I N D I A ’ S N O . 1 M A G A Z I N E F O R A U T O M O T I V E N E W S , V I E W S & A N A LY S I S
Auto Monitor Vo Vol. 11 No. 08
w w w. a u to m o n i to r. co . i n
1-15 May 2011
40 Pages
I INTERVIEW COST ADVANTAGE FOR AN INDIAN UNIT C WILL BE UNPARALLELED W
AUTOPINION INDIAN AUTO SECTOR: TOWARDS THE TOP Pg 14 GEAR
Pg 08
Pawan Kumar Ruia, Chairman, Ruia Group Pa
` 50/-
Ford India lends corporate intelligence
NEWS IN BRIEF Kimura is Renault Nissan CEO & MD
T Murrali Chennai
I
R
enault-Nissan Automotive India (RNAIPL) recently announced the appointment of Kou Kimura as the new CEO & MD for its manufacturing facility at Oragadam, near Chennai with effect from April, 2011. He is a Graduate in Mechanical Engineering from Touhoku University in Japan.
Logan renamed Verito
ndia has emerged as a critical part of Ford Motor Company’s strategy for Asia Pacific and Africa regions for growth in these markets. The ASEAN region is also an important market but much slower than China and India. ‘All we see here is a huge opportunity and all we need to do is to move quickly and execute in an unbelievably professional manner. Figo is a good example for this,’ said the President and Managing Director of Ford India, Michael Boneham. Currently 15 to 20 engineers, who developed Figo, are working for Ford’s facilities across the world working on global programmes. Boneham told Auto Monitor that, ‘We have exported corporate intelligence to Ford’s plants globally.’ This is specifically to derive the best cost price for new programmes being developed by the parent company. These platforms and models might as well come to India as the products launched in the country have already been part of global programmes. Therefore it made
Michael Boneham, President & Managing Director, Ford India
tremendous sense for the Ford India to depute its engineers to work in different locations. ‘We put in to the corporate book of intelligence, all the things that we learned while developing Figo, for the benefit of every programme that is planned, by Ford Motor Company,’ he said. Elaborating on a couple of learning instances, he continued, ‘If the door of Figo is damaged in an accident, the outer skin alone can be replaced rather than chang-
ing the entire door.’ The second example was the child part strategy, which helped to contain the cost of ownership substantially. For instance, if the HVAC system is faulty, only the defective component needs to be replaced rather than changing the entire system. While it gives significant savings for the customers, for Ford India, it is an initiative in value engineering. In addition, it became one of the key selling points. ‘This is something that we really worked hard here on Figo, which is shared with other Ford plants,’ he pointed out. The company is involved in designing and engineering new products so that the base product is suitable for India and the same when up-scaled, can cater to global markets. Instead of the top-down approach of developing a whole product and strip it down to adapt to different markets, the strategy is to work the other way. This methodology helps the company achieve best cost price for the new products, he stated. Figo gave the confidence for the company to announce eight new products in the following five years. It marked the begin-
ning of the global platform and all the eight new vehicles will share the same traits.
Investments Ford India is gearing up for the next course of investments for the new products as well as expansion plans. ‘We have got investments heading for the next products that are planned. For the eight new products the investments will be very significant. So far, we have invested $ one billion and the next phase of investments will come in starting from now.’ he said.
Going Global Ford India perceives that the production will increase consistently as Figo is to be exported to about 50 countries before the end of this year. The exports began with South Africa followed by Nepal and Mexico. According to him, ‘CBU from India is fantastic news,’ for markets where Ford is present and so Ford India is geared to export the car to newer destinations. However, there are a few challenges including localisation and human resource, which the company has already begun addressing, he concluded.
DATA MONITOR Domestic Top 5 PV-makers Sector
Mar-10
Mar-11
Change
MSIL
79,530
110,424
38.85%
HMIL
31,501
31,822
1.02%
TML
32,269
32,830
1.74%
M&M ^
14,247
16,929
18.83%
GMI
11,297
9,365
-17.10%
Domestic Top 5 2W-makers Sector
Mar-10
Mar-11
Change
HHML
405,240
504,452
24.48%
BAL
194,846
220,081
12.95%
TVS
126,669
162,719
28.46%
HMSI
136,878
137,262
0.28%
IYM
17,864
25,784
44.33%
Domestic Top 5 CV-makers Sector
Mar-10
Mar-11
Change
TML
38,777
44,601
15.02%
ALL
9,299
11,312
21.65%
M&M
10,974
10,893
-0.74%
VECV Eicher
3,649
4,722
29.41%
FML
1,584
1,897
19.76%
* Source: SIAM/ ** Excluding exports/ *** all sub segments considered/ ^ excluding MRPL
RGF to focus on eco-friendly fasteners Abhishek Parekh Beckingen, Germany
R
uia Global Fasteners (RGF) is developing an improved range of fasteners to cater to the evolving demand of OEMs in Europe and for the international markets. The key areas of improvement are reduction in weight and usage of eco-friendly materials without significant additions in costs. ‘The future product development is the reduction in weight so that the vehicles have better fuel efficiency,’ said Plant Manager at RGF’s Beckingen facility, Jorg Bosch, during an interaction with Auto Monitor as a part of media tour of RGF’s facilities in Germany recently. Kolkatabased Ruia Group acquired Acument GMBH last year in order to get a foothold and expand its presence in the European auto component segment.
NEW
Jorg Bosch, Plant Manager, RGF
Ruia Global Fasteners has developed a range of eco-friendly products covering vehicle assembly and enabling customers to improve fastening with lighter weight products. The new Eco range includes Eco pierce, Eco form and Eco grade. Though company officials declined to specify the development costs for this improved range of fasteners,
RUDRAPUR | 23 - 26 Sept ’11 AHMEDABAD | 14 - 17 Oct ’11 PUNE | 18 - 21 Nov ’11 CHENNAI | 16-19 Dec ’11 INDORE NEW | 06 - 09 Jan ’12 AURANGABAD | 17 - 20 Feb ’12
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these products will need to be competitively priced and would be required to meet internal cost and volume parameters of RGF. Bosch added that the Eco family, including aluminium fasteners, have been under development in order to reduce weight and consequently CO2 pollution. They are mainly used for the fastening of steel, magnesium and aluminium components, which are being increasingly used in existing and new generation four-wheelers and commercial vehicles. The product range includes ballstuds, screws, cold formed specials and plugs. These fasteners applications are mainly in gearboxes, steering columns, oil pumps and engine covers. Though RGF supplies these fasteners to its customers comprising mainly European OEMs including Volvo, Volkswagen and Opel, their customers have been demanding new lighter and spe-
Gandhi Park Gujarat University Exhibition Hall Auto Cluster Exhibition Centre Chennai Trade Centre Poddar Plaza Garware Stadium
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cialised components for the new generation models and platforms under development. RGF officials estimate that the market size for these fasteners could be around ten percent of the total fasteners market of around Euro 3.3 billion. RGF is looking to assist its existing and new customers in new product/ platform development as well as in alternative technologies like electric and hybrid vehicles. ‘As we have been a partner for many OEMs for some time now, we started making intensive developments especially for electric vehicles months ago and were able to provide the OEMs with useful information for the more efficient design of the prototypes of these new products/technologies. As these are new developments, it is difficult to provide more information on commercial production or our penetration for these products.’ said Bosch.