Motown India March 2013

MOTOWN INDIA Vol 3 / Issue 6 march 2013 www.motownindia.com

Motown Vol-3 • Issue-6 • March 2013 • 100/-

The pulse of the automotive industry

india

Force Motors launches Gurkha at 6.25 lakh

Bharat Gears Ltd

Shifting into top gear Union Budget 2013-14

RNI No DEL ENG/2010/34562

Surinder P. Kanwar, Chairman & Managing Director, Bharat Gears Ltd. ACMA Automechanika special

Chidambaram guns for the rich boys and their toys

Bus & Utility Vehicle show

automach

Motown India magazine now available on Apple and Android devices MOTOWN INDIA Vol 3 / Issue 6 MARCH 2013

Motown VOL-3 • ISSUE-6 • MARCH 2013 • 100/-

THE PULSE OF THE AUTOMOTIVE INDUSTRY

INDIA

Force Motors launches Gurkha at 6.25 lakh

BHARAT GEARS LTD WWW.MOTOWNINDIA.COM

Shifting into top gear UNION BUDGET 2013-14

RNI No DEL ENG/2010/34562

SURINDER P. KANWAR, Chairman & Managing Director, Bharat Gears Ltd. ACMA AUTOMECHANIKA SPECIAL Cover March 2013.indd 2

Chidambaram guns for the rich boys and their toys

BUS & UTILITY VEHICLE SHOW

AUTOMACH 3/5/2013 4:14:17 PM

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mi Editor’s note

Now we have a completely revamped Motown India magazine. It’s become more chic, exhaustive in terms of news content and is undoubtedly the best in its genre. This issue of Motown India magazine covers detailed reports on three major shows held in the Delhi NCR. Motown India was media partner to three prestigious auto-related shows. One was the ACMA Automechanika Show held in Pragati Maidan in New Delhi. The show was organised jointly by ACMA and Messe Frankfurt. The latter is a world leader when it comes to organising shows globally for the automotive components aftermarket players. Two shows that were held almost concurrently were the CII organised Automach held at Pragati Maidan and the Bus and Utility Vehicle Show organised by SIAM at the Greater Noida Expo Centre.

The Bus & Utility Vehicle Show was a very important show. First, this was the 3rd such show organised by SIAM and second, it was definitely a precursor to the most prestigious auto show (Auto Expo) to be held in 2014. Yes, Greater Noida could possibly be the next permanent venue for the grand Auto Expo. For all the four days of the show senior SIAM officials were present round the clock observing and interacting with participants as well as media persons, trying to gauge everybody’s mood.

The other important reports in the magazine include an extensive Budget coverage and its impact on the automobile sector. The cover report is on Bharat Gears Ltd, headed by Surinder Pal Kanwar.

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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Editorial Office 145 B /9,First Floor, Kishangarh, Opp. CNI Church, Vasant Kunj, New Delhi 110070, Tel: 011-26122758/59, Tele Fax: 011-26122757 -------------------------Distributed By Central News Agency, New Delhi -------------------------EDITORIAL CONTENT The publisher makes every effort to ensure that the contents in the magazines are correct. However, he can accept

no responsibility for any effects from errors or omissions. Any unauthorised reproduction of Motown India content is strictly forbidden.

-------------------------Motown India is printed, published, edited and owned by Punnoose Tharyan and published from 4058 / D-4, Vasant Kunj, New Delhi-110070. Printed at Pearl Printers, 52, DSIDC Shed, Okhla, Phase 1, New Delhi. This issue of Motown India magazine contains 100 pages including both covers.

March 2013 / 3

CONTENTS

32. Bharat Gears Limited: Shifting into top gear The auto industry in India may be currently facing one of its most challenging times, but Surinder P. Kanwar, Chairman and Managing Director (CMD) of Bharat Gears Limited (BGL) seems unfazed by this gloom. He wants his company to grow both organically and inorganically. In the next few years he expects his company to reach a turnover of 1,000 crore.

66. Bus & Utility Vehicle show The Society of Indian Automobile Manufacturers (SIAM) organised the third International Bus & Utility Vehicle Show between February 15 and 18, 2013 at India Expo Mart, Greater Noida. The exhibition, which was organised with the support of Ministry of Heavy Industries and Public Enterprises, Government of India zeroed in on SUVs, buses and other utility vehicles.

38. ACMA Automechanika The ACMA-Automechanika New Delhi, which was inaugurated by the Union Minister of Heavy industries Praful Patel, proved to be moderately successful in its inaugural year. The sold-out event, held from February 7 to 10, 2013 at Halls 8 – 11 of Pragati Maidan in the nation’s capital, featured 261 exhibiting companies (149 domestic, 112 international) and attracted 8,157 business visitors.

78. Audi keen to help develop global standard for sustainable aluminium 4 / March 2013

This issue of Motown India magazine is not featuring Candid Views section www.motownindia.com

Motown india highlights

Hari Shankar Singhania passes away Hari Shankar Singhania, the President of JK Organisation and Chairman of JK Tyre & Industries Ltd, died on February 22, 2013.

Born in Kanpur on June 20, 1933, Singhania had joined the group in 1951 after completing his Bachelor of Science. He was known for his entrepreneurial capabilities and setting up various pioneering ventures in India. He was conferred with the ‘Padma Bhushan’ award in 2003.

Singhania had been the President of International Chamber of Commerce (ICC), Paris, being the 2nd Indian and 3rd Asian in the last 80 years and has made significant contributions in national and international business arenas.

Recognising his contribution to Indo-Swedish business relations, the King of Sweden honoured him with “Royal Order of Polar Star” one of Sweden’s highest awards.

He chaired the International Chamber of Commerce from 1993 to 1994 and was president of the Federation of Indian Chambers of Commerce and Industry in 1979-80.

The 81-year old Singhania had been actively involved with the diversified JK Organisation since 1951.Hari Shankar Singhania was the eldest son of late Lala Lakshmipat Singhania.

6 / March 2013

BorgWarner expands emissions business with new facility BorgWarner opened a new 86,000sq ft facility in Manesar, on the outskirts of New Delhi to produce exhaust gas recirculation (EGR) coolers, tubes, valves and modules. Built to replace the previous facility in Faridabad, the wholly-owned operation will expand manufacturing capacity and provide sales, design, test and validation capabilities for a wide range of domestic and international automakers, including Maruti Suzuki, Mahindra & Mahindra, Renault, GM, Tata Motors, Fiat, Ashok Leyland, Volvo Eicher and others. The company expects its Indian EGR business to grow at a compounded annual growth rate of 35pc over the next five years.

“Our newest facility will enable BorgWarner to strengthen its market-leading position in EGR coolers and meet growing demand with a complete range of EGR products for both passenger cars and commercial diesel vehicles,” said Brady Ericson, President and General Manager, BorgWarner Emissions Systems. “We are investing in local production as well as local testing to support our customers quickly with system-based solutions tailored to their specific needs.”

Today’s downsized engines generate higher temperatures in the combustion chamber forming nitrogen oxide (NOx).

BorgWarner’s EGR technologies help automakers reduce NOx to meet stringent emissions regulations by recirculating and cooling exhaust gases to reduce combustion temperatures. BorgWarner’s

Brady Ericson, President and General Manager, BorgWarner Emissions Systems extensive expertise in advanced EGR technologies covers the entire system. BorgWarner’s valves control exhaust gases flow through tubes to a cooler where gas temperatures drop to 130° C - 175° C and then return to the combustion chamber.

The valves are driven by robust actuators, built for BorgWarner Inc. BorgWarner EGR systems are engineered for nearly any application from passenger cars to commercial trucks.

BorgWarner’s new environmentally friendly facility in India makes maximum use of natural light, features LED lighting to conserve energy and harvests rainwater for landscaping and sanitation.

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Bridgestone opens its second plant in India Bridgestone India Private Limited has opened its second plant in Chakan, Pune. The chief guest for the occasion was Prithviraj Chavan, Chief Minister of Maharashtra. He along with Kazuhisa Nishigai, COO and representative board member, Bridgestone Corporation and Kiyoshi Asako, Consul General of Japan in Mumbai inaugurated the plant which is an outcome of an MOU signed between Bridgestone India Pvt. Ltd. and Government of Maharashtra in April 2010 for an estimated investment of 2,600 crore.

The plant is spread across an area of approximately 187 acres of land. When all the phases of expansion are complete the plant will have a capacity to manufacture around 10,000 passenger car radial tyres and 3,000 truck bus radial tyres per day that will cater to the growing needs of the Indian market. It will generate an employment to approximately 1,800 people.

Talking to the media, Kazuhisa Nishigai, COO and Representative Board Member, Bridgestone Corporation, noted “India is growing rapidly and it will surely continue further in the future, and has an unlimited potential. The success in India is essential and inevitable for Bridgestone to be the undisputed no. 1 tyre and rubber company in the world both in name and reality.”

8 / March 2013

Sandhar inks tech collaboration with Jinyoung

Doo-Yung Kim and Jayant Davar shaking hands Sandhar Technologies Ltd., a diversified auto component manufacturing company with multiple product lines, has signed a technical collaboration with Jinyoung Electro-Mechanics Co. Ltd. of South Korea for manufacturing automotive relays for the Indian market.

Jinyoung Electro-Mechanics Co. Ltd. founded in 1996 specialises in automotive relays, switches, multifunctional switches, latches and buzzer units; having two plants, a dedicated R&D Centre in South Korea and three plants in China.

It has technical tie ups with Niles, Panasonic and Miyamoto of Japan for switches, PCB relays and horn relays, respectively.

“It gives me immense pleasure to announce the tie up with Jinyoung Electro-Mechanics. JEM is a recognised player in relays and switches; this relationship will help us forge ahead into electronics and

offer new products to our existing customers. It also gives us access to new technology and customers, leading to faster growth,” said Jayant Davar, Founder, Vice Chairman & Managing Director of Sandhar Group.

Doo-Yung Kim, Representative Director / President, Jinyoung Electro-Mechanics Co. Ltd. mentioned, “India is the second largest growing economy, a very large automotive market with a number of well-established Korean companies. The relationship with Sandhar gives us an opportunity to have a technological presence in India. Sandhar will provide the required infrastructure and support for bringing in JEM technology and products to India.”

Sandhar will put up automatic production lines for power relays and relay starters initially at its Gurgaon plant, and then go on to add other products and locations.

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Motown india highlights

Schaeffler unveils drivable concept car for Indian driving conditions

Schaeffler has presented a new concept vehicle for the Indian automobile market featuring advanced drive train technologies that can offer up to 10pc reduction in fuel consumption combined with better comfort and driving experience. The Efficient Future Mobility India concept car is based on an existing subcompact hatchback and shows a range of Schaeffler solutions for optimising engine and transmission technology currently available in India.

The demonstrator vehicle was unveiled at Schaeffler’s flagship technology-sharing and joint development platform – Innovation Days – a highly successful specialised event from Germany, organised for the first time in India. All the solutions showcased in the car are cost-effective, close to volume production, and when integrated into a subcompact vehicle, make a valuable contribution to improving its performance and fuel efficiency.

10 / March 2013

Escorts to market Ferrari tractors in India Homegrown tractor maker Escorts Limited has inked a partnership with Italian company BCS S.p.A to distribute and sell the Ferrari brand of tractors in India. The first product being launched under the partnership is a 26 HP model of the Italian firm which will initially be available at select dealerships in Maharashtra for 8 lakh. In the next phase, this hi-end tractor will be available in other cities too. Initially imported as a CBU from its Italian plant, the high-end tractors might be assembled by the Indian firm later if the volumes build up.

Speaking on the occasion, Rajan Nanda, Chairman and Managing Director, Escorts Ltd. noted, “The Indian agriculturist has evolved from just being a subsistent farmer to the one with an entrepreneurial bent of mind. Today, he is looking for equipment that is high on precision and output. Escorts is prepared to partner the forward looking Indian farmer in all facets of his aspirations.

The products that we are launching today are a reflection of how Escorts would continue to bring in international technology and design standards to the Indian tractor market.”

According to the press statement issued by Escorts, “Ferrari brings tractor technologies to India that the country has never seen before.

These include the all four equalsized wheels, oscillating chassis system, all-time 4-wheel drive, front-engine mounting for super-low turning radius and an ideal weight distribution. Starting with a 26 HP model suited for the advanced needs

of Indian orchard and vineyard growers, the Ferrari tractor is now available in Maharashtra and soon will be extended for sales in rest of the country.”

Escorts has also launched a new product in the Farmtrac executive series of premium range tractors.

These two premium tractors are targeting the evolved farmer aspiring to be an entrepreneur. The new 45, 50 and 60 HP tractor series come with a price tag of 6.5 lakh, 6.9 lakh and 7.4 lakh, respectively.

Nikhil Nanda, Joint Managing Director, Escorts Ltd. said, “The launch of Ferrari Orchard Tractors and the new Farmtrac Executive Series brings mechanisation to the high value orchard farmers of the country. Our alliance with Ferrari, brings to Indian orchard farmers a world class tractor aimed at bringing about efficiency to their farm operations. We are passionately working to achieve premier image leadership in the Indian tractor industry.”

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Motown india highlights

Anders Grundströmer appointed new MD of Scania India

Anders Grundströmer has been appointed as the new Managing Director, Scania Commercial Vehicles India Ltd and Senior Vice President Scania Group.

Anders Grundströmer is currently Executive Regional Director, Region Western and Southern Europe at Scania. He succeeds Henrik Fagrenius; currently Managing Director at Scania Commercial Vehicles India Ltd. Henrik has been appointed Executive Regional Director for the Southern Africa, Asia and Oceania (AAO) region and member of Scania Group Management, from February 1, 2013.

“It is both an honour and a challenge to be provided with the prospect of leading Scania India operations,” says Anders Grundströmer. “Scania is a company with highly knowledgeable and committed employees, with a unique culture, and I am truly looking forward to take up the new role at Scania.” he said

12 / March 2013

Ashok Leyland Luxura Magical India Bus showcased

Ashok Leyland Limited has showcased ‘the Ashok Leyland Luxura Magical India Bus’, built on its Luxura platform and designed by auto designer Dilip Chabbria. The luxury charter bus, which has been modelled on the lines of a private jet, will be used to support NGO Goonj and The Cancer Institute with at least 50pc of the fees going to the charity partners.

The bus, designed in an exclusive format for only nine guests, has luxurious reclining seats, a Wi-Fi enabled personal entertainment system, an on-board spa with trained therapists, a galley to serve hot and cold snacks and beverages and a washroom.

Guests can charter the bus for a day or for an overnight trip to Agra, Jaipur, Neemrana or any of the numerous travel destinations in and around Delhi.

As Vinod Dasari, Managing Director, Ashok Leyland said, “ Ashok

Leyland is delighted to be a part of this project with its core values of innovation in design, focus on the customer and delivery with a social conscience “ Meanwhile, Ashok Leyland has said that it will launch the Avia range of trucks in India by July as it prepares to introduce a range of new products, hoping for a revival of market in the second half of next fiscal. The Avia trucks will be rolled out from the company’s manufacturing plant at Pant Nagar in Uttarakhand.

In 2006, Ashok Leyland had acquired the Avia Truck Business Unit, a leading vehicle manufacturer in Europe, at an estimated cost of around US$35 million and helped it expand in global markets, and also improve product portfolio. It was later rechristened as Avia Ashok Leyland Motors and at present it produces a class of trucks with gross vehicle weights of 6.5 to 12 tonnes.

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Masaki Asano heads Yamaha India separate vertical for sales and marketing India Yamaha Motor Pvt. Ltd., has announced the establishment of a separate Sales & Marketing vertical namely Yamaha Motor India Sales Pvt. Ltd. (YMIS). This vertical will be responsible for aggressively pushing the sales and marketing initiatives. Yamaha sees great potential in the Indian market and this vertical it feels would aim at connecting with a larger customer base with innovative marketing strategies.

The Sales & Marketing vertical will be lead by Masaki Asano who will now be the Managing Director of Yamaha Motor India Sales Pvt. Ltd. He would be assisted by Jun Nakata as Director with. Roy Kurian as Sales & Marketing Group Head, Ravinder Singh as Strategy Planning Group Head and Takehiko Yamazaki as Parts Operation Group Head.

Speaking on the development Asano, noted, “India is a key market with immense potential.

The new emerging India consists of a customer base that has varied product taste. While a large customer base offers an excellent opportunity to propel the growth trajectory, it also comes with the challenge of offering the exact product to fulfill the customer’s wish list.

14 / March 2013

SIAM organises Automotive Logistics Conclave’13

Ministry and SIAM officials at the conclave The Society of Indian Automobile Manufacturers (SIAM) has organised its first Automotive Logistics Conclave in Delhi. The first day of the event was attended by representatives from the Planning Commission, Ministries of Heavy Industry, Railways and Road Transport and Highways, automobile OEMs and logistic sector.

Speaking at the conclave, M.F. Farooqi, Secretary, Ministry of Heavy Industries noted, “Logistics are becoming increasingly important with the emerging the auto sector in India. Providing physical connectivity in a country like India, and connecting it to the world is a huge logistical challenge. We have more than 90pc dependence on the roads and national highways, and this is not sustainable. We need a solution which brings in other modes into play, and the industry has to take a joint initiative.Logistics face an increasing difficulty with transport beyond the national highways, with the quality of roads, and while crossing state border lines. All these

issues need to be addressed.”

We have discussed this with the Ministry of Road and Transport, and received a very positive response.

A notification has come out which would allow this kind of permission to have end-to-end transportation without different border permissions.

A manufacturer will therefore be able to approach the National Highways and get permission for end-to-end to transport a consignment, with a validity of 2-3 years, and will be transferrable,” he concluded.

M. M. Singh, Chairman, SIAM Logistics Group & MEO Maruti Suzuki India Ltd. said “The Automotive Mission Plan 2006 - 2016 has envisaged India to become a designing and manufacturing hub for automobile and components, and is expected to reach around US$145 billion dollars, amounting to more than 10pc of India’s GDP. The industry has grown ever since, and the overall production has risen from 9.7 million units to 20 million units in 2012. It is expected to reach 35 million by 2016-2017.”

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Motown india highlights

Ashok Leyland’s new Driver Training Institute (DTI) at Chhindwara Union Minister for Urban Development, Kamal Nath, inaugurated Ashok Leyland’s new Driver Training Institute (DTI) at Chhindwara, Madhya Pradesh in the presence of several dignitaries both from the Government and the Chennai-based company. For Ashok Leyland, the Hinduja Group flagship and the second largest commercial vehicle manufacturer in the country, this institute which is sponsored by Ministry of Road Transport and Highways, government of India, will be the third after the DTIs in Namakkal, Tamil Nadu and Burari, near Delhi.

Speaking at the inauguration, Kamal Nath noted, “Against a backdrop of a serious shortage of skilled drivers in the road transport sector, the need for well-trained commercial vehicle drivers has assumed grave criticality. I am aware of the pioneering work that Ashok Leyland has already done in the area of providing trained drivers to the industry and today’s inauguration of this new Driver Training Institute is one more significant step in the right direction. I am delighted that this institute will also help create more employment opportunities for the youth of this region by facilitating trainees’ transition into a career.”

16 / March 2013

Daimler India rolls out Bharat Benz LDTs Daimler India Commercial Vehicles Pvt. Ltd. (DICV) has launched its three new light duty trucks (LDTs) in India out of which, two are cargo models while one is a tipper. The light duty trucks launched by Bharat Benz come with 9-ton and 12-ton capacities.

The 9 ton truck is called the 914 while the 12 tonners are the 1214 and the 1217 models. While the 914 and 1214 models are aimed at the cargo market, the 1217 is aimed at the tipper market. The trucks are priced between 10.15 lakh and 13.58 lakh. All light duty trucks will be sold across India, through BharatBenz dealerships.

The light-duty trucks, based on the Fuso Fighter/Canter platform, have been localised to suit specific needs of Indian customers, featuring the 4D34i four-cylinder CRDi (Commonrail Direct Injection) engine with 140hp and 170hp power, for the rigid & tipper models, respectively.

All three trucks are powered by turbocharged and intercooled inline four cylinder diesel engines which are mated to a six-speed manual gearbox.

Dr. Albert Kirchmann, ViceChairman, DICV noted, “I am extremely happy with the excitement Daimler India is creating with BharatBenz in Indian trucking. In fact, the entire Daimler truck world is watching this new brand with interest. A new market, new brand, new products and a great team.

India is not just one more market for

Daimler. Today, along with China, it is one of the most promising markets.

Daimler trucks has everything needed to take these markets to newer levels in trucking.”

Georg Weiberg, Head – Product Engineering, Daimler Trucks, Germany, noted, “It is an obligation for us and our brand BharatBenz, to ensure the customers will be as happy with these trucks as with our heavy-duty trucks. Our focus was to create a truck with superior performance, efficiency and the best quality but at a very competitive price. To achieve this, we involved our German/Japanese engineers for their technology experience and Indian engineers for their local expertise and ability to create costconscious solutions.”

Marc Llistosella, Managing Director and CEO, DICV noted: “In September 2012, we delivered our first promise through our heavy-duty trucks.

We are extremely encouraged by the highly positive feedback and through repeat orders. Today is another important milestone for DICV & BharatBenz. Our light-duty trucks will add a new dimension to reliable trucking by being very fuel efficient along with superior driving dynamics.”

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The ASEAN’s Mega Trade Shows

The 4th Indonesia International Bus, Truck and Component Exhibition 2013 www.iibt-exhibition.net

The 3 rd Indonesia International Heavy Duty Vehicle & Equipment Exhibition 2013

The Indonesia International Agriculture Equipment and Machinery Exhibition

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Motown india highlights

FIAT inaugurates training centre at Ranjangaon

FIAT Group Automobiles India Private Limited (FGAIPL) inaugurated its first training centre at Ranjangaon, Pune. In order to replicate FIAT Group’s international standards in technical and soft skills training, U-Netversity, FIAT Group’s global training school will conduct and oversee the entire training programme that would involve about 50 personnel in a single day.

The entire facility will comprise of three classrooms having complete AV support and experts from FIAT, Italy and Chrysler, USA as training instructors for the employees at Ranjangaon.

FIAT Group’s complete range of vehicles will be made available to technicians for systems and support parts study. This would enable the technicians and employees at the plant to experience first hand, the design and development of FIAT’s global brand of cars. The on-going training program would include a comprehensive suite of webbased and remote access learning tools and working on the latest diagnostic tools for enhanced understanding of FIAT’s global systems and processes.

18 / March 2013

Tata Motors’ Jamshedpur plant rolls out its two millionth truck

Karl Slym at the roll-out of the 2 millionth truck Tata Motors’ Jamshedpur plant has announced the roll-out of the 2 millionth truck from this worldclass manufacturing facility. The plant manufactures Tata Motors’ entire range of medium and heavy commercial vehicles, including the Tata Prima, both for civilian and defence applications.

Commenting on this milestone, Karl Slym, Managing Director, Tata Motors, said, “We are proud that the mother plant of the company, from where our operations started, has released its 2 millionth truck. We have modernised the plant through the years, which today produces our most technologically rich and high performing civilian and defence products, catering to customers across the world.”

With the plant manufacturing over 200 truck variants, ranging from multi-axle trucks, tractortrailers, tippers, mixers and special application vehicles, the Jamshedpur

facility has led the company’s evolution into a manufacturer of global repute. Besides India, these vehicles are sold in South Africa, Russia, Myanmar, the SAARC region and the Middle East.

The Jamshedpur facility was Tata Motors’ first, set up in 1945, to manufacture steam locomotives.

It led the company’s foray into commercial vehicles in 1954. It has been modernised through the decades, with a particularly intense scale in the last 10 years.

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Motown india highlights

India hosts the first Automach show Report & Photography Abhijeet Singh The first ever Automach 2013 was held at Pragati Maidan, New Delhi, hosted by the Confederation of Indian Industries (CII) in collaboration with ACMA and SIAM. It was held as a part of the 20th International Engineering and Technology Fair inaugurated by President Pranab Mukherjee. The Automach 2013 exhibition involved several domestic and international companies’ showcasing their new technologies and machinery for the automotive industry. All these manufacturers aim to develop finer vehicles and improve component quality for every segment of the automobile market.

The event enabled several exhibitors, business officials and numerous auto enthusiasts to get acquainted with each other and discuss their products and services across. It transformed into an elaborate platform for the manufacturing segment, automotive industry and also the government

to collaborate and engineer the best possible solutions and innovations producing better products for the automobile industry. The exhibitor profile ranged from as basic as die moulds to complicated robotics.

Brands from the domestic as well as international markets such as Bharat Petroleum (with MAK Lubricants), Shell, JCB, LiuGong and many more were present representing their product lines. The three-day event allowed business managers and purchase heads to gather information on different manufacturers and get an insight on their product lines and expertise.

The President stated that although India’s growth had decelerated he is confident that with stronger efforts it will come back to 8pc plus growth level as it had been in the past. Positive inputs from all the participating companies ensured that the event turned out to be a huge success.

Exhibitor Profile CNC Machines / Centers

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Paints, Painting Equipments and Technologies

Precision Technology

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March 2013 / 19

Motown india highlights

Vibgyor Group enters the three wheeler segment Report & Photography Abhijeet Singh After venturing into a number of successful businesses, Kolkata-based Vibgyor Group has decided to enter the commercial space with the launch of 3-wheelers. The vehicles will cater to three different customer groups. Vibgyor Auto will be used for carrying passengers. Vibgyor Cargo will be a pick-up vehicle, while the Vibgyor Van will be a delivery vehicle. The 3-wheelers are priced in the range of 1.75 lakh to 1.85 lakh.

Vibgyor is a diversified group with interests in real estate, jewellery, automobiles, security services, cement etc. Its motorcycle manufacturing plant is located in Dankuni in Hooghly district of West Bengal. The plant has a production capacity of 300 motorcycles per day.

The product range includes Gallop, a 100cc motorcycle, Hunter, a 125cc

Dibakar Chakraborty, CEO, Vibgyor Vehicles

20 / March 2013

bike and Shark, a 150cc motorcycle.

The company has ambitious plans to enter the 4-wheeler segment.

The three wheelers are meant to ply in built-up areas in metros, suburban and rural sectors of the market space. The engines powering these vehicles will be sourced from Greaves Cotton Ltd. The 435cc diesel units will have a fuel efficiency of 36kmpl.

While addressing dealers and media persons in Kolkata, Dibakar Chakraborty, CEO, Vibgyor Vehicles, noted that his company will be the first manufacturer in West Bengal to introduce a line of three wheelers in the market. Vibgyor has joined hands with Pashupati Vehicles, Sonepat, for the manufacture of the vehicles. Pashupati will be providing technical support to Vibgyor.

Chakraborty mentioned that priority

has been given to convenience and comfort while manufacturing this class of vehicles.

Initially, Vibgyor will be eyeing the markets in the states of West Bengal, Bihar, Jharkhand, Odisha, Assam and Uttar Pradesh. The 3-wheeler plant will initially have a manufacturing capacity of 1,000 units. However plans are to double this capacity by the year 2014. Vibgyor aims to produce 3,000 vehicles by the end of March 2014 thus creating a turnover of 40 crore and an employment opportunity for 500 people, both directly and indirectly related to the brand.

The company plans to setup 75-80 dealerships between the months of April 2013 to December 2013 which will provide sales and service.

Chakraborty told media persons that the vehicles can be easily serviced

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Motown india highlights

and its parts will be easily available in the market. He mentioned that Vibgyor will provide ample support through dealerships. He further added that engine and body parts can be easily serviced by mechanics even in remote areas. This, in turn will increase direct and indirect employment opportunities for many people, he said.

Chakraborty mentioned that Bangladesh is a major buyer of three wheelers and his company will be targeting that market first. Further down the line Vibgyor will aim to export the products to the markets of East Africa as well.

Shriram Automall operations in Kochi, Mahboobnagar Shriram Automall India Limited (SAMIL) has recently commenced operations of its Automall at Mahaboobnagar, Andhra Pradesh and Kochi, Kerala. With ample infrastructure and facilities, the Automalls in both the cities will offer a platform for transaction of certified used vehicles and equipment. The services will range from easy finance, general insurance, parking to assistance in documentation. As an add-on facility, rest rooms for travelfatigued truck drivers and cleaners are also provided.

Sameer Malhotra, CEO, Shriram Automall India Limited, noted, “The company aims to create a platform for transporters, where transparency is of utmost importance. The Automall facility will house hundreds

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of pre-owned vehicles both in as-is-where-is and refurbished condition and customers will be able to trade in a transparent manner. We envisage having a robust PAN India network of such Automalls strategically located on important highways of the country. Moving forward, we are planning to expand this number exponentially in the coming years.”

“After leaving its deep imprints across several geographies of India, SAMIL now envisions reaching even the smallest of town and city.

The epic success of our existing Automalls reflects upon the potential of the pre-owned vehicle and equipment segment. We aim to put an end to the unreliable and old practices prevalent in vehicle transactions by cultivating organised vehicle-trading mechanism,” added Malhotra.

March 2013 / 21

Union Budget 2013-14

Chidambaram guns for the rich boys and their toys

T

Report P.Tharyan he rich boys and their toys have come under the radar of Finance Minister P. Chidambaram.

The Finance Bill 2013-14 proposes a surcharge

Chidambaram Speak

SUVs occupy greater road and parking space and ought to bear a higher tax.

I am sure they (the rich) will not mind paying a little more (referring to duty hike on SUVs and yachts).

of 10pc on persons whose taxable income exceeds 1 crore per year.

This will apply to individuals, HUFs, firms and entities with similar tax status.

Now for the toys of the rich boys-customs duty on imported luxury goods such as high-end motor vehicles, motorcycles, yachts and similar vehicles has been increased.

In the case of such motor vehicles, the duty has been increased from 75pc to 100pc. On motorcycles with engine capacity of 800cc or more the duty now will be 75pc instead of 60pc. Similarly, the duty on yachts and similar vessels has been increased from 10pc to 25pc.

Basic customs duty has been increased on new passenger cars and other motor vehicles (high end

Tweets ‘Space Occupied’ was the reason to tax SUVs. Yet larger, more luxurious sedans are exempt.

Neither an equitable nor an inclusive rule” No quarrel if all large cars taxed.

Singling out SUVs destroys a level field. Sad, one has to fight harder to succeed in one’s own country” “Having griped about SUV duties, have to admit the rest of the Budget goes about fixing out economy’ ills in an unspectacular but steady manner”. ---Anand Mahindra, Chairman and Managing Director, Mahindra Group

Picture for representation purpose only

22 / March 2013

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Union Budget 2013-14

Proposals The Finance Bill 2013-14 proposes a surcharge of 10pc on persons whose taxable income exceeds 1 crore per year.

Basic customs duty has been increased on new passenger cars and other motor vehicles (high end cars) with CIF (Cost, Insurance, freight) value more than US $40,000 ( 21.9 lakh approx.) and/or engine capacity exceeding 3000cc for petrol run vehicles and exceeding 2500cc for diesel run vehicles.

Excise duty on Sports Utility Vehicles (SUVs) increased from 27pc to 30pc. SUVs registered solely for use as taxis will not suffer additional excise duty.

Basic customs duty on motorcycle with engine capacity of 800cc or more increased from 60pc to 75 pc.

cars) with CIF value more than US $40,000 ( 21.9 lakh approx.) and/or engine capacity exceeding 3000cc for petrol run vehicles and exceeding 2500cc for diesel run vehicles. “I am sure they will not mind paying a little more,” said the Finance Minister.

Motorcycle manufacturers who import bikes of 800cc engine capacity and more include the likes of Honda, Suzuki, Yamaha, Ducati, Harley-Davidson, BMW Motorrad and Aprilia.

The FM has announced a hike in excise duty on Sports Utility Vehicles (SUVs) from existing 27pc to 30pc. However, the hike won’t be applicable on the SUVs registered

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as taxis. The excise duty for all the cars has remained the same (12pc). This move has disappointed large players which were expecting to get a cut on excise duty on passenger vehicles.

Furthermore, the Indian market which has seen a good growth in SUV segment, might witness a soft landing of sorts. SUVs, according to a government definition, are vehicles which are more than 4 metres in length, having less than 10 seats, with engine capacity above 1500cc and having a ground clearance of above 170mm. “SUVs occupy greater road and parking space and ought to bear a higher tax.,” Chidambaram said.

Now that customs duty on car imports have gone up, companies like Audi, BMW, Mercedes, Volvo Auto India and others may now hasten plans to assemble their top end models in India, rather than importing them as Completely Built Units (CBU). Vehicles from the stables of Lamborghini, Porsche, Maserati, Rolls-Royce, Bentley, Bugatti, Jaguar (barring XF) and Land Rover (barring Freelander 2) will also be affected by the customs duty hike. Fiat Chrysler’s Jeep brands, that will be imported as CBUs by the end of the year, will also be affected by the increase in customs duty.

The ESTD (a brand of InterGlobe Established Private Limited), which imports car models like Koenigsegg from Sweden, Ariel, Gumpert, Deronda and Nostalgia (a company that makes Jaguar replicas) will definitely have to push up the prices of their uber-expensive cars. The company also imports motorcycles from the stable of Vyrus, Hollisters and Grinnall. The ESTD also imports

Saint Tiruvalluvar Chidambaram’s quote from his favourite poet

“Kalangathu kanda Vinaikkan Thulangkathu Thookkang Kadinthu Seyal” (What clearly eye discerns as right. with steadfast will And mind unslumbering, that should man fulfil)

March 2013 / 23

Union Budget 2013-14

Motorcycles with 800cc and more engine capacities

Yamaha

Suzuki

Honda

BMW MOTORRAD

Ducati

Aprilia

Harley Davidson

Husqvarna (now owned by KTM CEO)

VMAX

GSX-R1000

CB1000R

K 1300 S

Diavel

RSV4

Night Rod Special

Nuda 900R

YZF R1

GSX-R1000Z

CBR1000RR

S 1000 R

Monster 1100

Tuono V4 R

Road King

FZ 1

BANDIT 1250SA

VFR 1200F

R 1200 RT

Multistrada

Mana

Street Light

HAYABUSA 1300

VT 1300CX

K 1600 GT

Streetfighter

INTRUDER M1800R

K 1600 GTL

1198

INTRUDER M1800RZ

R 1200 GS

1199

INTRUDER M800

R 1200 GS Adventure

Hypermotard

R 1200 R

Hyperstrada

Ultra Classic Electra Glide

K 1300 R HP2 Sport

SUVs affected by increase in excise duty Audi Q3

Mahindra Thar

Renault Duster

Audi Q5

Mahindra Bolero

Renault Koleos

BMW X1

Mahindra Xylo

Skoda Yeti

BMW X3

Mahindra Scorpio

Tata Safari DIcor

BMW X5

Mahindra XUV 500

Tata Safari Storme

BMW X6

Ssanyong Rexton

Tata Sumo Grande

Ford Endeavour

Mitsubishi Outlander

Tata Sumo Gold

Force One

Mitsubishi Pajero Sport

Tata Aria

Free Lander 2

Mitsubishi Montero

Toyota Innova Aero

Force Gurkha (BS-III)

Maruti SX4 (Sedan)

Toyota Fortuner

Honda CR-V

Mercedes GL Class

Hyundai Santa Fe

Mercedes M Class

24 / March 2013

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Union Budget 2013-14

Union Finance Minister P. Chidambaram departs from North Block to Parliament House along with the Ministers of State for Finance, Namo Narain Meena and S.S. Palanimanickam to present the General Budget 2013-14, in New Delhi on February 28, 2013. Picture courtesy: PIB luxury yachts into India and these too will be more expensive for the super rich. Yachts include those from the stables of ISA, Messerschmitt, Arcadia, Novatec, Saturn, Hydrolift and Donzi.

SUV manufacturers will revise prices Given that car makers usually pass on excise duty increases to car buyers, SUVs like the Mahindra Scorpio, the Tata Safari Storme and the Renault Duster etc may expect an upward price revision by about 15,000. However, sub-4 metre

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SUVs like the Mahindra Quanto, the Premier Rio and the soon-to-belaunched Ford EcoSport will not be impacted by the excise duty rise on SUVs as they fall under the small car category Sometime back Union Heavy Minister Praful Patel has told reporters that he will be holding consultations with the finance minister and recommend for some sops for the automobile industry.

In a way he stands vindicated. In order to encourage manufacture of environment-friendly vehicles, Chidambaram has extended the period of concession now available

for specified parts of electric and hybrid vehicles up to March 31, 2015.

Also, the government has also proposed to buy 10,000 additional buses under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), which is being continued in the 12th Plan. Out of the proposed 14,873 crore provided for JNNURUM, a significant portion will be used to purchase buses used especially in the hill states.

Excise duty on truck chassis has been reduced from 14pc to 13pc.

The government also increased duty on second hand vehicle from 100pc to 125pc.

March 2013 / 25

Budget reactions

S. Sandilya, President, SIAM

S. Sandilya, President, SIAM welcomed the Union Budget 201314 tabled by P. Chidambaram, and said that under the current economic environment, the Finance Minister has tried to balance the need for growth with fiscal compulsions.

The announcement of investment allowance reintroduction is very positive. Focus on infrastructure is also a welcome move which will help growth of the economy.

“While there are several innovative proposals, the auto industry had expected that the Finance Minister would come out with more specific roadmap for implementation of Goods & Services Tax (GST). The industry would be keenly looking forward to full implementation of GST at the earliest. SIAM appreciates the Finance Minister’s gesture of allocating double the funds under JNNURM scheme enabling substantial part for purchase of up to 10,000 buses. This was very much

needed for revival of CV sector.

Finance Minister has also accepted SIAM recommendation to lower excise duty on commercial vehicle chassis from 14pc to 13pc which was raised in the last budget and led to significant drop in off-take of chassis by the body builders,” he said in a statement.

He further added that the increase in customs duty for luxury cars and motorbikes seems to be an effort to raise more revenue and to encourage local manufacturing, value addition and employment. The proposal to increase duty on second hand vehicle from 100pc to 125pc is the right step. It clearly conveys that India is not ready to accept second hand vehicles from other countries.

The other area which the industry did not expect was the increase in excise duty on SUVs used as personal vehicles. This is the only segment in the industry which has been doing well this year and increasing price of these vehicles

would dampen sales and impact market sentiments further, he said.

Sandilya thanked the Finance Minister for accepting various suggestions of SIAM and hoped that the budget will help take the country back to growth path and improve performance of the industry. The critical thing, however, will be speedy implementation of the policies.

Surinder P. Kanwar, President, ACMA

Surinder P. Kanwar, President ACMA, said, “We are glad that the Hon’ble Finance Minister has unveiled a pragmatic budget with adequate focus on development of the social sector as well as the industry.

ACMA also welcomes the focus on measures to encourage the Micro,

26 / March 2013

Small and Medium enterprises (MSMEs). MSMEs constitute over 70pc of ACMA’s membership and scaling-up has been a challenge for the sector. With assurances in the Budget that the incentives enjoyed by MSMEs would continue undiminished for the next three www.motownindia.com

Budget reactions

years should they outgrow their limits, is a step in the right direction.

Further setting up of additional Tool Rooms and Technology Development Centres will encourage technology development and absorption in the MSMEs. It is also heartening that corporate funding of incubators located within academic institutions will qualify as Corporate Social Responsibility (CSR) expenditure.”

Kanwar further added, “The

enhanced allocation of over 14,000 crores for buses under the JNNURM will also give a boost to this segment and the associated auto component consumption, which has been suffering for sometime now. Further, shortage of skilled manpower has been an issue of significant concern for the auto component industry, the out lay of 1,000 crores in incentives for skill development will encourage youth to engage in appropriate

vocational training which will benefit the industry.”

The budget also announced enhancement of excise duty from 27pc to 30pc on SUVs, which has been one of the fastest growing segments in the vehicle industry.

Considering that the vehicle industry in the country is witnessing negative growth, this measure would adversely impact the industry sentiment.

Takayuki Ishida,

MD & CEO, Nissan Motor India Takayuki Ishida, MD & CEO, Nissan Motor India, said “The excise hike for SUV will not have a drastic impact. It is most likely to distinguish the price barometer between sedans and SUVs even more clearly than ever before”.

However, he stated, “We are very happy about the investment allowance of 15pc for investments above 100cr as a tax incentive. We stand to benefit from this as we

have plans to expand our operations in India. We are also happy about the Chennai - Bengaluru Industrial Corridor to be developed jointly by the Department of Industrial Policy and Promotion (DIPP) and the Japan International Cooperation Agency (JICA). This industrial corridor will play an important role in terms of logistics infrastructure for companies like ours which are present in the said region.”

Anoop Prakash,

Managing Director, Harley-Davidson India While the duties appear to have increased on CBU imports, the impact on our pricing will be minimal thanks to our steady focus on developing our completely knocked down (CKD) operations in India since early 2011. Our CKD operation allows us to contribute to

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local investment while also reducing the tariff burden for customers across India. Nine of the 12 models in our India line up are now being assembled in our CKD facility, which will give our customers reason to celebrate.

March 2013 / 27

Budget reactions

Lowell Paddock,

President & Managing Director, General Motors India The budget is encouraging due to its focus on agriculture, irrigation, education, skill development, health care and infrastructure. Since it addresses some of the concerns of the industry in general, it should help economic growth going forward.

As far as the automotive industry is concerned, the budget did not meet the expectations. We were expecting the roll back of the excise duty imposed last year. Instead there is an increase of 3pc excise duty on SUVs and there is also a hike in customs duty of 25pc on high end imported vehicles. These hikes are not on the expected lines and will impact the sale of SUVs. Having said this, we have to see the fine print to understand the clear definition of SUVs. The automotive industry is one of the growth drivers of the economy with its backward and forward linkages to generate multiple and substantial

employment opportunities any duty concessions would have helped the industry to register some growth as the industry has already started slowing down due to high interest rates, fuel prices, commodity prices, negative market sentiments etc.

Some concessions announced for electric vehicles and increased allocation for the road transport sector are welcome decisions.

The intention to further promote the development of infrastructure, particularly in rural areas, is a positive step. The government’s commitment to continue with its reform process is likewise appreciated.

Similarly, the investment and demand stimulating measures in manufacturing especially the investment allowance for two years, purchase of buses under JNNURM, movement on GST and some positive action on industrial corridors are also welcome decisions.

These proposals, if implemented effectively, should have a positive impact on industry and the economy as a whole. The challenge now is the implementation of the proposals.

Our hope is that the market will respond favorably.

Anirudh Bhuwalka, MD & CEO, AMW Ltd We welcome the Budget as it is growth oriented. The measure taken by the honorable Finance Minister will help in revival of the HCV industry. Investment in schemes like JNNURM, Tax free Infra Bonds, Constitution of road authority,

28 / March 2013

Increase and revival of road networks, increase in the tax holiday for power plants and policies to encourage PPP along with Coal India are all the measures taken in the right direction both long and short term besides having a multiplier effects.

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Budget reactions

Michael Perschke, Head, Audi India

Increase in custom duty for imported cars and excise duty on SUVs is very surprising. It will severely impact the auto industry and its growth. We will have to seriously evaluate the impact of this hike on our prices and, have no choice other than to pass on the increase to the customer.

Overall it will have an adverse impact on automobile industry which is already going through a slowdown and specifically affect demand including that of SUVs. Currently, the industry is facing pressure from a number of factors like increasing fuel prices, high input costs, persistent

inflation, high interest rates; the increase in excise and customs duty will be a dampener. The government should have looked at extending support to auto industry, which has been contributing, significantly to the GDP and could have formed a strategic pillar of industrial development.

We are happy to note that there is a renewed focus on infrastructure especially roads.

The proposed regulatory authority on road construction will hopefully fuel better infrastructure and speed up developments.

Anders GrundstrĂśmer,

MD, Scania Commercial Vehicles India I feel that this is a good macro economy focused budget. I expect that stability will be further improved especially with the incentives that will bring in additional investments and provide a fillip to the manufacturing sector.

It is good to note that the duty on commercial vehicles has remained constant, and this we hope will promote the sales of commercial vehicles in the country. What will provide further impetus is duty concessions and extension of

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special duty rebates for electric, hybrid and all vehicles, giving room for alternate and green fuel. This will act as a catalyst for moving towards alternate fuels in the commercial vehicles segment as well.

We also see an immense scope for India’s transportation sector through the newly announced JNNURM project for buses and the various corridors that will provide greater connectivity hence furthering the need for good transportation systems in the country.

March 2013 / 29

Budget reactions

Joginder Singh,

President and MD, Ford India We welcome the focus on infrastructure development, social benefits for inclusive and sustainable growth in the country. The investment allowance to boost the manufacturing sector is a positive move. The automobile industry is a significant contributor to India’s economy and future growth potential. We are disappointed that

there is very little in the budget that will help boost consumer confidence and revive growth. It is a missed opportunity to introduce measures that would have revived industrial growth significantly. As we all know the automotive industry has been going through very challenging times, we are disappointed with the increase in the excise duty for SUVs.

Rohit Saboo,

President & CEO, NBC The industry was expecting a big push to bring it out of the downturn.

There has been no support from the government on the auto segment, instead there is an increase in the

excise of the SUVs which was the only sector in the auto space doing well. Now this will also be under pressure.

Deep Kapuria, Chairman, CII National Committee on MSME

Given the economic circumstances in which the Union Budget 2013 was presented, the FM has done a commendable job for the SMEs - while on one end he has given support to the Start-ups/ first generation entrepreneurs through listing on SME Exchanges without an IPO and encouraging the establishment of Incubators,

30 / March 2013

however, on the other hand he has extended the preferential benefits for the SMEs for three years, after they outgrow the MSME category.

Similarly, he has allocated funds to SIDBI for refinancing, R & D and also for setting-up of a factoring fund, that is expected to provide respite to the SMEs from the issue of delayed payments. www.motownindia.com

Budget reactions

Uttam Bose,

Managing Director, Hindustan Motors Ltd. The auto industry has been the worst affected by the ongoing economic slowdown. The current fiscal has registered virtually no growth in the car segment.

No wonder, hike in excise duty on SUVs from 27pc to 30pc has come as an unexpected blow.

Thankfully, the excise hike is limited to SUVs. The finance minister has, however, given hope to the auto industry by allocating 14,873 crore to Jawaharlal Nehru National Urban Renewal Mission (JNNURM) which

will lead to growth in public transport. Companies in the commercial passenger vehicle segment should benefit. The move is also in line with the socio-economic reality of the country. One hopes that the finance minister will offer some incentives specially for smaller automobiles, which form the bulk of total auto sales, before the budget is eventually passed.

The auto industry is amongst the biggest employers and tax payers. It cannot be allowed to languish for long.

Auto sector largely unimpacted The Union Budget 2013-14 is likely to have a minimal impact on the domestic auto sector, considering that excise duties have remained largely unchanged, and macro-economic parameters continue to weigh down sales.

With excise duty for most categories remaining unchanged at 12pc, and given the high interest rates and increasing diesel prices, passenger car and van sales growth will be in line with India Ratings’ 2013 expectation of 2pc-3pc and 0.5pc-1.5pc.

Despite an increase in excise duty on utility vehicles (UV) to

30pc from 27pc (with duty on UV taxis, contributing to significant proportion of sales, remaining unchanged), the overall sales in this category are not likely to be materially impacted. Increase in prices in the mid-to-top-end UV segments would not be a deterrent for high net worth individuals as well as corporates.

Competitively priced low-end UV models would continue to contribute to the bulk of segment sales, as their prices are comparable to mid-size cars.

The increase in customs duty on imported luxury cars to 100pc

from 75pc would channelise the demand towards locally assembled luxury models and be positive for the domestic industry.

The proposal to allocate 14,873 crore towards Jawaharlal Nehru National Urban Renewal Mission (JNNURM) (a part which is meant to acquire 10,000 buses in largely hilly areas) would help prop up sales volumes of Medium and Heavy Commercial Vehicles (MHCV) passenger carriers to some extent. MHCV manufacturers and bus body builders would benefit from government purchase of fully built buses.

India Ratings & Research Pvt Ltd, (A Fitch Group Company)

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March 2013 / 31

Cover Report

Bharat Gears Ltd

Shifting into top gear Report Avishek Banerjee Photography Mohd. nasir

32 / March 2013

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Cover Report

T

Surinder p. Kanwar Chairman and Managing Director (CMD), Bharat Gears Limited (BGL)

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he auto industry in India may be currently facing one of its most challenging times, but Surinder P. Kanwar, Chairman and Managing Director (CMD) of Bharat Gears Limited (BGL) seems unfazed by this gloom. He wants his company to grow both organically and inorganically. In the next few years he expects his company to reach a turnover of 1,000 crore.

Kanwar is the president of Automotive Component Manufacturers Association of India (ACMA) for 2012-13. Associated with his late father Dr. Raunaq Singh since 1979, Kanwar has also worked at various managerial positions in several Raunaq Group Companies viz. BST Manufacturing Limited (Bharat Steel Tubes Limited), Raunaq International Limited, Raunaq and Company Pvt. Ltd., to name a few.

He has been on the board of Bharat Gears Limited since September 29, 1982.

Assisting him at Bharat Gears is his son Sameer Kanwar, a thirdgeneration entrepreneur. As Executive Director-Strategic Planning of Bharat Gears Ltd, Sameer Kanwar had spearheaded the business operations of the Faridabad plant of the company. The BGL board of directors in its meeting held on May 28, 2008 appointed him as Joint Managing Director of the company. “In FY 2013, we are investing 20 crore in existing plants and 40 crore for setting up a new unit at Lonand in Satara, Maharashtra. We expect the new plant to commence production in April, 2013. It will manufacture automotive gears and

March 2013 / 33

Cover Report in first phase it will add capacity of about 10pc-15pc. Investment plans for coming years shall be finalised based on market scenario,” says Kanwar in an interview with Motown India.

As far as his inorganic ambitions are concerned, he says his company is eyeing an overseas firm either in Europe or the US to diversify into non-automotive segments. Kanwar reveals, “We are diversifying into different product segments which would be non-automotive. It is not merely a de-risking strategy, but a diversification strategy. We will always upgrade to high-end technologies and equipment as we are looking for acquisitions abroad, especially in the US and Europe to source their high-end technologies.

The amount depends on the assets, product, marketing base and R&D capabilities of the company.

We want to be in the automotive domain more as a tier-1 business where we can make transmissions, axles, or assemblies. Hopefully, we would be able to decide soon on the diversification strategy.”

Doubling turnover by 2020 Kanwar, whose company BGL is today India’s largest commercial vehicle gear manufacturer, is hopeful that his company will double its turnover to 1,000 crore by 2020. The CMD of this tier-1 auto component firm is pretty conservative of his target.

“I do acknowledge the fact that the growth in the domestic auto component industry has been very moderate. But I am very optimistic about the long term prospects as India has the fastest growing GDP in the world today after China. Post 2014 parliamentary elections, things

34 / March 2013

will definitely be looking up,” he notes, adding that, “By 2020 we are expecting 1,000 crore, out of which 80pc will be derived from the domestic market and the balance amount from the overseas market.

He further mentions, “We are going to expand aggressively in the aftermarket vertical too. Right now 80pc of our revenues is contributed by the direct market and 20pc from the aftermarket. In the next seven

years, the ratio of the direct and indirect market will be 75:25. That means the aftermarket segment will be accounting for atleast 250 crore of our topline.”

Incorporated on December 23, 1971, BGL is India’s largest gear manufacturer for commercial vehicles, farm machines and construction equipment. Since commencing business in 1974, BGL entered into a technical www.motownindia.com

Cover Report knowhow agreement with Holcroft for manufacturing furnaces from May 1983 to December 2006. It also entered into technical and financial collaboration with ZF Friedrichshafen, AG, Germany in 1985 till mid-May 2007 for manufacturing gearboxes. “Our ultimate goal is to make a complete transmission set up. Unfortunately, all the OEMs in India assemble all the transmissions in-house. They don’t want to buy a complete transmission. But the dynamics will certainly change,” says Kanwar.

BGL currently manufactures a wide range of gears for heavy, medium and light commercial vehicles, utility and off-highway vehicles. The products include a wide range of ring gears and pinions, transmission gears and shafts, differential gears and gearboxes. The publiclylisted firm has three divisions: Gears, Furnace and Automotive components. It is also an exporter, supplier and manufacturer of automotive gears, heat treatment furnaces and automobile

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March 2013 / 35

Cover Report components. As it aspires to become a multinational gearmaking giant, more countries and clients will be added to its export base. “Though we are actively focusing on the export market, we will try to increase the share of our overseas customers,” notes Kanwar.

However, what really intrigues industry analysts is how a hardcore CV supplier could be optimistic about his business’ fortunes when its buyers (OEMs) are reducing its growth projections. But the secondgeneration entrepreneur is following his father’s principles by being unfazed during turbulent times of a business cycle. He believes that the Indian economy is going to witness a further boost because of factors like rising disposable income among people, unprecedented infrastructure development, and also policy reforms by the government. “If you talk about the short-term headwinds, my company’s output may hit a speedbreaker. But for the long term scenario, we are very confident of our growth that we have earlier anticipated. Every global OEM, whether it’s a car manufacturer or a truck manufacturer or even a construction equipment maker, is looking or expanding its Indian manufacturing footprint. So as OEMs look to localise their products, I am sure they will be approaching us to make world-class gearboxes for them,” he clarifies.

Growing list of customers BGL’s customer list includes almost all the players in the automobile industry in the tractors, trucks, buses and utility vehicle segments like Tata Motors, JDEPL, Escorts, Carraro India, Elgi Equipments, Mahindra & Mahindra, SML Isuzu Limited, Sona,

36 / March 2013

JCB India, Mahindra Navistar, Hero Motors, New Holland Fiat India, Axles India, VST Tillers, TAFE, Ashok Leyland, Spicer India and Toyota Kirloskar. For several of the players, BGL is the single source supplier for gears.

In the export market, BGL’s clients

include Carraro Spa Italy, Eaton USA, JDCW-USA, ZF--America, China and Europe, TMA-USA, Dana Corp.USA, John Deere Iberica, Spain and Tech Development Inc. USA. BGL is confident of adding some new clients too in the next few years.

“We are expecting a lot of overseas www.motownindia.com

Cover Report R&D activities at both its plant to develop next-generation products for global behemoths. Currently, the plants are having a headcount of 15 engineers who are basically into the following activities: 1. Optimising gear profiles in bevel and transmission gears with a view to maximise the power density as well as gear life 2. Analysing metallurgical parameters of all gears with a view to improve gear life at optimum cost.

companies to come on board. The approval takes eight months to a year,” he states. But he is quick to add that his company will never foray into two-wheeler segment.

Acknowledging the true Punjabi within him he says, “Punjabis are very aggressive and enterprising

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people. It’s our exclusive trait that we want to do everything differently” Keeping that determination in mind, he points out that he aims to grow both organically and inorganically.

Apart from ramping up its operations, the homegrown gearmaking firm is also engaged its

BGL has special equipment and software which are used for optimising the various parameters of gears in bevel and transmission. BGL uses special software to analyse gear accuracies and profiles in special gear profile measuring machines.

By iterative processes the optimum profiles before and afterheat treatment are arrived at prototypes are produced based on this and tested in field conditions to validate the optimisation.

When customer requests for improving gear life at reduced costs, a similar iterative process is adopted with changed material. The gear profiles are developed before and afterheat treatment and they are revalidated with changed material in the field. The above processes take into account axle/transmission deflections under load and hence they well reflect the real world situation.

“We were prepared for everything right from the beginning, as we had already faced a lot of predicament in the formative years of the company’s existence. Today, we have reached a level where we are a world-class company in competition with world leaders in the industry,” concludes Kanwar. It is obvious that Kanwar is shifting his company into top gear.

March 2013 / 37

ACMA Automechanika special

ACMA Automechanika

makes a splash Report Motown india bureau, Photography Mohd. nasir

(L to R) Sandeep Balooja of Anand Group, A.K. Taneja of Shriram Pistons and Rings, Arvind Kapur of Rico Auto, Surinder P. Kanwar of Bharat Gears, Praful Patel, Union Minister of Heavy Industries and Public Enterprises and Vinnie Mehta of ACMA at the inauguration of the ACMA Automechanika Show 2013 in New Delhi.

T

he ACMAAutomechanika New Delhi, which was inaugurated by the Union Minister of Heavy industries Praful Patel, proved to be moderately successful in its inaugural year. The sold-out event, held from February 7 to 10, 2013 at Halls 8 – 11 of Pragati Maidan in

38 / March 2013

the nation’s capital, featured 261 exhibiting companies (149 domestic, 112 international) and attracted 8,157 business visitors. This was India’s first ever trade exhibition specialised and dedicated to the auto-component aftermarket and was jointly organised

by Germany’s Messe Frankfurt Trade Fairs and the Automotive Component Manufacturers Association of India (ACMA), a nodal agency for the Indian auto component industry.

Sponsors for the fair came from

a wide range of sectors in the automotive components industry.

Shriram Pistons and Rings Ltd. (SRPL) supported the show as a Platinum Partner along with Aro Equipments.

While Anand Automotive Limited & ZF India came on board as Gold Partners, Escorts Auto Products was a Silver Partner and Elofic Industries supported as the Bronze Partner. Apart from the sponsors, the participating firms focused on showcasing their latest innovations www.motownindia.com

ACMA Automechanika special

Praful Patel ardently listening to AK Taneja of Shriram Pistons and Rings to the India automotive aftermarket.

Sectors featured at the debut fair included parts and systems, accessories and tuning, tyres and batteries, repair and maintenance, it and management, service stations and car washes.

Overseas exhibitors had a stellar showing, as companies came from countries and regions including Bangladesh, China, Czech Republic, Germany, Indonesia, Italy, Japan, Poland, South Korea, Spain, Taiwan, Turkey, the UAE, the UK, and Ukraine.

In total, exhibitors, including pavilions from China, Italy, Germany, Taiwan and the UK, covered 9,100 sqm of exhibition space.

While addressing the audience during the inaugural ceremony, Praful Patel remarked, “ACMA Automechanika New Delhi is a

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very important show to India’s automotive industry, which currently represents 22 percent of India’s manufacturing GDP. India today produces high-quality components and has a strong manufacturing base. In addition, the country’s growing economy is a key indicator of the rapid development in the automotive industry, and is poised for extraordinary growth. A show like this gives India’s auto industry the perfect chance to showcase its current progress.”

Also present at the inauguration ceremony was Surinder Kanwar, President, ACMA, who commented: “ACMA Automechanika New Delhi 2013 has indeed been a very successful new venture for ACMA and Messe Frankfurt India.

The show has exceeded all of our

expectations in terms of exhibitor participation and in attracting key, decision-making buyers”. He added, “The automotive aftermarket in India is currently growing at a pace of 10 to 15pc. Although the industry is growing, it is currently going through a rough patch.” He also emphasised the importance of keeping a check on counterfeiting, which is a major concern of the aftermarket today.

Although visitors mainly came from the Indian sub-continent, the fair also received buyers from as far as Australia, France, Turkey and the Ukraine.

Michael Johannes, Vice President, Brand Management Automechanika, Messe Frankfurt Exhibition GmbH, called the event a ‘big moment’.

He said, “ACMA’s reach within

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ACMA Automechanika special

the Indian auto component and aftermarket industry and Messe Frankfurt’s experience of organising international trade fairs makes this an ideal partnership.” He also underscored the influential role played by Raj Manek, Managing Director of Messe Frankfurt Trade Fairs India Pvt. Ltd., in the realisation of ACMA Automechanika New Delhi.

As the converging hub for major local and international auto component businesses, the New Delhi show has covered the sectors of Parts and Systems, Accessories and Tuning, Tyres and Batteries, Repair and Maintenance, IT and Management, Service Station and Car Wash and the latest automobile services. The fair has provided participants access to new markets while affirming its status as a solid

40 / March 2013

platform for networking.

Raj Manek said, “To tap emerging opportunities in India, it was highly imperative that ACMA and Messe Frankfurt formed a partnership, utilising our respective expertise for developing this extraordinary show. With ACMA representing over 600 companies, their reach into the Indian automotive aftermarket is unparalleled. Combined with Messe Frankfurt’s knowledge in organising highly sought-after exhibitions around the world, the show was bound to be a huge success. Buyers came from a range of backgrounds, including intellectual property owners, OEMs, dealers and distributors, retailers, suppliers, manufactures, and global automotive leaders from both India and abroad.”

Growing from a low-value component supplier to an international hub for sourcing high-value critical auto components, India has now established itself as an indispensable market for many key global industry players.

Suppliers from around the world have started to make stronger efforts in tapping the country’s numerous business opportunities.

With hundreds of professional buyers visiting stalls every day, a host of companies decided to use ACMA Automechanika New Delhi as a platform to launch new products.

Aisin Seik Co Ltd announced the commencement of their aftermarket operations in India, BASF India Ltd launched range of radiator coolants under their brand Glynsantin, Eurolub GmbH showcased their new

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ACMA Automechanika special

Eurolub Additive Programme and PCL Sumo Air Technology launched a new Nitrogen inflator and generator.

Additionally, both ACMA and Messe Frankfurt have taken a strong initiative to combat counterfeiting at domestic and international levels through their respective campaigns namely ‘Asli-Naqli’ and ‘Messe Frankfurt Against Copying’.

Both campaigns were focussed on protecting intellectual property rights and spreading awareness of the benefits of using genuine auto components.

ACMA Automechanika New Delhi is one of Messe Frankfurt’s 12 Automechanika fairs held in Africa, Asia, Europe, North America and South America. Since the very first Automechanika Fair was held in 1971 in Germany’s commercial capital Frankfurt, it has expanded to become the largest automobile trade fair in the world with events taking place in Buenos Aires, Dubai,

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Frankfurt, Istanbul, Johannesburg, Kuala Lumpur, Madrid, Mexico- city, Moscow, St Petersburg and Shanghai.

Brazil is tipped to be the next destination where the organisers are planning to host this event.

Seminar on key issues A two-day seminar on the opportunities and challenges faced by the Indian auto component industry and aftermarket, where participants were able to share their professional views with industry peers, was also held concurrently with the exhibition. Targeting leading influencers and decision makers, the seminar’s topics addressed current and future trends within the auto component distribution chain, developments in the auto servicing industry, and stressed the ramifications of counterfeiting.

Renowned speakers such as Soumitra Bhattacharya, Chairman

Consumer Affairs and Anti Counterfeiting Committee, ACMA & Joint MD, Bosch Ltd; Surinder Kanwar, President, ACMA & Chairman and MD, Bharat Gears Ltd; Rakesh Batra, Partner and National Leader Auto Sector, Ernst & Young and Mohit Arora, Executive Director, JD Power Asia Pacific, amongst others, shared their insights.

Bhattacharya noted, “The Indian Auto component industry by virtue of supplying to the Japanese, Korean, American and the European OEMs in India are well versed with the quality expectations of customers in these markets. The aftermarkets especially in the US and Europe are as significant in size as the OEM markets. The time is now ripe for the Indian component manufacturers to spread their wings and harness aftermarket opportunities in these markets as well.”

The next edition of the New Delhi show will take place in 2015.

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ACMA Automechanika special - Tête-à-tête

Dominic Yuklam Seto – Global Vice-President & MD, Asia Pacific, Delphi Product and Service Solutions and Faisal Matin – Country Director, Indian & Sub-Continent, Product and Services Solutions, Delphi Automotive Systems Pvt. Ltd.

Delphi Product & Service Solutions Delphi Product & Service Solutions (DPSS) is a division of Delphi Corporation which provides Original Equipment (OE) replacement parts, diagnostic tools, and training services to the global automotive aftermarket. The US-based company designs and manufactures components and systems for the world’s largest automakers such as General Motors, Ford, Chrysler, Toyota, Hyundai and Volkswagen. The NYSE-listed firm’s aftermarket division- DPSS-offers some of the industry’s most advanced vehicle diagnostic tools, in addition to access to the hands-on training and technical support.

Delphi India was incorporated in April 1995 as a wholly owned subsidiary of Delphi. It operates in several locations, including four manufacturing facilities located in Chennai, Greater Noida, Dharuhera, and Gurgaon, a technical centre in Bangalore and the Delphi – TVS joint venture in Chennai.

In India, DPSS has an authorised wholesale distributor’s sales outlet in Coimbatore, India. Delphi aftermarket products are distributed through national, regional and state level distributors reaching to over 5,000 distributors/retailers in India.

Wholesale distributors also support Delphi’s aftermarket products across India, making products available in many cities.

Some of the aftermarket products sold by the company are brakes, consumer electronics, evaporative canisters, HVAC products, lubricants, oil filters, radiator coolants, steering products, suspension products, and vehicle electronics and wiring harnesses.

Report Avishek banerjee, Photography Mohd. nasir This is the first time that India is hosting Automechanika. What are your views on this? And how important are such events for Delphi?

Dominic: We at Delphi have been a great supporter of the Automechanika family. The company has been participating at many such shows abroad like the ones at Shanghai, Frankfurt, etc. It is being held for the first time in India. My opinion is that the Automechanika family is extremely important for us to create a network for sharing our products and ideas for different set of consumers.

How is Delphi’s aftermarket division performing in Asia and specifically in India?

Dominic: From the global standpoint, Delphi Corporation last year has earned US$ 15.5 billion

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Dominic Yuklam Seto (L) and Faisal Matin worldwide. Unfortunately, we cannot put down any figures of DPSS’ share out of that total amount. Last year, we did witness a bit of a slowdown in the automotive direct market.

But we are happy with the growth that we have achieved in the year 2012. In the Asia Pacific region,

we are focussed on expanding our categories in four areas i.e. chassis, vehicle electronics, thermal and consumer accessories. We would like to continuously expand our product portfolio. Secondly, we continuously evaluate how we can increase our customer base in Asia www.motownindia.com

ACMA Automechanika special - Tête-à-tête

Pacific regions. Thirdly, we regularly look to expand into new territories.

For example, we are expanding our opportunities in neighbouring countries like Sri Lanka. Likewise, with China we are looking to serve the Western market. We are also looking at expanding into other Asian countries like Vietnam, Indonesia where we have already gained a toehold. In the Asia Pacific especially India, We are betting big on engine management systems as far as our product line is concerned.

Faisal - I would like to add to what Mr. Dominic has said by stating that we don’t have specifics as to what we are doing in the aftermarket segment in India. The reason why we cannot share the contribution in terms of percentage is because it depends on the OE content support which is being provided by our plants in India. So the growth pattern keeps on changing over a period of time. Delphi, as a whole, is growing in India as well. We keep on strengthening our existing portfolio.

What is happening in India is that it is undergoing a complete morphing from car parc point of view. The vehicle density is getting added and the market shares of existing carmakers are getting changed. As the car parc keeps changing, we have to align our strategy to the changing dynamics. We would like to better our annual growth that we have been achieving all these years.

We aspire to outperform the overall growth in the Indian automotive market.

Are your products catering to the Indian market locally made?

Faisal: It depends on the kind of products that we are selling in the replacement market. A lot of auto

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Dominic Yuklam Seto (L) and Faisal Matin parts are not manufactured by Delphi here, but in other countries.

For example, when Volkswagen came to India, there were a lot of parts sourced from Delphi Europe.

So we have that kind of a global strategy in place wherein we have to leverage on our global presence.

Accordingly, each country or region works on the same philosophy. If there is a particular part available

at some overseas plants, we get connected to that county. So it is basically a support function which keeps on happening and keeps on changing with the market dynamics.

As the vehicle parc expands, we will realign our strategies.

Dominic: Adding to what Mr. Faisal has said, when you look at our supply base, Delphi is a global

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ACMA Automechanika special - Tête-à-tête

organisation. We have many ways to get our products. We have an office called ‘Global Sourcing/Purchasing Office’ which is responsible for how we can identify the best products from wherever possible. Products meeting the high-standard OE specifications are identified that are also meeting our pricing strategy.

For example, we have a joint venture in India with Roulands for making brake pads for both domestic and overseas markets. So it depends on which categories we are present in.

How much does the automotive aftermarket segment contribute to Delphi’s business in India and globally?

Dominic: When you look at Asia Pacific, China and India are two of my most critical and high-potential

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markets. And we are absolutely focussed on India to increase our presence in the aftermarket segment. As I said earlier, we are betting big on the engine management systems. When I was here at the last Auto Expo in January 2012, I saw a lot of vehicles being launched by domestic and international OEMs. We continue to develop several high-content products for the market in the next few years. With the strict emission norms kicking in, there will be an additional demand for engine management systems developed by us.

Faisal: What is happening is that Indian aftermarket segment is becoming very important in the global marketplace. As the car sales

increase everyday in the domestic, there is a simultaneous growth in its exports. So there is an aftermarket development for these made-inIndia cars in other countries in the next 3-4 years. This is the way how we look at it.

Your aftermarket vertical, Delphi Product & Service Solutions (DPSS) has been running a chain of authorised sales outlets in India. Does it cater to all segments like the distributors, dealers, workshop owners, mechanics and consumers?

Faisal: These outlets have been set up to reach out to our customers. It could be in the form of distributors, dealers, workshop owners, wholesalers, mechanics or end consumers. It’s more of a penetration

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ACMA Automechanika special - Tête-à-tête

strategy which we have in place.

That’s the way it is.

Dominic: What I would like to add is that our end customer is technicians. So we continue to support our warehouse and distributors by providing them as much product information as possible. We also provide them training, the technology know-how, the requisite information as to how to handle the vehicle with care etc.

As a result, they will recommend our products through our warehouses and distributors. Unlike in various mature countries like the US where the consumer repairs the cars themselves, here the owners will bring it to the garage to get it done.

You launched the Delphi Service

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Centre concept in Equip Auto.

Do you plan to replicate similar concepts in India as well?

Dominic: Delphi Service Centre is always one of the key strategies to grow the business. The reasons for setting up such centres are building relationships with the consumers so that we can command a brand royalty. Moreover, we intend to provide a proper diagnostics capability to the garage level so that they can do the right job at the right time to fix the vehicle. To develop a Delphi Service Centre is always based on the how we can increase the vehicle content. In China, we have been following that strategy for several years. Once we increase our product offering in India and our offerings reach a certain level, we will be establishing such facilities

during this or next year.

Automotive components are getting better in terms of quality in the direct market. Do you see this seriously impacting your business in the aftermarket?

Dominic: Let me talk about Asia Pacific per se. When we do the pieces plan, we always base it on repair rate and Incidents Per Thousand Vehicle (IPTV). Based on that, we calculate what the opportunity is. When the warranty rate of the product is improving, it is actually good for everyone comprising OEMs and automotive suppliers like us. So as the car parc increases, the content (for the aftermarket) also continues to grow.

So that’s the way we continue to grow.

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ACMA Automechanika special - TĂŞte-Ă -tĂŞte

Rajiv Kumar Sachdeva - President, Shriram Automotive Products Ltd. Shriram Automotive Products Ltd. Shriram Automotive Products Ltd. is an associate of the Shriram Group of Companies. The company has been in the business of marketing cylinder liners and air-cooled blocks under the Usha and Shriram Pulsar brand name. It is the only cylinder liner company in India with a national network and image, the products being marketed through a network of over 5,000 distributors, dealers and engine re-building workshops. Cylinder liners and air cooled blocks offered by Shriram Automotive are manufactured using Centrifugal casting process and Shell moulding. Induction furnaces are used for melting and holding material and various alloy combinations including molybdenum, nickel, copper, etc. are used for a perfect metallurgy. Four different material compositions are currently being offered for cylinder liners and air cooled blocks.

Report Avishek banerjee, Photography Mohd. Nasir & Abhijeet singh How important are events like Automechanika for a company like Shriram and how have you really benefitted out of it?

We started business for exports in 1989 and Automechanika was the first exhibition where we could get an international exposure. In 1989, we participated in the Frankfurt Show and since then we have never missed any Automechanika.

The Automechanika in Frankfurt is held every alternate year and since then we are present as Shriram group exhibiting all our products in Automechanika.

How important is aftermarket division for Shriram and how big are you betting on it?

Shriram Automotive Limited is a company which only caters to the replacement market so for us it is virtually a 100pc segment. We cater to both the domestic replacement market and the overseas replacement market. Exhibitions like Messe and Automechanika have really given us a big lead into the world. We are present in all continents with major exports going to Europe, USA, South America and

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Rajiv Kumar Sachdeva West Africa.

How big is the Indian aftermarket segment and what is your share in that segment?

The auto component industry in India is US$ 6.5 billion and as our products go, in which we are one

of the big premium brands in the country, a minimum turnover of 20pc would come from the aftermarket section from the entire supplier share of 100pc.

Do you think the Automechanika event can be held in India on a www.motownindia.com

ACMA Automechanika special - Tête-à-tête

regular basis or it will be a one time show?

Alternate year would be the best period to select the event. I would say January and February are the best months, except that it clashes with the Chinese New Year which could have been avoided.

How are you strategising to expand your presence in the aftermarket segment? Are you setting up a chain of dedicated outlets or are you sending it directly to the distributers? What strategies are you chalking out?

Our strategies are that we are a company which is present in all segments of the auto industry.

We are into industrial, off-road vehicles, cars, two wheelers, heavy commercial vehicles and light

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commercial vehicles. And then we service this industry through dealer networks present in virtually all towns. So we have on an average 5,000 customers available in India serviced by 200 or more dedicated distributors.

There is rampant piracy in the Indian automotive aftermarket.

How are you tackling this menace? Are you lobbing with the government to come out with a stringent legislation to curb such channels?

As the lead is taken by ACMA on the ‘Asli Naqli’ brand, the spurious product sales will go down as the awareness to the consumer improves. If I know what is original and what is duplicate, then I will certainly not spend my money on a

spurious product. So the availability of the product as well as its services and awareness will bring the sale of spurious products down. Very recently,’ Maruti Genuine Parts’ was also promoted on radio which was an unprecedented move by any car company. So if one has to buy an original product for a Maruti they have to go to the MGP showroom or the authorised centre. And then companies like us who are their suppliers ultimately offer better and genuine products to the consumer.

What are the key drivers for the unprecedented growth of the Indian aftermarket segment?

The Indian automobile industry is now at a boom stage with all the leading brands in the world being present here. A consumer is getting

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ACMA Automechanika special - Tête-à-tête

a better choice. As the vehicle population improves, the sale of the components will definitely augment.

So whether it is going to be the serviced components, accessories or even the hardcore components in the engine, the sales will improve by the number of the vehicles growing. Delhi as a city alone has almost 73 lakh vehicles; hence with passing year if this improves by 10pc, the auto component sale will automatically improve by 10pc. Our sales are directly proportional to vehicle sales.

Of late, there has been a massive improvement in the quality of auto components of the direct market. But does that impact your aftermarket sales? If yes, how are you offsetting such a predicament?

As I just said, the percentage growth in the number of vehicles takes care of this problem. Secondly, as a marketing company we are dealing in two segments. As I mentioned, we have started dealing in all six segments of the auto industry. That gives us an impetus to grow in the auto component industry.

Lastly, what is your vision for the company?

I really work on the motto that the giant building takes place not by what the company tells the consumer, but what the consumer tells the company. So we are going to build a product which will virtually be acceptable to the first consumer and the appreciation would come from ‘Consumer to the Consumer’ which will build our brand. So we work on this strategy in the future to build our brand rather than shouting the words that ‘we are the best’.

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ACMA Automechanika special - Tête-à-tête

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ACMA Automechanika special - Tête-à-tête

Raj Manek- Managing Director, Messe Frankfurt India Messe Frankfurt India Messe Frankfurt India (MFI) is the Official Representative for all Frankfurt fairs organised around the world. Indian companies wishing to participate in or visit these fairs, all over the world, need only to contact MFI for complete information, documentation and service. It also organises leading international fairs in Mumbai offering the international industry the most professional platform for business in the country.

Report Avishek banerjee, Photography Abhijeet singh

You have been in this exhibition industry for two decades? Do you see exhibition shows evolving over the years?

My stints for the last two decades covered many countries like the UK, Europe, Russia, Egypt, Turkey, China, etc. I am here in India for the last 10 years and I have to say that this country has evolved in the exhibition industry tremendously in the last decade. And over the last five years it has grown by leaps and bounds. When I came to India, I used to tell everyone that the nation is at least 20-25 years behind Europe. So seeing a country of this size, there are lots of opportunities.

What really drew you to Messe Frankfurt India?

I have been an entrepreneur and for me Messe Frankfurt is like a large vessel. And to execute things under that vessel is not so easy.

But meeting Stephan Buurma (the ex-Managing Director for Messe Frankfurt Asia Holding Ltd.) showed me that what he has done in Asia Pacific especially China, it gave me the opportunity to take that step and actually be an entrepreneur. It also gives me the opportunity to grow the ‘Messe Frankfurt’ brand in India which is also a real challenge.

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ACMA Automechanika special - Tête-à-tête

So what are your thoughts about this ACMAAutomechanika13 which premiered in India?

By combining our expertise in the organisation of automobile exhibitions around the world and ACMA’s invaluable knowledge of India’s auto component industry, I strongly believe the New Delhi fair will serve as the perfect industry trading platform. The response to this fair has been overwhelming. The show has been sold out completely on an area of 9,500 sqm. I have a waiting list of about 1,500 sqm from the domestic side and another 1,000 sqm from the international side. If there was a little bit more space available, the exhibition could have covered an area of 15,00016,000 sqm. But there were no more halls and there was no space available.

What are your expectations from the ACMA Automechanika’13 trade fair?

There is no real expectation from this inaugural fair. If I am getting 10,000 business visitors in all the 4 days, it will be a successful show. In India, the numbers could go beyond that too. We had Light Fair’12 during early October and the show was a little bigger because we had more halls. Even though my expectation (in terms of people walking in) was very similar, but we achieved 16,500 visitors. So if we can replicate the similar success, I will be extremely happy.

Does it help the domestic

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Raj Manek

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industry or the overseas ones?

It generally helps the domestic firms than the overseas ones. The domestic buyers now have a choice of key players.

But don’t you think we need a dedicated and world-class exhibition centre like the ones that have been built in Shanghai, etc?

Without a doubt, India needs state-of-the-art venues not only in Delhi but other cities. In Delhi, it’s not good enough in terms of the infrastructure, quality of services, etc.

We need to up the game because if we see now, the Auto Expo is coming in. The venue needs to deliver similar standards. We need to get to the venue of what Shanghai or any other city in China has done. If you go to the thirtieth city in China, they are hundred times better in terms of venue. So a world-class venue is needed across India. In Ahmadabad, they are building such a centre. So there is a huge potential for such a show as ‘Automechanika’ is a strong brand globally. And I also think that India has a strong market to go with this. Because of the quality that Automechanika represents, India has welcomed this show with open arms.

I am sure this is going to continue.

What about India Expo Mart which is located at Greater Noida?

Is it not a state-of-the art facility?

If yes, do you have any plans to move to that venue during the next show?

India Expo Mart, Greater Noida definitely has that scale and size. It also has the requisite infrastructure. I also ran that centre back in 200509. It is definitely a quality centre and is in tune with global standards.

The only drawback of that centre is

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largely to do with attracting visitors to the destination. That is a very important aspect for any organisers as they need to ensure that they garner adequate visitors. To move shows like Automechanika to that venue is a high possibility. Moreover, many international shows are happening there. I think the visitors’ mindset will change as they get used to visiting exhibitions at Greater Noida. When this happens, many such shows will move across to that venue.

Do you have any plans to hold regional aftermarket shows in other cities? If yes, can you run us through that?

Delhi will always be the Mother Show and will host the Automechanika show in 2015. But in 2014, we might organize a similar event somewhere. It might be a different concept and will likely to be in Gujarat or in Mumbai. The plans

are just in the early stages and will be finalised in the next six weeks.

Why do you think some bigleague firms like Bosch, Bharat Gears, Continental, Bharat Forge, etc have not decided to participate in such a prestigious event?

There have been more than a handful of big firms who are already present here. Companies like Bosch were meant to be here but they were a bit constrained in their focus this year. In the next edition, we do expect these companies to participate. I am very happy with who we got under the roof today. Of course with companies like Bosch, we would have been a bit happier.

We just try to make that we have proven that ‘Messe Frankfurt’ is the right platform. This will ensure that we can confidently convince the companies to participate at the show.

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ACMA Automechanika special - Brief Views

Isabella Feick, Marketing Assistant, Horn GmbH& Co. KG, Simon Shorter, General Manager Subsidiary Companies, PCL

On Automechanika and its significance It is a very important exhibition. At the Automechanika in Frankfurt, Germany, we have been showcasing our products since the inception of the show. Over the years it has become the most important exhibition within the automotive aftermarket. Here in India it is the second time we are showcasing our products and the first time we

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are appearing as the HornGroup.

It is very important to show our commitment to the Indian market and to the local people.

The overwhelming response at the show to our products makes us feel positive and optimistic of the future.

On the company’s presence in the aftermarket Most of our sales are in the aftermarket because we sell to

garage workshops, tyre shops etc.

We do sell to OEMs, but the aftermarket is our core market.

Horn Tecalemit, recognised as the world’s no. 1 company for oil management systems, is focusing on fluid handling equipment and optimisation of the work flow in a workshop through its oil management system. Currently Horn Tecalemit products are not produced in India.

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ACMA Automechanika special - Brief Views

Isabella Feick and Simon Shorter ”Think global-act local” is a statement, which has to be considered. PCL is selling Nitrogen products, tyre inflation devices, pneumatic tools, etc. A large portion of that is built here in India in a factory outside Mumbai.

On the product’s availability Garages and workshops are today equipped with different types of tools from all around the world.

Our intention is to provide the best equipment with a “one-stopshop” philosophy starting with consultancy when building or rebuilding of a workshop is planned.

The HornGroup provides a complete range of products. All products of

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PCL and Horn Tecalemit are available in India. In case of Horn Tecalemit we are in the process of putting the right infrastructure in place. At the moment the manufacturing is done in Germany.

On expansion of product lines We already have good products that have got a good response from a lot of countries, besides India.

The next step is to introduce the complete product range in India. PCL has launched a product here which is a big truck tyre nitrogen generator. It is launched specifically for India. We will develop other products as we learn about the market here. We will continue to adapt. We will focus on

workshops like car garages and tyre workshops.

On the Indian automotive aftermarket It is one very important brick in the HornGroup global strategy.

Just looking at the ongoing road construction in India, the level of motorisation will increase tremendously which will result in increased number of vehicles on road. The cars and trucks need to be serviced and maintained and that is where our equipment and solutions provide the highest level of integration with the aim to optimise processes and increase the owner’s profit. India is an important market

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ACMA Automechanika special - Brief Views

for the group.

On shipment of India-made products to overseas markets We export a small bit, but most of the products for India are designed for domestic use. Some of the products are exported to the UK, but at the moment the products are developed to suit the Indian market, not necessary for exports.

The main advantage of Horn Tecalemit products is that they are made in Germany, which represents high quality. Some elements could be produced in India and exported but the total product itself is designed in Germany and the UK. There is a big opportunity here in India. As the car market and the aftermarket grow, we need to focus on that. So we are not so worried about exports at the moment. We want to develop products and offer solutions for the Indian market.

On German OEMs expanding in India The expansion of German OEMs in India is a big advantage for us as we are approved and listed supplier for many of these companies globally.

But solutions we provide are not just made for German OEMs. We sell to Volkswagen, Toyota, Maruti, Goodyear, MRF, CEAT, Apollo, etc.

We are not just focused on German companies. All companies are important to us, whether they are Indian or German.

PCL has been here for 5-6 years and we have always seen India as being an important market. In 20 years’ time you have to be big in India, and we have to be big in China as well as these will represent the biggest markets. So we need to be here now and keep growing as the markets here are growing.

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On learnings derived from India market We have learned to make our products as durable as possible.

And because the products will be badly treated, implying treated heavily, toughness of the product is very important. Local conditions, like quality of air, how the product is used, working practices prevalent in workshops etc play an important part in the durability of the product.

On key challenges faced Approvals are a challenge. Because of the size of the market it is difficult to get good channel partners who can sell our products. Our products are the best in the world and we need to get that to the end users.

We want the end users to know that if they are looking for fluid handling products they should be asking from our channel partners. We need good dealers to push our products, telling users that they are more reliable and of a good value.

Horn Tecalemit is working on increasing its pan-India brand awareness and to convince all relevant decision makers that we are the best.

PCL is trying to build its brand as well. When people ask for tyre inflator or other such products, we want them to ask for our product first even though it may be more expensive than the regular ones. If people want fluid technology, they should ask for Horn Tecalemit as it is the best.

On retail and distribution plans We would sell to OEMs directly or through channel partners, the way we sell everywhere else in the world.

We are B2B so we will sell to the main distributers who sells garage equipment or through tyre shops. A network needs to be built up in the major cities to supply Horn Tecalemit and PCL. It will take time and we are working on that. Some may be multi-brand depending on how that dealer is setup. Some dealers will just focus on tyre products hence they may not be relevant for Horn Tecalemit but some will do both tyre shop and workshop therefore they will go for both our brands.

On the company’s vision The vision is to ensure that Horn Tecalemit products are used in all Indian workshops and garages.

PCL wants to be the number one air company for tyre inflation and pneumatic tool business in India.

Our vision is to ease the work in all Indian workshops by equipping them with our HornGroup products.

On R&D activities It will be done in three places--Germany, UK and India. In India research will be done in Mumbai and Bangalore.

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ACMA Automechanika special - Brief Views

Sachin Puri VP-Corporate (Aftermarket) Anand Group

On the Group’s participation at ACMA Automechanika This event is very important because genuine customers are attending it whereas in Auto Expo there are all kinds of people. Whosoever is attending this event is discussing business. We expect large queries for exports. A lot of customers are coming to us which feels good.

Yet I am a bit disappointed with the management because the publicity given to the event is very low.

On the company’s growth in the aftermarket

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This year is neither a bad year nor a good one. It’s been average. The dip in sales of commercial vehicles has impacted us in the aftermarket.

Today, the GDP growth has dropped below 6pc. The movement of goods has slowed down. There has not been much of a problem in the twowheeler or car segment.

On its product lines We have various companies such as Spicer, Haldex, Valeo, Perfect Circle, Victor, Gabriel, Behr, Mahle, and more. Spicer produces driveshaft and axle components; Haldex has

brake adjusters; Perfect Circle sells piston rings; Victor has gaskets; Gabriel sells shock absorbers and struts; Behr has climate control, air conditioners and radiators; and Mahle sells oil/air filters. Valeo is a first of a kind marketing venture where we are using the product availability of Anand and the market reach of the Valeo brand. In all the other ventures we manufacture the products but in this venture we source from the manufacturing units of Anand and Valeo in India and abroad. All products are locally made for all brands except Valeo where

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ACMA Automechanika special - Brief Views

products like clutch assemblies, starter motors, wiper blades and a host of other products are from a combined basket of Anand and Valeo, which makes it one of the largest aftermarket product lines in the Indian market.

On the aftermarket segment contribution to the group’s business In the automotive market the domestic sales are about 10pc, and if you consider exports as well then it is another 10pc. Our domestic market business is around 450 crore. Same is for exports also. The Anand group business is around 5,000 crore.

Reasons for sudden growth in the aftermarket space The increase in the vehicle parc in the last couple of years has been phenomenal. Even if there has been some slowdown this year we see a great future for the aftermarket.

Aftermarket depends on what happens in the past. If GDP grows to around 7pc, it is boom time for the aftermarket. If the economy does not grow, people have less money.

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Sachin Puri, VP-Corporate (Aftermarket) Anand Group Inflation is high and people conserve their resources. If the economy is not growing and goods are not selling, the movement of trucks carrying goods decreases. Hence vehicle sale and GDP have to be seen together. It is just a matter of time before we will come back to 20pc plus growth in the aftermarket.

On the company’s sales and distribution plans

Our chain of outlets has recently opened value service, basically for the electric starter motors. These are authorised repair centers for electrical products as they are repaired and sold again.

The road ahead We would like to be known as the most customer-friendly and the most innovative marketing team providing the best service. If we work to improve our service levels and our quality, the customers come automatically. So if our delivery levels are 80pc, we must go to 90pc plus. If our current dealer ROI is less, we must make it interactive so that no competition can break. In fact, I would like to add that there are two game changers that will happen in next one year, one is that Competition Commission of India is going to give a judgment shortly thus removing a few restrictions from OEs which will add to the growth of independent aftermarket and the other is that GST is becoming a reality.

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ACMA Automechanika special - Brief Views

Madhukar Sharma Global Head-Aftermarket, Jamna Auto Industries

On the significance of Automechanika Automechanika has got its own importance as it is the number one show as far as automobiles are concerned. We are participating as an aftermarket manufacturer on behalf of Jamna Auto and the kind of response that we have got is marvelous and I will call it a return on investment. Whereas if you visit Auto Expo, which is held every alternate year, the kind of mad rush you get, it can be felt that the people come to see only the vehicles and they are not interested in auto

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parts. Automechanika is absolutely professional and only serious people are coming which is the best part.

On diversification into passenger vehicles, two wheelers or other similar products We are 100pc OE suppliers to the CV manufacturers such as Mercedes, Volvo, Daimler and Ashok Leyland and we have a marketshare of 50pc with Tata and Eicher. Our concentration is low on the light commercial vehicles because we do not get the price what we expect.

Manufacturers do not want to pay

the price for the quality that we want to provide. We are, however, catering to Maruti, Tavera, Bolero etc in the aftermarket. In the aftermarket segment we can demand our price, but in OE they are both price conscious and in the passenger segment such as government department they go by L1. This is an area we want to move away from.

On its tie ups with NHK of Japan Our partners are not benefitted, but we certainly are. Partners are benefitted by their existence in our country through us. We are actually

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ACMA Automechanika special - Brief Views

Madhukar Sharma, Global Head-Aftermarket, Jamna Auto Industries

selling to neighbouring countries, but we have not yet tried to go abroad in the aftermarket business.

Now due to the response we have got from Automechanika we think that we will have to avail this opportunity and take the benefit.

On the significance of aftermarket for Jamna Auto Aftermarket is a big margin business and is recession proof. Today it covers about 15pc of the total turnover. Our target is to increase this to 30pc. Last year we did 140 crore worth of business in the aftermarket. This year we are doing close to 220 crore.

On its sales and distribution plans We have got a detailed network of

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our own warehouses.

We have got four hubs, which are regionally based------Jamshedpur for east, Chennai for south, Rudrapur for north and Nagpur for west and we have 12 depots under those hubs. We also have plans to go for bespoke Shoppe for the areas which lack good distributors for us.

On the company’s vision

My vision for this company is to work on 5-10pc in the aftermarket and 90pc in the OE segment. In the next 4-5 years I want to bring this company up to 700-1,000 crore in the aftermarket.

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ACMA Automechanika special - Brief Views

Gurdip Singh Chadha Managing Director, Nissim India Private Limited On Automechanika 2013 The footfall is less as the event is new, but the important thing is that only genuine buyers are coming in. I think that is the way it should be.

On the company’s growth in the aftermarket segment It is positive. Through the last decade we grew at a steady pace of 15-20pc. We are supplying all over India through a wide dealer network.

Apart from that we are supplying to certain OEs based abroad. We also have good exports. The sales are equal in all the three segments, 1/3rd in the dealer market, 1/3rd in the OE market and 1/3rd in the

Gurdip Singh Chadha, Managing Director and Balbir Singh Chadha, Chairman

export market.

On growth expectations in the coming years We expect a growth of 25pc per annum in all the segments. Apart from this we want to diversify into new fields and upgrade our technology in the radiator segment.

We will start making new aluminum radiators. We only make radiators that are made of copper right now.

The technology that will be used for this will be completely new with a complete set of new machinery for the manufacture of aluminum radiators. Aluminum is cheaper than copper, nearly half the cost. It will be used in all passenger cars.

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On the production of components We are a local manufacturer. All our products are made in India. The products are made here and then exported to other countries with the same built quality across the range.

Nissim products are world-class.

We are a company which is very quality conscious, we just do not compromise on quality, and that is the reason we are selling so good.

Customers who start buying from us do not want to leave us.

On the company’s vision Our vision is to provide world-class products to our customers and we see a huge growth happening in the coming years. www.motownindia.com

ACMA Automechanika special - Brief Views

Pankaj Kapoor Deputy Managing Director, Tenneco Automotive India

Pankaj Kapoor, Deputy Managing Director, Tenneco Automotive India

On Automechanika First of all Tenneco welcomes all such events. The trade business in India in the aftermarket is changing into a new dimension. There was a way it used to work in the past but now it is modernising and also taking positive inputs from the west. Numerous countries are participating and they are all getting a chance to interact with each other and learn about their products. For Tenneco we are very pleased because it gives us an opportunity to interact with our existing trade partners and to get acquainted with new partners which is necessary as we are expanding in the aftermarket segment. It also gives us an opportunity to display

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our Monroe products and display their capabilities in terms of product technology and testing.

On the growth prospects of Tenneco worldwide and in India Globally we are the number one brand in Europe and North America in the shock absorber business and also a leading brand in other markets. As far as India is concerned we should be among the top two players in the aftermarket. Our growth in India in the last three years has been double the average industry growth in the aftermarket segment.

the aftermarket We are selling a complete range of passenger car products (shocks and struts), nearly 85pc of the passenger vehicle models sold in India in the aftermarket segment. We give our customer complete coverage right from the Nano to Audi and BMW. We also do some commercial vehicles as well as two wheeler and three wheeler products. Most of the products are locally made except for some very high-end products for which the manufacturing is done elsewhere in the world and then imported here. As far as numbers go almost 98pc of the products are made here in India.

On products sold by Tenneco in

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ACMA Automechanika special - Brief Views

On the company’s distribution strategy We have just opened one of its kind Monroe brand shop in Mumbai in Javeri Bazaar on the January 22, 2013. It is the first exclusive brand store of shock absorbers which is totally a new concept introduced by Tenneco. Apart from that our regular distribution structure includes dealers and distributors across India in each state but we want to extend this new concept that we have just launched to other major metro cities in time. It is actually catering to the entire stream of consumers. It is a brand shop which provides complete product range along with technical information and support to the customer. So it can be said that a distributor, dealer, workshop owner or an end customer can walk into

that shop and buy products and gain support from the team.

On entering new product lines in the aftermarket We supply shock absorbers, struts and some of the extended range comprising bush kits, springs and lifters. So far we have been restricted to the associated peripheral products related to shock absorbers and struts and we shall keep you informed about the new products which will be launched in due course of time.

On the potential challenges in the aftermarket I totally understand the quality of the product is improving and because of that the durability of the aftermarket products is longer as well, but we

think at the same time market is also increasing in size. Hence there will always be enough requirements in the aftermarket. Lesser wear and tear of parts will have some impact definitely, but we do not think it will affect the aftermarket sales.

On the company’s vision We want to be the most trusted and preferred brand for our customers in the shock absorber and strut business in India. Anybody thinking about shocks or struts in India should think about Monroe first.

The brand Monroe is a 96 years old brand, and is the leading brand in the business and we have our aftermarket network available across the globe. We want to increase the awareness of our brand and our product capability in this country.

Bernd Grasser Head, ZF Services India On Automechanika New Delhi These events are very important for ZF as we need to build our brand in India. Automechanika is being held for the first time here. We always participate in the Automechanika shows all over the world. There are some Automechanika shows like the one in Malaysia which is not very important, but the one held in China developed over the last seven years since 2005. It has grown in size and stature. This is not a comparison between India and China as these are two different markets and the consumers are very different. Car shows in India like the Auto Expo and component shows like the Automechanika will have their own

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Bernd Grasser, Head, ZF Services India

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ACMA Automechanika special - Brief Views

distinct advantages to offer. Such events are vital as we are a brand and are selling branded products.

We sell these products in the market.

It becomes more important in India which has a short automotive history, unlike Europe which is a more mature market.

On the aftermarket arm of ZF The services turnover in total, depending upon the kind of business units included, is between Euro 1.3billion to Euro 1.6billion worldwide. At present, the Indian share of aftermarket sales is low.

We are here since 2010 and need to develop our brand here. We had an increase of 38pc in after market sales last year. We have moved our business, which was

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done directly from abroad, to India.

We are in a developing market where the number of important partners is increasing. The number of assembled cars of European range, is also rising, thereby elevating our business as well. We create products for passenger cars as well as commercial and construction vehicles too.

On entering new product lines At present we have two automotive manufacturing plants in India. One is for commercial vehicles and the other is for construction vehicles.

The products and parts are locally assembled and sourced for the after sales as well. Transmissions for vehicles like graters, weed excavators, etc, are still imported

from other plants of ZF. On the Indian automotive aftermarket In India the main increase in business is coming as a result of the development here. Building more infrastructure brings us more business. More mining means more trucks which in turn means more business for us.

Vision for the company My vision is to establish ZF as a brand and to be service ready all over India in the aftermarket. We also want to offer the right service to our customers like Tata, Ashok Leyland, etc and set up the right service base in order to get the OE business in India.

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ACMA Automechanika special - Brief Views

Manoj Mishra President & CEO (Corporate Planning and Strategy) Omax Autos Ltd. 1,300 crore (US$ 260m)during the year 2012 and several international accreditations, we feature in the list of the top 10 stamping and tubular automotive component manufacturers in India.

On the genesis of the company Omax saga began in 1985 with its first plant in Dharuhera, Haryana.

Today, Omax manages 9 fullyfunctional manufacturing plants pan India. With a turnover of

On the company’s objective to participate at Automechanika Keeping future expansions in view, we recently participated in ACMA Automechanika New Delhi to avail, networking opportunities with industry stakeholders, to look forward to new partnerships, jointventure projects, or expanding the door for exports and after-market.

We have displayed our wide range of products and showcase our manufacturing strength and process capabilities at ACMA exhibition.

Jatender Kumar Mehta Managing Director – Omax Autos Ltd.

On its facilities and areas of operations Omax Autos has a robust infrastructure and engineering process capabilities boasting a comprehensive range of modern machines and a production facility designed to give optimum output as per a customer’s specifications.

Omax is one of the topmost OEM (parts and assembly) supplier and a leading auto component manufacturer having stronghold in various industry segments including

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Jatender Kumar Mehta, Managing Director – Omax Autos Ltd. with team Omax at Acma Automechnica

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ACMA Automechanika special - Brief Views

Sprockets

Automotive (2W, 3W, PC & CV)& other segments like homeware, technology cell (commercial tool room and spm), railways and heavy fabrication and mining, construction and agriculture equipment. Omax Autos currently delivers its products in category of auto components, sub-assemblies and assemblies, frame and bus structure assemblies, precision machined components and assemblies tools fixtures and SPM. We also have a homeware product division, having a wide range of products including kitchen, furniture, barware and bathroom accessories.

On the USPs and achievements of the Group We are amongst top three companies in Automotive Stamping, two-wheeler and commercial vehicle chassis manufacturing-(Process 85000 tons of steel per annum with 9 plants). We have an annual capacity of producing 6 million Piston Rods, covering 60pc of India’s 4 wheelers demand and one of the largest Sprocket manufacturing capacity (11 Million per annum) in South East Asia.At Omax we have one of the largest tri nickel chrome plating facility (120 million square decimetre) and one of the largest and full spectrum welding facility in India with robots and 800 MIG welding sets (125km welding

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Frame Assembly (2Wheeler)

Front Fork (2Wheeler)

capacity per day). We boast of our 185 mechanical and hydraulic Stamping presses ranging from 10T-1200T capacities to manufacture Sheet metal Components of 0.6mm to 10mm and have six fully automatic/ conveyorised plants for powder coating and also have inhouse precision tube mill. Omax is approved supplier for Indian railway products like fuel tank, doors, biotoilets, engine hood, and more.

On the sales and financials With a strong base of satisfied customers, Omax has been investing continuously and experiencing a consistent increase in its sales for over last 25 years and has exported to various countries. Omax ensures reliable product quality through various levels of quality checking methods, testing methods for performance and inspection methods for final delivery.

On the company’s R&D activities Technology Cell and Commercial Tool Room, started as a captive facility to support in house requirement of press tools, jigs, fixtures and special purpose machines etc, this business has now grown up to be a state of the art tools and advanced SPM manufacturing facility to cater to wide range of Auto and other

industries. At Omax, we make use of the latest software like 3D modelling Software, have installed 24 CAD/CAM centres and design Special Purpose Machines (SPMs) for customised requirements. The research and development team at Omax constantly strives to add value to its products. Today we deliver products as per varied requirements of all the major automotive companies for two and threewheelers, passenger and commercial vehicles, mining, construction and agricultural equipment, railways and heavy metal fabrication and homeware. With our high-tech engineering process capabilities and infrastructure we can manufacture any product, as per our customers.

On vision and growth plans Research, technology, innovations, planning and management are the verticals that we have been putting together all four sides of development to emerge as a global company, with intensive growth plans by related as well as unrelated diversification and organic expansion. By constantly innovating and maintaining high quality standards, the company intends to reach a turnover of 5,000 crore (1US$ billion) by year 201516. Leveraging on a well-equipped infrastructure and dexterous team of leaders supported by experts, Omax has a vision to come up with an avant-garde range of products for new and sunrise industry verticals with plans of organic expansionsexpand current product portfolio and sales, increasing export and entering after market segment, create our own product and brand, work with suitable technology partner to diversify into high-tech auto and non-auto segments.

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Bus & Utility Vehicle Show

Test run for Auto Expo’14 Report Motown india bureau, Photography P.Tharyan

T

he Society of Indian Automobile Manufacturers (SIAM) organised the third International Bus & Utility Vehicle Show between February 15 and 18, 2013 at India Expo Mart, Greater Noida. The exhibition, which was organised with the support of Ministry of Heavy Industries and Public Enterprises, Government of India zeroed in on SUVs, buses and other utility vehicles. The Greater Noida Expo Mart will be the venue for the 2014 Auto Expo. The Utility Vehicle Show was held as a sort of rehearsal for preparing the venue for the grand event. The show was inaugurated by M.F. Farooqui, Secretary, Department of Heavy Industries, Ministry of Heavy Industries and Public Enterprises and S.K. Lohia, OSD, Ministry of Urban Development.

To be held biennially every February, the inaugural show at Greater Noida witnessed the participation from manufacturers.

The event showcased entire range of public transport vehicles including MUVs, SUVs, vans, buses from the luxury, city and tourist segments along with some modified vehicles, etc. The exposition was spread over an area 7,000 square feet out of 10,000 square feet bought from two halls.

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(L to R) Union Urban Development Secretary Sudhir Krishna, Prasan Firodia, MD, Force Motors Ltd., M.F. Farooqui, Secretary, Department of Heavy Industries, Ministry of Heavy Industries and Public Enterprises, S. Sandilya, President, SIAM, S.K. Lohia, OSD, Ministry of Urban Development and Vishnu Mathur, Director General- SIAM at the third International Bus & Utility Vehicle Show at Greater Noida.

Vishnu Mathur, Director GeneralSIAM said, “The low cost SUVs have emerged as the preferred family cars due to its spacious interiors, sturdy exterior and road performance.

Similarly, the bus industry has been growing tremendously, witnessing significant changes in terms oftechnology, safety features and comfort.”

Around 5,000 visitors are estimated to have arrived from various domains such as tourism and transport departments of state governments, STUs, tour operators, bus operators, BPO’s, airlines, municipalities, hospitals and educational institutions.

Speaking on the occasion, S. Sandilya, President, SIAM, noted “With production touching hundred

thousand units per year, the Indian bus and utility vehicle industry is one of the largest in the world and an important part of the automobile industry of the country.

The commercial vehicle segment is presently in distress and it is important that the government comes up with stimulus package, as during the last one year the industry is going through a severe downturn.”

In a country like India where car penetration is only 14 owners per 1,000 individuals, public transport plays an integral role in our day to day life. This is because such modes of transport are not only convenient but also cheaper and safer. Buses and similar utility vehicles together form a major part of public transport in India.

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Bus & Utility Vehicle Show

The Participants Force Motors launches Gurkha at 6.25 lakh Force Motors has launched the Gurkha, the world’s first E.O.V (Extreme Offroader Vehicle) 4x4x4 at the show. The SUV is powered by the 2.6 litre Mercedes-derived OM 616 turbocharged intercooled engine that produces 82bhp@3200rpm and develops a torque of 230Nm@18002000rpm, and is mated to a 5 speed synchromesh transmission with Hi - Lo option on transfer case. The new off-roader comes in three variants and is priced at 6.25 lakh, 8.35 lakh and 8.50 lakh (ex-Showroom Delhi).

The company has spent around 50-60 crore on the development of the vehicle.

On the newly launched Gurkha, he said: “We are entering a very niche segment with this vehicle.

The market is about 8,000-10,000

units a year and our target is to sell about 1,000 units in the first year.”

The vehicle will be available in both softtop and hardtop versions.

Force Motors also came up with its Traveller-26 and Gurkha. It also showcased its Traveller Luxury School Buses and ambulances.

Mahindra & Mahindra Mahindra made its presence felt by showcasing the Quanto compact MUV, the Navistar Tourister minibus and the Maxximo utility vehicle.

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March 2013 / 67

Bus & Utility Vehicle Show

Tata Motors unveils two MCV buses

Tata Motors has unveiled two new MCV buses at the Show.

The MCVs include the 45-seater front engine intercity AC coach that is powered by an 180bhp engine and a 41-seater non AC staff bus, both of which will be used for intercity transportation and staff transportation. Body of the buses have been built by Tata Marcopolo JV and are based on the Tata LPO 1618 and LPO 1512 chassis respectively. The two new buses on display will be launched in a phased manner shortly.

Tata Motors Commercial Vehicles Business Unit executive director Ravi Pisharody said that the two buses on display are an effort to upgrade the market to superior product quality in their

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respective sub-segments. “These buses are specially designed for their intended application with an aim to provide company built options,� Pisharody added.

Features of the 45-seater include hydrodynamic retarder, air suspension, overdrive gearbox and tubeless radial tyres, while the 41-seater comes with wide gangway, flat floor inside saloon and separate driver partition.

Other products on display included the luxurious Divo Coach, semi deluxe non-AC Starbus Ultra Contract Bus, the all new Starbus Ultra for school application and a Tata Venture Ambulance.

In the utility vehicle segment, Tata Motors has showcased Aria, Sumo Gold and Safari Storme.

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Bus & Utility Vehicle Show

Ashok Leyland showcases ‘Jan Bus’ and ‘Jan Bus Midi’ Hinduja group subsidiary, Ashok Leyland has unveiled Jan Bus and Jan Bus Midi, the front-engine, fully flat floor buses at the show. The Jan Bus is powered by a BS-IV, CRS diesel engine mated to the Leymatic, automated manual transmission that generates an output of 225bhp, while the Jan Bus Midi is equipped with the H-series BS-III diesel engine that produces output of 120bhp.

Ashok Leyland Marketing executive director Rajive Saharia said that the two vehicles are for faster, smarter and safer urban mobility.

“Both these buses with 650mm floor height offer significant savings on BRTS infrastructure as well as being passenger-friendly, driver-friendly

and operator-friendly,” Saharia said.

Designed for feeder services the Jan Bus Midi is 8 metres in length, and has power steering with tilt and

telescopic arrangements. Both the vehicles are also made available with the BS 4 Diesel and CNG variants by the company.

Nissan exhibits MPV Evalia & SUV X-Trail Nissan Motor India has exhibited its already-launched MPV Evalia and SUV X-Trail.

Nitish Tipnis, Director – Sales & Marketing, Hover Automotive India (National sales company for Nissan) noted, “Evalia and X-Trail further establish Nissan as a pioneer in innovation and design. Both the vehicles continue to raise the bar and set new benchmarks in India’s fast growing automobile market. The Indian customer deserves the best in the world; Nissan is committed to bringing the best to India.”

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Bus & Utility Vehicle Show

Paracoat Products Limited ‘Care’ launched Paracoat Products Limited (PCP), a leading manufacturer in Total NVH reduction components for use in the automotive industry, announced the launch of their new initiative called PCP Care. With the help of PCP care, a person suffering from knee and spinal problem can now easily get inside the car with minimal effort or pain. A comfortable leather seat with hydraulic system facilitates the seat to slide out of the car. Once the person sits, the seat can be brought back to its original position.

This revolutionary initiative from the house of PCP can be installed in Maruti Eeco and Nissan Evalia. The approx price for conversion is 4 lakh + taxes and the delivery time will be a stipulated 8- 10 weeks.

Speaking at the event, Rajesh Poddar, Director- Business Development, PCP, noted, “PCP Care as the name suggests is a unique initiative that is aimed to ease the pain and suffering to a little extent at least of those who have difficulty in getting inside a car.

Be it a long drive or a short one, a

ride in your car should begin in the most comfortable way especially for those who hesitate to sit in a car due to an inherent fear that it may aggravate their pain. PCP Care will ensure not only total comfort but will give a complete sense of security as we have adhered to all the safety standards. We are one of the very few companies in India who manufacture such a product and we foresee a great demand for PCP Care in the Indian market.”

Another product displayed at this event is the locally assembled

PCP Terra, which is a Motor Home cum Office launched early this year. It is based on a standard pick-up vehicle, the base vehicle being pickup Mahindra Genio. The locally assembled terra will have added features such as partition wall between driver and passenger area with power window, storage space for luggage etc. The company will offer 3 options for veneer colours, the conversion cost will be approximately 28.5 lakh + service tax. The delivery time will be 10 - 12 weeks.

Apollo Tyres Apollo Tyres Ltd., the country’s leading tyre manufacturer, displayed a range of bus and coach radials. The company has manufacturing presence in Asia, Europe and Africa, with 9 modern tyre facilities and exports to over 118 countries. It is powered by its key brands — Apollo, Dunlop (brand rights for 32 African countries) and Vredestein.

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Bus & Utility Vehicle Show

SML Isuzu showcases FR 1318, S7 and T3500 turbo buses

SML Isuz u, formerly known as Swaraj Mazda, had showcased three buses, the FR 1318, the S7 and the T3500 Turbo at the show. The SML Isuzu FR 1318 is available in four

variants, namely, 41+1 deluxe seater, 36+1 deluxe seater, 51+1 standard seater and the bus shell on its own for customisation purposes. The SML S7 is a staff bus that is available in

BS III and BS IV versions. The SML T3500 Turbo is a multipurpose bus that has been used overtime in the country as city buses, school buses, staff buses, etc.

Hyperformance Motorsports Hyperformance Motorsports, a company specialised in Indian motorsports as well as motorsport modifications for vehicles, showcased two modified Maruti Suzuki Gypsys at the event.

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Bus & Utility Vehicle Show - TĂŞte-Ă -tĂŞte

Naresh Rattan - COO Tractor Business and President - Corporate Sales And Marketing, Force Motors Force Motors Ltd Force Motors is an Indian manufacturer of three-wheelers, multi-utility and cross country vehicles, light commercial vehicles, tractors, buses and now sports utility vehicles. Today, Force Motors is a fully vertically integrated automobile company, with expertise in design, development and manufacture of the full spectrum of automotive components, aggregates and vehicles. Its range includes Trump small commercial vehicles, Trax multi-utility and cross country vehicles, Traveller light commercial vehicles and the Balwan range of agricultural tractors. Force Motors has entered into the personal vehicles arena with the launch of the Force one SUV. This is to be followed by a premium MPV that will be made under license from Daimler AG. With plants at Akurdi, Pune and Pithampur, Madhya Pradesh, Force Motors employs around 7,500+ people.

Report Avishek banerjee

You were with HMSI since its inception in 1999. So what really propelled you to join Force Motors?

Yes, I was one of the key members who started HMSI. I have enjoyed being a part of that firm which focussed on network development, product launches like the Activa, and R&D activities. I was also excited to see Honda become the second largest two-wheeler firm in the country in a decade. It was a very interesting journey for me.

But at the same time, I was doing the same job for many years. So I deliberated on doing something different. Moreover, I wanted to take up a task which would be new and challenging. Even though Force Motors is relatively smaller in size (than Honda), it has its own R&D and engineering expertise. As this company likes to work passionately, I thought that I should give it a shot. This will enable me to gauge whether my competence level is credible or not.

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Do you find marketing and selling CVs more challenging than twowheelers?

Not really. This is because the basic parameters for both kinds of customers remain the same. For both the segments, the customer pays for his products and services.

If the products and its services are

higher than his expectations, he buys it happily. He will also recommend those products to his peers. The only difference that I see is that in the two-wheeler segment, the user is the ultimate decision maker. But in the CV segment, the user could be a driver, fleet operators etc. So the decision maker could be the owner

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Bus & Utility Vehicle Show - TĂŞte-Ă -tĂŞte

or the end user. So atleast three different people could take a call in making the final purchase.

How important are events like Bus and Utility Vehicle Show for Force Motors?

This event happens to be a niche show. All the leading players are present at the show. This also ensures that relevant people walk in to visit our stalls since it is being held in Greater Noida, it is obviously missing the traditional footfalls that we witness in shows like the Auto Expo. Lack of Metro connectivity compounds the problem.

Nevertheless, serious people (business visitors) are coming over here. Media professionals were also able to do their job in a hassle-free

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Bus & Utility Vehicle Show - TĂŞte-Ă -tĂŞte

manner (unlike in Pragati Maidan).

The venue is also quite neat and clean.

During this show, we have created there different zones. The first zone is for buses where we are displaying a trauma ambulance, 12-seater metro mini bus, Traveller 26 (A 26-seater bus) and 8+D school bus etc. The second zone is for goods carriers wherein we have showcased special purpose vehicles for waste management. We are showing tippers, dumpers, and other machines here. Our third zone is dedicated to personal vehicles like the new Gurkha and the Force One. Could you talk a little about the Gurkha that you have relaunched? Why have you not considered its BS-IV version?

Gurkha is a vehicle which dates back to 2008 when it was first produced

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and sold as a softop vehicle in international markets like Germany, Africa, Middle East, etc. Its hardtop variant was later launched in 2010.

In India, even though it was sold

in limited numbers it managed to create a good image for itself. Its wannabe buyers always wanted us to produce it in sizeable numbers.

After garnering their feedback, we discerned that the product has a latent demand in the domestic market. We therefore decided to relaunch it with the concept of extreme off-roader. This is the first vehicle with a 4x4x4 feature that enables it to traverse on all kinds of terrains whether it is hilly, snowy, slushy, sandy, or even mountainous. Right now, we have only launched its BS-III version because 70pc of the Indian cities are run on such grade of fuel. We can definitely work on the BS-IV version in another nine to ten

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Bus & Utility Vehicle Show - TĂŞte-Ă -tĂŞte

months.

What has been the response to the Traveller 26 bus that you launched last year?

We launched the Traveller 26 in November and began its sales during December. Nearly 300 units have been rolled out since then.

Our customers have been very happy with this product. We are eyeing to clock 50 units per month in the initial phase. We would like to enhance it to around 300 units per month in the next phase. We are looking at a market share of about 20pc in the 20-30 seater segment. Right now we have the BS-III version in normal and school bus segments. We want to introduce its CNG version in the next two-three months.

Will you be realigning your strategies to develop some hybrid vehicles like Traveller Hybrid that you have already showcased at the 2012 Auto Expo?

We have the technology to develop such vehicles. Having said that, there is no market for such vehicles

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in India. This is primarily because the retail price of such products is prohibitively expensive. Therefore, we are not aware of the economic feasibility of such products. For the time being, our monocoque platform-based Traveller buses are 15-20pc fuel efficient than traditional ladder-on-frame buses.

Force Motors has also announced that it will be launching a new MPV under the passenger vehicle division. Could you give a timeline about its launch? How different will it be than its peers?

We have firmed up our plans to launch a new nine-seater multipurpose vehicle licensed from Mercedes by first quarter of FY 201314. We have already commenced building a dedicated plant for that product at Pithampur. We have also started installing the imported machinery inside the plant. We will be positioning it as a premium MPV. Therefore, it is a product that has not been seen before in India. We are hopeful that we will be learning a lot when it gets introduced.

Can you shed some light on the investment plans that you have lined up for the next few years?

As mentioned by Mr. Prasan Firodia (MD, Force Motors) , we have earmarked 1,000 crore till the first quarter of 2014 for developing new products and capacity expansion.

Our two plants are located at Akurdi in Maharashtra and Pithampur in Madhya Pradesh, which has an annual capacity of about one lakh units. We have also shared that we have invested over 500 crore on the new MPV which will be sold under the Force brand. In the next few months we will be bringing threefour variants of the Force 1, which till now is a single offering.

What is your vision for the company?

We are an Indian company with a long history and a diverse product portfolio comprising CVs, agricultural vehicles and personal vehicles. We have to continue to strengthen our CV business with the expansion of the Traveller series.

This will enable the company to be financially healthy and be on the right track. We also have to heavily market products like the Trax which is a rural passenger vehicle and does not require many big changes. We also aim to grow the volumes of our existing products. Lastly, we also have to take adequate measure to improve the overall outlook of the company through upgraded and brand-new products like Force One, Gurkha et al. For that, we also need to improve the overall learnings. We are also working on increasing our distribution network so that we have pan-India presence when it comes to sales and service facilities. This will help us in serving the customer and achieving higher satisfaction.

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Bus & Utility Vehicle Show - Tête-à-tête

Ashish Dhar - Head (Utility Vehicles), Tata Motors Tata Motors Tata Motors is India’s largest automobile company, with consolidated revenues of Rs. 165,654 crore (US$ 32.5 billion) in 2011-12. Through subsidiaries and associate companies, Tata Motors has operations in the UK, South Korea, Thailand, Spain, South Africa and Indonesia. Among them is Jaguar Land Rover, the business comprising the two iconic British brands. It also has an industrial joint venture with Fiat in India. With over 7.5 million Tata vehicles plying in India, Tata Motors is the country’s market leader in commercial vehicles and among the top in passenger vehicles. It is also the world’s fourth largest truck and bus manufacturer. Tata cars, buses and trucks are being marketed in several countries in Europe, Africa, the Middle East, South Asia, South East Asia, South America, CIS and Russia. Tata Motors has launched three new models recently mainly Safari Storme, Sumo Grande and Aria in its UV portfolio. Tata Motors will also launch economy version of Aria, Aria LX all over India across the country.

Report Avishek banerjee, Photography Mohammed Danish This is the first time that SIAM is organising a dedicated Bus and Utility Vehicle Show. What is your standpoint on the same?

Earlier, we were part of the Auto Expo where all the OEM brands were present. Our UVs were also a part of it, albeit on a smaller scale. It’s a welcome move by SIAM to focus on utility vehicles. The location of this venue is slightly on the outskirts. It will take some time for it ot become a popular venue. We are hopeful that we will get a good response from the visitors for this show.

So how important are utility vehicle segments for Tata Motors?

Are you betting big on it? And are you worried about competition?

We are not at all worried by our rivals. Infact, we see this as an opportunity for us to grow in this segment. The UV segment in the passenger vehicle industry is witnessing a mammoth 60pc growth in sales in the current financial year. We started this financial year with Sumo Gold and followed suit with Safari Storme. Earlier we were selling 800-900 Sumos a month.

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Now we are clocking 1,000 units. We expect a decent growth in the next financial year too. There are ample opportunities to get our product right and we are betting big on this segment. We are coming up with the LX version (priced at 9.95 lakh, ex-showroom) of the Aria across the country which will help in boosting the volumes of this model. We are working doubly hard with our existing and also upcoming products. The mandate for us is clearly to become a dominant player

in the UV segment.

The utility vehicle market is the fastest growing now, rising 57pc to 4.51 lakh units in the first 10-months of the fiscal. What are the key drivers of such robust growth?

The phenomenal growth is largely to do with people’s choice and their way of life. A utility vehicle gives you a sense of power and also provides you a feeling of an off-roader. People would like to

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Bus & Utility Vehicle Show - Tête-à-tête

have that sense of power when they feel like they are ruling the road. Apart from delivering a lot of torque, these vehicles also enable you to go to a different terrain. These vehicles are also easier to drive. We see this happening not only in India but internationally too. There is a possibility that people find their old cars very monotonous. So they are moving to more exciting segments like SUVs, etc. As more features get incorporated in such vehicles, they will witness more demand. Tata Motors has 12pc share in the UV segment in India with monthly sales averaging around 5,000 units.

What has been the response to the Safari Storme which was launched last year?

With the introduction of Safari Storme, we have managed to sell 2,000 units until last month. This new SUV is commanding a waiting period of 3-4 months. With the gradual production ramp-up, I am sure this model is going to be creating its space in the market. We completed an all-India launch of the Storme during January. As we increase our production, we will also expand into other markets.

Going forward, would you be interested in compact SUVs and MPVs under four metres in length that will also qualify for small car excise duty norms?

As I just mentioned, Tata Motors is aiming to become a dominant player in the utility vehicle (UV) segment with new product launches, better sales, service and rationalisation

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of network in the next financial year. We are working on a lot of variants. So we would like to enter any segment which has a growth potential. If a compact SUV sees robust demand, we will definitely work on it. This is because we believe in innovation and the company will get products which are in line with customer requirements.

Are you worried about the improper diesel fuel policy of the government?

In the current scenario, most of the utility vehicles are run on diesel.

Infact 99pc of such products are run on diesel. So anything which affects the pricing of the diesel fuel will definitely have a short-term impact on the UVs. In the short term, the dieselisation of UVs is going to continue. In the long term scenario, we have different set of powertrains which can be utilised as per market dynamics.

Tata Motors’ Land Rover is also into utility vehicles, albeit in the premium segment. So are you synergising with that firm for the

joint development of platforms, engines, etc?

As we all know, Land Rover is part of Tata Motors. So we are definitely working on a lot of synergies with them. We have got our design centres in UK, Italy, Korea and here in Pune. So all of them work together to come out with new design, technologies, products, etc. I am sure the learnings will definitely benefit us.

Lastly, where do you want to see the company in next few years especially in the utility vehicle segment?

We at Tata Motors have a mandate to become a dominant player in the utility vehicle space. Every quarter you will see something happening in the UV category. Of course there will be a lot of product revamps of our existing lineup. This will be complemented by new products which will reflect the changing face of the Indian industry as well as the aspirations of the people ahead of its times. This will actually help us in gaining additional marketshare in that segment.

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Technology

Audi keen to help develop global standard for sustainable aluminium

Audi AG is joining the Aluminium Stewardship Initiative to help develop a global standard for sustainable aluminum. As a pioneer of unitary aluminum car bodies, the company is taking the opportunity to influence the entire value chain of one of its most important materials - one of the objectives of Audi’s corporate-responsibility strategy.

“As a pioneer for lightweight construction, we are very interested in establishing a global standard for sustainable aluminum. This will allow us to further improve the environmental impact of our cars by using certified aluminum in the

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future,” explained Dr. Bernd Martens, Audi’s Board of Management Member for Procurement, with regard to joining the Aluminium Stewardship Initiative.

The Aluminium Stewardship Initiative was founded in the autumn of 2012 and aims to develop a sustainability standard for aluminum by the end of 2014, with the support of the environmental organisation IUCN (International Union for Conservation of Nature). It sets environmental and social criteria that apply to all stages of extracting the raw material as well as producing and processing aluminum. “Active

responsibility is firmly anchored throughout our company. Also in our supply chains, we place priority on the integration of environmental protection and social responsibility,” emphasised Dr. Martens.

The new standard fits in well with Audi’s holistic approach to product responsibility: The premium manufacturer not only ensures that its automobiles are highly fuel efficient, but also analyzes the environmental impact of its products over their entire lifecycles - from the extraction of raw materials to production to operation to recycling.

For each new model series, Audi has

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Technology

a certified environmental analysis prepared in order to assess the impact on the environment; the objective is to reduce it compared with each model’s predecessor. For example, the company has been able to demonstrate that both the current Audi A6 and Audi A3 have improved in all relevant environmental categories. The new Audi A3 has a better environmental footprint than its predecessor right from the first kilometre. In addition to sustainable materials and manufacturing processes, ultra-lightweight construction plays an important role.

This makes the Audi A3 up to 80 kilograms lighter than the previous

generation; the A3 Sportback is actually up to 90 kilograms lighter.

Audi has positioned itself as a pioneer for lightweight construction.

At the Frankfurt Motor Show 20 years ago, the premium brand presented the Audi Space Frame, a shimmering silver show car with an unpainted body made of polished aluminum. In 1994, the first Audi A8 went into series production. The car was based on a unitary aluminum body with a weight of just 249 kilograms.

With its ultra-lightweight construction today, Audi applies an intelligent material mix - according to the motto of “the right material

in the right place in the minimum required quantity.” Lower weight enhances driving pleasure, improves safety, and has less impact on the environment. After all, every kilogramme saved means less fuel is consumed and less CO2 is emitted.

Corporate responsibility is firmly anchored as a guiding principle in the Audi strategy. As well as financial success and international competitiveness, equal priority is placed on responsibility for employees and society, as well as on protecting the environment and resources along the value chain.

Audi’s vision is to make CO2-neutral mobility possible.

BorgWarner’s

turbo-charging technologies BorgWarner supplies its latest turbo-charging technology for a new generation of mediumduty engines from MercedesBenz, the first commercial vehicle manufacturer to achieve Euro VI compliance for all of its mediumand heavy-duty engines. Replacing the successful 900 series, the new OM 934 and OM 936 engines are available in different output variants and used in a wide range of on-highway applications such as medium-duty trucks and urban buses. Equipped with the latest B-series turbocharging technology for standard power outputs and an award-winning regulated two-stage (R2S) turbocharger for top outputs,

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BorgWarner’s advanced technology helps the engine significantly reduce emissions while improving performance and fuel economy. In addition, BorgWarner also supplies its advanced fans and fan drives for this new engine series.

“Compared with current standards, Euro VI emissions standards challenge engine manufacturers to reduce nitrogen oxides by about 80pc. BorgWarner’s latest turbocharging technologies help satisfy these standards with the added bonus of improving fuel economy and engine performance,” said Pete Kohler, President and General Manager, BorgWarner Turbo Systems Commercial Diesel Products.

“Our highly-efficient turbocharging technologies provide OEMs with state-of-the-art powertrain solutions for on-and off-highway applications.”

The new Mercedes-Benz mediumduty engines cover the 5.1-litre four-cylinder OM 934 engine and the 7.7-litre six-cylinder OM 936 engine with a power range of 156bhp to 354bhp. Both engines are equipped with variants of BorgWarner B-series turbochargers. The standard variant of both engines comes with the latest B-series turbocharger while the high-performance variant features BorgWarner’s R2S turbo-charging technology, featuring a small highpressure turbocharger and a larger low-pressure B2 turbocharger.

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Technology

Zircotec ceramic material makes debut on

Aston Martin One-77

The ceramic based material that originally allowed F1 teams to exploit the ‘blown diffuser’ aerodynamic advantage has made its road car debut on Aston Martin’s One-77. Developed by Oxfordshirebased Zircotec, the ThermoHold for composites material is applied to both the car’s diffuser and under bonnet air intakes, enabling Aston Martin’s designers to specify lightweight and aesthetic materials for high temperature environments.

“Composites are often unsuited to high temperature environments,” says Zircotec’s managing director Terry Graham. “Traditionally this leads to vehicle makers opting for

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more conservative materials that add weight or they rely on bulky heat shields that ultimately blunt performance. Our discreet ceramic coating protects the One-77 composites components and in the case of the diffuser, enables exhaust gases to pass through, just as they did in F1.”

Zircotec’s coating, proven in F1 and at Le Mans, can lower composite surface temperatures by more than 125˚C, creating opportunities to use composites under the bonnet. “Our coating not only protects the composite induction system from heat but also ensures that the air intake temperature is

lower. Moreover, a decrease in this temperature creates a denser charge and is a feature relied upon by many Le Mans racing teams we supply,”

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Technology

adds Graham.

Zircotec’s proprietary process uses a gas plasma flame running at 12,000°C to apply the unique ThermoHold heat resistant formulation in molten powder form on to the composite components.

Unlike paint, Zircotec’s plasma spray application process ensures better adhesion.

As the automotive industry seeks to adopt more composites to achieve higher efficiency, the coating technology pioneered on the Aston Martin One-77 is likely to

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be adopted by other OEMs. “Engine downsizing is leading to hotter engines with tighter packaging,” suggests Graham. “We are seeing future specifications suggesting underbonnet temperature increases to close to 200˚C. Our coating is a true enabling technology and will enable composites to be considered in this area of the car.”

Zircotec offers a wide range of plasma sprayed ceramic and metallic coatings that protect components against the effects of heat, wear, abrasion and

corrosion. Lightweight and easily packaged, Zircotec’s technologies can be applied to a broad range of different materials including metals and composites. Proven in F1 and the nuclear industry, the technology is now trusted by car manufacturers, industrial users, car enthusiasts and an increasing range of other applications to effectively manage heat and wear, enhancing performance and reliability.

ZircoFlex, the latest development from Zircotec, offers for the first time, a truly flexible ceramic coating.

March 2013 / 81

Technology

Mercedes-Benz tops in aerodynamics

When it comes to wind resistance, noise levels, open-top driving comfort and anti-soiling measures, i.e. in all aerodynamic disciplines, models from Mercedes-Benz have taken the leading position in almost all vehicle classes for many years. This demonstrates that an exciting, emotional design and high aerodynamic efficiency are not contradictory. With the new aero acoustics wind tunnel at the development centre in Sindelfingen, the company has now also taken the lead in aerodynamic testing.

For almost three decades, aerodynamic specialists at Mercedes-Benz have been breaking one record after another. “At present the brand’s models occupy the top position for aerodynamics in

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practically every vehicle segment”, says Prof. Dr. Thomas Weber, who is responsible for Group Research and Mercedes-Benz Cars Development.

In its BlueEFFICIENCY Edition, the new CLA-Class has even established a new world record with a Cd figure of 0.22 and wind resistance x A of 0.49 sq. m. Weber: “This means that the CLA-Class is more streamlined than any other vehicle. Maintaining aerodynamic leadership is a major component of our MBC 2020 product strategy, which we are following systematically for all new vehicle models.”

When it comes to compact cars like the new A-Class (2012, Cd = 0.26), coupés such as the E-Class Coupé (2010, Cd = 0.24), saloons such as the E-Class (2009, Cd = 0.25),

sports cars like the SL (2012, Cd = 0.27) and SUVs like the M-Class (2011, Cd = 0.32), vehicles in these segments have never before achieved such low Cd figures. The new S-Class is set to continue this trend.

“Highly sophisticated improvements to both the overall vehicle and detailed features contribute to this good performance,” says Dr. Teddy Woll, Head of aerodynamics/wind tunnels.

Emotion meets efficiency: the more aerodynamically efficient a vehicle is, the lower its fuel consumption.

Woll: “In the New European Driving Cycle (NEDC), improving the Cd figure by 0.01 already lowers CO2 emissions per km by one gram, by two grams as a function of mean

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Technology

on-the-road consumption, and at 150kmph by no less than five grams of CO2 per kilometre.” Moreover, safety, comfort and the environment also benefit from the elimination of air turbulence. Because low levels of lift ensure good road holding, while low wind noise is welcome to both passengers and pedestrians.

With the “large wind tunnel” in Stuttgart-Untertürkheim, MercedesBenz was the first automobile manufacturer to possess a wind tunnel – the first documented measurement was carried out there exactly 70 years ago, on 5 February 1943. With the new aero acoustic wind tunnel at the development centre in Sindelfingen, the company has once again placed itself at the forefront of aerodynamic testing. The new wind tunnel, which will be taken into operation in mid-2013, follows the Göttingen design. This means that after the measuring stretch the air is directed back to the blower and

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again accelerated to up to 265kmph.

Before the air accelerated by the blower reaches the measuring stretch via a nozzle system covering 28 sq. m., it must be directed and smoothed to eliminate unwanted turbulence and eddies. This done using rectifiers and sieves. Extensive noise insulation measures are integrated to allow use as an acoustic tunnel where interior and exterior wind noise can be measured for the relevant test vehicle. Even at 140kmph the air flowing through the measuring stretch is therefore as quiet as a whisper.

The centrepiece of the 19-metre long measuring stretch in the wind tunnel is the roughly 90-tonne

conveyor belt/balance system with a turntable. The new wind tunnel has a 5-belt system to simulate the road. The conveyor belt/balance system is integrated into a turntable with a diameter of twelve metres.

This means that the vehicles to be measured can also be subjected to an angled airstream to simulate cross-winds. The traversing system enables the engineers to position various aerodynamic sensors and microphones around the test vehicle with very high precision.

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Technology

Renault’s 2014 power-unit The new regulations that the FIA (Fédération Internationale de l’Automobile) is due to introduce in 2014 will see Formula 1 enter a new era. Motor racing’s premier series is on the threshold of one of the biggest technological changes in its history.

The objective of this metamorphosis is to ensure closer ties between the research and development carried out in F1, the concerns of everyday motorists and the new challenges faced on economic and environmental fronts, without detracting from the quality of the show or the level of

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competition.

This major technological revolution is a fresh challenge for Renault Sport F1’s experts, who are developing a brand new electrified 1.6 litre V6 Turbo powerplant (known as a ‘power unit’), which combines a significantly downsized internal combustion engine with an energy recovery system that feeds two electric motors.

The change fits perfectly with Renault’s powertrain strategy, which is founded on an unmatched commitment to electric motors and ongoing improvements to the efficiency of its internal combustion

engines with a view to achieving spectacular fuel consumption and CO2 emissions gains.

Renault will defend its status as motor racing’s technological leader to benefit its range of road cars. The creative thinking and passion for innovation of everyone at Renault will be major assets as it prepares for this new era.

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Technology

Maserati Quattroporte with ZF Technology

The sixth-generation Maserati Quattroporte comes with ZF technology to underscore the vehicle’s hallmark characteristics: The 8-speed automatic transmission (8HP) is synonymous with dynamics and comfort in equal measure – all combined with high fuel efficiency. The Continuous Damping Control (CDC) electronic damping system provides the vehicle with more driving safety, comfort, and dynamics by adapting the damping forces for each individual wheel within milliseconds and in the best possible manner.

A luxurious and sporty touring car that comfortably accommodates up to five – this concept enabled the first Maserati Quattroporte to claim its rightful place in the automotive world 50 years ago.

The fifth-generation sedan rolled into the showrooms with ZF technology onboard. Similarly the

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sixth-generation Quattroporte, which is now being launched, also features this technology: The new Quattroporte puts onto the road 390 kW (530 hp) from the 3.8-litre V8 Biturbo coupled with the ZF 8-speed automatic transmission.

“Developing the application in light of this phenomenal engine torque is no mean feat,” says Dr. Gerhard Wagner, member of the ZF Board of Management and Head of ZF’s Powertrain Technology division.

“With the 8HP for the Quattroporte we successfully managed to pull off brilliantly the delicate balancing act between sportiness and comfort.”

Compared with its predecessor, the 8-speed automatic transmission delivers fuel savings of 6pc. Together with the start/stop function, which the 8HP enables without an additional pump, the savings potential can even reach up to 11pc.

In doing so, ZF’s 8-speed automatic

transmission is not only highly efficient but also extremely dynamic.

It boasts extremely short response and shift times that basically go unnoticed. Double shifts and direct multiple shifts are also possible.

These wide-ranging characteristics are enhanced on the suspension side by the CDC electronic damping system. The system, made up of sensors, dampers and an electronic control unit, adjusts the suspension damping in fractions of a second to the particular driving situation. It enables the Quattroporte to switch almost instantly from a comfortablesoft to sporty-hard setting. As a result, the wheels maintain better contact with the road, which in turn translates into greater safety.

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Global Report

Hyundai begins production of

hydrogen-powered vehicles Hyundai has become the world’s first automaker to begin assemblyline production of zero-emissions, hydrogen-powered vehicles for fleet use. The company rolled out a white Hyundai ix35 Fuel Cell vehicle from the assembly line at the company’s Ulsan manufacturing facility.

The ix35 Fuel Cell vehicle is based on Hyundai’s popular ix35, C-segment SUV. The launch event was attended by Hyundai top management and VIPs. “With the ix35 Fuel Cell vehicle, Hyundai is leading the way into the zero-emissions future,” Hyundai Motor Vice Chairman, Eok Jo Kim said at the ceremony. “The ix35 Fuel Cell is the most eco-friendly vehicle in the auto industry and proves that hydrogen fuel cell technology in daily driving is no longer a dream.”

The ix35 Fuel Cell unveiled at the ceremony will be one of 17 destined for fleet customers in the City of Copenhagen, Denmark and Skåne, Sweden. The Municipality of Copenhagen, as part of its initiative to be carbon-free by 2025, will be supplied with 15 ix35 Fuel Cell vehicles for fleet use, according to an agreement that was announced in September 2012. Two ix35 Fuel Cell vehicles will be supplied to Skåne, Sweden.

“Assembly-line production of fuel cell vehicles marks a crucial milestone in the history of the automobile industry not just in Korea, but throughout the world,”

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Mang Woo Park, mayor of Ulsan city, said in his congratulatory message.

“By supplying more hydrogen refueling stations to support the ecofriendly fuel cell vehicles produced, we will make Ulsan the landmark for eco-friendly automobiles.”

Hyundai plans to build 1,000 ix35 Fuel Cell vehicles by 2015 for lease to public and private fleets, primarily in Europe, where the European Union has established a hydrogen road map and initiated construction of hydrogen fueling stations.

The strategy of leading automakers in Europe and the U.S. is to supply hydrogen fuel cell vehicles and establish refueling stations in order to prepare the market for mass production of hydrogen fuel cell vehicles.

After 2015, with lowered vehicle production costs and further developed hydrogen infrastructure, Hyundai will begin manufacturing hydrogen fuel cell vehicles for consumer retail sales.

Built with proprietary technology, Hyundai’s ix35 Fuel Cell is powered by hydrogen. A fuel cell stack converts the hydrogen into electricity, which turns the vehicle’s motor. The only emission generated by the ix35 Fuel Cell is water.

Hyundai’s ix35 Fuel Cell boasts drivability and performance similar to that of the petrol ix35.

The development and application of a new radiator grille, bumper, fog lamps, instrument cluster and 7-inch

GPS exclusively for the hydrogen fuel cell vehicles enhances the ix35 Fuel Cell’s marketability. Furthermore, modularisation of fuel cell systems for the core part of the hydrogen fuel

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Global Report

cell vehicle -- fuel cell stack, driving device and inverter -- enabled the engine to be downsized to match the size of a petrol engine while improving productivity and making maintenance more convenient.

The ix35 Fuel Cell is the halo vehicle in Hyundai’s Blue Drive subbrand, the badge worn by Hyundai’s cleanest vehicles, including Sonata Hybrid, i20 Blue Drive and BlueOn, Hyundai’s battery-powered i10.

As governments around the world step up regulations to reduce carbon

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output and fossil fuel dependency, zero-emissions mobility solutions such as Hyundai’s ix35 Fuel Cell will become a driving force of change.

The ix35 Fuel Cell aligns with the 2009 agreement by the European Union’s G8 countries to reduce carbon emissions by 80pc by 2050 and California’s Zero Emission Vehicle regulations.

The ix35 Fuel Cell can be refuelled with hydrogen in only a few minutes.

It accelerates from zero to 100kmph in 12.5 seconds, has a top speed of

160kmph and can travel 594km with a single charge.

The ix35 Fuel Cell is the result of 14 years and several hundred million euros of research by hundreds of engineers at Hyundai’s fuel cell R&D center in Mabuk, Korea. The car has logged more than 2 million miles of road tests in real-world conditions in Europe, Korea and the U.S. The first ix35 Fuel Cell vehicle rolled off the assembly line will be displayed at the 2013 Geneva Motor Show.

March 2013 / 87

Global Report

Volvo to acquire 45pc of

Dongfeng Commercial Vehicles

AB Volvo has signed an agreement with the Chinese vehicle manufacturer Dongfeng Motor Group Company Limited (DFG) to acquire 45pc of a new subsidiary of DFG, Dongfeng Commercial Vehicles (DFCV), which will include the major part of DFG’s medium- and heavyduty commercial vehicles business.

At completion of the transaction, the

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Volvo Group will become the world’s largest manufacturer of heavy-duty trucks.

“This is a very exciting venture that will combine the best of two worlds, strengthening the positions of the Volvo Group and Dongfeng and offering excellent opportunities to both parties,” says Volvo’s President and CEO Olof Persson. “Combining

Dongfeng’s strong domestic position and know-how with the Volvo Group’s technological expertise and global presence will offer DFCV excellent potential for growth and profitability in and outside China.”

The completion of the transaction is subject to certain conditions, including the approval of relevant anti-trust agencies and

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Global Report

Chinese authorities. The purchase consideration amounts to RMB 5.6 billion (£ 569m). The ambition is to complete the transaction as soon as possible and completion is expected to take place within approximately 12 months from now.

The transaction with DFG follows the recent agreement between DFG and Nissan Motors, in which DFG purchased the medium- and heavyduty commercial vehicle operation from the joint venture DFL (owned jointly by DFG and Nissan Motors).

The major part of the re-purchased commercial vehicle operation will be included in the new company, Dongfeng Commercial Vehicles (DFCV). According to the agreement between DFG and Volvo, Volvo will acquire 45pc of Dongfeng Commercial Vehicles for a total amount of RMB 5.6 billion, subject to adjustments, to be paid on closure of the transaction. Payment of the purchase price will increase Volvo’s net debt by approximately SEK 6 billion.

The Volvo Group is the world’s third largest manufacturer of heavyduty trucks with 180,000 units sold in 2011. Dongfeng was the second largest producer of heavy-duty trucks in 2011, with total sales of 186,000 units, of which approximately 142,000 units were produced by the part of the company that will be included in DFCV. “We are pursuing a clear strategy to achieve our vision of becoming the world leader in sustainable transport solutions,” says Olof Persson. “With this agreement in place, we take a crucial step toward reaching a number of our key strategic objectives such as size and growth in Asia.”

In 2011, DFCV reported net sales of approximately RMB 39 billion (pro

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forma) and operating income of approximately RMB 1.2 billion (pro forma). DFCV has approximately 28,000 employees and sold 142,000 heavy-duty trucks and 49,000 medium-duty trucks in 2011 (pro forma).

For the first three quarters of 2012, DFCV’s net sales amounted to approximately RMB 22 billion (pro forma) and operating income to approximately RMB 0.3 billion (pro forma). During the same period, 81,000 heavy-duty trucks and 35,000 medium-duty trucks were sold by DFCV (pro forma). At the end of the third quarter of 2012, DFCV had net financial debt of approximately RMB 500 million (pro forma). The AB Volvo holding in DFCV is expected to be reported as an associated company and consolidated in accordance with the equity method, one-line consolidation, within the Trucks segment.

During 2012, the Chinese market for heavy-duty trucks totalled approximately 636,000 vehicles, while the corresponding figure for the medium-duty market was 290,000 vehicles. DFCV occupied a leading position in China in both the heavyand medium-duty segments, with sales of 102,000 heavy-duty trucks and 45,500 medium-duty trucks, corresponding to market shares of 16.1pc and 15.7pc, respectively.

“China is the world’s largest truck market with a total market for heavy trucks equivalent to the European and North American markets combined,” says Olof Persson. “The partnership between the Volvo Group and DFG will strengthen DFCV’s already strong position in China and provide the company with the right conditions for successful international expansion.”

The partnership with DFG not

only provides the Volvo Group with ownership in the largest heavy-duty and medium-duty truck manufacturer in China, but also offers excellent opportunities to achieve economies of scale in terms of sourcing, development and production for the Group’s truck operations. There are a number of areas in which cooperation is planned between DFCV and Volvo, such as engines and powertrain components, product platforms and purchasing.

“In Dongfeng, we have a partner that we know well, having worked together for several years, and with a management team and a product range that we really appreciate,” says Olof Persson, Volvo President and CEO. “Joining forces will provide clear benefits for both parties and the right conditions to develop DFCV into a competitive and successful international truck manufacturer with healthy profitability.”

“This partnership will enable us to significantly strengthen the Group’s position, both in and outside China,” says Olof Persson. “With DFG as a partner, we can improve our position in the increasingly important Chinese market and become more internationally competitive by virtue of the Chinese volumes.”

The DFCV management team will consist of eight members, with Volvo nominating four of the eight members and Dongfeng the remaining four. Dongfeng will nominate the company’s Managing Director, while Volvo will be responsible for nominating the Chief Financial Officer.

The Board of DFCV will comprise seven board members and it has been agreed that the Volvo Group will account for three places and DFG four.

March 2013 / 89

Global Report

Mercedes-AMG

technology goes into concept boat Mercedes-AMG and Cigarette Racing launched the latest development of their cooperation at the Miami International Boat Show with “Cigarette AMG Electric Drive Concept” engineering design, which integrates numerous components from the SLS AMG Coupé Electric Drive, the world’s most powerful and fastest electrically driven series production vehicle that made an appearance in Miami alongside the boat it has inspired.

The high-performance drive technology from the SLS AMG electric super sports car fitted within a Cigarette Racing off-shore powerboat has created the world’s most powerful and fastest electrically driven motor boat. With an output of

2200bhp and a maximum torque of 3000Nm, the “Cigarette AMG Electric Drive Concept” is a fascinating new development. The 38 foot (11.6 metre) long “Cigarette AMG Electric Drive Concept” powerboat is finished in “AMG Electricbeam magno” - the matt chrome paintwork exclusively reserved for the SLS AMG Coupé Electric Drive. It wears AMG logos on the side of the powerboat clearly communicating

the alliance between the Miamibased boat manufacturer and Mercedes-AMG GmbH from Affalterbach Germany.

The engine design exemplifies the transfer of technology from the gullwing to the powerboat.

Pictures courtesy: Daimler Benz

90 / March 2013

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WE ARE RECRUITING There are vacancies in our magazines for the following posts: 1. Sales Executives (Freshers/1-2 years experience in print media sales) 2. Senior Sales Executives (2-5 years experience in print media sales) 3. Sub Editors (Freshers/1-2 years experience in print media) 4. Senior Reporters (2-5 years experience in print media) 5. Assistant Editors (5-10 years experience in print media) 6. Senior Designers (5-10 years experience in print media)

Vacancies are for our offices in Delhi, Chennai (soon to be opened) and Pune/Mumbai (soon to be opened) Please send your resumes with scanned passport size picture to editorial@motownindia.com

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March 2013 / 91

Industry overview Passenger Vehicle Manufacturers in India Total Domestic Sales + Exports - January 2013 2,14,349 Units

Toyota Kirloskar 3.52%

Ford India 3.30%

VW India 3.27%

GM India 2.74%

Others 5.32%

Tata Motors 5.42%

Maruti Suzuki 46.46%

Nissan Motor 5.72%

Hyundai Motor 24.25%

Others Honda Cars India (2.70%)

Skoda Auto India (0.91%)

Mahindra & Mahindra (0.70%)

Renault India (0.62%)

Hindustan Motors (0.23%)

Fiat India Automobiles (0.16%)

Based on SIAM figures

92 / March 2013

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Industry overview Utility Vehicles Manufacturers in India

Total Domestic Sales + Exports - January 2013 69,541 Units

Renault India 5.16%

Others GM 1.58% India 2.48%

Toyota Kirloskar 10.88% Mahindra & Mahindra 40.39%

Tata Motors 18.49%

Maruti Suzuki 21.02%

Others Force Motors (0.58%)

Nissan Motor India (0.37%)

Hindustan Motors (0.33%)

Skoda Auto India (0.13%)

Hyundai Motor India (0.08%)

Honda Cars India (0.04%)

Ford India (0.04%)

Volkswagen India (0.01%) Based on SIAM figures

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March 2013 / 93

Industry overview Two Wheeler Manufacturers in India

Total Domestic Sales + Exports - January 2013 13,60,636 Units

India Others Yamaha 1.71% Motor Suzuki 2.67% Motorcycle 2.94%

TVS Motor 12.60% Hero MotoCorp 41%

Honda Motorcycle & Scooter India 16.93%

Bajaj Auto 22.15%

Others Royal Enfield (0.84%)

Mahindra Two Wheelers (0.56%)

Piaggio Vehicles (0.29%)

H-D Motor Company (0.02%)

Based on SIAM figures

94 / March 2013

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Industry overview Three Wheelers in India

Total Domestic Sales + Exports - January 2013 76,061 Units

Atul Auto 3.69%

Others 2.18%

TVS Motor 5.81%

Mahindra & Mahindra 7.77%

Piaggio Vehicles 19.73%

Bajaj Auto 60.82%

Others Scooters India (1.96%)

Force Motors (0.22%)

Based on SIAM figures

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March 2013 / 95

Industry overview Light Commercial Vehicle Manufacturers in India Total Domestic Sales + Exports - January 2013 48,164 Units

Force Motors 4.01%

Others 3.59%

Ashok Leyland 7.68%

Tata Motors 57.77% Mahindra & Mahindra 26.95%

Others VECVs - Eicher (1.61%)

Mahindra Navistar (1.38%)

Piaggio Vehicles (0.13%)

Hindustan Motors (0.04%)

SML Isuzu (0.43%)

Based on SIAM figures

96 / March 2013

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Industry overview Medium and Heavy Commercial Vehicle Manufacturers in India Total Domestic Sales + Exports -January 2013 20,532 Units

Others SML 1.99% Asia Isuzu Motor 2.01% Works 2.50%

VECVs - Eicher (14.42%) Tata Motors 45.63%

Ashok Leyland Ltd. (33.45%)

Others Mahindra Navistar (1.74%)

Volvo Buses India (0.16%)

VECVs - Volvo (0.09%)

Based on SIAM figures

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March 2013 / 97

Industry overview Auto Industry Overview

Total Domestic Sales + Exports - January 2013 17,89,283 Units

Three Wheelers 4.25%

Commercial Vehicles 3.84%

Passenger Vehicles 15.87%

Two Wheelers 76.04%

Based on SIAM figures

98 / March 2013

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RNI No DEL ENG/2010/34562