diesel uses the same engine that is nestled under the bonnet of the A-Class. The B180 CDI Style is powered by a 2.2 litre engine that generates 107bhp of maximum power and 250Nm of torque. The engine is mated to a 7 speed dual clutch automatic gearbox with two drive options, Sport and Manual. The car comes with an ARAI certified mileage of 18.98kmpl.

Eberhard Kern, Managing Director and CEO, Mercedes-Benz India, commented, “The response for the B-Class petrol has been encouraging and we are confident that the new B-Class diesel will add to the demand of the car, with

its new improved efficient engine, stylish characteristics and unique touring capabilities. The launch of the B-Class diesel is a continuation of Mercedes-Benz India’s product offense for 2013.”

Available in only a single trim, the B-Class B180 diesel model comes with numerous features like 16 inch alloy wheels, fully powered driver’s seat, leather upholstery, COMAND Multimedia System, Halogen Headlamps, 7 Airbags, ABS+EBD and Adaptive Braking, Attention Assist, Hill Hold Technology, Cruise Control and ECO Start-Stop.

Mercedes-Benz rolls out its locally produced new E-Class from Chakan, Pune Mercedes-Benz India has rolled out the new E-Class luxury saloon from its manufacturing plant in Pune. The first locally produced new E-Class was rolled out from the assembly line

by Eberhard Kern, Managing Director & CEO, Mercedes-Benz India. The E-Class is the best-selling luxury sedan in India with over 23,000 units sold till date. The new E-Class was

launched on 25-June, 2013 at New Delhi and this marque has received an overwhelming response in the Indian market. With over 2,000 new parts and components, the roll-out of the locally produced new E-Class within days of its national launch indicates the focus and commitment of Mercedes-Benz India in this high value segment.

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MOTOWN INDIA HIGHLIGHTS

India will be 3rd largest automotive market by 2016, but way back in value terms globally

T

he good news is that India will be the third largest automotive market by 2016. This was revealed by Charles Chesbrough, Senior Principal Economist, IHS, while addressing media persons in New Delhi.

The US headquarted IHS provide comprehensive content, expert independent analysis and flexible delivery methods to businesses and governments in more than 165 countries.

The bad news is that even though India will be a dominant player in sales of light vehicles (this includes passenger vehicles and light commercial vehicles below six tonnes), in value terms India will stand fairly low. “It is a 3 million market of around $10,000 which makes it a fairly small market in terms of value. All the world’s manufacturers are here not because there are huge margins to be made but because they think there would be great margins in the future,” disclosed Chesbrough .

He further noted that it is “going to be a challenge for India to manufacture a small sized vehicle that could be sold in some of the matured markets. The products here can easily be sold in similar markets

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like Indonesia etc. Quality and safety issues are very important to the mature markets,” he pointed out. Over the near term, the matured markets will continue to dominate in terms of value proposition,” he added.

The media briefing was held on the sidelines of the IHS Day 2013 APAC Summit. Chesbrough noted that the automotive industry is being shaped by the rise of the developing markets, e-mobility and the changing urban environment.

“With demand for vehicles declining in most mature markets in the face of global recession, high fuel costs and urban driving restrictions, the industry is turning its attention more strongly towards the expanding middle-classes in the new powerhouse of China, India, Brazil, Russia and other growing nations,” he said.

He further revealed that global and Indian manufacturers are

focussing their efforts to develop innovative products, technologies and supply chains in the industry.

Car makers are launching a slew of car models such as Ford Ecosport and Nissan Datsun Go to name a few.

“At the start of the last decade, the matured markets dominated the automotive industry. In the last couple of years the growth is happening in the emerging countries like the BRIC nations.

As we go forward there is not much growth opportunity in the mature markets. These countries are saturated with vehicles, there are very few consumers coming to market to buy vehicles. In contrast, there are hundreds of millions of new consumers in the BRIC countries coming to the market in the next decade,” said Chesbrough .

August 2013 / 17

INDIA REPORT

GM India

Heads roll as recalls 1.14 lakh Tavera vehicles

O Report: P.Tharyan

n the face of it, the recall of 1.14 lakh Tavera vehicles built from 2005 to 2013 in India, may not really be a case of “Total Recall”. Rather it is beginning to take the shape of a scandal of gigantic proportions. Heads have begun rolling at General Motors.

According to unconfirmed reports several senior GM officials posted in India any time from 2005 to 2013 have been given the marching orders. The government (read the Ministry of Heavy Industries) has set up a committee under NATRIP CEO Nitin Gokaran with the mandate to investigate the manufacturing practices of auto companies.

Highly placed sources stated that Rajeev Chaba, former Managing Director of GM India who is currently posted at GM, China, Anil Mehrotra, current GM India CFO, Ravi Desai who once headed the company’s engineering organisation and is now posted in the US, Ashwani Muppasani, who once headed the company’s sales, marketing and services division and is now in South Korea and Sheila Sarver, who was once with GM India Engineering and who is now in the US are among the several top executives who have

18 / August 2013

been given the marching orders by Detroit based General Motors.

Motown India contacted Rajeev Chaba in the US where he is currently holidaying. He stated, “I am on vacation and I am going back to China on August 5. This news about my sacking is totally untrue.”

In the meantime, asked about the spate of sack orders, P. Balendran, Vice President, Corporate Affairs, GM India, said,” As per company policy, we do not comment on personnel matters”. He neither denied nor confirmed the news.

However, in a communication to Motown India, Greg Martin, Executive Director, Communications, General Motor Co noted, “General Motors’ investigation into our recall of the Chevrolet Tavera, which is built and

sold exclusively in India, identified violations of company policy. GM subsequently dismissed several employees. We take these matters very seriously and hold our leaders and employees to high standards.

When those standards are not met, we will take the appropriate action to hold employees accountable.”

Martin did not, however, give names of GM employees sacked on account of the Tavera episode.

Anil Mehrotra has been the company’s CFO from January 2012.

Earlier, for three years he was CFO, GM South East Asia Operations and prior to that Vice President and CFO, GM South Africa. Chaba is currently Vice President, Sales & Marketing, GM China, a post he has been holding since mid-2011.

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INDIA REPORT

“General Motors’ investigation into our recall of the Chevrolet Tavera, which is built and sold exclusively in India, identified violations of company policy.

GM subsequently dismissed several employees. We take these matters very seriously and hold our leaders and employees to high standards. When those standards are not met, we will take the appropriate action to hold employees accountable”, General Motor Company, USA

Prior to that, he was Chairman and MD, GM North Africa and Egypt.

He was the MD of GM India from 2005 to 2007. He has been with General Motors since 1995. Desai is currently Director, GM, Greater Detroit Area. He got his US posting only in April 2013. Prior to this, for a little more than two years he was Head of GM India Engineering Organisation. He has been with GM since 2006. Muppasani is currently Vice President, Global Purchasing and Supply Chain, GM, South Korea, a post he has been in only since January 2013. He was earlier with GM India. He has been in General Motors since 1995 having worked with the global firm at its US plant. As for Sheila Sarver, she is currently the Director, Global Interior Engineering, GM, Greater Detroit Area. She was Vice President, GM India Engineering from January 2008 to August 2009.

Motown India’s detailed questions to Lowell Paddock, Managing Director of GM India and P.Balendran, Vice President, Corporate Affairs, GM India elicited no response.

It all started with General Motors India issuing a press statement late July 2013 on the recall of Tavera vehicles. “General Motors India (GMI)… is voluntarily recalling the Chevrolet Tavera BSIII (2.5L

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variant) and BSIV (2.0L variant) from model years 2005-2013 to address emissions and specification issues,” the company said in a statement, adding, “The 114,000 affected vehicles will be repaired free of charge at GMI’s 280 dealers. The issues are not safety-related”.

Even before GM India could officially give out a press release, the company had apparently alerted the government the results of an internal audit the company had carried out and which subsequently showed that emission norms and certain specifications were not complied with in the case of Tavera BS III and Tavera BS IV vehicles.

The Tavera case has taken a twist with GM India admitting of certain lapses on its part of a few of its employees who were engaged in the practice of identifying engines with lower emission which were fine tuned and kept aside to be sued for installation on vehicles during investigation.

The Indian arm of the Detroitbased firm has maintained that it has already notified the Indian government authorities of an emissions issue involving the Tavera BSIII and an issue with the Tavera BSIV meeting certain specifications.

The company said it will notify

customers how and when to bring in their vehicles for service.

The Indian Foundation of Transport Research and Training (IFTRT) headed by S.P. Singh has in the meantime gone hammer and tongs against the government and GM India. IFTRT is an independent body tracking the Indian transport and automotive sector for over 15 years.

Singh noted that normally, international auto majors in India have been coming up with voluntary car recall to correct the specific technical / mechanical defects inherent in the manufacturing of their vehicles. But Singh wonders how GM India did not notice these basic flaws in their declarations about the product specification since year 2005 and in the case of BS-IV Tavera introduced in April 2010.

“More than GM India, I blame the two government agencies, the Automotive Research Association of India (ARAI) based in Pune in Maharashtra and the International Centre for Automotive Technology (iCAT), Manesar, Haryana. These bodies are supposed to conduct random checks and they seem to have failed. I suspect a criminal conspiracy,” noted Singh while speaking to Motown India magazine.

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INDIA REPORT

Brick & Click sees Mahindra used car business increase manifold

I

Report: P.Tharyan

n an insipid domestic market that is forcing several Indian passenger car manufacturers to prune production schedules and lay off workers, Mahindra & Mahindra is seeing rapid growth in business selling multi brand used cars and also servicing them. Two of its companies Mahindra First Choice Wheels (MFCW) and Mahindra First Choice Services (MFCS) have some ambitious plans to grab an increasing share of business across the various cities of the country.

Interestingly, MFCW is not only using the conventional brick and mortar model for growth but is also leveraging the IT platform to buy and sell used cars through its e-auction site. In short, it’s a brick and click model that is seeing business grow multifold at Mahindra.

MFCW is a multi-brand used car company while MFCS is a multi brand service company. MFCW has around 270 plus outlets (three are company owned and the remaining are franchisees) across more than a 100 cities. The company will be adding another 10 outlets this year.

“We sold 46,000 cars last year in the brick and mortar space. Through our e-auction platform we transacted 36,000 cars. We are trying to integrate retail and wholesale,

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and online and offline. We are going to harness the power of IT, and where we are hoping to tap one day a large segment of the unorganised sector which is customer to customer. We hope to have

by March 31, 2016 around 500 outlets on the ground with 100,000 cars and larger number in the e-auction platform. We have a very vibrant e-auction Rajeev Dubey, President (Group HR, Corporate Services platform,” noted & After-Market) & Member of the Group Executive Board, Rajeev Dubey, Mahindra & Mahindra President (Group HR, becomes B2C. “There are all kinds Corporate Services & After-Market) of new products that are being & Member of the Group Executive introduced. These include the Indian Board, Mahindra & Mahindra in an Blue Book, Auto Inspect etc,” says exclusive interview with Motown Dubey MFCS provides services for multi India magazine. brand cars. At the moment it has 16 The company is also getting into outlets. These are company owned a new space which it has christened and company operated outlets. By Automart India and is into creating the end of the year it shall have 50 a platform for Dealer to Dealer outlets. Around 30 will be company transactions, or D2D. It expects owned and company operated that in 18 months from now, it also

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INDIA REPORT

outlets, while the remaining would be franchise owned. “We will be adding roughly 80 to 100 MFCS outlets every year. By March 2019, we should be around 450 to 500 outlets of MFCS. The two have linkages (MFCW and MFCS).

Synergies are important but they are two independent companies. But they could be co-located. They need not be co-located. But clearly we are going to follow a cluster approach.

The idea would be to operate in clusters. For example, in the NCR we have close to 30 outlets of MFCW. By end of this year MFCS will have 7 outlets in the NCR. In MFCS, the exciting news is that while we are small, we seem to have a very strong business model in place. We already have outlets that are making operating profits,” informs Dubey.

The company has also started ‘Help First’ service which is essentially a 24x7 road assistance service wherein you dial a number and the company makes sure that within 45 minutes you get someone to address your breakdown issue, provided you are within city limits. It has also started Safe First. It’s about maintenance. It’s a service maintenance contract and depending upon the three variants that we have it provides different kinds of services. “We are going to have many more products coming in. Here also we have a broad IT base,” he adds

INDIAN BLUE BOOK This is a pricing algorithm which enables the seller or buyer of a car or a bank or financial institution that wants to give a loan for purchase of a car, to have a reasonably good estimate of the price of the second hand car. “It is an econometric

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model based on thousands of entries across cities and across models, over time. We feel that we have the most efficient algorithm that exists today in the country where anyone who is keen to find the price can get a reasonable good estimate of the vehicle. This comes handy for those buying, selling or financing a car. It is there on our site and we would be selling to anyone at a price. It is 1,000 pm. For MFCW it is a very important product that we have developed. We are now going to market it very aggressively.

AutoInspect is inspection services where our certification engineers can go and give a report card on the condition of the car. Here also it is vital information for those selling, buying and financing a car,” explains Dubey.

Dubey claims that his company’s IT platform is already India’s No. 1 e-auction platform for used cars. “We are clearly ahead of the rest. Particularly when the market is down, the market for repossessed cars that have been put up for auction has gone up dramatically. This will become a very important portal for those like finance companies that have a lot of repossessed cars. You need to be a subscriber to that platform.

People want to sell and people want to buy. They conduct electronic auction. There are bids that come in. We facilitate the transactions and we get some money from people who participate in the transaction.

Unlike the brick and mortar, where MFCW buys a car and many cases refurbishes the car and then sells it with a certificate and a warranty, in the e-auction platform we do not buy the car. We connect the seller and buyer and we get a commission from the seller” says Dubey.

INCREASING BUSINESS FROM USED CARS The size of the used car in India is 1.2 times the size of the new car market. This ratio is expected to go to around 1.7 or 1.8 times. Five years from today, for every new car that is sold, 1.8 used cars would be sold, points out Dubey. This ratio will keep climbing as the economy grows and per capita income grows.

In the US, this ratio is 3:1. The rate of growth of the used car market will always be greater that the rate of new car market over a period of time, he says.

“In the used car market, the organised sector is very small. Today it is around 16pc-17pc. Six years ago it was 11pc. The rate at which the organised sector will grow will be much faster that the rate at which the overall used car market will grow. The organised sector is becoming bigger. In the organised sector, we have a very high rate of growth. We are clocking around 35pc to 40pc per annum,” he says.

According to Dubey, the size of the market is so large and that his current business is so small that there is a huge potential for all his business models. “Both businesses should grow anywhere between 35pc to 50pc per annum for the next few years. There will always be an unorganised sector both for used cars as well as services. For services it is 50:50. In the organised part there are all the authorised outlets, but very few organised multi-brand used car outlets. There are plenty of authorised outlets for OEMs. Nationally there are three multi brand players: MFCS, Carnation and MyTVS. The story that excites us is the multi-brand aspect,” he concludes.

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COVER REPORT

DATSUN GOes live!

Report P. Tharyan Photography Mohd. Nasir

More than 30 years after the Datsun brand was phased out by Nissan across the globe, dramatic changes in the car market coupled with smart marketing strategies have led to the brand being stoked to life in India, a country that once never stood a chance to emerge as a serious car market. In the year 1981 the Datsun brand was phased out globally. In 1981 no major car manufacturer (including Maruti Suzuki Ltd aka Maruti Udyog Ltd) had its presence in India. Datsun cars were never sold in India.

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www.motownindia.com

COVER REPORT CARLOS GHOSN, President & CEO, Nissan Motor Company

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COVER REPORT

DATSUN’S LONG JOURNEY Datsun’s roots go back to 1911 when Japanese engineer Masujiro Hashimoto established the Kwaishinsha Co. in Tokyo’s AzabuHiroo district. In 1914, Kwaishinsha launches a car built for the streets of Japan. The DAT-Car (DAT-GO in Japanese) was born. Named after the first initials of the company’s three investors ---Den, Aoyama and Takeuch--and literally meaning ‘Lightning fast’, DAT also stood for the company’s guiding principles:

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Durable. Attractive. Trustworthy afterwards.

In 1919, Hashimoto’s Kwaishinsha Co. merged with Jitsuyo Jidosha to form DAT Jidosha Seizo Company and created the first single-body casting four-cylinder engine. In 1931 DAT Jidosha Seizo became affiliated with the Tobata Foundry Co. Envisioning ‘mobility for all’, its owner Yoshisuke Aikawa designed a new lightweight, economical yet durable car. Made with local engineering and mass-production, it’s named ‘DAT-son’ or ‘the son of DAT’. The name is later changed to ‘Datsun’. Two years later in 1933 Jidosha Seizo Co. (Automobile Manufacturing Co., Ltd.) is established, taking over all the operations for manufacturing Datsun cars from the automobile division of Tobata Foundry Co. Its first model is the Datsun 12. In 1934, idosha Seizo Co. became the Nissan Motor Co., Ltd, the name taken from an abbreviation of its holding company ‘Nihon Sangyo’ – ‘Japan Industries’.

Datsun began export to Asian countries, Australia, Latin America and other countries. In the following years, models like the Datsun Model 14, the Datusn 110, the Datsun 1000 (model 210), the Datsun Bluebird 310 and the Datsun Sunny B10 rolled out from the assembly lines of the company. After selling 20 million cars in 190 countries around the world, the Datsun brand was phased out from 1981.

1933 Datsun 12

1935 Model 14

1955 Datsun 110

1957 Datsun 1000 (Model 210)

1959 Datsun Bluebird 310

PERIOD OF SIGNIFICANT TRANSITION Ghosn recalled the first cars that rolled out from Datsun in 1914—the DAT Car or DAT Go. “The innovative car helped launch an era of personal mobility and inspired the Datsun

1966 Datsun Sunny B10

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Pictures courtesy: Datsun

Y

et, in a twist of corporate fate, Datsun is back and that too in India. A new small hatchback car, the Datsun GO was unveiled in India by Carlos Ghosn, President & CEO, Nissan Motor Company at a ceremony on the outskirts of Delhi. “Today we have begun a new chapter in the Datsun story,” said Ghosn at the unveiling ceremony of the new car. Ghosn announced that the Datsun line up will be sold in India starting early 2014. Other Datsun models will be unveiled later this year in Indonesia and Russia and next year in South Africa. “Our production and delivery plans for the Datsun brand reflects Nissan Motor Company’s commitment to building manufacturing capacity and establishing a meaningful presence in high growth markets like India,” he stated.

Proclaiming that it was historic day for Nissan Motor Company, Ghosn mentioned that it was also “an exciting moment for many men and women in India who today are one step closer to realising the dream of purchasing a new car”.

COVER REPORT

brand. As the production of Datsun cars continued during the early 1980s, some cars were sold in more than 190 countries. Datsun opened the doors of car ownership to generation of car owners and became one of the auto industry’s iconic brands,” he said He noted that the global auto market is in the period of significant transition. “Five years ago the majority of world’s car sales took place in the matured markets including Europe, Japan and US. High growth markets including India, Brazil, China, Russia, Indonesia accounted for 40pc of all sales. But this ratio is shifting quickly. By 2016, we expect 60pc of all car sales is to take place in the world’s high growth markets,” he pointed out.

To put the global markets in the

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right perspective, he said in the US there are 800 cars for every 1,000 residents, in mature European markets it is 500 cars per thousand, in Russia it is around 280, in South Africa it is 160, in Indonesia it is 70 and in India it is 15. “We see significant opportunities in these growth markets and the demand for cars is increasing and will continue to do so. For example, here in India, the total industry volume passed the 3 million market in 2011 and is expected to reach 4 million units by 2016. To meet this rise, Nissan Motor Company is introducing ten new models including the all new Datsun line up in India by 2016,” he affirmed.

“We are also expanding our operations in India and we now have 12,000 employees nationwide.

Going forward we will continue to use local talents to enhance our operations locally as well as globally and shall keep working to grow our network of dealer partners across the country. Nissan Motor Company is committed to fulfilling our potential in the Indian market and our expectations are high. We are targeting to increase our market share from the current levels of little more than 1.2pc to 10pc as an important milestone. And we expect the Datsun brand to contribute significantly to the growth,” he revealed.

“Like here in India, more and more residents across the world’s high growth markets are asking for high quality top reliability products that would lure them to realise their dreams of new car ownership. We

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COVER REPORT

are responding to them with the return of Datsun. Our forthcoming Datsun products pay tribute to the brand’s heritage but offer a completely modern take on Datsun core values of making the dream of first time car ownership a reality, providing access to peace of mind that comes from worry free car ownership. And delivering trust by ensuring transparency, sincerity and reliability. The new generation of Datsun cars is geared for middle class individuals and families who quite literally are on the move.

Our target customers are in high growth markets. They are ambitious, optimistic and practical and they want high quality products that will make their lives easier without forcing them to compromise on design or performance. To reach and attract these customers, we have retained the original Datsun brand concept, but we have completed updated the product,” Ghosn added.

Ghosn pointed out that the Datsun Go car unveiled in India was fully engineered in India and would be manufactured locally in collaboration with locally established suppliers.

THE ALL NEW DATSUN GO The Nissan CEO noted that the car would be priced significantly less than 4 lakh. It is believed that prices of this five door hatch would start a shade above the 3 lakh mark.

“Like the original Dat Go car, the all new Datsun GO allows the driver to go ahead with comfort and peace of mind. And just as the Japanese word ‘Go’ suggests, it is strong and durable. As a five-door hatchback, the first new Datsun offers a unique level of versatility, family appeal and fuel efficiency,” he said.

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The fivedoor, frontwheel drive hatchback will come with a 1.2 litre engine paired with a fivespeed manual transmission that offers optimal response time and agility in congested traffic. With comparatively compact body dimensions (width – 1635mm; height – 1485mm; length– 3785mm), the car is spacious inside thanks to a wide stance and large wheelbase (2450mm), and offers ample headroom and an expanded front seating configuration. It will be a reliable partner for families, providing comfort to five occupants and agility in congested traffic.

For those customers never wanting to part with their favorite music and pictures Datsun GO will offer a very practical solution – Mobile Docking Station to connect with their smartphones.

“When a customer buys his first new car in countries like India, Indonesia, Russia and South Africa, first he dreams about it. To realise the dream, customers need to have access, feel a sense of belonging towards the Brand. Also, as this purchase will represent a significant part of their disposal income, it

Vincent Cobee, Global Head, Datsun

is important for them to have full trust in the brand and the product.

So Dream, Access and Trust are key values for which the Datsun brand stands now,” said Vincent Cobee, who heads Datsun.

Datsun models will be individually developed for different markets.

While Nissan Motor’s Global design centre in Japan was responsible for the Datsun GO styling, R&D and engineering development for the project were entrusted to local engineering resources and suppliers to ensure the product would suit local market conditions, preferences, tastes and needs, and would be accessible in terms of price and supply. The Datsun GO will be produced at one of the newest Renault-Nissan Alliance factories at Oragadam, in Chennai.

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COVER REPORT

New vehicles from Renault-Nissan Alliance

D

uring his India visit, Carlos Ghosn, CEO and Chairman, Renault-Nissan confirmed that the Renault-Nissan Alliance is developing all-new vehicles to meet the specific demands of new car buyers in the world’s fastest growing economies.

The announcement marks the

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first all-new programme developed from the ground up by Renault SAS and Nissan Motor Co., Ltd., teams working side by side from inception.

The programme, internally named CMF-A, covers the most affordable category of cars in the Common Module Family, Renault-Nissan’s unique, modular system of vehicle architecture.

The CMF approach defines vehicles as five essential modules: the engine

bay, cockpit, front underbody, rear underbody and electrical/electronic architecture. The compatible parts can then be assembled into hundreds of possible configurations, for maximum efficiency and brand differentiation.

Production of vehicles within the CMF-A scope will begin in 2015 at the Renault-Nissan Alliance plant in Chennai. Renault and Nissan will reveal additional details, including

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Pictures courtesy: credit Atul LOKEPanos-REA

COVER REPORT

pricing details and product volume, closer to the start of production.

Like all CMF categories, CMF-A offers a high degree of flexibility. Significant body style and powertrain variations can be matched to specific customer needs and preferences in India and other high-growth markets.

“We are breaking new ground with CMF-A to meet and exceed the high standards of consumers in the world’s fastest growing economies – particularly people buying a new car for the first time,” Ghosn said at Renault Nissan Technology Business Centre, the Chennai-based engineering

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facility where development work on CMF-A began last year. “These influential consumers don’t want a decontented car originally intended for consumers in mature markets.

They want and deserve a car that is modern, robust and stylish – at a price point that represents a ‘cost breakthrough’ for such a generous vehicle.”

When the Renault-Nissan Alliance formed in 1999, about 1pc of total group sales came from the so-called BRIC countries of Brazil, Russia, India and China. In 2012, more than 30pc of total group sales came from these four countries alone.

Chennai is home to the largest

dedicated Renault–Nissan Alliance plant, which opened in 2010. The factory, which produces the Renault Pulse, Scala and Duster, and the Nissan Micra, Sunny and Evalia, represents an investment of about $1 billion USD, or 4,500 crore from 2008 to 2015.

The existing plant – which has full stamping, body, paint, plastic, trim and chassis shops with two test tracks—currently has annual production capacity of 400,000 vehicles per year.

The plant can produce four separate platforms and eight body styles in random production order.

Both sub-assembly and parts supply

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COVER REPORT

to the line are totally flexible.

Efficiency is improved by having bumper and plastic mouldings produced on site while the assembly line boasts a highly efficient logistics layout with a 100pc kit supply system to the lineside which saves operators having to pick parts from more than one place reducing the need to walk to collect parts.

The Chennai plant taps the industry-leading “monozukuri” production processes Nissan developed in its Oppama, Japan and

Sunderland, UK facilities. Renault brings expertise concentrated on vehicle engineering, information systems, styling and powertrain development – including development of the industry’s benchmark clean-diesel K9K engine.

Chennai is also home to the Renault Nissan Technology Business Centre, the engineering hub and an innovation incubator serving Renault-Nissan Alliance partners.

Renault has been on a strong growth curve in India. The company

has launched five new cars in less than 18 months, including the Renault Duster, which has won a record-breaking 29 independent vehicle awards.

Nissan sold nearly 37,000 vehicles in 2012 and is accelerating aggressively. The company will launch 10 new vehicles in India through 2016 – including new premium SUV Terrano later this year.

Nissan expects to more than triple its current dealer network to more than 300 outlets by 2016.

Renault-Nissan Chennai Plant. Pictures for representation purpose only

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TÊTE-À-TÊTE

Anirvan Roy General Manager, Automotive Lubricants, ExxonMobil Lubricants India Pvt. Ltd Report: Avishek Banerjee, Photography: Mohd. Nasir

ExxonMobil Lubricants Private Limited (EMLPL) (previously named “Indo Mobil Limited”) was established in March 1994 to handle the manufacture and sale of lubricants. The company’s operations include lubricant oil blending, packaging, distribution and marketing with a growing premium finished lubricants products. Product range covers Passenger Vehicle Lubricants (PVL),Commercial Vehicle Lubricants (CVL), industrial lubricants, marine lubricants and greases.

EMLPL’s head office is in Gurgaon (Haryana) and its regional office in Mumbai. Production is through a toll blending plant in Taloja (near Mumbai). EMLPL’s distribution is supported by multiple Regional Distribution Centres.

How do you see the lubricants industry evolving over the years in India?

From my perspective and that of the industry, we are definitely seeing an evolution in the quality of lubricants for the past two decades. This is in line with the expectations that we have from the Indian market. And that is being driven by a variety of factors like the consumer awareness of quality, wide choices available, and also the nation’s economic growth. Since the last decade, there has been a robust growth in industrial production that ultimately boosted the country’s GDP. There has also been an unprecedented growth in new car sales which ensured global carmakers establishing their manufacturing base here. So from a Passenger Vehicle Lubricant’s (PVL) standpoint, we are quite pleased with the evolution of the domestic lubricants market. And this has further been reinforced by a number of measures taken by the

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TÊTE-À-TÊTE

government like the imposition of BS-III/BS-IV vehicle emission norms.

All such measures generate an investment-friendly climate in the country.

How important is the Indian market for Exxon Mobil Lubricants globally?

As far as the importance of the Indian market is concerned, we have been on an expansion drive. That’s why we are striving to gain a long term relationship with our OEMs, distributors, retailers, mechanics, etc. We are also ramping up our distribution network. Although the economic slowdown is there, all our strategic plans are well on track.

However, we continue to assess the

economic situation and make some tactical adjustments if it’s required.

Having said that, such an economic downturn is going to impact the entire automobile industry. But no company has yet decided to move out of India because of the downward trend.

How much does the automotive vertical contribute to your overall business?

As you know, the automotive and industrial verticals are equally balanced when it comes to the contribution to our overall business.

We have been experiencing an exponential growth in the PVL segment as compared to the industry segment. The contribution of the automotive vertical to our overall business will depend on numerous factors.

Which specific segment in the automotive industry gives you the maximum volumes?

Within the automotive business, we look at two key sectors. One is the PVL segment and the other is the CVL segment, particularly the heavy-duty trucks.

Within these two segments that we operate in, it is again pretty wellbalanced. Going forward, we do have an expansion

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roadmap. As per our go-to-market model, our distributors are dealing in both CV and PV lubricants. Our plans are to enhance our business in both the segments in India. In the construction equipment space, we have a very good presence with Volvo and Caterpillar and continue to have dialogues with many other manufacturers as well. Apart from off-highway and on-highway trucks, we are also setting our sights on the LCV segment. Over a period of time, we might consider tractor and motorcycle segments.

What is the capacity of your blending plant at Taloja? How many litres of lubricants are earmarked for your automotive clients? And are the products also exported from here?

Our existing capacity at Taloja is good enough to meet our future requirements of say four, five or seven years. Our plant is flexible enough to serve our customers in the medium to long term. So we don’t see any supply constraints in the foreseeable future. The automotive clients account for nearly 50 pc of the total output. The plant is primarily serving the domestic market. But we do export some litres of lubricants to Nepal, Bhutan et al.

Globally, you have multiple products under the automotive portfolio. Why you are hardselling only the Mobil 1 in India?

Yes, we do have multiple lubricants within the Mobil-branded portfolio globally. And you are right by stating that ‘Mobil1’ is a ‘Focus Brand’ for us in India. ExxonMobil is very proud of its technology and we do a lot of research and development work for our products. This company is almost 120 years old and has been

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a pioneer in its product line. It has been marketing its products in over 200 countries. And the same portfolio of brands which is sold worldwide is present in India. So apart from Mobil1, we have the Mobil Super brand for the PVL segment and Mobil Delvac brand for the CVL segment. Mobil Super brand is also gaining a lot of traction in the marketplace. We also have Mobil Super 5W40 fully-synthetic oil for Maruti Suzuki cars. We also have Mobil1 Racing 40 and Mobil Extra 4T 10W-40, which is essentially a high performance, semi-synthetic blend technology four-stroke motorcycle engine oil developed to provide boosted engine cleanliness and protection for all types of motorcycles and operation. We have all the portfolio of products which are required in India. Having said that, we would definitely want to focus more on the Mobil1 as technology leadership is one of our core values. Moreover, we have gained a lot of consensus from OEMs for this particular product. That’s why it will continue to be our flagship product. A lot of carmakers like Maruti Suzuki, Tata Motors, Mercedes Benz, Porsche, Audi, Nissan etc, are actually allowing the sales of Mobil1 at their dealers’ end.

How important is the automotive aftermarket?

I would candidly say that the automotive aftermarket is the major thrust area for us. As compared to the direct market, not only does the aftermarket have a higher consumption capacity but we get multiple channels of serving it.

In order to market our branded products, we go for best-inclass distributors which have an extended sales force and delivery

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capabilities to serve any channel in the aftermarket. So whether it is our 400+ Mobil1 Car Care outlets across the country or it is the retail format or franchisee car dealerships, we are present across the automobile sectors.

You are serving quite a few OEMs in India. Is there scope for more?

Yes, as business development

continues to be our focus areas we are having an ongoing dialogue with new players.

What are the benefits derived by allying with Mercedes for their StarDrive performance programmes in India?

Under the StarDrive programme with Mercedes Benz, we are jointly trying to cater to the existing or

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potential Mercedes Benz owners.

This programme, which has been going on for the last three years, has been very satisfying for us in terms of our collaboration with the German luxury carmaker. This joint initiative is a unique event which gives us an opportunity to promote the technological advancements of our products.

How are you planning to cash in on the Formula One fever in India?

We already have a technology partnership with the Vodafone Mclaren Mercedes F1 team.

Incidentally, this is one of the longest running partnerships in the F1 history. We believe that the technology that it brings to the team is the unique testing ground for our products and their technological attributes. The technology that is incorporated in the F1 cars actually finds its way into the lubricants that we use for our cars, including the Mobil1 that we use today. So we are pretty active in the F1 space and intend to leverage on that by bringing many of our clients and customers directly at the circuit. As a result, they are able to discern the technical finesse of our automotive lubricants.

Do you have any plans to establish a dedicated R&D centre here to cater to the domestic market in a better way?

We are definitely growing our technological presence in India with some people actively engaged in developing PVLs and CVLs for global markets. We have a dedicated team of R&D personnel who are collaborating with our overseas engineers on a regular basis. We are leveraging on the experience which we have gathered at our

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laboratories across the globe. So all vital inputs are acquired from the OEMs based everywhere. So the product development activities are not impacted at all by not having a dedicated R&D centre here. If you look at the way the technology is progressing here in India, we can easily source the next-generation products from our overseas portfolio. We are able to meet the existing requirements (in India) with our current lineup. For example, Mobil1 0W40 which is being sold here didn’t require R&D centre in India to customise it for the domestic market. That is how we are addressing the product development scenario.

Have Rupee depreciation and rising input costs impacted your business?

High inputs costs have definitely been a matter of concern for us because we are keenly focussed on product integrity. We import high-quality base oils in large quantities. But I won’t consider this as an aberration because India imports 70pc+ for its petroleum requirements whether it crude oil, or other forms of base oils.

Even though we do have some quantities of base oils available locally, the entire category spectrum is still not covered through indigenous production. So for the lubricants industry per se, it is an area of concern. The economic effects of Rupee

depreciation can also be several.

But we have to adapt ourselves accordingly.

Lastly, do you foresee a lot of growth in India in the next few years?

Our strategies are always in place which would enable us to grow faster than the industry average. We have been achieving that as far as the automotive line of business is concerned, especially in PVL space.

Plans are afoot to strengthen our base in the market. Apart from our investment in people, our sales force has been growing over the last few years. We are also focussed on diversifying our workforce and taking in people who are just fresh out of college and intend to build a long-term career at ExxonMobil.

Our communication related activities like ‘Udaan’ have also been on an upswing.

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Mudit Gupta

Head-Automotive, North and South OEMs, CHEP India Pvt. Ltd. Report: Avishek Banerjee, Photography: Mohd. Nasir

Founded in Australia in 1945, CHEP is a leading solutions provider based on pallet and container pooling for many of the world’s largest supply chains. The company issues, collects, conditions and reissues more than 300 million pallets and containers from a global network of service centres, helping manufacturers and growers transport their products to distributors and retailers. It is a part of Brambles which is a leading global provider of supply chain solutions, operating in over 54 countries and employing over 17,000 supply chain experts. In the automotive space, combining superior technology, decades of experience and an unmatched asset base, CHEP handles pallet and container supply chain logistics, as components move from the point of production to the vehicle manufacturers’ locations. In India, CHEP works with most of the top vehicle OEMs and their tier-1 and tier-II suppliers.

You had your stints with a couple of automobile firms. Why did you make a sudden switch to CHEP India?

This is because if you see the automotive industry and the way it is growing, it offers a fountain of opportunities to its supply chain. As more organisations have to meet the demands of the customers, they have understood that they need to collaborate at the back end to optimise their supply chain. So a huge focus is there in this vertical and with my past experience in the automotive industry, I thought this is the right way to go and that’s the reason I am here.

As the auto industry evolved, has the logistics industry supporting it evolved too in India? And is it now in tune with global standards?

The Indian automotive industry is coming in line with global standards. This is because most of

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the multinational firms that have entered here are focussing deeply on its supply chain. The automobile industry has to be on par with global standards and needs to optimise its resources as per international practices. That is the reason they are bringing in a lot of efficiencies into the entire system. And as a result, a lot of global logistics companies are making a foray into India. So I won’t say that the auto logistics industry has completely evolved, but is evolving gradually.

How much does the automotive segment contribute to your overall business?

The Indian automotive sector is quite huge and we see this as a huge opportunity, contributing a large chunk to our local business operations. I can just say that this share is significant and more importantly, growing every day!

In the automotive industry, which

segment gives you the maximum volumes?

If you look at our client profile in India, we have the leading car and tractor manufacturers and their component suppliers in the country as customers. The tier-1 and tier-2 component manufacturers/Original Equipment Suppliers (OES) as well as the vehicle manufacturers (OEMs) adopt our solutions. The basic premise of this solution is the endto-end supply chain collaboration.

This can only happen if we have all the players sharing the equipment pool. The value created through this collaboration is shared by one and all. Our team of supply chain experts, work very closely with the customers in squeezing out every bit of inefficiencies in the system thereby deriving maximum value, and this requires a very high level of engagement. Our current strategy is to consolidate in the segment that we operate in today. We will evaluate and decide

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on opportunities in other segments as and when they present themselves.

You have claimed that your company is actively involved in greening the end-to-end supply chain.

Could you explain how?

CHEP solutions are consultative and we focus on all the challenges faced by the automotive industry in their inbound logistics in addition to greening. We can chart these as below.

From an environment perspective, many of the OEMs are sourcing their components through oneway packaging i.e. by wooden or corrugated boxes. Owing to its one-time use, there is wastage of sorts in the supply chain. This is one of the areas where the CHEP TCM (Total Crate Management) solution based on returnable crates adds huge value. Components move in these reusable crates from the tier supplier locations to the OEMs. All waste is eliminated thereby greening the entire supply chain. In addition, there are savings on labour, space requirements and scrap disposal. The value addition happens across the supply chain thereby significantly reducing the overall packaging costs.

Please could you also talk a little more about the CHEP TCM? Total Crate Management (TCM) is the outsourcing of designing, development and management of reusable

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TĂŠTE-Ă€-TĂŠTE packaging to a service provider like CHEP, the global leader in automotive packaging solutions. Vehicle manufacturers and their tier suppliers convert all packaging within their supply chain to high quality, ready to use, reusable packaging which is owned and managed by the service provider.

In managing the packaging the cleaning, conditioning and on time delivery are handled as well. TCM is built around the concept of equipment pooling which is the shared use of standardised equipment by multiple customers. The outer crate is standardised to achieve optimum results while transportation and handling, yet internally customisable by placing low cost durable component specific insert which can be reused throughout the life cycle of the auto component. Post the design phase, TCM encapsulates end-to-end movement of the packaged components from the point of production to the point of consumption and its reverse logistics effectively allowing the OEM and the component manufacturer to concentrate on their core activity Manufacturing.

TCM is successful because it delivers reduced overall supply chain managed packaging costs to the industry while providing on-time delivery of reusable packaging resulting in a better quality

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component being delivered to the line. TCM standardises all crates and pallet footprints throughout the industry. And standardisation drives efficiencies in pack density, truck utilisation, automation of handling processes, and standardisation of truck and rail container sizes, loading docks, and material handling equipment.

How does TCM work?

CHEP engages with the OEM and their Tier suppliers in converting 100pc of the components to reusable packaging. The TCM solution is built through a consultative approach wherein various teams from CHEP work closely with the customer in planning and implementing the solution to cover the entire cycle for a given component. This 360o approach ensures that all inefficiencies are driven out of

the supply chain enhancing the value proposition and the savings associated with it. Benefits are visible throughout the supply chain. As the component moves from the point of production to the point of consumption in standard packaging, space saving and labour reduction are visible as no decanting is required along the supply chain nor is there a need for separate storage area for each supplier at the OEM location. Reusable packaging also reduces damage, especially during monsoon the warehouses and eliminating the removal of unwanted waste and the space and labour required. All this leads to a positive impact on the environment.

Built around the proven cost efficiencies of pallet and plastic crate pooling, TCM will be a game changer for the automotive logistics industry in India CHEP equipment pooling is the shared use of high

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quality standard crates and pallets by multiple Tier suppliers and OEMs Being a leading player in pallet and crate pooling globally, are you planning to integrate your Indian operations with the international ones?

Our customers benefit from our global expertise as we draw in all our resources at the solution building stage. We are currently channeling all our efforts in creating a pan-India sustainable and agile automotive supply chain to leverage the pooling model. Our vision is that each and every automobile produced in India has the CHEP touch! We have to really focus and engage well locally to achieve our vision and this by itself is a big task. Our mantra today is ‘Engage Globally Implement Locally’.

Are your products locally made in India?

As you must have realised by now, our product is actually the solutions we offer rather than the pallets or crates which are just the part of the offering used to achieve the value addition.

We need to be compliant with safety, quality and regulations and hence source both globally as well as locally. To give an example, most of our lumber comes from sustainable and renewable forests in Europe, as do some of our large containers. We have manufacturing and service locations across the country.

values that we bring in terms of dependable delivery as part of our solution. In addition, our supply chain experts are based in the main metros, engaging customers, every day!

What are the current challenges and issues that you are grappling with in your business model?

As I said earlier briefly, the biggest challenge that we have is the industry understanding the actual costs of its supply chain. As of now, the supply chain is divided into various heads. They don’t understand the total costs of the entire supply chain that they are incurring while transporting components from one destination to another. So when we are having commercial discussions with them, it’s very hard to make them understand the larger benefits derived from our packaging

solutions vis-à-vis one-way packaging. We are making sincere efforts in educating our customers and are also engaging with various industry bodies for overcoming these challenges. Hopefully, Motown will lead this advocacy initiative as an industry thought leader.

Lastly, how important will be the Indian arm for CHEP globally in the automotive space?

India is a very large automotive market and CHEP has created an important and credible partnership in the industry through our sustainable solutions. Ours is a very asset-heavy business model and hence investment intensive.

Brambles, our parent company is very bullish on India and will continue to invest in the growth story. So, this is Foreign Direct Investment (FDI) and one more value addition to India!

What is the strength of your distribution network?

We have a footprint of over 35 service centres pan-India.

Our focus is to be close to our customers and is one of the

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Virender Malik Managing Director, ARO Equipments Pvt. Ltd. Report: Avishek Banerjee, Photography: Mohd. Nasir

Established in 1978, ARO Equipments today is a leading automobile equipment manufacturer and supplier with its manufacturing facility and corporate office located at Gurgaon, Haryana. It has an extensive countrywide sales and service network spread across 40+ locations in India. ARO is an ISO 9001:2008 certified company and has been in automobile service equipment industry for more than 30 years. The company has more than 200 products in their range to cater to HCV, LCV, cars and other kind of vehicles. The product range covers tyre service, engine diagnostics, lube service, electrical service, AC maintenance, tools and lifting equipment.

Can you please run us through the genesis of the company?

And could you also specify your product lines?

The company was started in 1978 as a hand tools retailer by my father O. P. Malik. We have generally been at the forefront of bringing in new technologies for the automotive market. When Maruti came in, we were the first ones to provide items like timing lights and tachometer which were not known before and were not available in the market earlier. As the Indian automotive industry progressed, we started bringing in new technologies to our customers. We were the first ones to bring the tyre care equipment to the domestic market way back in 1989 when people were really not aware of what wheel balancing or wheel alignment is. We started our association with one of the leading firms called Corghi SpA and have been their distributors since 1989. In the automotive equipment industry in India, this has been one of the longest running partnerships.We are proud to state that this is one

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of the longest running associations between a European firm and an Indian garage equipment seller.

What has been the response to your products at the Automechanika’13 held in India?

As you are aware, Automechanika is one of the leading platforms for the automotive industry for equipments, suppliers, accessories and so on. In India too, we feel that the Automechanika will be one of the key exhibitions for the Indian automotive industry in the future.

And that’s why we decided to be the lead sponsor for the maiden event in India. Being a show which is just taking off, we would still say the response was ok. And we will be participating in such shows in the future too. We are also gearing up to participate at the Auto Expo’14 (at Greater Noida) which is held biennially.

Which particular product gives you the maximum revenues and which segment in the industry gives you the maximum volumes?

I would say the tyre care equipment give us the maximum volumes. And the passenger car segment gives us the maximum volumes. Going forward, this segment will continue to account for a major chunk of our revenue pie. But the HCV segment is also picking up fast with the entry of players like Bharat Benz, MAN, Scania, etc. This is because this segment has been using traditional tools and equipment. But with more high-tech vehicles coming in, we expect to cater to these (premium brand) companies by supplying some next-gen products.

Whom do you generally supply your products to? And are you planning to cash in on the unprecedented boom in the organised automotive servicing industry in India?

A big chunk of our business comes from authorised dealerships of the OEMs. Since we are approved by most of the OEMs across India, we get a sizeable number of orders from these authorised service outfits.

And yes, we definitely look forward

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to cash in on the unprecedented boom in the organised servicing industry in India. Even though there has been a modest decline in the industry for the last 7-8 months, the garage equipment industry has been fortunate to weather the storm. This is because a number of new players are expanding their footprint in India. So even though we are seeing some drop in numbers from our existing clients, we have managed to bag quite a few orders from the service network of the new entrants.

Can you please tell us the products that you are assembling here and the ones that are imported?

Most of the products that we are retailing like wheel balancers or aligners are imported as a CBU. However, there are some products that we are assembling here like gas analysers and smoke meters which comes under the pollution control equipment. We also manufacture tool cabinets and tool trolleys, hydraulic press and cranes, etc. We are already running an assembly unit at Manesar. We are buying some components from Europe and other locations and assembling them here.

What is the strength of your sales and service network?

We are running a chain of 110 sales and service networks across the country. By 2018-2020, we should be doubling the count of our current strength.Our headcount will also be ramped up two-fold from 165 to 330 by that time. The Indian car market is itself witnessing a massive growth from 2.5 million units currently to 9.5 million units by 2019-20. Even if the car industry doesn’t attain that scale, it should comfortably reach 6.5 million units. And we would be

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riding on that growth.

Do you have any plans to establish training centres for imparting skills to dealer technicians and your own service engineers?

We are already running an in-house training centre at our corporate office in Gurgaon. We have one of the best such centres in the industry. We are already providing

training to OEM dealers. We have been providing training to dealer technicians for quite some time now. To have a skilled manpower is certainly a big challenge for a company like us.

You had launched the Artiglio ‘Master’ by Corghi which was a gamechanger in the tyre care segment when it introduced the leverless technology in 2001.

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What has been its response in the Indian market?

Artiglio Master is machine which makes it very simple to mount/ demount Run Flat Tyres (RFTs) and big size tyres. We expect this technology to be well-accepted in the Indian market in a couple of years’ time. This is because the tyres being used in the Indian market are quite simple, we don’t use too much of run flat tyres here. Barring one or two OEMs, no one is using run flat tyres at the moment. Secondly, if you see the tyre sizes in our industry, it averages in the range of 15-16 inches in range which we expect to grow further to 19-20 inches. When we will finally have more of these sizes, the Master will be the product for the tyre operators.

Coming back to Corghi, it has brought out another innovation, clamp-less wheel aligner, R.E.M.O. How different is it from your sophisticated Blue Light wheel balancer?

R.E.M.O, as you are aware is a clampless wheel aligner and is going to be the future of wheel alignment

industry. We have already launched this machine during early this year at the Automechanika’13. We have already made one installation and have to meet a couple of more orders in the next two-three months.

In fact India is the first market outside of Italy where we have installed the R.E.M.O. Blue Light is a top end with features like radial run out measurement for tyres as well as rims, tyre tread depth measurement, guidance on optimum position of the tyre on the axle etc.

Would you say that the garage

equipment industry has evolved in India?

Yes, the industry where we are present in has evolved over the years (in India). Earlier, there was only imported equipment available here.

Then there was a flood of cheaper products from China and other countries. Over the last few years, our customers’ preference is going back to high-quality products that are originally coming from Europe, Japan, etc. After experiencing some sub-standard products, they have again shifted back to world-class products that we sell.

Going forward, are you planning to cater to auto component makers too?

No, we don’t have a product line for this industry.

Lastly, what is your vision for the company?

We would like to be always in the forefront in brining new technologies and solutions to the Indian automotive industry. In terms of revenues, we should be tripling our revenues by 2020. And I would like to see ARO to be the most favoured company by the OEMs across the country.

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Viswanath S Director, TE Connectivity India

Report: Abhijeet Singh, Photography: Mohd. Nasir

Globally TE is a US $13 billion company, offering reliable, high performance, cost effective and broadest range of connectivity solution across multiple industry segments with over 500,000 live products in its portfolio. The company’s biggest differentiator is the synergy and complementary products through acquisition of great brands like Deutsch (harsh environment connectivity), ADC, and XOL Technologies. TE also has a rich legacy (AMP, Raychem) which adds to its credentials. The company produces approximately 8000 different electrical components for the automotive industry in India. The company is leading the innovation in hybrid/electric mobility space.

TE Connectivity has had a foothold in India for nearly 20 years. How has been the growth story of the company in the country?

In the initial years, TE Connectivity’s focus was on telecomm, defense and also in the power sector. Until the year 1995-96, we had a tough time in all the three fields. There were sanctions so nothing much happened. The armed forces were predominantly using Russian technologies which we being an American company could not cater to and achieved limited success.

Telecomm was also a slow boat because of fixed line telephones, until mobile technology flooded the market. We, as a brand, shifted our focus towards the automotive sector and networking. We started with the enterprise networks, which involves campus networks. With this start in the networks business our attention came back to telecomm. As a whole it has been a mixed bag, we have grown multifold and we are very

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optimistic about our future growth in this country with the numerous technological advancements happening around.

Can you shed some light on the company’s growth in the automotive segment specifically?

To start with, we were in the tier 1 harness business. We used to

do harness for Tata Motors, Ashok Leyland and Force One. We exit the business about 3 years back as that was not our global competence and also we were competing with customers. We paid attention to the component side other than harness business. Our strength lies in connectors, relays, sensors, fibre optics, and cable assemblies and

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Indian operations. Segment wise division would put 70pc revenue from passenger vehicles, 25pc through commercial vehicles and 5pc by 2-wheelers and 3-wheelers.

On the design side, we do a lot of work from India supporting operations around rest of the world.

that is where focus has been for the last three years with a growth of 30-40pc. The current year has been the toughest so far, as it has been for all the other players in the market. From next year, we want to be more cautious in our efforts. Year 2015 onwards we expect to be back on track with a healthy double digit growth. Globally, the automotive business contributes to about 40pc of our total business. In India, this

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contribution is close to 50pc.

How important is the Indian market for TE Connectivity?

The Indian market clearly stands very important for us. In terms of global revenue today it is at less than 10pc, but from a growth perspective it is one of the top 5 markets in the world. The Automotive segment adds up to about 35pc of the total turnover from TE Connectivity’s

What kind of different products do you offer in the automotive space?

TE Connectivity is the world’s largest passive electronic component manufacturer. We manufacture connectors which are used across a variety of applications wherever there is power and signal. We also have relays, sensors and cable assemblies. We make specialised cable assemblies for vehicles HVAC, engine, high temperature and other specialised applications. Our expertise lies in the intense cable setups, for example cable assembly for the airbag application which fires the airbag in case of an accident.

We are also working on the high current and high voltage area as we have possessed a lot of experience in the AC and DC current. This technology is implemented in the hybrid and electric vehicles which are getting quite a lot of importance now. We work for nearly all of the OEMs like Volkswagen, General Motors and Ford. Our foothold is very strong in Europe and we have a good market share with Audi, BMW and Volkswagen. They have very superior diesel technology and we have a strong association with them.

Volkswagen happens to be one of the biggest OEM’s for us.

What different changes has that company observed in these 20 years?

We came in India for the local

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market but our approach shifted towards the exports because the local market needed some time to mature. We had to export a lot to our group companies and we invested on people, capability and technology. We mastered in our core manufacturing processes, which are moulding, stamping and assembly, in the last 15 years. With all that knowledge and capability now we are well posted and have started getting local projects. So our journey started with exports, which has now shifted focus towards the local business. Our exports now account for about 30-40pc, and the rest is domestic. This ratio might change based on the future. The exports will continue, but the percentage might go down.

Can you walk us through the three TE Connectivity plants located in Bangalore and Pune?

The two units in Pune are dedicated to the automotive sector. One is a connector manufacturing facility which deals with moulding, stamping and assembly whereas the second unit is concentrated on making cable assembly. The Bangalore facility is a cross business unit where we support all the different businesses of TE Connectivity. Apart from automotive, we have aerospace, industrial, consumer and networks are all supported from the Bangalore unit.

Our engineering centre is also based in Bangalore. The historical reason for setting up in Pune was partially down to Tata Motor’s plant and the close proximity of Gujarat which is evolving as an automotive hub.

Apart from that Pune is a central hub for businesses and works very well in terms of logistics as well.

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What kind of localisation level do you currently possess? What parts are being imported and not being manufactured here locally?

Our current localisation level is about 40-45pc which we plan to bring up to 60pc. The components which we have to import are a bit more complicated to produce here and the demand volumes are very small. If the utilisation of a certain component is less than 50pc, then typically we do not manufacture it here and rather import it from the country where it is being made.

Consider an example, Hyundai vehicles contain a lot of connectors which are imported from South Korea as they are designed and produced there. Hence, it makes more sense for us to import it from Korea.

The industry is growing at a very fast pace through technological advancements and the entry of newer brands from across the globe. What are the challenges faced by TE Connectivity?

One of the challenges is the Free Trade Agreement. When a vehicle gets imported directly from the parent nation, the components also start coming at almost zero duty. We are optimistic, for example, some of our customers are buying companies in Europe or North America, and with that they want to bring the production here in India, which in turn grows our business. Definitely we have to be leaner and meaner on the manufacturing front, because if we do not have the cost advantage then we get exposed to the ASEAN and the Far East companies bringing their products to India. That is the reality and we have to compete with them. That keeps us on the edge.

And if there is no barrier, such as

duty, then we ought to be really efficient to stay in the race.

Can you give us a sneak peek at the future investment plans that TE Connectivity is working upon?

We are already building a new plant in Bangalore near the airport in the industrial park spread across an area of 280,000 square feet with an investment of 600crores. The plant will go into full-time production in May-June of the year 2014.

This campus will support all our businesses like aerospace defense, networks and consumer. Some part of the automotive business will be done here as well, but the major chunk stays entirely in Pune. Further we are expanding in Pune also. New machines are being bought in and hopefully a new building will be added by next year. Our investment in India is continuous.

Lastly, what is your vision for the company?

Primarily our goal is to grow at three times the GDP growth. But in some markets where the base is yet small we definitely want to grow faster and reach a more mature level. On the automotive segment we would say that the current environment is a little bumpy. We want to increase our current contribution of 35pc to the automotive sector to 45pc market share by 2015. We think we will have to pass the next 12 months to reach a more steady state. Even in the depressed market we continue to see growth and we are very excited with the new launches. There are challenges like the falling rupee and fuel prices going up, but the new launches keep the spirits high. There are issues in the short term but we are bullish at the long term and are committed to the Indian market.

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GLOBAL REPORT

Bentley SUV

to go on sale in 2016 Luxury car maker Bentley Motors has confirmed that it will proceed with the development of the Bentley SUV, the company’s fourth model line. The SUV will be made in Crewe (UK) and will go on sale in 2016. It will create over 1000 jobs in the UK. Over the next three years Bentley will invest more than £800 million in its headquarters at Crewe and the development of new models.

The SUV will be a thoroughbred Bentley true to the brand hallmarks of luxury, performance, quality and craftsmanship. The styling will set it apart from any other SUV on the road and will be true to the Bentley design DNA. It will be the most luxurious and most powerful SUV in the market. The response from customers to a Bentley SUV has been extremely positive in the last 16 months.

UK Prime Minister David Cameron, who was present together with Dr Martin Winterkorn, Chairman of the Board of Volkswagen Group for the announcement at Bentley headquarters in Crewe, said: “This £800 million investment and a thousand new jobs from Bentley is fantastic news for both Crewe

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all around the world are looking forward to the brand’s first SUV. Together we will make this new Bentley another true Bentley – powerful, exclusive and successful.”

Business Secretary Vince Cable said: “This is a welcome commitment to the UK from a major international car maker. Our automotive industrial strategy proves this government’s commitment to working with worldclass companies like Bentley to create jobs and promote exports.

“Bentley was the first firm I visited as a government minister and serves as a real example of high value manufacturing. They export more than four out of every five cars they make in the UK to the rest of the world.”

UK Prime Minister David Cameron meets Bentley employees Bentley’s Chairman and Chief Executive, Dr Wolfgang Schreiber, this success for years to come. I added: “This is excellent news for am delighted that Bentley will be Bentley and for the UK. Bentley is building their new vehicle here, not increasingly successful and this new only creating a thousand jobs, but fourth model line will leverage the safeguarding many more, as well as success of the global SUV market. increasing training opportunities for The support of everyone involved highly skilled apprentices.” with the Company has been Dr Winterkorn said: “The fundamental to this decision, which Volkswagen Group believes in the will ensure sustainable growth for UK as a competitive location for the company.” industrial production. Bentley fans and for the UK as a whole. It is another important milestone in strengthening our economy.

“One sector that we know is sprinting ahead in the global race is our booming automotive industry.

One vehicle rolls off a production line somewhere in the UK every 20 seconds and we have just launched the Government’s Automotive Industrial Strategy to help continue

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GLOBAL REPORT

Muirhead low carbon leather

selected for revolutionary new aircraft Thomson Airways, the first UK airline to fly the Dreamliner, has selected Muirhead to supply high performance, low carbon leather throughout its new Boeing 787 Dreamliner fleet.

Part of the Scottish Leather Group, Muirhead is a world-leading manufacturer of high performance, low carbon leather, exporting to over 60 countries. The company supplies the automotive, marine, contract furnishing sectors and is the largest supplier of leather to the global aviation industry, working with over 130 airlines and aircraft manufacturers. Muirhead is also Europe’s only vertically integrated leather manufacturer.

Muirhead supplies to world-class brands that include Emirates, British Airways, Morgan Cars, Hilton Hotels, Virgin and Vertu.

The revolutionary Boeing 787 Dreamliner brings a new level of service to passengers, featuring levels of comfort and hospitality never seen before outside of the upper and fore cabins of the major airlines. Comfort features of the Thomson Dreamliner include greater seat pitch, improved custom lighting, larger windows, more overhead stowage, lower cabin altitude, enhanced ventilation systems and high performance leather supplied by Muirhead throughout the aircraft.

Boeing’s 787 is also capable of flying greater distances than

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similar-sized aircraft and is more environmentally friendly, using 20pc less fuel, making it the most technologically advanced and fuelefficient commercial jetliner ever built.

Muirhead’s home airport, Glasgow, hosted Thomson Airways’ inaugural flight of the Dreamliner on 8 July, to Cancun, Mexico. The state-of-the-art aircraft will fly from London Gatwick, Manchester, East Midlands and Glasgow airports on long haul routes to Sanford, Florida and Cancun. Further routes will commence in the winter to Phuket, and from summer 2014, to Mauritius and Puerto Vallarta.

Muirhead sales director, Archie Browning, said: “Thomson’s Dreamliner is a revolutionary aircraft and we have worked hard with the company to supply the full fleet, the most fuel efficient of all commercial

jetliners and one that features leather throughout. The Muirhead brand is a renowned high quality supplier to the aviation industry, and is a key supplier to most of the Dreamliners delivered in the world to date. We are delighted to be working with Thomson, the first UK company to fly the Dreamliner, offering new levels of service, comfort and environmental efficiency to the travelling public.”

Jason Mahoney, Director of Engineering, Thomson Airways added: “Our customers want to fly in both comfort and style. As the first UK airline to fly the Dreamliner it was vital that we chose the highest quality leather throughout our cabin, creating stylish, durable and comfortable interiors ensuring that our customers enjoy the most relaxing in-flight experience possible.”

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GLOBAL REPORT

Lamilux

Europe’s presents automotive standard composites

Fibre-reinforced composites are smoothing the way for tomorrow’s green, energy-efficient mobility. As highly sturdy, resistant, yet very light materials, they offer a wide range of potential uses in construction, thus accelerating the global trend towards lightweight designs for commercial vehicles. Whether they are featured as outer and inner face sheets in side walls and roofing or

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as extremely resilient floor covering, Lamilux composites are used across the surfaces of almost all essential body sections which give vehicles their stability. Lamilux is Europe’s leading manufacturer of fibrereinforced composite sheeting.

Lamilux India Pvt. Ltd is based out of New Delhi and has a warehouse in Noida, near Delhi.

Lamilux Composites GmbH has

been producing fibre-reinforced composites for about 60 years.

This medium-sized company is Europe’s leading producer thanks to its technologically advanced continuous manufacturing process, large production capacities and wide product range. Lamilux supplies customers around the globe in a wide range of sectors, such as the construction industry, the

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GLOBAL REPORT

automotive and recreational vehicle industries, refrigerated store room and cell construction and many other industrial sectors. In 2012, Lamilux and its 600 employees achieved a turnover of 158 million euros. The family-managed company is based in Rehau, Bavaria.

As a result of their light weight combined with optimum stability and resistance to UV light, corrosion and weathering, fibre-reinforced composites far outperform conventional materials used in commercial vehicles, such as aluminium and sheet steel. These high-tech materials can be used as inner and outer sandwich face sheets on side walls and are also ideal in their numerous variants for use in roofs and floors.

New momentum for lightweight truck body and trailer construction Lamilux Super Plus Gelcoat is a GRP material developed by Lamilux for use across a wide spectrum. It is suitable for both indoor and outdoor applications. The particular strengths of Lamilux Super Plus Gelcoat make

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it the material of choice for the interior and exterior face sheets of sandwich panels that are used as roof and side elements in the construction of truck bodies and trailers. The outstanding properties: Corrosion resistance, optimum strength and easy cleaning.

The material combines excellent mechanical properties with an attractive appearance. This is demonstrated by the smooth high-gloss surface in which the fiber structure can hardly be seen.

The additional sealing of the surface with a gelcoat layer ensures long-term resistance to UV and weathering.

Light, robust materials for all sections of vehicles Besides its low weight and impressive strength, the product Lamilux HG 4000 features many of the other outstanding qualities found in Lamilux composite materials. A pore-free surface is produced during manufacture and unites the benefits of fiberglass reinforced plastic with an aluminum finish. The smooth, highgloss surface can also be sealed with a gelcoat layer, thus providing even better resistance to ultra-violet light and weathering.

The glassy surface offers an additional advantage: It is very easy to

clean. The material is thus certified as food safe and consequently fulfils strict hygiene requirements for food transportation and storage.

Moreover, it boasts excellent heat insulation properties when combined with PU or XPS foam in sandwich elements. Lamilux HG 4000 is ideal for use in commercial vehicles and recreational vehicles.

The composite Lamilux plan High Impact has managed to combine the design advantages of three structural materials for commercial vehicle construction.

Used as the inner and outer face sheet in side walls, this material features the impact resistance and surface finish of coated metal facings. It also possesses the low thermal conductivity and elastic deformability found in thermoplastic materials while offering the high resistance to UV light, weathering and corrosion of thermosetting polymers. Thanks to its extremely impact-resistant behaviour and tensile strength, Lamilux High Impact is even able to withstand the effects of strong frontal forces, such as those encountered when loading and unloading.

With its GRP material Lamilux Anti Slip, Lamilux focuses on flooring in commercial vehicles. It unites the advantages of fibre-reinforced composites and low mass per unit area with a universal product feature which is extremely beneficial for the transport industry: anti-slip protection. Quartz sand or granite granulate is applied to the surface of this extremely robust resin and glass-fibre composite during the lamination process, ensuring the product achieved top ratings regarding its anti-slip properties (up to Class R13) when tested in accordance with DIN 51130.

August 2013 / 47

TECHNOLOGY

Borgwarner supplies EGR

cooler with new hybrid tube technology BorgWarner will supply its latest exhaust gas recirculation (EGR) cooler for Renault’s 1.6-litre diesel engine, available on the European Scénic and Mégane as well as Nissan’s crossover Qashqai.

BorgWarner’s advanced EGR cooler with integrated hybrid tube technology helps improve fuel economy up to 3pc while helping to achieve upcoming Euro 6 emissions standards. The combination of BorgWarner’s optimised turbocharger and its latest compact EGR technology fulfills future engine requirements with improved durability.

“BorgWarner’s advanced EGR solutions, combined with our optimised turbocharging technology, is a major step in enabling diesel engines to meet future emissions regulations while improving fuel economy,” said Brady Ericson, President and General Manager, BorgWarner Emissions Systems.

“With our many years of experience, BorgWarner offers customers the latest compact, low-pressure EGR technology. We expect this effective, fast-growing technology to drive engine advancements in the future.”

Renault’s powertrain strategy included a low-pressure, compact EGR system. Although low-pressure EGR systems offer lower emissions and better fuel economy than highpressure systems, components in low-pressure EGR systems must withstand extreme loads and

48 / August 2013

damaging particles. BorgWarner’s EGR cooler technology employs highly corrosion-resistant stainless steel hybrid tubes inside the cooler to quickly reduce the temperature of hot exhaust gases. The specially shaped hybrid tubes keep exhaust gases moving at high speeds to increase EGR rates as well as avoid soot and hydrocarbon buildup. The system also features an integrated hydro formed EGR tube to guide exhaust gases into the cooler and a metallic EGR filter with optimized permeability to protect the turbocharger compressor wheel by filtering out any remaining particulates. Built BorgWarner Inc. (BorgWarner Supplies EGR Cooler

with New Hybrid Tube Technology for Renault’s 1.6-Liter Diesel Engine) – 2 for durability and performance, BorgWarner’s advanced EGR cooler offers a compact, cost-effective and easy-to-install technology engineered to reduce emissions and improve fuel economy.

Michigan-based BorgWarner Inc. is a technology leader in highly engineered components and systems for powertrain applications worldwide. Operating manufacturing and technical facilities in 57 locations in 19 countries, the company develops products to improve fuel economy, reduce emissions and enhance performance.

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TECHNOLOGY

Delphi to present MyFi

‘Connecting with Safety’ concept car at IAA Frankfurt show

Distracted driving is a significant problem that spans age, geography and culture. According to International Organisation for Road Accident Prevention, 90pc of accidents are caused by driver error.

This problem has been fuelled by the current consumer demand to be connected anytime and anywhere, including on the road.

At the 2013 IAA Frankfurt motor show, Germany (September 12-22), Delphi Automotive will showcase its ‘MyFi Connecting with Safety’ concept car. This groundbreaking vehicle will demonstrate how infotainment technology and safety

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technology can work together to keep drivers and passenger connected safely.

Delphi will also present the latest technologies that help meet new Euro NCAP 5-star safety rating and enable the move towards autonomous driving. The company will also detail further information about the production launch of the world’s first integrated radar and vision data fusion system (RACam).

“Delphi’s goal is to help driver’s keep their eyes on the road, hands on the wheel, mind on the mission,” said Michael Gassen, President Delphi Europe, Middle-East and

Africa. “MyFi, RACam and many other Delphi safety technologies work to do this while still allowing drivers to remain appropriately and safely connected.”

Delphi will also display its latest direct fuel injection systems for diesel and gasoline engines.

“By 2020, European emission standards will require that the average new cars emit no more than 95 grams of CO2 per kilometre compared to 130g/km in 2015, with similar requirements being legislated around in most regions of the world,” said Gassen. “Delphi’s direct fuel injection systems for diesel and gasoline engines can help OEMs meet these rigorous standards and enable them to provide greener and more fuel efficient vehicles without compromising performance.”

Delphi Automotive is a leading global supplier of electronics and technologies for automotive, commercial vehicle and other market segments. It operates major technical centres, manufacturing sites and customer support facilities in 32 countries.

August 2013 / 49

TECHNOLOGY

Continental starts production of high-performance injector to boost gasoline engine efficiency

Compliance with future emissions standards such as Euro 6b (from 9/2014) and Euro 6c (from 9/2017) will call for further improvements in engine combustion processes. As gasoline engines offer significant scope for reducing emissions through more efficient combustion, downsizing and turbocharging, they will play a significant part in realising these improvements. This explains the ongoing worldwide trend of bringing increasing numbers of gasoline direct-injection engines onto the market. The highperformance injectors required for this highly efficient type of engine are currently designed to operate at pressures up to 200 bar.

International automotive supplier Continental was quick to develop a solution that meets the needs of such applications, in the shape of the XL3 solenoid injector which went into volume production this year in a new turbocharged 1.5-litre GDI engine.

“The debut of the XL3 injector in a compact 4-cylinder gasoline engine is further proof of the potential of our injection technology,” says Wolfgang Breuer, Head of the Engine Systems Business Unit in Continental’s Powertrain Division.

“Building on the level we’ve

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already reached, we are continuing to work on the XL3 injector with an eye to meeting the stringent requirements of Euro 6c,” adds Breuer. The refinements will focus among other things on designing the actuation system for fast injector opening and closing, which is key to ensuring ultraaccurate metering

performance, particularly in the small quantity range. “Precision metering, combined with multiple injection capability, helps to reduce the particulate emissions of GDI engines and can cut the costs of after treatment technology,” says Breuer.

MATCHING THE INJECTOR TO THE ENGINE For maximum fuel efficiency,

GDI engines require extremely precise matching of the injector characteristics to the engine. “The XL3 injector has the precision it takes to meet this requirement,” says Gunnar Lowack, Head of the Injector Product Line in the Powertrain Division’s Engine Systems Business Unit. “For example, the Controlled Solenoid Injection (COSI) function continuously monitors the closing rate of the injector needle. On the basis of this information, an integrated correction function then ensures compliance with the nominal injection values throughout the lifetime of the injector.” To meet the stringent particulate number and mass emissions limits of Euro 6c, precision injection control is vital. It holds the key to achieving the required spray preparation and penetration characteristics under all combustion chamber conditions.

And this precision is set to become even more crucial in the future, as new test methods like WLTC (World Harmonized Light Duty Driving Test Cycle) and RDE (Real Driving Emissions) put greater emphasis on transient conditions (load change).

“Such dynamic variations in injection and combustion conditions can have a significant effect on fuel consumption,” says Lowack, “which demands even more of the injectors.”

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TECHNOLOGY

Continental active seatbelt reduces the severity of injuries

During an accident, the occupants of a vehicle are subjected to enormous forces that could result in injury.

The international automotive supplier Continental has developed a new function to tighten seatbelts immediately prior to an accident, which can reduce the severity of possible injuries by up to 15pc. This new ContiGuard function – Active Emergency Belt Control – received the Euro NCAP Advanced Award last year and is already available in two compact cars produced by major German automobile manufacturers.

Seatbelt tightening occurs by means of a reversible electromechanical belt tensioner. In order to provide added safety, the car’s windows and sunroof shut automatically so that objects cannot penetrate into the car’s interior in the course of an accident.

For this function, the driving status of the vehicle is analysed in the Safety Control Unit (SCU) with the help of vehicle dynamics sensors and signals from surrounding sensors. As soon as the system detects that the driver is slamming on the brakes, that the car is skidding, that a low-speed accident is about to occur, or that a front-end or rear-end collision is imminent, the Active Emergency Belt Control activates the integrated safety functions prior to impact.

Tests demonstrate effectiveness Continental Safety Engineering – the engineering and testing service

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supplier for active and passive vehicle safety of the Division Chassis and Safety in Alzenau, Germany – has proven the effectiveness of the new function by means of an extensive test program. Dynamic road tests demonstrated to what extent early activation of the seatbelt was able to hold an occupant in the optimized position with the vehicle executing a borderline maneuver.

Parallel tests were conducted without belt activation as a control. In these cases, the vehicle occupant was jolted out of the ideal position. Crash scenarios using an acceleration sled simulated the position of occupants obtained through the driving tests.

“We were able to observe much less severe injuries, which proved the effectiveness of the Active Emergency Belt Control function”, said Dr. Gunnar Jürgens, Managing Director of Continental Safety

Engineering.

An affordable, integrated safety function Centralised triggering of the frontseat electro-mechanical seatbelt tensioners via the Safety Control Unit permits low-cost system architecture in cars. Integrating the feature into the safety control unit moreover, makes it possible to introduce functions in mid-class cars that have been common only in premium automobiles up till now. Continental is expanding its safety strategy ContiGuard by adding Active Emergency Belt Control. ContiGuard integrates active and passive safety systems, which work even more effectively together, due to interlinking safety technologies with their related surrounding sensors, driving dynamics sensors and the evaluation of the driver behaviour.

August 2013 / 51

TECHNOLOGY

Mercedes-Benz E350

BlueTEC gets new 9-speed automatic transmission

The first nine-speed automatic transmission with torque converter, the 9G-TRONIC for premium vehicles, is celebrating its world premiere. Equipped with the innovative power transmission, the E 350 BlueTEC is set to become one of the most fuel-efficient six-cylinder diesel models in its class. Thanks to the high level of efficiency of the patented transmission design, NEDC fuel consumption in the E-Class is reduced to 5.3 litres of diesel per 100km. As is typical of the brand, the transmission features

52 / August 2013

outstanding comfort and barely perceptible gear changes. The E 350 BlueTEC featuring the 9G-TRONIC as standard is available to order with immediate effect.

In the E 350 BlueTEC, which is available as Saloon and Estate models and comes fitted with the new 9G-TRONIC as standard, the 252bhp V6 diesel engine has an average NEDC fuel consumption of 5.3 litres of diesel per 100 kilometres (Estate: 5.5 l/100 km), corresponding to CO2 emissions of 138 g/km (Estate: 144 g/km). As a result,

the new models with 9G-TRONIC undercut their predecessors in terms of both consumption and CO2 emissions. The higher number of gears and the broader gear ratio spread help to increase drive comfort and enable a significant enhancement to be achieved in terms of converting engine power into traction.

On the one hand, the overall reduction in engine speed improves NVH comfort and therefore the pleasant sense of well-being on board the E-Class, and on the other

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TECHNOLOGY

also cuts down external noise by up to 4 dB(A), thus reducing the strain on the environment.

The reduced fuel consumption of the E 350 BlueTEC with 9G-TRONIC has primarily been achieved as a result of the high level of efficiency of the transmission. As part of this, the broad ratio spread of 9.15 for gears one to nine enables a clearly perceptible reduction in engine speed and is a decisive factor behind the high level of energy efficiency and ride comfort. Shortened shift and reaction times ensure optimum spontaneity combined with outstanding ease of shifting. In manual mode and the S program in particular, the 9G-TRONIC responds significantly more spontaneously and enhances driving pleasure.

The particular ease of shifting of the new 9G-TRONIC – a focal point during development and a hallmark feature of a Mercedes-Benz automatic transmission - comes courtesy of a comprehensive package of measures. These include the novel direct control system which enables short, barely perceptible gear changes. The combination of double torsional damper and centrifugal pendulum technology in the torque converter ensures outstanding drive comfort.

Together with the extended gear ratio spread, higher speeds can now be driven at lower engine speeds for even greater comfort. In reality this translates for example into being able to drive at 120kmph in 9th gear with an engine speed of around only 1350rpm.

ADVANCED TECHNOLOGY FOR SUPERIOR POWER TRANSMISSION In the case of the 9-speed automatic

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transmission, the development engineers also focused on the area of “compact lightweight construction”. Despite two additional gears and a maximum transferable torque of up to 1000Nm, the new automatic transmission requires as little installation space as its predecessor and, in addition, is lighter. The two-piece housing design has been retained: the torque converter housing is made of lightweight aluminium, while the transmission housing with weightoptimised plastic oil pan is made of an even lighter magnesium alloy.

Another goal was to implement the nine gears with a minimal number of planetary gear sets and shift elements. Intensive, computerbased system analysis and mock-up made it possible to realise this goal with just four simple planetary gear sets and six shift elements. Three speed sensors monitor operation and provide the transmission control system with corresponding data for effective shifting. Here it is possible for several gears to be jumped when accelerating or decelerating, should the driving conditions call for it.

To ensure the reliable and at the same time highly efficient supply of the durable and shear-

resistant 2nd-generation synthetic fuel economy engine oil, the new automatic transmission is fitted with two pumps. The considerably smaller mechanical main pump, featuring an off-axis design, is located next to the main shaft and is chain-driven and fed by a separate electric auxiliary pump. This design enables the flow of lubrication and coolant to be controlled actively on demand and also means that the 9G-TRONIC can benefit from a start/stop system. Thanks to the world’s first direct control system in a planetary automatic transmission with nine gears, it has also been possible to significantly increase hydraulic efficiency within the transmission.

The 9G-TRONIC is suitable for rear-wheel and all-wheel drives as well as hybrid and plug-in hybrid drive systems and will be used in almost all model series and engines in the coming years.

The E 350 BlueTEC fitted with the 9G-TRONIC as standard is available to order as Saloon or Estate models with immediate effect. As such the benefits of the new automatic transmission are being passed on to customers at no extra cost. The global market launch will take place in September 2013.

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MOTOR SPORTS

Lewis Hamilton celebrates his victory at the Hungarian Grand Prix

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MOTOR SPORTS

HUNGARIAN GRAND PRIX

Lewis Hamilton’s “miracle” win in Hungarian GP

O

Pictures courtesy: Mercedes AMG Petronas n a hot and sunny day and in a race that is nothing short of a miracle for Lewis Hamilton of Mercedes, the F1 driver raced to the top at the Hungarian

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Grand Prix. Hamilton joins the likes of Juan Manuel Fangio and Stirling Moss as a Grand Prix winner for the three-pointed star. Lewis Hamilton achieved his 22nd career victory and his first as a Silver Arrows driver at the Hungaroring. The second spot was a tight race to the finish between Sebastian Vettel of Red Bull

and Kimi Raikkonen of Lotus, with the latter grabbing the second spot.

Mark Webber of Red Bull came in fourth followed by Fernando Alonso of Ferrari.

Lewis’ win was the 13th Formula One win for a Silver Arrow and the third victory in five races for the team. Lewis’ fourth win at the

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MOTOR SPORTS

you to everyone at the team here and at our factories in Brackley and Brixworth. Team work achieved this result today and I really couldn’t be happier.”

Added Nico Rosberg, “Today was a great day for the team, for Lewis and a brilliant job by everyone here at the track and back at our factories. Unfortunately my weekend didn’t go quite so well and it’s a shame that we couldn’t have had a two-car finish today. I got a good start but then Felipe and I came together on the first lap which was unfortunate as I was in front and had left some space for him but his Hungaroring also took the tally of wins for Mercedes-Benz F1 engines to 99. Lewis completed three pit stops on laps 9, 31 and 50, running option/prime/prime/prime Nico Rosberg of Mercedes tangled with Felipe Massa in turn 5 on lap one and dropped to P12. He also made three stops but retired with an engine failure on lap 65. Lewis’ victory strengthened the team’s second position in the Constructors’ Championship at the season’s halfway point Unfortunately for Force India neither of the drivers made the finish. Adrian Sutil stopped after 19 laps with a hydraulic leak, and Paul di Resta stopped only a couple of laps from the finish.

Ahead of the summer break Vettel still leads the drivers’ championship battle with 172 points as Raikkonen moves ahead of Alonso with 134 to 133. Hamilton is fourth with 124 to Webber’s 105. In the constructors’ stakes, Red Bull have 277 to Mercedes’ 208, Ferrari’s 194 and Lotus’s 183.

Said Lewis Hamilton after the race, “What a great weekend! We

56 / August 2013

really didn’t expect this when we came here this weekend and I said last night that I would need a miracle to win today.

Well, just maybe they do happen.

The team called the strategy and the pit stops just right and then it was just about managing the gap. I had some racing to do out there, though, with Jenson and Mark and I think we had the pace on everyone today. The team has just done an exceptional job. We have worked so hard to understand these tyres and we got the balance spot on today. I am very hopeful this could be a real turning point for us as we coped with these high track temperatures.

I would like to say a massive thank

front wing hit my rear tyre. That cost me a lot of positions and it’s really difficult to make the places back up on this track. Then my day came to an early conclusion with the engine failure. However there are lots of positives for us to take as a team from this weekend and now I really look forward to the upcoming races as we know that we have a quick car and we made the new tyres work for us this weekend.”

The F1 race will now resume on August 25 in Belgium after a short summer break.

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MOTOR SPORTS

Pit stop guys need to be in tip-top shape

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o change four wheels and sometimes to perform other tasks as well, in less than three seconds is far from easy, even if there are 22 of you to share the workload.

To do it not once but maybe as many as six or seven times in a 90 minute period takes a lot of training and above all requires one to be in tip-top shape. Everything has to be done to perfection, with everyone carrying out their specific role and that’s

why Scuderia Ferrari relies on specialists to monitor the health of every member of the group.

Medex is Scuderia’s official medical partner and, working alongside the Italian Olympic Committee (CONI) Institute of Sport’s Medecine and Science, it had organised a check-up session to measure the team members’ levels of athletic fitness.

The CONI team, led

by Doctor Piero Faccino, used the same methods and equipment which are employed to evaluate the functionality of Olympic athletes. Aerobic and

explosive activity tests, reaction time and peripheral vision are all studied in order to further improve the ability of each element as Alessandro Biffi and Fred Fernando, the two doctors who founded Medex, explained to Ferrari.

The tests are also very important when it comes to establishing a made to measure nutritional and training programme, right down to the detail of what each team member has to do during a pit stop and the rest of the race weekend.

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August 2013 / 57

MOTOR SPORTS

16TH JK TYRE RACING CHAMPIONSHIP 2013

Akhil Khushlani in action during the JK Racing India Series race.

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MOTOR SPORTS

Youngsters race their hearts out at the Kari Motor Speedway

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Pictures courtesy: Ahmed Razmi

Winners of the JK Racing India Series race

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he historic Kari Motor Speedway in Coimbatore witnessed some exciting moments of motor racing during the 16th JK Tyre Racing Championship held from July 19-21, 2013. The championship included the newly introduced JK Racing India Series, Polo R Cup and the Formula LGB 4. While Akhil Khushlani ruled the roost in JK Racing India Series winning all three races during the weekend, Rahil Noorani and Jeffery Kruger shared the honours in the Polo R Cup and Sarosh Hataria did well to win two of the three races in the Formula LGB 4 class.

The new JK Racing India Series featuring 12 of India’s best drivers under 20 years of age racing in the powerful FB02 cars featuring a Mygale chassis and 1.2 litre BMW bike engine was the highlight of the weekend. After winning the race a day earlier, Akhil Khushlani continued from where he left, winning two races the next day to complete a hattrick.

In Race 2 of the JK Racing India Series, Khushlani

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MOTOR SPORTS

Sarosh Hataria in action

stamped his class on the race.

Building on a good start he kept widening the gap lap after lap, eventually beating the secondbest Chitesh Mandody with a huge margin of 14.260 seconds. Akhil Rabindra from Bangalore who has moved from the world of karting raced with a lot of heart and displayed potential, finishing third with a total time of 17:08.392.

Race 3 of the class was a sheer display of speed and clean racing, while Khushlani continued his domination; the race was much closer than the previous ones.

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Saran Vikram, winner of Formula LGB 4 Round 1 Finishing second, Chennai boy Vishnu Prasad had a few nervous moments with Arjun Maini from Bangalore right on his tail, eventually pipping Maini by less

than half a second. With this victory, Khushlani has set a difficult-to-beat precedent, it now remains to be seen how the action pans out in Round 2 of the championship.

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MOTOR SPORTS

POLO R CUP: In Race 1 of the Polo R Cup Rahil Noorani, the fastest driver on track during the qualifying started first and held his position till the chequered flag finishing with a total time of 14:26.151.

Completing the top three positions were South African Jeffery Kruger and Prashant Tharani with total timings of 14:28.820 and 14:35.441 respectively.

The tides changed in Race 2 of the class with Kruger putting in a stellar performance to finish first after starting seventh on the grid. Rookie driver Karthik Tharani challenged the veterans and finished third followed

by Noorani who like Kruger made up many positions to finish in the third

Start of JK Tyre VW Polo R Cup 2013 race 2

place.

FORMULA LGB 4 CLASS: Race 3 in the Formula LGB 4 class (introduced last year) was undoubtedly the most exciting race of the day with a bit over 3 seconds separating the top three finishers. Sarosh Hataria made the best of home-town advantage winning the race, his second in a row after winning the last race the

previous day. Finishing behind him were Vishnu Prasad (Meco Racing) and 2012 JK Tyre Rotax Max National Karting Champion Ameya Bafna (Rayo Racing) with a total time of 20:40.808 and 20:43.706 respectively.

The JK Tyre Racing Championship 2013 will be back in August with a lot more speed, thrills and excitement.

THE RESULTS JK Racing India Series – Race 1 1. Akhil Khushlani (16:33.451) 2. Arjun Maini (16:38.503) 3. Vishnu Prasad (15:39.704) JK Racing India Series – Race 2 (15 laps) 1 Akhil Khushlani (16:50.916) 2. Chitesh Mandody (17:05.176) 3. Akhil Rabindra (17:08.392) JK Racing India Series – Race 3 (15 laps) 1. Akhil Khushlani (16:47.849) 2. Vishnu Prasad (16:52.058) 3. Arjun Maini (16:52.443) Polo R Cup – Race 1 1. Rahil Noorani (14:26.151) 2. Jeffery Kruger (14:28.820) 3. Prashant Tharani (14:35.441)

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Polo R Cup – Race 2 1. Jeffery Kruger (19:10.815) 2. Karthik Tharani (19:15.294) 3. Rahil Noorani (19:18.476) Formula LGB 4 - Race 1 1. Saran Vikram (20:00.764) 2. Kartik Krishna (20:01.593) 3. Tejas Ram Averipakam (20:03.046) Formula LGB 4 – Race 2 1. Sarosh Hataria (19:41.340) 2. Saran Vikram (19:41.340) 3. Vishnu Prasad (19:41.980) Formula LGB 4 – Race 3 1. Sarosh Hataria (20:40.452) 2. Vishnu Prasad (20:40.808) 3. Ameya Bafna (20:43.706)

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MOTOR SPORTS

Team Slideways wins Coimbatore rally

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ound three of the FMSCI Indian National Rally Championship was yet another successful outing for Pune-based Team Slideways Industries supported

by Volkswagen Motorsport India and JK Tyre. Driving for Slideways Industries, former PWRC champion and multiple APRC champion Karamjit Singh (co-driver Jagdev Singh) put in a flawless run over

62 / August 2013

the weekend to secure his second consecutive win in the Indian Rally Championship class with an overall time of 1 hour, 42 minutes and 12.1 seconds. Karamjit Singh said, “Respect! The stages here have been so rough and I drove really hard and flat out everywhere yet my VW Polo lasted. Very impressive. The JK tyres too have performed extremely well and the entire Slideways Industries team did not have a single puncture.”

In the Group N 1600cc class Byram Godrej (co-driver Prajwal

Pai) faced brake issues early and ended the day in second place.

He was back in stunning form on Sunday morning though and had a terrific run in the two special stages to make up over a minute to overhaul his overnight lead to seal his first win in the 1600cc class with an overall time of 1 hour, 47 minutes, 44.9 seconds. “It is hard to believe that the Volkswagen Polo is only three rallies old given the performance it offers,” said Byram.

“Stages in the Rally of Coimbatore are known to be extremely rough,

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MOTOR SPORTS

but we haven’t had any trouble,” he added.

Vikram Mathias (co-driver R Chandramouli) driving his first rally for Slideways Industries was in a comfortable lead of the class on day one but went off on the penultimate stage of the day. Sirish Chandran (co-driver Nikhil Pai) who had taken the Polo’s first victory in the INRC had a forgettable weekend with a mechanical problem putting him out of contention on the very first special stage.

The JINRC class gave the team

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some more reason with Team Principal Rohan Pawar (co-driver Arjun Mehta) securing another podium finish with an overall time of 1 hour, 56 minutes, 29.2 seconds.

The weekend in fact saw Rohan and Aniruddha Rangnekar (codriver Nitin Jacob), both Slideways Industries drivers in the JINRC class, engage in a close tussle between themselves. Rohan played catch up to Aniruddha on Saturday but was able to go faster than Aniruddha on Sunday to climb onto the podium.

The rally was held concurrent with

the first rounds of the JK Tyre Racing Championship and the Volkswagen Polo R Cup. With the Kari Motor Speedway being the base for both, enthusiasts and spectators were treated to the double whammy of witnessing the country’s best racing and rally drivers in action together at the same time. For the fourth round, the championship now heads to Bangalore, for the famed K1000 rally.

With just a month to go, the team now heads back to Pune to develop the cars further with support from Volkswagen Motorsport India.

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Wheelz & Roadz

Mercedes-Benz E63 AMG Brute saloon Report: Abhijeet Singh, Photography: Mohd. Nasir

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munching abilities in supreme comfort and the safe keeping of elaborate Mercedes electronics. The E 63 AMG will be priced at 1.29 crore (ex showroom Delhi).

The launch took place on the Buddh International Circuit where a few of us could get a taste of this beast. Unfortunately the rain gods had other plans, it poured heavily and the experience somewhat became restricted. Around 557bhp of power, an AMG Mercedes and a wet track are not the ideal combination, but we were amazed at how well the E 63 performed. The engine packs a thunderous rage.

The massive 720Nm torque pushes you deeper in the AMG sports seats, which also support you when you

he recent launch of the MercedesBenz E-Class proved that the German giant is working at microscopic levels to make its vehicles as good as possible. The E-Class’s theory focusses more on design and boy does it work so well. But Mercedes did not stop there, as tradition dictates the E-Class was sent to the AMG design school for transplants.

After replacing it with a 5.5 litre V8 Bi-Turbo heart, aerodynamic upgrades and component upgrades, the new E 63 AMG was conceived. The E 63 AMG combines high performance and continent

Engine

Transmission

Max Power

Max Torque

Kerb Weight

5461cc, V8 Bi-Turbo

7-speed AMG Speedshift MCT 7G-Tronic

557bhp@5500rpm

720Nm@ 1750-5250rpm

1,845 kgs

Suspension

Brake

Fuel Tank Capacity

Tyres: Front/ Rear

Price

Sports suspension with AMG ride control

AMG high performance composite braking system

80 litres

255/40 R18 285/35 R18

1.29crore (ex-showroom, Delhi)

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Wheelz & Roadz

Eberhard Kern, MD & CEO Mercedes-Benz India

corner hard by squeezing the side bolstering. The new steering wheel is perfectly weighed and delivers every detail to your fingertips.

Another astonishing feat is the combination of the brakes, stability program and tyres. They keep the big Benz composed and in control.

However, you can make it misbehave

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by turning the stability control off, soften the suspension, make huge smoke trails and then pay for the tyre bills. But since it was raining we kept the stability control on. On top of all this is the typical AMG noise that is just plain evil. There is a heavy thunder from the V8 and then the addictive crackle on the overrun.

When you finish clowning about just change the setting from ‘Sport’ or ‘Manual’ to ‘Controlled Efficiency’, where the engine and transmission characteristics change from being hard and electric to soft and squishy.

The fire breathing E 63 AMG turns into a luxury saloon to take you back home in comfort.

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New Mercedes-Benz E250 CDI Lustrous express

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Wheelz & Roadz Engine

Transmission

Max Power

Max Torque

Kerb Weight

2,143cc, 4-Cylinder

7G Tronic Plus, 7-speed automatic

204bhp@4200rpm

500Nm@1600-1800rpm

1,800 kgs

Suspension

Brake: Front/ Rear

Fuel Tank Capacity

Tyres: Front/ Rear

Price

Direct Control (with selective damping)

Ventilated Disc/Solid Disc

59 litres

245/45 R17

44,48,000 (ex-showroom, Delhi)

T

Report: Abhijeet Singh, Photography: Mohd. Nasir

he MercedesBenz E-Class has been a yardstick for luxury sedan buyers as supremely tough, powerful and well built cars. But it did not ever cut the mustard in terms of looks.

Frankly none of them captured the eye after the ‘over engineered’ W124 model. Often regarded as the best of them all, the W124’s lifespan ended

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in 1996. In 1996 the W124 was replaced by the W210 models and ever since that the four eyed sedan lacked that certain character which the W124 had. And now for the year 2013, Mercedes-Benz has had a rethink and they went back to the drawing board.

EXTERIOR It gives a warm and happy feeling to report that that spark is back. The

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Wheelz & Roadz 2013 Mercedes-Benz E-Class has bought back the charm that only the W124 possessed. The maximum focus has been made on the design of the vehicle. Gone is the executive and serious appeal. The new E-Class looks more classy, elegant and sporty. The front grille now gets the imposing three-pointed star in the middle, which looks absolutely beautiful. Pull up on a junction and the audience around give it more than just a glance.

adjustable and score very high on comfort. Somehow the seats in a Mercedes-Benz feel a bit more premium and comfortable than the rest of the competition.

A 17.8cm screen sits in the middle of the dash which controls navigation, multimedia and the updated COMAND system. The navigation is quiet accurate in big towns and cities, and points out various points of interest. You also get 10GB hard drive for storing your favourite and frequent media assets.

If you wish to be chauffeured, the rear seats are ample comfortable and cozy to relax. However reserve the fifth seat only for short trips as it could get snug all around.

The four headlamp setup has been ditched to make way for the new twin headlight system. And it is not just the design. These headlamps are intelligent full LEDs and for the first time feature Daytime Running Lights. The side profile strikes the perfect balance between smooth surfacing and proportions, be it the sloping roof line or the angry protruding nose with the emblem or even the gorgeous 17-inch 5 spoke alloy wheels. At the rear you get two fantastic exhausts finished in chrome.

INTERIOR Again the interior of the new E-Class is a blend of leather, brushed aluminium and high quality plastics.

Mercedes will also be offering ‘open

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POWER AND PERFORMANCE

pore ash wood trim’ and Artico leather to customers who are ready to pay a premium for finesse. The steering shifts from being a four spoke unit to a sporty three spoke wheel. The seats are electrically

The vehicle we drove had a four pot diesel engine displacing 2.1 litres producing 204bhp of maximum power and 500Nm of peak torque. It is not exactly a performance engine, but it is best at what it is supposed to do. The mid-range torque delivery makes the car incredibly tractable.

From a standstill the ton mark is achievable in 7.9seconds and the

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Wheelz & Roadz

top speed is 242kmph. The 7G Tronic gets Economy and Sport modes for relaxed slow shifting and sustained shifting respectively. The paddles behind the steering wheel give you some control over the automatic gearbox, but the response from them is slow. Also you get a host of Mercedes safety technologies like stability program, attention assist, adaptive and many more to keep you out of troublesome situations.

Atop this Mercedes claims that the E250 CDI could do 1380km on a single fill, which we think might be achievable if you are hell bound on setting a record. On the move the E250 CDI is unfathomed by road imperfections. The ride is very composed and you feel isolated from the noisy world outside sinking in opulence. The steering feels analog and delivery real-time

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information to your fingertips. You can actually have fun with this car, which needless to say the E-Class lacked previously.

There is a change happening in the Mercedes-Benz product portfolio. They just keep getting better and better. The GL-Class, the A-Class and now the E-Class are all

truly fantastic vehicles. I confess I was never a fan of the E-Class, for me the W124 was the best despite it being confined to the history books. It had that gravity and presence which all others lacked.

Now Mercedes has put the flair back in the E-Class again stomping their authority in the segment, and more!

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Wheelz & Roadz

BMW 730Ld The Ritzy Behemoth Report: Abhijeet Singh, Photography: Mohd. Nasir

T

here is a massive misconception around big luxury cars that they are meant to be chauffeured. Well I say, “Hello, no sir, not at all!”

The thing is that they can also be chauffeured. It is a widely held belief in our country that the most important accessory in an expensive luxury sedan is a driver, and also that these big vehicles are too cumbersome to drive. We recently had a BMW 7 Series standing in our parking lot, and we couldn’t wait to take it for a short trip towards Dehradun to see if the new one is a driving machine or do these misconceptions win.

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Wheelz & Roadz Engine

Max Power

Max Torque

Kerb Weight

2,993cc in-line 6 cylinder, 8-speed automatic with turbo diesel Steptronic

258bhp@4000rpm

560Nm@1500rpm

1,950 kgs

Suspension: Front/Rear

Brake: Front/ Rear

Fuel Tank Capacity

Tyres: Front/ Rear

Price

Double-track control arm axle/Integral-V multi-arm axle

Ventilated Disc/ Ventilated Disc

80 litres

245/50 R18

92,90,000 (ex-showroom, Delhi)

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Transmission

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Wheelz & Roadz EXTERIOR The BMW 7 Series has come a long way in terms of design since its birth.

So controversial were the looks that big bimmer became a marmite car, either you love it, or you hate it.

But not anymore, the Chris Bangle’s flame surfacing is finally on fire. This one looks absolutely magnificent.

The kidney grille stomps out with more authority now and the eyes are sharper. Tiny chrome details on the front and rear add to the classy appeal of the vehicle.

Although the new 7 Series looks nearly identical to the previous model but once you start paying attention the changes become apparent. For example the kidney

petrol models come equipped with it.

INTERIOR grille now has lesser slats than the previous one, and the signature corona rings are no more circular now. A continuous strip of LEDs runs across the Adaptive headlamps which double up as turn signals and parking lamps. Since we

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were running late and it was dark approaching Dehradun, the powerful BMW headlamps illuminated the roads like daylight. Our test vehicle was a the locally produced 730Ld variant which did not come with the night vision camera but the CBU

The interiors are typical BMW, smart and elegant. The updated iDrive system takes the centre stage with a large screen. BMW has installed the latest iDrive system (beautiful graphics we must say) and wrapped up as many controls as possible in it, however there is still a collection

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Wheelz & Roadz

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Wheelz & Roadz of buttons around to play with.

Expect all the electronic goodies like 4-zone climate control, electrically adjustable comfort seats, ambient lighting and much, much more.

The rear of the 730Ld is a relaxing place to be. Both seats get individual screen for the entertainment system and the iDrive console which can be controlled via the control knob on the centre armrest. The fridge lies in the centre behind the armrest, very handy on a journey. Both the rear seats are electrically adjustable and come with massaging for added comfort. Through our entire 260km drive, including driving in the dark, the big BMW kept us comfortable and we were just not tired when we reached our destination.

POWER AND PERFORMANCE Our test vehicle had a 3.0 litre six cylinder oil burner which pumps out 258bhp of maximum power and peak torque figure of 560Nm. The spooky bit is that the engine produces that torque at 1500rpm. There is barely any turbo lag, especially in the Sport setting. Push hard and the nearly 2.0 ton BMW touches 100kmph in 6.2 seconds. Top speed has been electronically governed to 250kmph. The acceleration is seamless, although not electric as a petrol version, but the diesel engine has a relentless surge in it.

Fantastic engine this is.

I still reserve my rights to be in the driving seat of the 730Ld. Yes people will come around and tell you it is heavy and you can feel the

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weight of the car sloshing about through corners. And yes people will say it lacks the connected BMW handling. But I disagree with them all. You should not question how it does things, you just marvel at the fact that it can do it at all.

Pushing hard to cut down lap times is not at all the point of this car, it is the joy of driving that it still preserves that is important.

The steering has perfect weight in it and responds as requested.

Put it in Sport setting and you can feel the car tightening up. All that about variable damping, stability control and brake control starts making sense.

And finally when you fancy a relaxing drive back home, just put it in Comfort and cruise away.

Everything becomes soft and squishy. Be advised the 730Ld dislikes potholed roads and the suspension bottoms out, we blame the weak back roads and not the car at all. Another setting is the Eco Pro which optimises shift points, throttle response and the air conditioning to provide maximum efficiency. Regenerative braking now comes as standard on all 7 Series models. The system uses engine power on overrun to charge the battery for the electrics of the car.

It is said that the 7 Series is a confused car. Neither is it completely for the driver, nor for the passenger. I say this is a big misconception. What the big BMW does is give you the best of both worlds. You can either be driven in it, or have fun driving it yourself, you decide. The 7 Series exactly knows what it is doing; its loyalty rests with you both as a passenger and as a driver.

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Wheelz & Roadz

New Bullet 500

The thump is back, with a bang Report: Abhijeet Singh, Photography: Mohd. Nasir

E

ven today I fail to understand why the Royal Enfield Bullet continues to be the most loved motorcycle in the country. So much so that even today mass psychology dictates that the Bullet separates the men from the boys. I personally am surrounded by Bullet aficionados, be it my Dad, my Ed, my big brother, my senior photographer, even my mother is a fan to this world war relic.

And now there is a new Bullet 500 which I was asked to test ride. I have ridden Bullets in the past and to be honest, I enjoyed them. But I always wondered what is that ‘connection’ Bulleteers always talk about. My earliest memory with the Bullet lies ages ago when my dad used to take

76 / August 2013

me along for rides on his 1983 Bullet 350. Then I got to ride some a few years back and came back from the ride pleased, not charmed.

THE WAY IT LOOKS The design is typically old school Bullet with subtle modern touches.

The signature Tiger headlamp and the saddle design and the handlebars all look right in place on the Bullet.

Another design feature that has been retained is the pin striping on the tank with the Royal Enfield logo in it.

Modern touches include the addition of the 280mm ventilated disc brake at the front and the new MRF Zapper tyres. Also the rear grab rail now gets cushioning for the pillion comfort. That said the seats are fairly comfortable, perhaps the most comfortable on a

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Wheelz & Roadz

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Wheelz & Roadz

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Wheelz & Roadz Engine

Transmission

Max Power

Max Torque

Kerb Weight

499cc, single cylinder, Twinspark, air-cooled

5-speed constant mesh

26.1 bhp@ 5100rpm

40.9 Nm@ 3800rpm

193 kgs

Suspension: Front/Rear

Brake: Front/ Rear

Fuel Tank Capacity

Tyres: Front/ Rear

Price

13.5 litres

90/90 R19 120/80 R18

1,53,855 (on-road Delhi)

Telescopic, 130mm travel/Twin Gas charged 280mm Disc / Expanding shock absorbers, 80mm Drum travel

Bullet yet.

Another styling touch is the chrome plated rearview mirrors which look brilliant. However when it comes to function they fail as they vibrate and become useless as mirrors. But the best change is the new Forest Green paint on the Bullet which adds huge old-school charm to this retro motorcycle. All this combination of the old and the new add up to make the Bullet 500 a fantastic looking thing.

THE WAY IT GOES Herein lies the biggest change.

Royal Enfield has replaced the classic iron block with the new Unit Construction Engine (UCE). The new Twinspark engine displaces 499cc and pumps out 26.1bhp of maximum power. That does not sound much but the torque figure is an impressive 40.9Nm. The Bullet 500 now only comes with

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a carburettor, be it domestic or global markets. This does provide minutely less power and torque than the fuel-injected version, but the performance is same on tarmac.

Crank up the engine, slot it in gear and gently slide through the gearbox, the thrust is addictive. You never get bored of the mid-range torque this slow revving engine provides. It is very relaxed and calm till 70-80kmph. You can push it to 130kmph but the engine dislikes it. Our recommendation is to keep it near the sweet spot and reap the benefits. Despite a kerb weight of 193kg the handling is quite impressive. The motorcycle is stable through bends and in fact likes to be thrown into, but you have to have muscles to wrestle its weight to your desire.

The MRF tyres perform very well on the Bullet 500 and play a vital role in the motorcycle’s stability and handling. The only let down is the

braking. Despite having a 280mm disc up front, there is no feel or progression as expected. Make no mistake, the brakes work fine, but just that it needs more bite than there is.

Well my ride is over. It feels good to have spent a couple of days riding an icon on whose tank I spent my childhood on. If I were an aficionado I would say, and most of them would agree with me, some of that ancient charm is missing from the new one in exchange for some much needed sophistication. As a motorcyclist, I would say the new Bullet 500 is a very capable mile-muncher. It just feels a bit better than all other motorcycles on the road, more mature, more accomplished. You feel like you have graduated from being a boy racer to an admirer of motorcycling. You have found freedom! As for me, I am still a boy racer back on my screaming parallel twin.

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INDUSTRY OVERVIEW Passenger Vehicle Manufacturers in India Total Domestic Sales + Exports - June2013 1,82,231 Units

GM Ford India India 2.20% Others 2.40% 2.85% Nissan Motor 3.40% Toyota Kirloskar 3.99% VW India 4.35%

Maruti Suzuki 39.81%

Honda Cars 5.47%

Tata Motors 5.55%

Hyundai Motor 29.98%

OTHERS Skoda Auto India Pvt. Ltd. (0.85%)

Renault India Pvt. Ltd. (0.81%)

Mahindra & Mahindra Ltd. (0.72%)

Fiat India Automobiles Pvt. Ltd. (0.43%) Hindustan Motors Ltd. (0.04%)

Based on SIAM figures

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INDUSTRY OVERVIEW Utility Vehicles Manufacturers in India Total Domestic Sales + Exports - June 2013 58,011 Units

GM India 4.42%

Others 0.90%

Ford India 7.60%

Renault India 7.80%

Mahindra & Mahindra 32.83%

Toyota Kirloskar 11.25%

Tata Motors 14.68%

Maruti Suzuki India 20.52%

OTHERS Force Motors Ltd (0.34%)

Hindustan Motors (0.20%)

Honda Cars India Ltd. (0.17%)

Nissan Motor India Pvt.Ltd. (0.07%)

Hyundai Motor India Ltd. (0.06%)

Skoda Auto India Pvt. Ltd (0.06%)

Based on SIAM figures

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INDUSTRY OVERVIEW Two Wheeler Manufacturers in India

Total Domestic Sales + Exports - June 2013 12,67,182 Units

Suzuki Motorcycle Others 2.02% 2.06% India Yamaha Motor 3.88%

TVS Motor Company 12.42%

Hero MotoCorp 39.64 %

Honda Motorcycle & Scooter India 19.89%

Bajaj Auto 20.09%

OTHERS Royal Enfield (1.09%)

Mahindra Two Wheelers Ltd. (0.65%)

Piaggio Vehicles Pvt.Ltd. (0.31%)

H-D Motor Company India Pvt.Ltd. (0.01%)

Based on SIAM figures

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INDUSTRY OVERVIEW Three Wheelers in India

Total Domestic Sales + Exports - June 2013 71,889 Units Force Motors 0.23% Scooters Atul India Auto 1.31% 3.90% Mahindra & Mahindra 6.18%

TVS Motor Company 9.43%

Bajaj Auto 57.32%

Piaggio Vehicles 21.63%

Based on SIAM figures

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INDUSTRY OVERVIEW Light Commercial Vehicle Manufacturers in India Total Domestic Sales + Exports - June 2013 41,487 Units Mahindra Trucks & Buses 1.37% SML Isuzu 1.40%

Piaggio Vehicles 1.33%

VECV Eicher Force 2.62% Motors 4.16% Ashok Leyland 5.43%

Tata Motors 53.86% Mahindra & Mahindra 29.83%

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INDUSTRY OVERVIEW Medium & Heavy Commercial Vehicle Manufacturers in India Total Domestic Sales + Exports -June 2013 20,244 Units

SML Isuzu 3.75%

Mahindra Trucks & Buses 1.69% Others 0.36% Asia Motor Works 2%

VECV - Eicher 10.95%

Tata Motors 57.96% Ashok Leyland 23.29%

OTHERS Volvo Buses India Pvt. Ltd (0.19%)

VECVs - Volvo (0.17%)

Based on SIAM figures

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INDUSTRY OVERVIEW Auto Industry Overview

Total Domestic Sales + Exports - June 2013 16,41,040 Units

Three Wheelers 4.38%

Commercial Vehicles 3.76%

Passenger Vehicles 14.64%

Two Wheelers 77.22%

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Motown India magazine now available on Apple and Android devices MOTOWN INDIA Vol 3 / Issue 11 AUGUST 2013

Motown VOL-3 • ISSUE-11 • AUGUST 2013 • 100

INDIA

THE PULSE OF THE AUTOMOTIVE INDUSTRY

DATSUN GOes live!

CARLOS GHOSN, President & CEO, Nissan Motor Company

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INDIA REPORT

WHEELZ & ROADZ

Heads roll as

BMW 730Ld

GM India

recalls 1.14 lakh Tavera vehicles MAHINDRA USED CAR BUSINESS

Cover Aug 2013.indd 1

The Ritzy Behemoth HUNGARIAN GP

JK TYRE RACING SERIES 7/30/2013 4:33:49 PM

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