Auto ASIA, March-April 2017

www.autoasia.net January-February 2017

Baleno RS Vs Fiat BMW i5 rendered AUTO BUDGET 2017 Auto Component Industry Toyota Suzuki marriage

India’s leading international trade fair for the automotive service industry targeting trade visitors from the Indian Subcontinent

21 – 24 March 2017 Pragati Maidan, New Delhi www.acma-automechanika.in

To book your booth, contact: Sagar Nanal – Project Head +91 22 6144 5955 | + 91 98202 81302 sagar.nanal@india.messefrankfurt.com

Platinum Partner

Niladri Mallick – Senior Director (ACMA) +91 11 2616 0315 niladri.mallick@acma.in

Silver Partner

Bronze Partner

For visitor registration, contact: Nikita Pires +91 22 6144 5900 nikita.pires@india.messefrankfurt.com

E D I T O R I A L Managing Editor Reny Singh | Editor Sarvjit Kanwar | Circulation Circulation: Surekha China Correspondent & Reporters Ying Wei (Beijing), Xingguang Li (Shanghai) Associate Editors Vishwapreet, Amrita | Secretary & Legal Advisor K. Surinder Production, Design & Digital Media Diamond Infomedia Overseas Editors Editors: Julia, Steffen, Saskian (Germany) Technical Advisors Alex Van Bienen / Lily (Netherlands) Public Relations Director (UK) Mike Steele

The Asian Magazine for Automotive, OEM’s After-Market & Components

International Advisor (Australia) Andrew S. McCourt Head Office D-182, PR House, Anand Vihar, New Delhi-110092.

A MAGNUM OPUS OF INTREPID JOURNALISM

Tel: +91 11 2214 1542 | Fax: +91 11 2216 0635 Email: info@autoasia.net | Web eb: www.autoasia.net

Government of India: RNI#: DELENG|2000|675 March-April 2017 | Vol.18 No.2 | New Delhi, India Annual Subscription: India: Rs.2000 | Overseas: US$250

Published, edited & owned by Sarvjit Singh, on behalf of WORLDWIDE PUBLICATIONS, D-182, PR House, Anand Vihar, New Delhi-110092, and printed by him at Technical Press Inc. D-182/C, Anand Vihar, New Delhi-110092, India.

Founder Editor-in-Chief Late Mr Kanwar N.S.

Auto Industry - India in Business

T

he Indian auto industry is one of the largest in the world. The industry accounts for 7.1 per cent of the country’s Gross Domestic Product (GDP). The Two Wheelers segment with 81 per cent market share is the leader of the Indian Automobile market owing to a growing middle class and a young population. Moreover, the growing interest of the companies in exploring the rural markets further aided the growth of the sector. The overall Passenger Vehicle (PV) segment has 13 per cent market share.

India is also a prominent auto exporter and has strong export growth expectations for the near future. In April-March 2016, overall automobile exports grew by 1.91 per cent. PV, Commercial Vehicles

(CV), and Two Wheelers (2W) registered a growth of 5.24 per cent, 16.97 per cent, and 0.97 per cent respectively in April-March 2016 over April-March 2015.* In addition, several initiatives by the Government of India and the major automobile players in the Indian market are expected to make India a leader in the 2W and Four Wheeler (4W) market in the world by 2020.

The Society of Indian Automobile Manufacturers or SIAM has always lobbied for the same, but now with the Goods and Services Tax or GST promised to arrive soon, there was no scope for any excise or other duty to be tweaked. So to be honest the auto industry expected nothing that was specific to the sector itself - barring a log standing expectation that there will be huge

incentives to bring in more environmentally friendly vehicles electric or hybrid - to India. That has not happened. So the reactions are mixed.

So has there been any cheer for the industry at all? Yes - and in fact in a big way. Budget 2017-18 has laid out a very clear set of themes. The two large initiatives are aimed at putting more money into the rural economy - especially after demonetisation; and a renewed focus on infrastructure development. The latter sees a marginally higher allocation of Rs 64,000 Cr for highway development in particular.

Another item that has seen mention in previous budgets and sees clarity is the specific outlay for the development of coastal roads -for better connectivity to ports and coastal villages. Under the Pradhan Mantri Gram Sadak Yojna roads work accelerated to 133 km roads per day in 2016-17 against 73 km per day during 2011-14. These allocations will be good news for makers of heavy machinery and construction equipment like JCB or

Tata Hitachi; and also CV makers like Tata and Ashok Leyland.

But it is the farm-friendly policies like that the Finance Minister has announced that will really benefit the auto sector. This is even truer in the case of manufacturers of farm equipment like Mahindra and Tafe.

Allocation for rural sector for Fiscal Year 2018 is Rs 1,87,200 cr, which is a record, and represents an increase of 24 per cent In fact the allocation under MNREGA increased from Rs 38,500 crore to Rs 48,000 crore. And it will no doubt benefit the two wheeler brigade that sees a chunk of sales coming from Tier 3 towns and rural India, like Hero and HMSI. Pawan Munjal, Chairman and Managing Director, Hero MotoCorp, said “Clearly government spending in schemes such as MNREGA & Pradhan Mantri Awas Yojna is highest-ever. This is a boost for core sectors such as rural, agriculture, steel, manufacturing etc..., and will convert into increase in consumption in rural India.” autoASIA | March-April 2017 | 3

Maruti Suzuki Baleno RS Vs Fiat Punto Abarth Vs Volkswagen Polo GT TSI

which the Abarth Punto does not have. The Punto’s design is also a bit old school when compared to the Baleno’s and Polo’s cabin.

T

he premium hatchback segment is finally seeing growth in India. It has new players offering sporty vehicles that combine luxury with good performance. Over the last few years, it has been dominated by the Volkswagen Polo GT TSI. In 2015, we got our first true hot hatchbackthe Fiat Punto Abarth and now in a short while we will get the Maruti Suzuki Baleno RS. As the name suggests, it is a sportier version of the Baleno hatchback and will be powered by a turbocharged three-cylinder petrol engine and mated to a five-speed manual gearbox.

Given their performance and premium appeal, each of these cars is based on the top-of-the-line variants of the standard vehicle and thus offers all the bells and whistles that the manufacturer has for its range in the country. Ahead of the Baleno RS’ launch, here is a comparison of how it fares against the Punto and Polo.

Exterior Since its launch, one of the major qualms of the Baleno range has been its subtle looks. While its sports all the latest design hallmarks of the Japanese automaker, it lacks 4 | March-April 2017 | autoASIA

the overt presence that is expected from a vehicle in this range. Things are likely to improve with the RS variant as it gets a spoiler, sportier alloy wheels and extra colour options which should make it more noticeable.

It is a similar story with the Polo GT TSI. The Polo by itself, in that typical German fashion, is quiet and offers very few exterior hints when it comes to its sporty origins. In fact it is only the GT badges and some stickers on the side that give some indication of the excitement that lies within.

Unlike its German and Japanese counterpart, the Fiat Punto Abarth is all about show and tell. It is a riot of colours with the famous Scorpion badging dominating a lot of the proceedings. The Punto Evo by itself is a good looking car and with the entire extra garnish, the Abarth Punto is quite a looker. It also sits lower than the other two and thus is the sportiest looking in the Trio.

Interior Where the Abarth Punto took top honours in the looks department, it falls well behind when we look at the cabin and features. Both the Baleno and the Polo GT get touchscreen infotainment systems

The Polo and the Baleno then are the real competitors when it comes to this part of the fight. They are quite evenly matched and offer very similar features including Apple CarPlay/ Android Auto support. In terms of numbers too they are evenly matched with very little to separate them though it must be noted that the Baleno is much wider car and has the highest ground clearance of the three. It is also the lightest car in the lot as it weighs just 890kgs and has the largest boot capacity of 339litres as compared to the Polo’s 295-litres and Abarth Punto’s 280litres.

Performance This is where this segment comes alive. Let us go from car examining what they have to offer. This Baleno RS is powered by a turbocharged three-cylinder engine producing 102bhp/150Nm of torque with power going to the front wheels via five-speed manual. The Polo GT TSI

gets a 1.2-litre four-cylinder turbocharged engine producing 103bhp/175Nm with power going to the front wheels via a sevenspeed DSG and is the only one in the fray that is an AT. Finally, the Abarth Punto is powered by the 1.4-litre T-Jet engine producing 145bhp/205Nm of torque with power being sent to the front wheels via a five-speed manual. It is obviously the most powerful engine of the lot but due to its 1.19 tonne weight is also the heaviest car in the fray.

Conclusion We believe that Maruti Suzuki will price this Baleno RS a lakh more than the top-spec standard model Alpha petrol. This means we can expect a price of around Rs 8.30 lakh. It will still undercut both the Polo GT TSI and Abarth Punto by a significant margin and possibly add good numbers to the overall Baleno volumes. Given that Maruti Suzuki is opening a new page on the higher side of Rs 8 lakh with every model it introduces, the Baleno Rs might just be a game changer for them.

JUST LAUNCHED JUST LAUNCHED

· · · · · · · · · · · ·

A complete portal for Automotive aftermarket A complete portal for Automotive aftermarket Parts for all Automobile applications in all Makes & Origin Parts for all Automobile applications in all Makes & Origin Complete Range of Genuine, OEM, Replacement Parts Complete Range of Genuine, OEM, Replacement Parts B2B portal covering 150 Top brands & millions of product lines B2B portal covering 150 Top brands & millions of product lines Authentic and updated parts data in association with TecDoc Authentic and updated parts data in association with TecDoc Direct supply sources from manufactures or their authentic regional stockiest.

Direct supply sources from manufactures or their authentic regional stockiest.

Easy, fast and flexible shipping options and formalities Easy, fast and flexibleforshipping options and formalities Authorized Reseller TecDoc Catalogue in Middle East, Authorized Reseller for TecDoc Catalogue in Middle East, africa, South Asia and CIS Countries. africa, South Asia and CIS Countries.

GG EN EN UU

Truckcare has just launched a full-fledged ecomerce B2B Truckcare has just launchedAftermarket a full-fledged ecomerce B2B portal for entire Automotive industry. portal for entire Automotive Aftermarket industry.

Automotive parts retailers around the globe can simply visit Automotive parts retailers around the globe can simply our easily structured site www.truckcare.com and sendvisit their our easily structured site www.truckcare.com and send their queries – spare parts and accessories for any application, any queries – spare parts and accessories for any application, any make, any origin, any model, any version of parts. make, any origin, any model, any version of parts. www.truckcare.com will take care of the rest… www.truckcare.com will take care of the rest…

ART EP P N INE ARTSS I

Truckcare.com is a specialist full-fledged e-commerce B2B portal for Automotive Aftermarket requirement dealing with complete range of Genuine, OEM and Replacement parts for Cars, Trucks, heavy equipment, two wheelers, forklifts, generators and all other Automobile applications. The portal is enriched with wide ranges of parts database in association with world's largest and most authentic parts data provider: TecAlliance / TecDoc

History Truckcare is an Automotive Aftermarket division of a leading business group based in Dubai. It has emerged as one of the most reliable Automobile Spare Parts dealer for Cars, Trucks, Trailers & other heavy equipment as well as commercial vehicles in the Middle East, Africa, South Asia and CIS region, since its establishment in 1986. In the context of regional market demand, and technological advancement of automotive aftermarket industry, it developed a specialized E-commerce portal for the industry and market, utilizing its industrial and technological expertise – Truckcare.com. Moreover, favorable peculiarities of Dubai - flexible & advanced import/export/shipping formalities, extensive presence of all top brands and availability of wide range product line in Dubai – prompted us to convert our business perspective from Truckcare to Truckcare.com model in 2016.

Overview Truckcare.com is a specialist full-fledged E-commerce B2B portal for Automotive Aftermarket requirement dealing with complete range of Genuine, OEM and Replacement parts for Cars, Trucks, Trailers, Buses, Commercial Vehicles, Earthmoving / heavy equipment, Military Vehicle two wheelers, forklifts, generators and all other Automobile applications in all Makes and Origin – European, American, Japanese, Korean, Indian & Chinese. It directly source & procure parts from manufacturers or their authorized stockist all over the world assuring very attractive wholesale/retail price structure. Its product data range include hundreds of top popular brands in the industry covering millions of product line. In association with world's largest and most authentic parts data provider – TecDoc, Truckcare.com is adding thousands of updated parts data on regular basis and the number of product line growing every day according to automotive aftermarket production & customer demands. We are also authorized reseller of TecDoc Catalogue for entire Africa, Middle East, South Asian & CIS region. Day by day, many recognized auto parts retailers are joining Truckcare.com and enjoying the benefits of this unique portal – Faster availability at cheaper price for all range of Authentic Spare Parts. Truckcare assures safe and fastest shipments in associating with most reliable shipping partners in Dubai in all 4 shipping modes – Sea, Air, Courier and Road Shipments – according to the demands and requirement of the customers. All of our shipping partners are well recognized with unique specialties, either in shipping mode or in shipping destination around the globe. The system automatically detect the most suitable shipping agent for their shipments as per their option and requirement provided by the customer and provide automated shipping rates based on weight, volume, destination & Shipping mode.

Why Truckcare.Com ? · · · · · ·

Complete Range of Genuine, OEM, Replacement Parts for all Automobile applications in all Makes & Origin B2B portal covering hundreds of Top brands & millions of product line in Automotive Aftermarket Industry Authentic and updated parts data in association with TecDoc/TechAlliance Direct supply sources from manufactures or their authentic regional stockist.

Easy, fast and flexible shipping options and formalities.

Authentic TecDoc Catalogue reseller for Middle East, Africa, South Asia and CIS regions.

P.O.Box: 49750, Dubai, UAE / T. +971 4 2880777 / E. info@truckcare.com / www.truckcare.com

TRUCKCARE.COM is a specialist full-fledged e-commerce B2B portal for Automotive Aftermarket requirement dealing with complete range of Genuine, OEM and Replacement parts for Cars, Trucks, heavy equipment, two wheelers, forklifts, generators and all other Automobile applications. The portal is enriched with wide ranges of parts database in association with world’s largest and most authentic parts data provider: TecAlliance / TecDoc

History TRUCKCARE is an Automotive Aftermarket division of a leading business group based in Dubai. It has emerged as one of the most reliable Automobile Spare Parts dealer for Cars, Trucks, Trailers & other heavy equipment as well as commercial vehicles in the Middle East, Africa, South Asia and CIS region, since its establishment in 1986. In the context of regional market demand, and technological advancement of automotive aftermarket industry, it developed a specialized ecommerce portal for the industry and market, utilizing its industrial and technological expertise – TRUCKCARE.COM. Moreover, favorable peculiarities of Dubai - flexible & advanced import/export/shipping formalities, extensive presence of all top brands and availability of wide range product line in Dubai – prompted us to convert our business perspective from TRUCKCARE to TRUCKCARE.COM model in 2016.

8 | March-April 2017 | autoASIA

Genuine, OEM And Replacement Parts

Top Makes ALPHAROMEO VOLVO AUDI BMW CHRYSLER CITROËN DAEWOO DAF DAIHATSU FORD HONDA HYUNDAI ISUZU JAGUAR JEEP KIA L ADA

MAZDA MERCEDESBENZ MINI MITSUBISHI FIAT NISSAN OPEL PEUGEOT PORSCHE RENAULT ROVER SAAB SEAT SUZUKI SKODA SMART TOYOTA VM

Overview TRUCKCARE.COM is a specialist fullfledged ecommerce B2B portal for Automotive Aftermarket requirement dealing with complete range of Genuine, OEM and Replacement parts for Cars, Trucks, Trailers, Buses, Commercial Vehicles, Earthmoving / heavy equipment, Military Vehicle two wheelers, forklifts, generators and all other Automobile applications in all Makes and Origin – European, American, Japanese,

Korean, Indian & Chinese. It directly source & procure parts from manufacturers or their authorized stockist all over the world assuring very attractive wholesale/retail price structure.

Its product data range include hundreds of top popular brands in the industry covering millions of product line. In association with world’s largest and most authentic parts data provider – TecDoc, TRUCKCARE.COM is adding thousands of updated parts data on regular basis and the number of product line growing every day according to automotive aftermarket production & customer demands.

We are also authorized reseller of TecDoc Catalogue for entire Africa, Middle East, South Asian & CIS region. Day by day, many recognized auto parts retailers are joining TRUCKCARE.COM and enjoying the benefits of this unique portal –

Faster availability at cheaper price for all range of Authentic Spare Parts.

TRUCKCARE.COM assures safe and fastest shipments in associating with most reliable shipping partners in Dubai in all 4 shipping modes – Sea, Air, Courier and Road Shipments – according to the demands and requirement of the customers. All of our shipping partners are well recognized with unique specialties, either in shipping mode or in shipping destination around the globe. The system automatically detect the most suitable shipping agent for their shipments as per their option and requirement provided by the customer and provide automated shipping rates based on weight, volume, destination & Shipping mode.

Why Truckcare.Com ?

• Complete Range of Genuine,

OEM, Replacement Parts for all Automobile applications in all Makes & Origin •B2B portal covering hundreds of Top brands & millions of product line in Automotive Aftermarket industry •Authentic and updated parts data in association with TecDoc/ TechAlliance •Direct supply sources from manufactures or their authentic regional stockist.

•Easy, fast and flexible shipping options and formalities.

•Authentic TecDoc Catalogue reseller for Middle East, Africa, South Asia and CIS regions.

For more information, please contact: Truckcare.Com P.O.Box: 49750, Dubai, UAE T. +971 4 2880777 Mobile: + 971 50 6538072 E. info@truckcare.com www.truckcare.com autoASIA | March-April 2017 | 9

Toyota-Suzuki marriage has implications for the Indian car market India, where both companies have high stakes. Suzuki, in particular, has a 50 per cent share in the three million units-a-year market.

"It has been a challenge for any carmaker to cut Suzuki's pie in India, which has increased despite new global players like Volkswagen and Nissan joining the league.

Its latest partnership will yield rich dividends in terms of technology access to Toyota's proven prowess, which in turn may consolidate its position in the smaller car segment with Daihatsu Motors (now Toyota's subsidiary) that still leads the Japanese small car market over Suzuki," said Abdul Majeed, auto analyst with PriceWaterhouse.

J

apanese auto giants Suzuki Motor Corporation, 56 per cent owner in Maruti, and Toyota Motor Corporation have joined forces. The two will explore cooperation in environment and safety, IT and mutual supply of products and components.

It will pave the way for the introduction of cutting edge products and technologies in India. It's Suzuki's third major partnership after its limited success in tie-ups with General Motors of US and Volkswagen AG of Germany. Both the collaborations lasted few years, but this the alliance could steer the Japanese companies to greater heights. Suzuki has been trying hard to venture into new areas of powertrain, beyond its hardcore petrol with mixed results.

Its only success in diesel has been the multi-jet engine, sourced from

Fiat. Suzuki's own proprietary technology in diesel, DDiS 125 engine, despite its staggering 27.62 kmpl mileage in Celerio hatchback has been almost phased out following a lukewarm response from the customers. The new partnership for both complement each others' thrust on new technologies from the futuristic world of hybrid, electric, fuel cell, bio-fuels and self driving cars that could drive next generation of passenger vehicles.

Toyota President Akio Toyoda and Suzuki Chairman Osamu Suzuki announced the partnership without divulging any details or the scope of partnership, "Aim to jointly contribute to resolution of social issues and achievement of sound and sustainable development of an automobile-based society," read the statement.

Akito Tachibana, MD at the Indian

10 | March-April 2017 | autoASIA

subsidiary, Toyota Kirloskar Motors, was more specific and said that India is one of the regions to be covered by this partnership. "With an aim to jointly contribute to resolution of social issues and sustainable growth of an automobile based society, TKM's parent company, Toyota Motor Corporation (Toyota) has signed an agreement today with Suzuki Motor Corporation (Suzuki) to collaboratively begin examinations for business partnership in areas such as environmental technologies, safety technologies, and information technologies. This is aimed to achieve sustainable growth with mutual business interests staying independently competitive in the market," he added.

But analysts covering the industry added that it should lead to further efficiencies in compact car technologies. The new partnership could prove to be quite crucial for

He added that considering the growth in the Indian automotive market, global OEM's have realised that they need to have very credible strategy (product development, distribution, after market services and export) going forward.

"It will be difficult for OEM's to increase their volumes without growing in India. In addition, they are also looking at segments such as small cars and compact SUVs etc.

Without strong portfolio in these segment it will be difficult to grow in the Indian market," he added.

Despite the partnership Suzuki and Daihatsu Motor will continue to sell vehicles under their separate brands to avoid risks related to antitrust laws, reports the Japanese media.

Daihatsu will soon enter India, with an official announcement expected soon, after Toyota failed to compete in the local market with its Etios brand of sedan and hatchback that may be eventually discontinued.

Maruti may well have to compete with the boxy, but low-priced cars from Daihatsu.

Next-Generation Suzuki WagonR, Stingray revealed

M

aruti’s parent company, Suzuki has unveiled the allnew Suzuki WagonR and WagonR Stingray in Japan. The allnew car gets peculiar change in terms of styling, however the models still retain design cues from its predecessor like the the tall boy stance, while the standard model still gets a resemblance to the existing model from the face.

Speaking of the exterior, the front fascia of the model now gets an upright two-piece grille edged by either a set of squar-ish headlamps on the standard model or twopiece units with a body-coloured panel between them on the hybrid.

The hybrid model comes with a thick chrome strip across the grille along with a noticeable lower grille.

On the other hand, the Stingray features a prominent single-piece front grille flanked by sleek, leaf shaped LED headlamps.

The nose of the all-new Stingray seems to inspire its design from American built Cadillac’s Escalade SUV. The side profile of all the three variants looks similar with the thick pillars, whereas the wing mirror is now placed on the door and not on the pillar. At the rear, the new WagonR gets rear styling similar to the Alto that is sold in Japan with a clean tailgate and the tail-lamps placed low down just above the rear bumper.

Inside, the Stingray gets a new dashboard horizontally-laid unit with an all-black interior and the centre console is placed at the higher side not touching the floor. The instrument cluster is now positioned at the centre; where certain models will feature a colour display for the MID. Higher variants additionally gets a heads-up display. The model gets some styling for the interiors from the recently launched Ignis that

includes air-con vents in a horizontal pattern, steering wheel and the touchscreen infotainment system.

Mechanically, the standard car derives its power from a 660cc three-cylinder petrol unit that makes 51 bhp and 60 Nm of top torque.

The hybrid variant gets Suzuki’s SHVS mild hybrid technology, while the Stingray is available in both standard and hybrid form. The powertrain is tuned to deliver 65 bhp of maximum power and 98 Nm of peak torque. Suzuki is offering a CVT gearbox as standard and all variants are available in two-wheel and four-wheel drive.

These models will surely not make its way to the Indian shore, but if planned to launch, then expect it to be bit tweaked for the Indian market with a long hood to place a 1.0 litre powertrain in it.

12 | March-April 2017 | autoASIA

Indian auto sales see biggest drop in 16 years

I

ndia's automobile sales saw their biggest monthly fall in 16 years in December after Prime Minister Narendra Modi's ban on highvalue banknotes sparked a severe cash shortage that dented demand for big-ticket items such as cars. Automobile sales fell 18.66 percent in December to 1.2 million units, the biggest monthly drop since the same month in 2000, data from the Auto sales have seen an especially big drop in rural areas and regions where cash transactions are typically prevalent. Large two wheeler manufacturers have also seen a big impact due to their high exposure to rural markets, the data showed.

Two-wheeler sales fell 22 percent in December from the previous month, one of the biggest falls on record, to 910,235 units, while domestic passenger car sales saw a 8.14 percent drop to 158,617 units. The data is in line with other indicators showing Modi's shock action - aimed at cracking down on tax dodgers and counterfeiters - has hit the economy hard.

Earlier this month, a survey found Indian factory activity plunged into contraction in December.

Further hitting demand were uncertainties about a new unified national tax rate India is gearing up to unveil later this year, while some consumers were likely also waiting to see whether the government would announce special incentives at its annual budget on Feb. 1. Abdul Majeed, partner at Price Waterhouse, said automakers would face "a challenging quarter."

"People tend to hold off on purchase of vehicles till uncertainty is resolved," he said.

autoASIA | March-April 2017 | 13

Kia Motors Could Open First India Car Plant in Andhra Pradesh

S

outh Korea's Kia Motors Corp is close to finalising Andhra Pradesh as the site for its first factory in the country, as it speeds up efforts to start production in the fast-growing market, a source familiar with the matter said.

Reports of Kia looking to pick a site have been doing the rounds for a while, but an official with the Andhra Pradesh administration had told Reuters last year that the state was the frontrunner given its proximity to Tamil Nadu - home to plants of Kia's affiliate, Hyundai Motor Co. The Korean firms, jointly the world's No.5 car maker, are chasing new business after missing targets over the past two years. And now, there are worries sales to the United States, one of their biggest markets, could be affected by protectionist trade policies under President Donald Trump.

India, however, remains a bright spot, with Hyundai - the country's

No.2 automaker by sales - reporting growth there.

Kia is hoping to leverage its affiliate's supply chain network built over nearly two decades to gain a foothold in the market that is tipped to become the world's third largest by 2020.

This month, Kia is likely to choose a site in the district of Ananthapur, Andhra Pradesh, for its factory, the source said, adding the state had offered about 600 acres (242.81 hectares) of land to the automaker.

A second source also said that Kia was likely to pick Andhra Pradesh as its factory site. The sources did not want to be named as they were not authorised to talk to media.

Kia intends to produce small sedans and small sport utility vehicles at the plant from July 2019, although the plan is subject to change, a third person said.

14 | March-April 2017 | autoASIA

The CEO of Kia Motors, Park Han-woo, said the automaker was in the process of picking a site for an Indian factory, without giving any details on location.

"Preparations are going well. We are ready to break ground on the factory anytime," he told Reuters on the sidelines of an industry event in Seoul on Tuesday.

Maharashtra and Gujarat have also been wooing Kia for the factory, Reuters reported last year.

Kia is likely to compete with its affiliate Hyundai, Tata Motors, Honda Motor Co and Maruti Suzuki India Ltd in India, a market skewed towards cars costing less than $7,000.

Hyundai is one of a handful of successful foreign car makers in India. Japan's Toyota Motor Corp is trying to expand in the country and this week announced a partnership with Suzuki Motor Corp, which dominates the Indian market via its Maruti Suzuki venture.

"Kia cannot afford to miss the India market," said Ko Tae-bong, an auto analyst at Hi Investment & Securities.

Okinawa Electric Scooters launched in India; to invest Rs 275 crore over next 3 years

O

kinawa Ridge, launched at a price of Rs 43,702 (exshowroom Delhi), will need RTO registration and insurance.

New entrant in Indian two-wheeler electric space, Okinawa Electric Scooters, which also launched its Ridge electric scooter in the country, is going to invest about Rs 270-275 crore in India over next three years and will also be increasing its product portfolio going forward with two more products launches already scheduled in 2017.

Speaking to ETAuto, the company said that its product portfolio will not just be restricted to scooters, but will also include motorcycles.

manufacturer by offering a solution to the daily commuting needs of the average person. We aim to empower all our stakeholders through products that add to their lifestyle without subtracting anything from the environment.”

“By making technology and nature ride together, Okinawa is poised to create a revolution in India’s transportation space. We promise never-seen-before performance standards and are driven by our motto of ‘Power the Change’ in each component of our vehicles.

They run fast, are great to look at, come at extremely affordable prices and are a big ray of hope to curtail the amount of environmental degradation.”

Okinawa Ridge boasts a top-speed of 55 kmph and a range of 200 kms in full charge that requires a charging for 6-8 hours. There is also an option of fast charge in which the company says the scooter can be charged by up to 80% in less than two hours.

Currently, the company has a total of 24 dealers in states like Rajasthan, Haryana, Punjab, Delhi and Madya Pradesh but plans to expand to 450 dealers across India in next three years. The company is also looking to setup a R&D centre in Rajasthan and will be implementing charging infrastructure facilities in key cities as a pilot project before extending it to other cities.

Okinawa Ridge, launched at a price of Rs 43,702 (ex-showroom Delhi), will need RTO registration and insurance, unlike most of the other electric scooters in the country, because of its high power.

Electric two-wheelers contribute to less than 1 percent of the total twowheeler sales in India and the company is looking to gain some momentum in this niche segment.

The company also told us that it is looking to establish the company pan India and will be locally manufacturing electric scooters from its plant in Bhiwadi, Rajasthan.

Commenting on the beginning of their operations, Jeetender Sharma, MD Okinawa Scooters said, “Being an Indian company, our vision is to be a leading electric two-wheeler

autoASIA | March-April 2017 | 15

Maruti Suzuki India tops in 3 prime vehicle categories in FY17

A

ccording to industry data, Ciaz with 53,644 units in the April-January period has not only outsold competitors like Honda City , Hyundai Verna, Volkswagen Vento and Skoda Rapid but also clocked the highest growth in the segment.

SUV segment, Vitara Brezza's yearto-date tally of 88,537 units is ahead of best-seller competitors like Hyundai Creta and Mahindra Bolero.

Baleno, too, leads the premium hatch market with 96,720 units ahead of competitors like Hyundai i20, Honda Jazz and VW Polo.

CHENNAI: It's known for its small car supremacy . But in the past 10 months, car market leader Maruti Suzuki has managed to crack three non-small car segments -the midsized sedan with its Ciaz, the compact SUV with the Vitara Brezza, and the premium hatchback with the Baleno.

Looking beyond small cars to plug emerging niche segments has been the Maruti strategy for a while. The difference is now its non-small car products are doing well. Top company officials say that looking at de-risking the company's portfolio with non-small car products is very much part of its new strategy that calls on the company to roll out 15 new products across 2015-2020.

According to industry data, Ciaz with 53,644 units in the April-January period has not only outsold competitors like Honda City , Hyundai Verna, Volkswagen Vento and Skoda Rapid but also clocked the highest growth in the segment.

Similarly in the crowded compact

“Our leadership in new and premium segments is due to multiple factors -a superior purchase experience due to growing number of Nexa showrooms, a lineup of strong products and our communication strategy , which has evolved

16 | March-April 2017 | autoASIA

to reach out to the new target customer. Innovations like personalisation in Brezza have also helped," said R S Kalsi, executive director (marketing and sales) at Maruti Suzuki India.

Auto analysts agree it is the Nexa network that's one of the biggest reasons for Maruti's non-small-car success this time round.

No wonder the company plans to double the number of Nexa outlets by 2020. Abdul Majeed, partner, PwC, said, “There are a couple of things that Maruti has done differently . First the overhaul of their distribution network with Nexa was a masterstroke. Potential premium customers didn't want to go to the same showroom that sells a Rs 2-3 lakh car. Second, they worked hard on their products, particularly on styling. And finally, they put their pricing act together."

What has also helped is the

inconsistent performance of their main competitors.“Typically , Maruti's competitors have been putting up solo success products but most of them have not followed up with a consistent best-selling lineup,“ said an analyst with a Mumbai based broking firm. That has helped the automobile market leader.

Maruti's quest for non-mini markets goes back in time to 1985, when it launched the Gypsy , and 1990 when the Maruti 1000 was rolled out. In recent times, it has dabbled with different segments like the SUV (Grand Vitara) in 2003, sedan (SX4, Baleno and Kizashi in 1999, 2008, 2011 respectively), minivan (Versa and Eeco) and mini MPV (Ertiga).

Some of these, like the Swift Dzire (compact sedan) and Esteem (entry sedan), have been huge successes too. The difference this time is the number of non-small car products rolling out from Maruti and it's new focus on these segments.

Honda to recall 41,580 vehicles in India Here’s why

H

onda is recalling 41,580 vehicles in India so as to replace faulty front passenger airbag inflators and this is the company’s fourth recall in two years. The initiative is the part of Japanese automaker’s preventive global recall campaign which relates to defective air bag inflators supplied by Takata Corporation and has affected at least 7 million cars worldwide.

The company has said that it will voluntarily replace passenger front airbag inflators in previous generation models of City , Jazz , Accord and Civic manufactured during the year 2012. The recall has 7,265 units of premium hatchback Jazz, 32,456 units of mid-size sedan City, 659 units of premium sedan Accord and 1,200 units of Civic. The replacement will be carried out free of cost at Honda Cars India (HCIL) dealerships across India.

"The replacement of inflators for the affected models would begin immediately and the company will communicate with customers directly", Honda Cars India said in a statement. However, in India, there are no guidelines for recall but as per industry body Society of Indian Automobile Manufacturers (SIAM), auto makers in India have recalled over two million vehicles since the voluntary recall policy was announced in July 2012.

Top 10 two wheeler manufacturers in India in 2016

A

ccording to Society of Indian Automobile Manufacturers (SIAM) report, the top ten two wheeler manufacturers combined to sell a total of over 1.70 crore two-wheelers in 2016 as against 1.55 crore units in CY 2015, thereby registering a growth of 9.1 percent.

Two-Wheeler sales in India has faced some challenging times in calendar year 2016. The first six months of the year saw some good sales and a robust growth and just when it looked like the industry will post a double digit growth both urban and rural market sales dropped primarily due to demonetisation. According to Society of Indian Automobile Manufacturers (SIAM) report, the top ten two wheeler manufacturers combined to sell a total of over 1.70 crore two-wheelers in 2016 as against 1.55 crore units in CY 2015, thereby registering a growth of 9.1 percent.

India’s largest two-wheeler manufacturer Hero Motocorp sold over 65.80 lakh units registering a growth of 4.5%. The company sold about 62.96 lakh units in Jan-Dec 2015 period. Following up with Hero is its former business partner Honda Motorcycles and Scooter India (HMSI), which registered a growth of 9.6% by selling over 47.27 lakh units as against 43.14 lakh units in CY 2015.

India’s largest two-wheeler manufacturer Hero Motocorp sold over 65.80 lakh units registering a growth of 4.5%. The company sold about 62.96 lakh units in Jan-Dec 2015 period. Following up with Hero is its former business partner Honda Motorcycles and Scooter India (HMSI), which registered a growth of 9.6% by selling over 47.27 lakh units as against 43.14 lakh units in CY 2015. autoASIA | March-April 2017 | 17

Union Budget 2017: TVS Motor expects Honda Navi exports over 2k units balanced economic measures within 4 months of launch TVS Motor said a balancing act in Union Budget 2017 will eventually enhance ease of doing business within the country, boost consumer demand and catalyse economic growth.

NEW DELHI: Indian two wheeler manufacturer TVS Motor Company expects the government to introduce balanced economic measures at the Union Budget 2017. The company said such a balancing act will eventually enhance ease of doing business within the country, boost consumer demand and catalyse economic growth.

KN Radhakrishan, President and CEO, TVS Motor Company said, “The Indian auto industry observed strong rate of growth throughout 2016, largely driven by positive policy measures, healthy economic environment leading to robust demand across consumer pockets. It is furthermore crucial for sectors like automobile as it affects the larger operating ecosystem of the sector, which is linked with infrastructural developments, manufacturing policies and frameworks, tax regime etc."

"Therefore, in our view the finance ministry must minutely evaluate these crucial economic contributors and lay necessary thrust on each one of them, so as to give further impetus to growth and enhance disposable incomes and boost spending.”

Recently, TVS Motor Company has registered 10.4 percent growth in its Profit After Tax (PAT) for the third quarter of financial year 2017 and stood at Rs 132.67 crore as against Rs 120.21 crore during same quarter last fiscal.

For the calendar year 2016, the Chennai based automaker ranked number three in terms of domestic sales after witnessing 15.8 percent year-on-year growth and stood at 24,83,844 units.

Honda Navi has recently crossed the cumulative 50,000 unit sales mark in the month of October (within six months of market availability).

NEW DELHI: Honda Motorcycle and Scooter India (HMSI) has introduced Adventure & Chrome editions for Navi. This introduction is an extension to the currently available customisation options in vibrant colours - red, orange and green.

Honda Navi has recently crossed the cumulative 50,000 unit sales mark in the month of October (within six months of market availability).

Honda Navi achieved another significant milestone as its exports crossed 2000 unit dispatches within four months. It is currently being exported to Nepal and Sri Lanka. Continuing its expansion drive it will soon explore new export markets.

Yadvinder Singh Guleria, Senior Vice President, Sales and Marketing, HMSI said, “We are extremely pleased with the response that Navi has received.

We have succeeded in grasping imagination of the youth with this unique product. The new shiny sparkling chrome and wild untamed Adventure editions are sure to provide an extra dose to those who have an appetite for FUN. We will continue to surprise our customers and add more fun with expansion of customisation options.”

Honda Navi is 100% developed by Honda R&D India from concept development to commercial production. It is powered by 109cc engine which makes 8PS at 7,000rpm and delivers a peak torque of 8.96Nm at 5,500rpm.

The standard Honda Navi is available in 5 colour options - Patriot Red, Hopper Green, Shasta White, Sparky Orange & Black.

New Hero Electric scooter Flash unveiled at GMX Expo

H

ero Flash claims a range of 65kms on a single charge which takes about 6-8 hours. The scooter gets a 48-Volt, VRLA battery. It has a 250W electric motor which gives a top speed of 25 km/hr. Ludhiana based electric two-wheeler manufacturer Hero Electric on Thursday unveiled its new Flash in a press conference here at GMX Expo, Pragati Maidan.

Hero Flash claims a range of 65kms on a single charge which takes about 68 hours. The scooter gets a 48-Volt, VRLA battery. It has a 250W electric motor which gives a top speed of 25 km/hr. The scooter is light weight at 87kg and gets telescopic suspension with 16 inch alloy wheels. Talking to the media, Sohinder Gill- CEO Global Hero Eco said, "With Flash, we are moving further ahead with our vision of making India an electrically mobile nation. Flash is the epitome of the latest and best of technology available in e-automobiles sphere." In an interview Naveen Munjal MD, Hero Eco group said "with Flash we wanted to break the 20,000-25,000 price barrier. We wanted to tell customers that we have something which is reasonable so we took away features that weren't required at entry level.

Seeing this they can decide from the range of products we have." Talking about budget 2017, Munjal added "We really haven't impacted much with the budget. GST will be crucial but this government is bold and we hope 18 | March-April 2017 | autoASIA

electric scooters are not considered under normal scooters and we get some subsidy which a customer can benefit." Hero Electric also claimed that its sales have been much better in 2016 than what the company sold in 2015 and is very optimistic about 2017. Hero electric will look to attract new buyers with its new launch as about 60% of electric scooter buyers are the ones who already have an e-scooter.

Retail car sales up 3.5% in Dec despite note ban

M

aruti Suzuki’s inventory across its dealerships is a 100,000 vehicles at the end of any month. However, it was only 34,000 vehicles at the end of December 2016 More people bought cars last month as compared to a year before, despite the low consumption sentiment after currency demonetisation. Wholesale shipment of passenger vehicles (by companies to dealers) fell 1.3 per cent. In contrast, retail sales are estimated to have improved by a little over 3 per cent. Which shows the companies were able to bring buyers to showrooms despite demonetisation, with offers of price hikes and steep discounts. R C Bhargava, chairman at Maruti Suzuki, the country’s biggest in car sales,

said their practice was to keep wholesale supply lower in December, so that inventory did not pile up at dealers. “Due to the change in the model year after December, cars left with dealers have to be sold with incentives,” he explained.

Maruti has 47 per cent of the domestic passenger vehicle market; it sold about 106,000 vehicles to dealers last month. However, Bhargava said, retail sales was much higher at 183,000 vehicles at the company’s dealerships, showing growth of 3 per cent more over December 2015. The growth came even as its wholesales dipped over 4 per cent. Many companies, including Maruti, also went for a maintenance shutdown of five-six days last month. Usually, Maruti Suzuki’s inventory across its

dealerships is a 100,000 vehicles at the end of any month. However, it was only 34,000 vehicles at the end of December 2016. Bhargava said the industry is also estimated to have seen an increase of 3.5 per cent in retail sales last month. “There is no published data but this is what we have been given to understand”, he added. Most car makers have increased car prices by 2-3 per cent from January. But dealers are still sitting on some unsold cars manufactured last year. These continue to be sold on discounts while there are no discounts on car manufactured this month. Jnaneswar Sen, senior vice-president (sales & marketing) at Honda Cars India said the company’s retail sales in December was ‘far higher’ to wholesale where it posted a decline of 18 per cent. Second biggest car

maker Hyundai also posted a four per cent decline in wholesale dispatches last month. Its retail sales, however, are estimated to have shown growth. Bhargava pointed out that wholesales of passenger vehicles in January will be much higher that December as dealers will start building inventory once again.

This will help the industry improve the growth rate of 8.59 per cent in wholesale dispatches seen during April-December period of the current financial year. Industry body Society of Indian Automobile Manufacturers (Siam) had projected sales of passenger vehicles to grow at a double-digit rate in FY17.

However, the growth momentum received a setback post demonetisation.

autoASIA | March-April 2017 | 19

AUTO BUDGET 2017: UNION BUDGET LACKS INCENTIVES FOR ECO-FRIENDLY VEHICLES

S

everal auto industry experts and key figures have ex pressed disappointment over the lack of greater incentives for hybrid and electric vehicles in the 2017 Union Budget.

Auto industry today expressed disappointment over the lack of higher incentives for hybrid and electric vehicles, besides ignoring of suggestions for fleet modernisation scheme in the Budget.

“We would have preferred an announcement of higher incentives for hybrid and electric vehicles which would have emphasised Government of India’s war on pollution,” Toyota Kirloskar Motor Vice Chairman & Whole-time Director Shekar Viswanathan said in a statement. Expressing similar sentiments, Nissan India Operations President Guillaume Sicard said: “…There is nothing substantial for R&D for automotive industry, EV and Hybrid vehicles, which is a dampener.”

Volvo Auto India Managing Director Tom von Bonsdorff said while it was anticipated that there won’t be any major changes in existing indirect taxes in this Budget in view of impending GST implementation, “any measures to promote green technology would have given customers more options of environment-friendly vehicles”.

Society of Indian Automobile Manufacturers (SIAM) President Vinod K Dasari expressed disappointment that auto industry’s request for the incentive-based fleet modernisation scheme has again not found support in the Budget.

Moreover, there was a genuine case for continuation of 200 per cent weighted deduction on R&D expenses for Auto industry, which remained unacknowledged in Budget proposals, he added.

However, he expressed satisfaction that Rs 175 crore has been allocated towards funding of the electric and hybrid vehicle programme, through FAME scheme. Renault India Operations Country CEO and MD Sumit Sawhney said one of the focal decisions that the automotive sector was looking forward to from this Budget was the GST roll-out, and how different vehicle categories will be taxed. “Another area which deserved attention was the vehicle scrappage policy.

A clear roadmap on these policies would have given a boost to the industry. Although the Budget didn?t have much for the automobile sector, we are hopeful for some pro-business policies on a continual basis to benefit the industry,” he added.

Budget 2017: Expectations for automobile industry Hyundai Motor India Senior Vice President – Sales & Marketing, Rakesh Srivastava said the budget allocation on infrastructure development will create investments, generate employment and enhance mobility across the country. “Further income tax concessions to MSME and lower personal income tax will enable affordability of cars for entry level buyers,” he added.

20 | March-April 2017 | autoASIA

Auto component industry may grow 8-10% next year

M

edium and heavy commer cial vehicle segment likely to stay robust but slow down to 13-15% given increased base in FY2016 The Indian auto-component industry could gain momentum and register growth of 8-10% in the coming financial year, ratings agency ICRA said on Wednesday.

The medium and heavy commercial vehicle (M&HCV) segment is likely to stay robust but growth could slow to 13-15% given an increased base in FY2016. Also, a sustained uptrend in passenger vehicle demand is expected to push growth for the component industry.

According to lobby body Automotive Component Manufacturers Association (ACMA), the Indian

auto component industry registered a turnover of Rs 2.34 lakh crore ($38.5 billion) during the year 201415. Turnover for the current financial year will be disclosed in a few months.

robust demand for passenger vehicles (PV) in North America as well as Europe is likely to offset the decline in the M&HCV segment in those markets over the next 9-12 months, the report noted.

Over the medium to long term, growth in the auto component industry will be higher than the underlying automotive industry given higher localisation by OEMs, higher component content per vehicle, and rising exports from India, ICRA said in its latest research update on the auto component industry.

Subrata Ray, senior group vice president (corporate ratings) says “Over the medium term, ICRA expects OPBDIT margin for the autocomponent industry to stabilise at 14-14.5% level, given expected bottoming out of commodity prices in the current year�.

(ABS) becoming mandatory in 125cc+ two wheelers from April 2018, the domestic ABS market will witness exponential growth. Also, increasing awareness regarding safety aspects and likely implementation of mandatory crash test for passenger vehicles will further drive demand for ABS in PVs.

Overall demand from the original equipment and export segments remained subdued in FY2016 though some support from aftermarket sales drove overall auto component growth of 3-5%.

"In FY2017, the rural demand (impacting motorcycles, tractors and passenger vehicle segments) will be contingent on monsoon, though government efforts in the Union Budget of FY2017 could benefit the rural economy," he added.

While export demand was weak,

With anti-locking braking system

The ABS market could turn out to be a Rs. 6,500 crore opportunity for suppliers by FY2019e in the backdrop of implementation of safety regulations.

International players like Bosch, Continental, as well as homegrown majors like Brakes India will be key beneficiary of the mandatory implementation of ABS for 2W and PVs. At present, ICRA estimates ABS penetration of only 30% in the passenger vehicled segment, while it is minimal in the two-wheeler segment.

autoASIA | March-April 2017 | 21

Canadian auto-component player Magna starts two plants at Sanand

L

eading global automotive components maker Magna International Inc today inaugurated its Sanand manufacturing facilities catering to the Ford India facility in the vicinity, and said that they are looking at supporting the other automotive OEMs (original equipment makers) in the area as well.

At one plant Magna would be making the complete seat systems for Ford, while at the other it would be manufacturing body and chassis systems for Ford. While the company did not wish to divulge the exact investment made on the Sanand facility, it said that it was a multi-million dollar project and that there was room for expansion.

"We are looking at supporting the other automotive OEMs in the vicinity including Tata Motors, and

the upcoming projects of Maruti Suzuki and Honda Cars," said Deval M. Desai, vice president and country head, India executive director,business development, Magna International Inc. Both the units together would provide employment to about 600 people.

As for the seating systems plant, it would have an initial capacity to make car seats for 240,000 cars per year that can be expanded to 500,000 car seats per year on a twoshift basis. Magna is a global strategic supplier of Ford and the Sanand plants would also be exporting to locations in South America and other locations as per requirement. No export target has been set as of now. Cosma International, a wholly owned operating unit of Magna International, would be making the body and chassis systems at Sanand, and would employ around 400 people.

22 | March-April 2017 | autoASIA

The highly automated plant has 80 robots that are used for welding as well as materials handling and other manufacturing processes.

Magna has around 12 manufacturing locations across India, and 285 manufacturing locations across the globe. Nearly 116 plants across the globe supply to Ford, informed James J. Tobin, chief marketing officer & president Magna Asia. "We are looking at the next phase of growth to come from India. Indian market is estimated to grow from a 4 million units at present to about 12 million units by 2030," he added.

Sanand has seen an influx of automotive suppliers ever since Tata Motors parked its plant here around 2008. Apart from Ford and Tata, Honda and Maruti are setting up plants nearby. The 125-km SanandHansalpur-Vithalapur belt, with the

connected nodes of Kadi and Halol, is evolving as a major automobile hub in the the Asia-Pacific region.

An investment of about Rs 15,000 crore in all had already been committed by various companies, to create annual capacity of 1.25 million four-wheel and two million two-wheeled ones.

Another Rs 10,000-crore investment is awaited from Maruti Suzuki India and Honda Cars India, taking the installed capacity to 2.2 million vehicles annually in the next six to eight years. Earlier this year, Delhibased JBM Auto commissioned its components manufacturing unit at Sanand around June. In all around 19 vendors of Ford have set up facilities around Sanand including big names like Getrag Transmission India, Motherson Systems, Visteon Automotive, Valeo India and Caparo Engineering India.

'Auto Component Industry to Touch $100 Billion by 2020'

A

uto component industry body ACMA is targeting a nearly three-fold jump in the turnover of the sector to touch $100 billion by 2020, mainly driven by focus on high-quality products and low-cost manufacturing.

"We expect the Indian auto component industry to touch $100 billion turnover by 2020. The goal is little ambitious but we have full faith in the industry to achieve this target," Automotive Component Manufacturers Association (ACMA)

president Ramesh Suri told.

The auto component industry in India is currently pegged at $35 billion, with over $10 billion coming from exports, he added.

"It is an achievable goal as our manufacturing now conforms to global standards. Also, the relatively low-cost of production gives us an edge to grow," Mr Suri said.

Moreover, with India all set to become a global export hub for small and medium segment cars,

24 | March-April 2017 | autoASIA

auto component industry is also expected to benefit, he added.

When asked about the challenges faced by the industry, Mr Suri said: "There is huge problem of spurious spare parts. There should be a proper verification of auto parts so that this problem could be contained." Besides, there is a need for active campaign for genuine spare parts as many people die in accidents due to the malfunction of spurious parts in the vehicles, he added.

Commenting on the growth of industry in the next fiscal, Mr Suri said: "We expect auto component industry to grow in single digit in the next fiscal, while the exports would grow in double digit during the period."

Mr Suri was speaking on the sidelines of the inaugural day of ACMA Automechanica, where over 400 auto component makers from 16 countries are participating to showcase their latest products here in the capital.

Auto Component Makers Expect A Growth Oriented Budget

W

ith an aim to cross the USD 100 billion mark and to have at least 5 Indian suppliers amongst top-global 100 by 2020, the Automotive Component Manufacturers Association (ACMA), the apex body for the Indian auto component industry has submitted its recommendations to the Government for the forthcoming Union Budget for the year 2015-16.

The auto component body is looking forward for support from the government to revive the industry and to realise their ambition of growing exports to USD 35 - 40 billion and build overseas revenues of USD 20-22 billion over the next five years. The industry clocked a turnover of USD 35 billion in 201314 with exports of over USD 10.2 billion.

Commenting on the Auto Component Sector's expectations of the forthcoming Budget, Mr. Ramesh Suri, President ACMA, said, "The clarion call to 'Make in India' by Hon'ble Prime Minister Mr Modi which is designed to facilitate investments, foster innovation, enhance skill development, protect intellectual property and build best in class manufacturing infrastructure in the country could not be more timely; it has enthused the entire manufacturing industry. We expect the forthcoming budget to lead to creation of a favourable and stable policy environment to boost industrial revival and enable growth in domestic auto sector."

- Continuation of 10% Excise duty on Auto Components ACMA has recommend continuing of the excise duty rate of 10%, which was valid only till December 31, 2014.

Early Implementation of GST / Phasing out CST There is an urgent need to reduce multiplicity and complexity of applicable taxes through early implementation of GST. Further, till such time the GST is implemented, CST be reduced to 1% from existing 2%.

- Elimination of Customs Duty on Alloy Steel, Mild Steel, Aluminium Alloy and Secondary Aluminium Alloy Domestic Steel / Aluminium Alloy suppliers benchmark their prices based on the landed prices. This makes the inputs expensive for the domestic component manufacturers. Further, due to various trade

The last fiscal was one of the most challenging times for the auto sector in India. Factors like high capitcal cost, high interest rates, flucutating exchange parity, flagging vehicle sales, slowing down of investment and infrastructure challenges had adverse impact on the growth of the auto component industry.

Some of ACMA's salient recommendations to the Government are: 26 | March-April 2017 | autoASIA

agreements, auto components are facing reduced customs tariffs in comparison to the basic raw materials needed for their manufacture; this has resulted in inverted tariff structure in some of the cases.

Elimination of customs duty on the raw material will therefore set right the equation.

Allowing Input Credit on Diesel Due to power shortage manufacturers have to resort to generating their own power though gen-sets thus increasing the cost of production.

ACMA has recommended that such manufacturers be allowed to avail input credit on diesel procured for internal power generation.

Service Tax - Credit on various Services should be provided Services like canteen, transportation of employees, repair and maintenance of commercial vehicles etc. are directly related to manufacturing,

therefore manufacturing units should be allowed to avail Cenvat credit on such services.

Direct Tax: Encouraging Research & Development Presently 200% weighted deduction under section 35(2AB) of the Act is available for in-House R&D facility and 175% weighted deduction on outsourced R&D from approved Institutions i.e National Laboratories, Universities, Scientific Research Institutes and IITs. The 200% weighted deduction should be extended to R&D facilities, which are outsourced to Third-Party service providers or other institutions.

Furthermore, the amount of weighted deduction under Section 35(2AB) maybe allowed when computing tax under 115JB. This will alleviate accumulation of MAT credit.

Enhancing Depreciation Rate on Capital Goods The current depreciation rate on Capital Goods should be enhanced to 25% from 15%. Further, domestically manufactured capital goods be allowed 40% Depreciation. This will encourage Capital investment in the industry.

Horse Carriage to Autonomous Vehicles: Innovations in

T

he development in the transportation systems changed human life dramatically over time. Earlier walking and very limited usage of carrying mediums like horse carriages, had limited impact on human’s commuting distance and comfort.

However, with every new transportation medium, be it omnibus or streetcars, increased not only commuting distance but also comfort. Furthermore, introduction of trains and personal automobiles further increased human reach and ease of travelling. The development in the automobile and its technology resulted in expanding cities tremendously and saw growth of businesses everywhere the car could go.

Automobiles and city structure Centuries back, people used to walk and use Horse Carriage to commute, followed by the omnibus which could carry more people.

Since it was difficult for people to commute far from their houses, the urban areas grew majorly in central business district (CBD), and nearby water ports and railroad hubs. On the government’s part, it required to invest huge money on infrastructure of ports and hubs.

The urban structure was dense and centered, however, the introduction of subways initiated suburbanization with huge investments from the government on infrastructure.

People could live away from city centers and workplaces since they had a system to take them back home. However, those who were comparatively rich could still live in the core of the city.

The introduction of automobiles in 1910s helped suburbanization to grow drastically. Rich people could afford to buy an automobile and could now live far away from the city core since the commuting costs and rents were still less compared to high rents in the city center.

Post world war II, sales of automobiles grew tremendously, and expanded urban areas and created new suburb centers. In America, 70,000 cars were sold in 1945, followed by 2.1 million in 1946 and 5 million in 1949. This boom in automotive industry helped drive construction industry, threatened downtown retail districts and hotels, and ultimately changed lifestyle of people.

In the next decades thereafter, increase in income and reduction in automobile prices helped relatively

28 | March-April 2017 | autoASIA

poor people to buy a car, which expanded urban and suburban city structure. However, after 1970s residential patterns changed again as more affluent and rich moved back in city centers since income was increased enough to make private car ownership more affordable, and also because of more commuting costs and time due to traffic and congestion. The changed role of private automobile as a means of commuting to work is responsible for this changing pattern.

role.

The experience of past transportation innovations depicts that, over time, technology became cheaper and affordable.

The private car ownership and its affordability over time helped the growth in economy and changed lives of people tremendously.

Autonomous driving, being a disrupter in the automotive industry, has potential to change the city structure yet again.

For the effective implementation of autonomous vehicle technology, requires additional vehicle equipment, services and maintenance, and possibly roadway infrastructure.

Google’s Self-Driving Car project pointed out while testing their vehicles, that their car is having hard time over reading road signs. Tesla cars too had some issues over road signs. However, the solution of such problems lies in the infrastructure.

Whether it is road signs, traffic signals, or overall traffic and roadway management, Intelligent Transportation Systems (ITS) can play a crucial

The deployment of systems like Vehicle Information and Communication System (VICS) which Japan has deployed, will save a huge time.

This way, the autonomous car will already know if the signal is green, yellow or red when it approaches near the signal. Therefore, it no longer needs to read a sign or rely on its complex codes and algorithms.

This could displace commuters far from city centers and their work places to make it less dense. People with disabilities, children, and those with no driving license could travel independently.

With declining car ownership, increasing ride-sharing business models, and potential to change city structure again, it will be interesting to see how the development of Autonomous Driving unfolds.

A

uto industry expressed disappointment over the lack of higher incentives for hybrid and electric vehicles, besides ignoring of suggestions for fleet modernisation scheme in the Budget. The car rental industry were also optimistic that the Budget will focus more on promoting tourism in the country.

"We would have preferred an announcement of higher incentives for hybrid and electric vehicles which would have emphasised Government of India's war on pollution," Toyota Kirloskar Motor Vice Chairman & Whole-time Director Shekar Viswanathan said in a statement.

Expressing similar sentiments, Nissan India Operations President Guillaume Sicard said, "There is nothing substantial for R&D for automotive industry, EV and Hybrid vehicles, which is a dampener."

Volvo Auto India Managing Director Tom von Bonsdorff said while it was anticipated that there won't be any major changes in existing indirect taxes in this Budget in view of impending GST implementation, "any measures to promote green technology would have given customers more options of environment-friendly vehicles".

Society of Indian Automobile Manufacturers (SIAM) President Vinod K Dasari expressed disappointment that auto industry's request for the incentive-based fleet modernisation scheme has again not found support in the Budget.

Moreover, there was a genuine case for continuation of 200 per cent weighted deduction on R&D expenses for Auto industry, which remained unacknowledged in Budget proposals, he added.

However, he expressed satisfaction that Rs 175 crore has been allocated towards funding of the electric and hybrid vehicle programme, through FAME scheme.

Renault India Operations Country CEO and MD Sumit Sawhney said one of the focal decisions that the automotive sector was looking forward to from this Budget was the GST roll-out, and how different vehicle categories will be taxed.

"Another area which deserved attention was the vehicle scrappage policy. A clear roadmap on these policies would have given a boost to the industry. Although the Budget didn't have much for the automobile sector, we are hopeful for some pro-business policies on a continual basis to benefit the industry," he added.

Hyundai Motor India Senior Vice President - Sales & Marketing, Rakesh Srivastava said the budget allocation on infrastructure development will create investments, generate employment and enhance mobility across the country.

30 | March-April 2017 | autoASIA

Auto Industry not happy with Budget 2017; laments lack of incentives for eco-friendly vehicles

autoASIA | March-April 2017 | 31

ZF Group To Set-Up India Technical Centre In Hyderabad

G

erman auto component manufacturer ZF Friedrichshafen AG today announced that it has signed a Letter of Intent (LoI) with the government of Telangana to setup the India Technical Centre in Hyderabad. The new Technology Centre will focus on electronics embedded software and mechanical engineering.

The center will also collaborate with ZF's global development teams which will enable the company to accelerate local product development supporting its automotive and non-automotive operations in India.

The technology centre will be fully operational by 1 January 2017 and is expected to have a work force of 2,500 engineers by 2020 including the 1000 engineers who are currently working for ZF in India.

Globally, ZF has about 13,800 engineers working at various R&D centres and the company has invested 1.38 billion Euros in 2015, for research and development, which is now constituted of more than 100 development locations.

ZF's first Technology Centre in India will be fully operational by 1st January, 2017.

Motors Ltd. in Oragadam, Kanchipuram district.

Earlier this month Dr Stefan Sommer, CEO of ZF Friedrichshafen AG said, "This new facility is a significant investment for ZF in India. We are harnessing the skilled talent pool that India has to offer; in order to develop superior technology solutions for our global as well as local customers.

Over the years, ZF has been successful in localising high technology products in India. As demand for software engineering grows, we will exponentially

increase our capacity to help meet our customers' growth aspirations. With this Technology Centre, we are reinforcing our global R&D footprint as well as our commitment and investment, in the rapidly emerging Indian market."

ZF has been operating in the Indian market for more than three decades and post the acquisition of TRW in 2015, consequent to its joint venture with TVS and Rane groups, its overall experience, in India, now stands at over 50 years.

Ms Mamatha Chamarthi, senior vice president and executive lead for the new India Technology Center (ITC) said, "India offers a huge, technologically competent talent pool which aligns with the growing demand from our customers for advanced software, electronics and mechanical engineering.

Access to this diverse talent base coupled with a progressive local government and robust infrastructure has made Hyderabad favorable for setting up the first technology center for ZF in India."

Currently, including JVs, ZF has 19 production facilities, with about 12,000

This year the component manufacturer has already launched its Electric Park Brake (EPB) technology in India and also inaugurated the ZF Hero Chassis systems Pvt. Ltd., a 50-50 JV between ZF India Pvt. Ltd. and Hero autoASIA | March-April 2017 | 33

MSD Telematics acquires Brexit Unlikely To Impact Heuristics Info Systems Indian Auto Component Exports: Icra

M

B

Founded by Amit Dubey and Pradeep Rai in 2008, Heuristics offers vehicle tracking system and mobile application software. The company provides unique cost-effective quality solutions to various industry segments.

While EU accounts for 36 per cent of India's auto component exports, share of the UK in Indian auto components export is a meager 5 per cent.

SD Telematics offers its Telematics solution under the brand name traQmatiX.

India-based telematics solution provider MSD Telematics has acquired Heuristics Info Systems in an all cash deal.

Following the acquisition, Amit Dubey, Founder Partner of Heuristics, will join MSD Telematics as a board advisor.

Ashmeet Singh, founder of MSD Telematics, said, “We are excited to have the Heuristics team join us in this exciting journey. Together we look forward to grow multi-fold in the next few years. Heuristics gives us the ability to now service international clientele with innovative and robust software solutions.”

“With the tremendous growth in Transport Tech and Logistics Tech space, telematics industry will see fabulous growth in the years to come, Singh added.

Siddharth, investor at MSD Telematics said, “It is time we function as business intelligence partners for the customers, helping them drive operational efficiency while reducing costs and risk.”

Telematics companies need to create unique positioning products that help customers grow their business, Siddharth said.

Founded by Ashmeet Singh and his friend Siddharth in 2011, MSD focuses on telematics integration, GPS based tracking/remote asset management, mobility solution and all M2M solution based products. It offers Telematics solution under the brand name traQmatiX.

ritain's exit from the European Union is unlikely to have a major impact on Indian auto component exports to the region.

New Delhi: Britain's exit from the European Union is unlikely to have a major impact on Indian auto component exports to the region, ICRA said.

"Germany, in the EU, is a bigger destination for Indian auto component exports. Hence, the impact of a potential slowdown in the UK passenger vehicle (PV) market on direct automotive component exports from India is likely to be limited," Ratings Agency ICRA said in a report.

The UK PV industry has been growing at healthy pace during the last few years and has achieved its ten-year-high annual production of 1.6 million during last year.

"However, the UK PV industry is predominantly export oriented with 77 per cent of its total cars produced being exported to overseas market; 57 per cent of that goes to EU alone," ICRA said.

Similarly, only one of seven cars registered in the UK is manufactured in UK, the rest being imported (1.7 million) - mainly from EU, it said.

However, a few Indian auto ancillaries have set up manufacturing bases close to their customer in EU, including the UK, to avail the lower tariff and logistics overheads, ICRA said.

Amongst the UK based car OEMs, Indian ancillaries have relatively higher dependence on JLR, which is the UK's largest car manufacturer, it added.

autoASIA | March-April 2017 | 35

Ashok Leyland launches new trucks GURU, PARTNER

I

ndian commercial vehicle giant Ashok Leyland has launched the ‘GURU’– the latest Intermediate Commercial Vehicle (ICV) and the ‘PARTNER’ – the new Light Commercial Vehicle (LCV).

‘GURU’ offers an ideal combination of best-in-class fuel efficiency and highest actual payload, ensuring maximum returns for its owners.

Ashok Leyland claimed ‘PARTNER’ as India’s first air-conditioned LCV goods vehicle.

The company has launched ‘GURU’ in the price band of Rs 14.35 lakh to 16.72 lakh including VAT and the PARTNER 6-tyre, 14 ft HSD BS IV will be available at Rs 10.59 lakh while the PARTNER 4-tyre, 14 ft HSD BS IV will be sold at Rs 10.29 lakh (all ex – Showroom, Chennai).

Launching the vehicles, Vinod K. Dasari, Chief Executive Officer and

Managing Director, Ashok Leyland Ltd. said, “With the launch of ‘GURU’ and the Next Generation ‘PARTNER’, we have further strengthened our position in the market and are closer to our vision of emerging as one of the top 10 truck makers globally by significantly increasing the market share in ICV and LCV segments.”

Anuj Kathuria, President, Global Trucks, Ashok Leyland Ltd said the ICV segment is one of the company’s focus areas to achieve its vision in trucks and with the ‘GURU’, Ashok Leyland will further increase its market share in the Competitive ICV segment.

‘DOST’.

GURU is available in both BSIII and BSIV variants and can cater to a wide range of applications in the 12T and 13T category, with its different load body options, equipped with the latest H Series engine with Common Rail fuel injection system.

Whereas the PARTNER brings the latest LCV technology from Europe and Japan to the Indian customers. With a Gross Vehicle Weight (GVW) of 6 T and 7.2 T, the PARTNER will address various applications like parcel goods, durables and FMCG products among others.

Nitin Seth, President – Light Commercial Vehicles, Ashok Leyland, said the PARTNER is an exciting addition to Ashok Leyland’s LCV portfolio and the company is confident to delight the customers and continue the successful winning streak with ‘PARTNER’, like that of the autoASIA | March-April 2017 | 37

India makes speed governors mandatory for Commercial Vehicles from January 31

I

ndian government has made it mandatory that all new transport vehicles like trucks, buses, and mini buses have to install Speed Governors to limit their speed from January 31, 2017. Speeding commercial vehicles on the highway are causing maximum accidents. The present government had announced its intention to bring down road accidents in the country by half, soon after coming to power in 2014. Taking into consideration the increasing road accident rates, the United Nation put forth a 10-Year Action Plan, as an initiative to help countries bring down the number of road accidents. The official goal of the ‘Decade of Action for Road Safety 2011-2020’ is to stabilize and then reduce global road traffic fatalities around the world by the year 2020. As far as India is concerned, one person is killed every 4 minutes in the road

accident. The increasing road mishaps have also inflicted a huge economic loss to the country. Nitin Gadkari, Union Minister for Transport and Highway, believes the economic loss from these accidents is nearly Rs 4 lakh crore each year, close to 3 percent of the GDP. Safer roads and lesser accidents will make a good impact for both people and economy.

Despite the Government’s will, there was severe opposition to the implementation of road safety measures that would give tangible results. “Ever since I have taken charge of the sector, the biggest regret that keeps haunting me is that despite best of our best intentions, Road Safety Bill is stuck. I feel pained and helpless to see 1.5 lakh Indians, mostly youth, dying on roads,” Union Transport Minister, Nitin Gadkari said in early 2016. The

increasing road accident rates in India had caught the attention of the Prime Minister Narendra Modi, who initiated steps to bring in the new ruling to make Speed Governors mandatory in commercial vehicles. A change in Article 118 of the Motor Vehicles Act makes Speed Governor mandatory for all commercial vehicles. This means that the existing vehicles will need to install these speed limit devices to get their fitness certificates from this date onwards, a move aimed at curbing the road accidents on Indian roads.

How Speed Governors Help Speed Governors will limit commercial vehicles to a maximum speed of 80 kmph. The limit will be 60 kmph for school buses and trucks carrying hazardous material. However

ambulances, fire engines, police vehicles, and commercial vehicles with 9 seats or less (including driver) are exempted from this requirement.

Speed Governors also improve fuel efficiency, and reduces insurance premiums for heavy vehicles, as insurance rates are calculated on the basis of accident risks of driver. The implementation of the deadline for Speed Governor installation was postponed multiple times due to claims from certain corners that there is a shortage of these devices in the market.

Talking on the new safety rule, Mohammed Ashraf, the MD, Speed Governor manufacturer Autograde, said, “There is no shortage for the devices in the Indian market. Speed Governors as a product is in the market for a while now. We have been manufacturing road safety solutions in India and the Middle East for almost a decade.

autoASIA | March-April 2017 | 39

Indian Motorcycle introduces Springfield, Chieftain Dark Horse

P

olaris India, a wholly owned subsidiary of the US-based heavy-weight motorcycle specialist Polaris Industries Inc, has launched two new luxury motorcycle models – Indian Springfield and Indian Chieftain Dark Horse in India. The two bespoke Indian baggers were unveiled by Pankaj Dubey, CEO & Director, Eicher Polaris and Country Head & Managing Director, Polaris India along with Anil Shankar, President and CEO, Exquisite Moto LLP amongst much fanfare.

Pankaj Dubey, CEO & Director, Eicher Polaris and Country Head & Managing Director, Polaris India, said, “We are very excited and ecstatic to introduce the Indian Springfield and Indian Chieftain Dark Horse to Bangalore.” Dubey said the Indian Springfield offers a good mix of touring comfort and urban versatility through its blend of classic styling and comprehensive modern technology. According to Anil Shankar, “At Exquisite Moto LLP, we are committed to provide global standards of after-sales and service support to add to the overall experience of owning this latest midsize addition from Indian Motorcycle” Indian Springfield Powered by the Thunder Stroke 111 engine, the Indian Springfield delivers 138.9 Nm @ 2600 rpm of torque. Its unique new chassis feature cartridge forks and an air adjustable rear shock with 11.43 cm of travel for safely transporting up to 241.7 Kg.. A tall and low windshield, heated driver and passenger seats, soft lowers, a 64.3 Litres accessory trunk and heated grips are salient features on the vehicle to keep riders comfortable in cool temperatures.

Indian Chieftain Dark Horse Powered by the Thunder Stroke 111 engine, the edgy new Chieftain Dark 40 | March-April 2017 | autoASIA

Horse comes from the factory outfitted with a solo seat and short, tinted power windscreen, yet maintains its spacious hard bags, ABS, electronic cruise control, integrated premium audio system and remote key fob with keyless ignition.

The company has priced the Indian Springfield at Rs 31,55,112 while the Indian Chieftain Dark Horse is priced at Rs 33,07,778 (both Ex-Showroom Bangalore).

MFGRS. OF AUTOMOTIVE REAR VIEW MIRRORS & HORNS FOR ALL TYPE OF TRUCKS, BUSES, TRACTORS, MOTORCYCLES, SCOOTERS AND AUTORICKSHAWS

PERFECT AUTO INDUSTRIES FARIDABAD, HARYANA

Presto Engineering to develop Dörken MKS-Systeme - Microlayer 4g automotive connectivity Corrosion Protection Systems örken are leading developers of microlayer corrosion protection test solutions systems, who have been manufacturing out of Herdecke for 30

P

resto Engineering, a world leader in semiconductor product engineer ing, test and turnkey solutions, is pleased to announce that it is collaborating with several France-based organizations to reduce the cost of test of 4G RF devices.

Cédric Mayor, Chief Technical Officer, Presto Engineering, Inc., states, "Connected objects and development of 4G solutions represents a huge market potential. According to industry reports, 50 to 80 billion devices will be connected in the next ten years, and 2 billion will require 4G connectivity. For example, LTE-4G is perceived as the most promising radio frequency (RF) chipset technology for automotive connectivity."

Mayor adds, "We are leveraging our extensive RF test capabilities to develop a high-volume test solution that will deliver optimal cost-of-test, without sacrificing the test quality necessary in the automotive segment."

Other organizations involved in the consortium include: PARROT, ACCO SEMI, SEQUANS COMMUNICATIONS, QUALTERA, VIRTUAL OPEN SYSTEMS, CEA-LETI, IMS Laboratory in Bordeaux, and the XLIM Lab of the University of Limoges.

This joint development program is backed-up by the French Strategic Investment fund supervised by the French Public Bank of Investment (BPIFrance). The program was launched in November 2014 and will be carried out over the course of three years.

44 | March-April 2017 | autoASIA

D

years. Their high-performance system which is extremely thin, is designed to withstand enormous stress and is a result of years of experience and a passion for innovation.

DELTA-MKS® for automotive, wind, electrical, construction or aviation industries Under the brand name DELTA-MKS®, Dörken MKS Systeme produces and configures extremely effective surface protection for the automotive, wind, electrical, construction or aviation industries. The micro layer is generally between 1 and 18 µm in thickness and used primarily where high performance corrosion protection is necessary. DELTA-MKS®, thanks to it's hardwearing properties and thinness it's ideal for use on a variety of objects from coating screws, to protecting springs and other moving components, this incredibly strong microlayer is also ideal for finishing galvanic surfaces.

Dörken MKS-Systeme offers a broad portfolio of products, making it the optimal one-stop solution for any task.

Creating new solutions focused on the environment

0With a foundation built on 30 years experience coupled with in-depth product knowledge and a sprit of innovation, Dörken MKS-Systeme are on hand to help meet your every need.

With a keen eye on environmental issues Dörken MKS-Systeme consistently avoid the use of heavy metals such as chromium, cadmium or lead, meaning their products can be used free of concern. They are also continually working on new solutions designed above all to make processing simpler, cheaper and quicker for their customers.

Dörken MKS-Systeme GmbH & Co. KG Email: mks@doerken.de URL: www.doerken-mks.com

Helvoet Rubber & Plastic Technologies - Rubber and Plastic Components and Assemblies

H

elvoet Rubber & Plastic Technologies, established in 1939, is internationally active in custom-made development and manufactur ing of rubber and plastic components and assemblies.

Helvoet's competitive advantage lies in developing and manufacturing complete functional modules for a number of product groups in various application areas.

Rubber, plastic and assembly technology For assembled products, the application of innovative rubber, plastic and assembly technology plays a prominent role. Most products delivered by Helvoet are narrow-tolerance items requiring high-level process control and reliability.

growth and development. This demands a flexible organisation, combined with functional know-how and knowledge of development and process, which Helvoet can offer you.

Worldwide service Helvoet serves customers worldwide and is located in: the Netherlands (Hellevoetsluis) Belgium (Lommel) Pune (India), Singapore Detroit (US) Contact details: Helvoet Rubber & Plastic Technologies B.V Sportlaan 13, P.O. Box 2, 3220 AA Hellevoetsluis, T +31 181 33 13 30 Email: info@hellevoetsluis.nl, URL: www.helvoet.com

Rubber and plastic products for the automotive industry Due to many decades of experience, Helvoet has accumulated unique expertise and knowledge of product development and various production processes for rubber and plastic products, for instance as a supplier to the automotive industry.

Flawless process control is central to Helvoet, especially for very large series, since the products made by Helvoet often have a safety function. Additionally, due to a structured product/market approach, a deep level of knowledge and experience within specific fields of application is required. Fields of application where innovative thinking power is a pre-condition for further autoASIA | March-April 2017 | 45

Tenneco’s suspension technology to feature on new BMW 3 Series

A

utomotive component maker Tenneco will deliver its Monroe intelligent suspension to the new BMW 3 Series, adding another major automaker to its growing list of customers.

Tenneco Tenneco's product will feature in the new BMW 3 series as part of the Adaptive M Suspension option offered for the vehicles.

The suspension technology can react to varying road conditions within milliseconds to make the ride adaptive to the driver's preference.

The continuously variable semiactive ( CVSAe) dampers in the

Adaptive M Suspension system will assist in maintaining a balance on uneven roads and handle terrain vibrations in the comfort setting, according to BMW Group.

While tighter damper settings in the sport setting allows a dynamic ride, the sport plus setting enables drivers to master tight, precise turns and higher cornering speeds. Drivers can change the settings by pressing the control button.

An on board computer adjust the dampers in real time after receiving data from the sensors on the CVSAe dampers. The sensors send the data about the condition of the road and the driving situation. Tenneco senior vice president, Ride Performance

46 | March-April 2017 | autoASIA

Enrique Orta said: "Tenneco is excited that Monroe Intelligent Suspension has been selected as an option on the new generation BMW 3 Series model, as this is the first compact luxury sports sedan in its category to offer our advanced semi-active technology."

Tenneco supplies CVSAe dampers to BMW for its 1 Series, 2 Series, 3 Series, 4 Series and X3 models.

Besides, the company said Japanese luxury brand Infiniti has chosen to include CVSAe technology in its on its 2016 Q50 sedan and all-new Q60 coupe, as part of the vehicle's Dynamic Digital Suspension system (DSS).

The Infiniti DSS system allows drivers to adjust their ride by selecting comfort, sport or sport plus driving modes.

Orta said: "Our Monroe Intelligent Suspension portfolio continues to gain traction with the world's vehicle manufacturers with a full range of electronic technology options."

Automotive consortium to apply F1 technology to make cars lighter

A

n innovative research project has received a share from UK government’s £38.2m prize to include Formula 1 technology to make family cars lighter, more fuel efficient and help plug-in vehicles to improve mileage.

A consortium which includes Jaguar and Land Rover and Nissan has won £1.7m to build 'light weighting' technology.

The project is one of the 130 car manufacturers, technology companies and research centres who will share the prize money.

The project and the prize money

has been announced in the budget will create hi-tech jobs and help Britain in becoming a global leader to export state of the art, emission cutting technology. .

Under the project, Jaguar and Land Rover and Nissan consortium will apply science behind Formula 1 cars and space satellites to make passenger cars to weigh less and be more fuel efficient.

This could reduce the amount of steel for making the body of a car by almost half. The result is that automakers producing electric cars can extend their range by up to 25%. UK Transport Minister Andrew

Jones said: "Our £38 million investment will help Britain become a world leader in this exciting and valuable technology sector, creating skilled jobs of the future as part of our long-term economic plan."

Meister said: "UK businesses have a great opportunity to be at the leading edge of the global drive to increase efficiency and reduce emissions from our vehicles."

"It will also mean lower running costs for motorists and less fuel consumption, which is good for the environment and our economy.

"This competition continues our £600 million commitment by 2020 to support the uptake of ultra-low emission vehicles, making journeys cheaper and greener, ensuring the nation is fit for the future." UK Head of Transport at Innovate UK, Roland

"This £38 million of government support means that more than 130 innovative organisations right across the country now have the chance to get their ideas off the drawing board and potentially into the cars and trucks of the future, boosting the economy by at least £532 million in the process."

autoASIA | March-April 2017 | 47

Motherson Sumi Systems to acquire Finnish Tier 1 wiring harness supplier PKC Group

M

otherson Sumi Systems Ltd (MSSL) has announced that it has approved a proposal to launch a voluntary, recommended public tender offer for the acquisition of the outstanding share capital and voting rights of PKC Group Plc (PKC), Finland. The acquisition will be made through a 100 percent subsidiary of MSSL, to be set up for the purpose.

Headquartered in Helsinki, Finland, PKC is a global Tier 1 supplier of wiring harness and associated components to OEMs in the medium and heavy duty commercial vehicle and locomotive segments across North America, Europe, Brazil and China.

The price being offered by MSSL is 571 million euros (Rs 4,364 crore) with the transaction is expected to be completed by end of March 2017 PKC has a market leading presence in the wiring harnesses for

commercial vehicles in the North America and Europe markets. It also has a significant presence in Brazil and a growing presence in China.

PKC had over 22,000 employees and estimated revenue of approximately 846 million euros (Rs 6,466 crore) for the year 2016. PKC designs, manufactures and integrates tailored electrical distribution systems and related architecture components, vehicle electronics, wires and cables especially for trucks and buses, light and recreational vehicles, construction equipment and agricultural and forestry equipment.

In addition, it designs and manufactures electrical cabinets, power packs and electrical distribution systems for leading rolling stock manufacturers. Why PKC? MSSL says its proposed acquisition of PKC will help it expand its presence in the niche market of global wiring harness business for commercial

48 | March-April 2017 | autoASIA

vehicles. The combination is expected to be highly value accretive as there is minimal overlap between their existing operations in terms of geographical presence and great synergies in product segments which will unlock the true potential of the combined entity.

PKC has a strong presence in American & European wiring harness market for commercial vehicle segment which will provide new opportunities for MSSL to grow in these geographies.

This will be in line with MSSL’s Vision 2020. MSSL also believes it can help PKC in achieving its expansion opportunities given MSSL’s strong market position in the Asia-Pacific region which is a highly attractive market for almost all leading commercial vehicle manufacturers.

As per MSSL’s analysis, all the leading global CV manufacturers and

component suppliers are increasingly focused on establishing a presence and gaining market share in the Asian transportation market.

Considering that MSSL’s strategic growth plan foresees gains in the commercial vehicle segment, the PKC acquisition will enable the combined company to accelerate growth and improve profitability.

“Wiring harnesses are ever more important to the products of our customers and hold a special place within our hearts at MSSL, because it is our company's genesis,” said Vivek Chaand Sehgal, MSSL’s chairman.

“The prospect of two global teams coming together and the synergies that will be brought about, is very exciting to us. It will allow us to create huge value for our customers and to service our customers in additional locations in the world.”

ACMA urges use of genuine auto parts with 'Safer Drives' Campaign

T

he Ministry of Road Transport & Highways, government of India, observed the National Road Safety Week from January 9-15, 2017. In support of the cause, the Automotive Component Manufacturers Association (ACMA), the apex body of the Indian auto component industry, under its ‘Safer Drives’ initiative, participated in various events organised by the ministry.

Nitin Gadkari, Union Minister for Road Transport & Highways, while lauding the ‘Safer Drives’ initiative,

said, “India has a poor track record in road safety. The government is conscious of this and we have undertaken several measures to address this issue including introduction of a intelligent transport system, improving road engineering, stricter traffic rules, and new active and passive safety regulations, to name a few.

I am glad that over 3,000 people have taken a pledge under ACMA’s Safer Drives campaign and I am hopeful that many more will come forward to ensure that we do not

compromise on road safety.”

On the occasion, Rattan Kapur, president, ACMA said: “ACMA’s Safer Drives initiative is its maiden initiative of creating public awareness on usage of genuine auto parts to prevent road accidents using social media as the primary medium of communication.

India with one of the poorest records of road safety witnessed over 1,374 road accidents leading to 400 deaths every day in 2015.

The increased number of accidents is primarily due of lack of our

responsible behaviour on the road.

It is time that human life is valued; this can be achieved by adherence to traffic rules by drivers and pedestrians, adequate safety devices in vehicles and usage of genuine aftermarket components by vehicle owners.

We at ACMA strongly advocate usage of genuine auto spare parts as counterfeit and sub-standard parts can lead to fatal accidents.”

autoASIA | March-April 2017 | 49

Bosch opens new Car Service Centre in Bangalore

B

osch Limited inaugurated its first Company Owned Company Operated (CoCo) Bosch Car Service Centre in Bangalore on January 19. The centre was inaugurated by Soumitra Bhattacharya, president, Bosch Group India. The service centre aims to provide high quality services with state-of-the-art equipment for multibrand cars.

The CoCo Bosch Car Service Centre addresses the need created by increasing customer demand, technological products and systems, growing pre-owned car sales and a large car parc coming out of the warranty period. Bosch plans to add 700 more car service centres under the franchisee model in the next five years. “The CoCo Bosch Car Service Centre will act as a model workshop and issue fresh

guidelines to upgrade existing and new franchisee Bosch Car Service Centres.

Through multi-brand car repair workshop concepts, we would like to establish high quality repair workshops to support customers across the country. Depending on the size of the workshop, the centres will be equipped to service around 300 to 750 cars in a month,� said Vijay Pandey, regional president, Automotive Aftermarket, Bosch Limited. 14 service bays, state-ofthe-art equipment .

The CoCo Bosch Car Service Centre, situated on NH-7 at Electronic City Phase-2, is spread across 20,000 square feet with 14 service bays.

The facility is equipped with stateof-the-art Bosch equipment such as wheel aligners and balancers, tyre

50 | March-April 2017 | autoASIA

changers, nitrogen tyre inflators, KTS (ECU diagnostic scanner with ESI software for vehicle diagnosis and troubleshooting), two-post and four-pole lifts, AC service machines, headlight aligners and automated car wash. The centre is also equipped with accident repair facilities like a collision repair system and paint booth.

To increase customer satisfaction and enhance overall customer experience, a customer lounge is installed at the service centre with working docks, information kiosks, free Wi-Fi connectivity, coffee/ TV lounge and other amenities. The centre will also provide car pick up/ drop facility at an economical service cost. There are 35 employees currently working at the workstation. The range of services include routine maintenance, ECU

diagnostics, brake service, clutch overhaul, suspension system, AC diagnostics and service, aggregate repairs, body repairs and painting, wheel balancing and tyre service, car wash and detailing.

The centre also plans to offer value added services like 24x7 roadside assistance, pre-owned car inspection, certification and extended warranty.

Water conservation is also a top priority at the new car service centre.

Water from the service stations is recycled and reused with the help of an Effluent Treatment Plant (ETP).

The centre is also equipped with an in-house training centre offering training programs on various Bosch and non-Bosch products, systems and technology. The training centre is open to technicians, visitors and customers alike.

Apollo Vredestein launches new all-season Comtrac 2 tyre for Europe

T

yre manufacturer Apollo Vredestein has just announced the launch of the Comtrac 2, a completely new all-season tyre for the light truck and van market in Europe, in 10 sizes. Specifically designed for safety and comfort in all weather conditions whilst carrying heavy loads, the Comtrac 2 sports new, high-quality silica compound and improved performance over its predecessor.

on wet roads and lower rolling resistance to reduce fuel consumption. - Increased tread stiffness and new sipe design for more balanced pressure distribution and reduced deformation under loadThese improvements result in a reduction in wet braking distance of 11.7

metres (measured from 80km/h), along with 10% improved stability with heavy loads and 5% improvement on rolling resistance compared to the outgoing Comtrac all-season.

Apollo Vredestein is having the world premiere of the Vredestein Comtrac 2 all-season tyre at the

biennial AutoZum show (Salzburg, Austria, 18-21 January) in Hall 10. It features a BMW M4 tuned by Hamann and fitted with Vredestein tyres. There is also a display of tyres created by Vredestein together with its other premium styling (and rim) partners Brock, AEZ and BBS.

“The Comtrac 2 is a significant addition to our offerings, as vans and light trucks are common among fleets and we intend to target that sector with Vredestein’s comprehensive range of products,” said country manager Karl Naylor.

The Comtrac 2’s main features are: Open lateral shoulder grooves and wider longitudinal grooves to optimise water dispersion. Improved shape of footprint and new silica compound for better grip autoASIA | March-April 2017 | 51

Automechanika Shanghai 2016 sets new records in exhibitors and visitors Automechanika Shanghai 2016, the world’s second largest Automechanika brand show after Automechanika Frankfurt, has reported a 10% increase in visitors and a 7% increase in exhibitors.

Held at the National Exhibition & Convention Center (Shanghai), China, from November 30 to December 3, 2016 the four-day trade fair saw 5,756 exhibitors from 42 countries and regions, representing a 7% increase in the number of exhibitors over 2015. The event was spread across 312,000 square metres of exhibition space as well as expanded to 13 halls, representing a 12% increase on 2015. There were a total of 120,671 visitors from 140 countries and regions while the top 10 overseas visiting countries and regions, in order of highest attendance, were Taiwan, Korea, Russia, Malaysia, the US, Iran, Japan, Thailand, Turkey and India.

Commenting on Automechanika Shanghai 2016, Jason Cao, chairman of Messe Frankfurt (Shanghai) Ltd, said: “The results are tremendous. It is not only a testament to the development of the robust automotive industry in Asia and the rest of the world, but highlights the show as a global hub in the automotive industry which draws high-level participants from across sectors and the world.

The show is also sensitive to the market needs and keeps evolving by introducing new elements and new topics to the show. We had organised specialised zones for emobility and infrastructure, connectivity and performance vehicles to keep the participants abreast of the market trends. The development of the show is well-matched with the specific needs of the downstream customers."

Han Xiaojun, general manager of China National Automotive Industry International Corporation (CNAICO), said: “We are happy to see that the partnership between Messe Frankfurt and CNAICO and our

efforts have paid off. We have also seen many products that were newly launched in Asia and China here, which further affirms Automechanika Shanghai’s prime position as a one-stop industry platform offering opportunities for information exchange, marketing, trading and education in the automotive world.”

E-mobility, connectivity attract showgoers Several new zones were added to the fair, including e-mobility and infrastructure, connectivity and motorsport and high performance along with wheels and rims. In addition to the new zones, the show provided comprehensive coverage of the entire industry chain of OE and aftermarket for the parts and components, repair and maintenance, accessories and customising, and electronics and systems sectors.

Following the latest trends within the automotive industry, the new zones were added to fulfil the needs of a growing consumer base seeking smart technology, new energy solutions and high performance.

Connectivity Zone organiser Dr Lawrence Poon of the Hong Kong Productivity Council invited its members to join this new zone. Dr Poon said: “We were impressed by the scale of the show and found its content was rich and truly reflected the Chinese automotive industry.

There are certainly good business potentials for electric and 5G vehicles in China, which provides good business opportunities.”

Bigger and better Automechanika Shanghai 2016 saw an 8% increase in exhibiting countries and regions.

The 42 countries and regions included Argentina, Australia,

52 | March-April 2017 | autoASIA

Austria, Belarus, Belgium, Brazil, Canada, China, Denmark, Egypt, France, Germany, Greece, Hong Kong, India, Indonesia, Israel, Italy, Japan, Jordan, Korea, Liechtenstein, Malaysia, Mexico, Morocco, the Netherlands, Pakistan, Poland, Russia, Serbia, Singapore, South Africa, Spain, Sweden, Switzerland, Taiwan, Thailand, Turkey, United Arab

Emirates, the UK, the US and Vietnam. The 12th edition of Automechanika Shanghai saw many new industry players participate including ACDelco, AMSOIL, Baturu, Huf, Interstate Batteries, KYB, Mercedes-Benz, Olympus, Potevio and STP. A new exhibitor from the US in electronics and systems, Interstate Batteries had a successful

introduction to Automechanika Shanghai and the Asian automotive aftermarket, according to Kevin Ni, WD Operations & Development Manager – China. He said, “Interstate has been looking for a platform with broad coverage to promote our brands and uncover high-potential dealers to further our penetration into the market.

We found Automechanika Shanghai to be the most professional and sizeable automotive fair in the region, with strong influential power.

It far exceeded our expectations in terms of amount and quality of visitors. We met so many high-quality dealers at the fair.” German brand Hella Trading (Shanghai) Co Ltd showed high activity with a new

autoASIA | March-April 2017 | 53

product introduction for car maintenance and lighting solutions, as well as presented a Hella workshop in their booth at Automechanika Shanghai. The company, which has a strong commitment to supporting workshops in China as a solution provider, launched new brake parts with partner TMD, engine oil, ATF oil and new Thermal applications with some of the products specifically catering to the Chinese market.

Calling Automechanika Shanghai a unique platform to connect with high-level sourcing agents in the automotive industry, Hella general manager Philippe Thegner said the show allows the company to share news about their brand, showcase product launches and benchmark.

He said: “Automechanika Shanghai is a highly efficient event and the best place to introduce new ideas, communicate business direction and discuss strategies with other industry players.

We can meet lots of business partners and media and achieve

many goals in a short period of time, in one single place.” Another German brand, Bilstein participated in Automechanika Shanghai and brought its full range of products to the show. Michael Hartmann, Marketing Key Account Manager, Asia, Africa, Oceania at thyssenkrupp Bilstein GmbH said, “Automechanika Shanghai is one of the top fairs we participate in and that is why we choose this platform to launch our full range of products, including the Bilstein B4 air suspension module.

China is a huge market and we need to stay close with dealers and rely on them to introduce our brand value as well as expand the network of dealers and workshops in different cities. We are really happy with the result we have achieved here.”

Fringe programme events There were 56 unique events during this year’s fringe programme for Automechanika Shanghai. Through these events, the trade fair platform is extended and all services are

54 | March-April 2017 | autoASIA

enhanced. The theme of this year’s Automechanika Shanghai was Connectivity and there were several events on the subject, namely the Connected Mobility Roadshow Shanghai, a unique event that is part of the Connected Mobility Roadshow three-city tour, which started at Automechanika Frankfurt in Germany in September and continues to the US in 2017.

Following the key trend of the automotive industry future, the Connected Mobility Roadshow highlighted three main themes: Connected Cars, Connected Data and Connected Customers.

Connected Mobility attendee Mr Jonathan Law, Project Engineer, Research & Development at Hong Kong EV Power Ltd attended the presentation by Mr Nicklas Raask, Senior Director Asia Pacific IT of Volvo Car Group, “Customer in the Driver’s Seat on the Digital Journey”.

Mr Law commented: “It gives me a glance into how the carmakers are dedicated to connect the driver and the vehicle.

Through this conference, I’m able to learn more about what other people in the industry are studying. The scope of the topics discussed and the quality of speakers are definitely high.” The multifaceted fringe programme focused on experiencesharing sessions to promote dialogue between exhibitors, users and buyers.

There were also ample opportunities for education and networking among business leaders involved in the future of the automotive industry. Organisers collaborated with several industry associations, leading businesses and media to arrange an extensive fringe programme. Automechanika Shanghai is organised by Messe Frankfurt (Shanghai) Co Ltd and the China National Automotive Industry International Corporation (CNAICO).

It is one of 16 Automechanika fairs held in Africa, Asia, Europe and North, Central and South America.

The 2017 edition of the show will be held 29 November – 2 December 2017 at National Exhibition and Convention Center (Shanghai), China.