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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

Vol. 13 No. 24

www.a mo nl i ne.i n

8 July 2013

INTERVIEW

Pg 08

24 Pages

`50

Pg 10

INTERVIEW

View from the top

Focus on premium

P Chaudhari, ED (Auto Division), Kansai Nerolac

Ravi Chopra, CMD, Piaggio

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“Our customers are becoming global” Spicer India plans to introduce global technologies and expand existing facilities to meet the changing requirements of its client base. Pradeb Biswas Pune

S

picer India wil inaugurate its idle Lucknow plant for assembling driveshafts by August. The facility was set up some 15 years ago but had not been utilised until now since Lucknow isn’t exactly an automobile hub. Currently it is in the commissioning stage and will employ around 40 people once operational. The company will supply driveshafts to the Tata factories at Lucknow and Jamshedpur for buses and MCVs. Considering that Tata Motors is their biggest customer and this plant is close to the Tata facilities, the inauguration makes business sense. Simultaneously, the company would like to expand to the southern region. It has an exist-

ing facility in Hosur, Karnataka. But like the Lucknow unit, this too will be utilised for production only the company sees substantial business prospects. “In region expansion, we are considering a presence in Chennai

Development and Program Management at Spicer India. “We are considering expanding facilities on a large scale with the main focus being technology upgradation. Our customers are becoming global and expect

On The Anvil

ªCould expand operations to south India ªIncrease market share in aftermarket from 5 pc to 8-10 pc in three yrs

ªOffer Advantek series axles to LCV customers ªFocus on technology upgradation or Tamil Nadu. Our philosophy is to be near the customer,” said Abhay Soman, Head of Business

good standards at low prices. We will introduce technologies from our parent company in India over

the next four years. That involves investment in R&D,” he added. Spicer India has its own independent aftermarket network. It seeks to increase share in the aftermarket from 5 percent to 8-10 percent in three years. The aftermarket contributed Rs 15 crore last year while its total revenue was Rs 1,150 crore. Overall revenue target growth is 15 to 20 percent. There is a strong focus from Dana and Anand group towards improving sales and service network. The manufacturer plans to offer its Advantek series axles for its LCVs customers. The performance benefits of Spicer India’s AdvanTEK drive axle series are better torque and efficiency along with reduction in weight and size and improved NVH. Currently Spicer India is working with Mahindra and other OEM’s to

develop prototypes. It is working with Maruti Suzuki for its new LCV range and is in the initial stage of developing axle and driveshafts of a Mahindra MUV prototype. Speaking about the implications of the slowdown in the automobile market, Soman said, “Some segments are badly affected. LCVs were performing fine till April, but now sales of Ace and Dost have decreased. The bread and butter segment will bounce back. It did not decline even during the recession in 2008. There is no likelihood of employee layoffs. Recruitment is a challenge but retaining talent is our forte.” Spicer India is a joint venture between US-based Dana Holding Corporation which has a 74.9 percent stake and India-based Anand Automotives which has a 25.1 percent stake.

Getting the mojo back Anand Mohan Jaipur

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s a product still king in this ridiculously marketing-driven decade? Some industries, like the Indian film industry, for example have struck gold with this strategy but in the automotive industry, a good product is of prime importance. Admittedly, there’s a lot more to a business than just the product, but nevertheless the product still matters. And more so in the case of Mahindra who needed to get the product right after a failed attempt with the erstwhile Stallio. Undoubtedly, this task fell on the shoulders of the R&D head. A lot was going to be riding on this person’s shoulders; a second failure was not an option, since it would have driven the company out of business. Mahindra preferred to look in-house for a tried and tested brain. They found the right man in PS Ashok, who was earlier in charge of the successful

Maxximo project. Ashok’s approach is a lot more hands-on than delegation. He didn’t look for alliances outside the company for development after the Stallio. T he product was developed by Mahindra at its R&D facili- Anoop Mathur, President – Two Wheeler Sector, and Anand ties in Pune and Mahindra at the launch of the Centuro in Jaipur. Chennai. ant, the fully-loaded Centuro. After discontinuing the Stallio Ashok says, “We will introduce in early 2011, Ashok and his team variants within a month or two. burned the midnight oil develFor now, we don’t want to conoping a considerably better fuse customers.” He adds, “There motorcycle. The efforts have paid will be at least two more variants. off. Reviews of the Centuro have Some may have alloy wheels and been positive and the pricing some spoke wheels.” is competitive. There are a few Mahindra isn’t done with this. essential features that could sway There’s another disc brake varibuyers like the engine immobiant on the cards but since the lizer and the anti-theft system, market for disc brake equipped besides other quirks for custommotorcycles in the commuter ers to take notice. Mahindra has segment isn’t large enough, the smartly launched just one varicompany isn’t expecting too

Anand Mahindra with PS Ashok, the man responsible for the product turnaround.

much from this version. “We have been working on a disc brake variant. It will take a few months,” comments Ashok. Mahindra has patented differentiating features like the anti-theft system, engine immobilizer and find-me lamps. Ashok proudly states, “We came up with these features through the customer clinics we conducted. Our conclusions were that customers want features found in four-wheelers. We knew we had to innovate and make vehicles

that are different.” Elaborating on the research, Ashok said, “When we spoke to people in UP and Bihar, we found that theft is a huge problem. They say that they leave their vehicle in the parking lot and it’s purloined using a duplicate key. So I told my team, why not work on this. We worked on the electronics for this bike with help from our auto sector to find out a solution.”

Contd. on Pg 08


EDITORIAL Future ready

D

oes the Indian automotive industry need to worry over the recessionary pressure, despite the GDP growth plummeting to its lowest five percent since the last decade? My answer would certainly be No.

The markets may be experiencing some kind of fatigue and demand might be dwindling but this will not go on for long. The strongest reason being the availability of huge and an almost untapped market; the icing on the cake is that customers are becoming mature and want better vehicles, features and technology over price or any other factors. Recent trends show how new players, such as Renault, have broken all sales record. Honda Cars India, which has been present for some time, saw tremendous growth in sales and market share with the launch of a single product –an entry level diesel sedan.

this with the grand success of almost new segments in India of models such as X1 and the Audi Q3. Now, the third rival in the category, Mercedes Benz, is also bringing in a compact SUV. Mercedes has already gained momentum and has overtaken rival BMW to grab the second spot with its series of launches. The biggest surprise comes when it premium hatch A-class saw over 400 bookings since its launch in May. All the examples and arguments needed to convince about the presence of a strong market and demand can be earned with the right products. Anticipating this, all major OEMs are going ahead with investment in India. They are sowing the seeds now to reap a rich harvest which the future holds. Similarly, leading ancillary manufacturers too are building capabilities to be future ready.

In the two-wheeler segment, since the split between the HeroMotor Corp and HMSI, we have seen one of the erstwhile partners being hit by the so called recession while the other partner realized double digit growth which was much higher than the growth in the two-wheeler segment. HMSI with an aggressive product portfolio expansion hopes to sell 39.3 million bikes in FY13-14 and is evaluating a new location to put up a 4th plant in India. The luxury cars segment is also full of surprises. One can see

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QUOTABLE QUOTES Dieter Zetsche, Chief Executive Officer, Daimler on automated driving in the Automotive News Europe

Bernd Bohr, Former Automotive Chief, Robert Bosch GmbH on increasing the range of lithium ion batteries

We will never automate the cool part of driving … the uncool part, though, we can do without

A lot of it is [improving] the chemistry. We think we can improve the energy density by a factor of two.

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CONTENTS CORPORATE Vespa will focus only on premium segment

10

Piaggio recently launched its second Vespa model in India, the Vespa VX, and introduced two new colours for the previously launched scooter.

10 MNC truck companies ready with revamp strategies for India

16

FOEMs are now gearing to compete with the established players in the cargo segment as well by launching customised products and offering a wide range of product options to customers at competitive pricing. A Crisil Research report.

17

Micra: Managed better

12

With the facelift, Nissan is expecting to sell 2,500 units of the Micra per month and hoping to make a big mark in the compact car segment.

12

Renault brings the electric car within range of more people

17

Renault launched its fourth all-electric vehicle in the UK in a bid to silence sceptics who say that will be a runaround second car for wealthy families looking to cut motoring bills.

Young drivers feel the pressure of high insurance premiums

20

Young drivers feel pressured into buying cheaper, older cars because they can’t afford to insure newer, safer models, according to a new survey of 1,300 drivers aged 17-24.

Jaguar Land Rover named Responsible Business of the Year

Jaguar Land Rover received the award in recognition of its significant investment in UK jobs and facilities, improving its environmental performance and increasing the skills and education opportunities for young people and existing employees.

“Meeting customers’ expectations is a challenge”

13

Continental is looking for a deeper penetration in India, China and Brazil by encouraging local thinking and product development efforts.

THE OTHER SIDE

22

13

Conti eyes service network in India Continental is considering the possibility of introducing car service station network in India. The company may offer the service for passenger cars and probably to two-wheelers.

14

Heriberto Diarte, Chief Executive Officer, Oerlikon

20

Diarte joined Oerlikon in December, 2012 and has previously held executive positions in Asia, Europe, the Middle East and Africa with companies such as Alstom Transport and Cemex.


Auto Monitor

8

8 JULY 2013

INTERVIEW

The view from the top Kansai Nerolac Paints Ltd, the Indian arm of the Japanese paint major, is a leading paint supplier to the automotive industry with a 65 percent market share. Pravin Chaudhari, Executive Director, Auto Division & Supply Chain, Kansai Nerolac Paints Ltd. in a tête-à-tête with Abhishek Parekh. What is your outlook on vehicle sales in India? The long-term outlook for passenger vehicles continues to be attractive. However there is a significant level of uncertainty. The sales (and production) situation has deteriorated this quarter as compared to the same period last year. We are hopeful of recovery in Q2, in the run-up to the festive season. How has your performance been in the auto refinish market? We made a re-entry into the auto refinish market last year after a long time. We did not have a presence in the refinish market due to certain legacy issues as well as lack of focus. The auto refinish market has been grow-

ing steadily last few years and is worth Rs 1,000-odd crore. We are looking to be a serious player. What value proposition can Kansai offer in the segment? A player must offer prompt technical support to service the body shops and automobile dealers. We are offering a polyurethane-based coating that can reduce energy consumption by around 10 percent due to higher productivity (or faster turnaround) and lesser baking temperature requirements as compared to similar PU-based refinish coatings. We have solvent and waterborne coating solutions in the premium PU coating for the refinish segment and are looking to offer a com-

pelling proposition to customers. Customers are looking for quality work and, in case of full body panel painting, a larger colour range. We believe we can make a difference. Our customer relationships are driven by four value propositions, i.e., performance, appearance, cost and environment. We have manufacturing facilities in four regions and a countrywide service network so we are in a position to offer technical support. How do you see process or technology evolution in the original equipment (OE) and refinish market going forward? We offer solvent or waterborne coating solutions to customers in the auto sector. Although a waterborne painting system is an environment-friendly alternative, it is a sensitive technology and demands lot of conditioning of paint booth and surrounding environment. It is also a more expensive process as compared to solvent-based technologies

and may not be suitable for all categories of vehicles. We offer solvent process based solutions to customers that can reduce VOC (Volatile Organic Compound) content in the paint by 10-15 percent, or more. This high solid paint can meet the environment needs of OEMs until their processes and support systems evolve to waterborne coating solutions. Most customers have adopted improvements in coating process like 3C2B to 3C1B, thus reducing the overall cost of operating the oven for the baking process. Over the long term, market and environmental imperatives point towards a shift to waterborne coating system for OEMs. Most of the newer car manufacturing facilities are flexible and can work on both solvent and waterborne coating processes. What are your future plans in the OE and refinish segment? We want to emerge as a serious player in the refinish segment and are putting resources in place. As the automobile market evolves, we will witness an increasing demand for a larger colour range and better quality and are looking to capitalise on the advantages of the huge ‘shade bank’ available with Kansai Japan that can be made available to customers. We would like to supply more heavy metal free paints to customers even though a regulatory environment against the usage of heavy metals is yet to take shape in India. We are focussed on growing our market share with existing customers in the OE segment.

Getting its... Contd. from Pg 01 The efforts are showing. The team at Mahindra Two Wheelers looks a lot more confident since the first time they unveiled the new models in January 2013. The nerves have calmed down and larger plans are being made. In the next 30 months, the company states it will launch a new product every quarter. That’s ten new products under development ranging from 100cc to 300cc in the scooter and motorcycle segment. A new product, possibly a scooter, could be launched in the next few months. On upcoming launches, Ashok says, “Within this financial year, we will have two new products. A new scooter is on the anvil. We are in the final stages of development.” This will be followed by the Mojo. Some time ago, Rajiv Bajaj had said that one should stick to what they are known for to be successful, indicating at Mahindra entering the motorcycle business. He may just have to eat his words. But more than that, it’s good to see new competition doing well in such tough economic conditions.


Auto Monitor

8 JULY 2013

NEWS

10

Vespa will focus only on premium segment Nabeel A. Khan

I

talian automobile major Piaggio Vehicles Pvt. Ltd. recently launched its second Vespa model in India, the Vespa VX, and introduced two new colours for the previously launched scooter. The company claims to have sold some 52,000 units since it was launched in April 2012. The new scooter is priced at Rs 71,380 (ex-showroom Delhi). The Vespa VX is powered by an advanced 4-stroke, 3-valve 125cc engine developed exclusively by Piaggio for the Indian market. The company claims the engine is an eco-friendly, low emission and highly fuel efficient unit delivering 60 km to the litre. The company has set up its plant in Baramati, Maharashtra at an investment of over Rs 10 billion, with initial capacity to produce 1.5 lakh units a year. The Piaggio Group had planned to double the capacity by mid-2013, however at the new Vespa launch company officials did not confirm any expansion plan details. They did say that they plan to launch all the products in their global portfolio in the due course India, with at least one new prod-

uct launched here by the end of this year. Speaking on the occasion, Ravi Chopra, Chairman and Managing Director, Piaggio Vehicles Private Limited (India) said, “Piaggio is delighted to present the Vespa VX to cater to a surging demand amongst the discerning Indian consumer. We hope to further strengthen the premium segment with the Vespa VX, offering the Indian youth that lifestyle status they wish to be associated with. The new features not only offer a better riding experience, it brings the aspirational Indian a step closer to the Vespa universe.” He added, “Starting today, after the success of the first phase in the Vespa launch with a single model just over a year ago, Piaggio is now moving into the second phase for the expansion of the product range.” The new Vespa VX features additional colours and features. It comes in two distinctly different colours: Portovenere Verde (metallic green) and Vibrante Rosa (dual tone red and pink). Developed especially for the Indian market, the Vespa VX is based on the Vespa LX, the Piaggio Group best-seller and one of the most popular scooters in the European and American markets. The Vespa VX joins the

Vespa model currently marketed in India. Projected as a symbol of the aspirational lifestyle, the Vespa VX comes with front disc brakes, tubeless tyres, a raised saddle handle bar for better pillion grip, new speedometer dial and beige seat colour option. With the new Vespa VX Piaggio aims to grow the premium seg-

ment which it claims to have created with the launch of the original Italian Vespa in India. Talking about the pricing and positioning, Chopra said, “Pricing is a secondary factor, the positioning is important when you have a premium product. A premium product means meeting the notional as well as aspiration-

al requirements of customers. Premium satisfaction comes from a price tag which is high.” Going forward the company will progressively introduce the entire Vespa range to India so that the offerings which are made to the Indian customers are as good and similar to the offerings made in Europe.

“Premium satisfaction comes from a price tag which is high” Once upon a time in India, the Vespa was everyone’s best friend. And then it bid us adieu, only to return last year after a long hiatus. Now Vespa scooters will go to those who aspire to be part of its legacy and can pay its high price. Chairman & Managing Director of Piaggio Vehicles Pvt. Ltd, Ravi Chopra, tells Auto Monitor that the Vespa is not for people who want a cheap product. He further asserted during the interview with Nabeel A Khan that he will “awaken” the dormant Indian customer and build a new premium scooter segment in the country. Have you set any kind of timeline to bring all those products here? Indefinite... it goes on. We keep on enlarging our brand. We keep on enlarging our segment. Today we have created the premium segment. So you will guard the “premiumness”? Absolutely. Our immediate plan is to bring the Vespa world to India. Therefore we would like to continue our efforts to position our products in the premium segment. Don’t you think the scooters are priced a bit too high? Pricing is not high: pricing is a secondary factor, the positioning is important when you have a premium product. A premium product means meeting the notional as well as aspirational requirements of customers. Premium satisfaction comes from a price tag which is high.

Do you plan to bring out large volumes? Given that your numbers are currently very low, can you tell us how you are able to recover your investment with such low volumes? Every organization has its business model and strategy. Our strategy is loud and clear – premium product, premium pricing.

We want to bring the entire Vespa brand to India progressively so that the offerings which are made to the Indian customer are as good and similar to the offerings made in Europe, which means he has the same choice which the European customer has in Europe. That is the immediate objective.

India is a price sensitive market, volumes will come only if you tone the price down... If somebody wants a cheap product: we don’t make them. We make expensive products. Someone who wants a cheap product has other choices. The Vespa is not for people who want a cheap product. If you sell more vehicles

then you will have more visibility, which will help in branding also... I agree with you. But it will take time. Today the second product has come, now the third and fourth will come.

lowest price tag? Not necessarily. The point I am trying to make is not about going down or up in the price spectrum. The point is that we will remain in the premium segment.

When will we see the next one? You might see the next product by the end of this year.

What market size do you estimate for premium scooters in India? Like I said, this is a “sleeping” population. We have to awaken these people so that they meet their aspirations. Today they don’t have a product to meet them in their aspirations.

Will the new product be priced higher than the VX or on the lower side? It isn’t lower or higher. It is meeting the requirements of the customer. What we are doing is we are trying to offer different products for different consumer profiles. Different customers have different needs. Some want something sporty, others want something fashionable, yet others want something else altogether. The demand in the commuter segment is very high. Are you targeting it? I would like to tell you that people who only want commuting and not the pride of ownership are not our customers. Our customer is a guy with the aspiration to own something unique, something which has value and heritage. So the first model launched last year will be the one with the

What kind of market size will you be able to develop in due course? Kuch to hamari confidence hoti hai na (Our confidence in ourselves counts, right)? We know what we are doing. If we can have best-selling products in Europe and USA, why not here? What kind of market size do you have in markets similar to India’s? Our annual capacity in India today is 1.5 lakh units yearly. We have created this capacity only because we were more than confident that we will be utilizing it and will be forced to increase it further. When do you think you will require expansion? No time limits.


Auto Monitor

8 JULY 2013

NEWS

12

Micra: Managed better

Kenichiro Yomura, President of Nissan India, poses with the new Nissan Micra in Mumbai on July 3, 2013. Nationwide sales for New Nissan Micra and Micra Active, built on Nissan’s versatile ‘V’ platform, will commence with immediate effect.

Anand Mohan Mumbai

W

hen Nissan started production of the Micra in May 2010, they knew India was not going to be an easy market to crack. Price was going to be a big factor. It is every manufacturer’s goal to offer only as much value as the segment demands and no more. And so Nissan

came with a different approach. Even base variants were given airbags, and the Micra got keyless entry and push-button start, a feature that most models a segment higher don’t have. That was the key differentiator for Nissan, being seen as a manufacturer which encourages safety and offers more features than its rivals. As much as the features were appreciated, there wasn’t something substantially different

offered by Nissan that worked in the Micra’s favour. In the case of Ford, the Figo’s price undercut its rivals, while Maruti and Hyundai have a vast sales and service network. Beating the best required something else. Their superior feature set actually worked against Nissan. So with the launch of the update, Nissan also introduced the Micra Active. Nissan realized that features were good but the lack of features

was even better! The Active is Nissan’s answer to the Beat and the Figo. Prices start at just Rs 3.5 lakh (ex-showroom Delhi), making it excellent value for money. But such an aggressive price tag is possible only by cutting corners. The base variant doesn’t get airbags, a first for Nissan. It also lacks ABS, EBD and BA. In fact, Chikuya Takada, head of product planning, GM, Nissan Motor India says that when he came to India in February, he was surprised to find that airbags were an optional feature here. He adds that it’s his mission to increase safety features in Nissans. As head of the product planning division for Nissan, and particularly Datsun, it is clear that his job will revolve around launching products at aggressive price points. The starting point then is always the features list of the car. Along with no airbags, there’s no adjustable headrest, even a parcel tray at the rear, no ABS, EBD and BA and no central locking, among other features. Takada says that they are not offering a diesel variant too to keep the top end model’s price as low as possible (Rs 4.71 lakh). His logic is that anyone who wants a premium hatchback, but doesn’t want to spend on all features that Nissan offers on the Micra, can instead opt for the Active. Many customers in any case go for aftermarket fitments of their choice. Also, keeping such a low entry point opens up two segments with one product. Eleven variants make sure there’s one to fit every need. It’s a strategy that’s worked very well for Hyundai.

Nissan realized that features were good but the lack of features was even better! The Active is Nissan’s answer to the Beat and the Figo. Prices start at just Rs 3.5 lakh (exshowroom Delhi). One would also expect Takada to follow a similar strategy with the Sunny. It’s the best selling product for Nissan and following a similar approach will only bolster sales. Nissan has an ambitious target of selling one lakh units this fiscal year. Last year, the company sold 37,000 units. Both Micra and Sunny sales have dwindled to approximately 800-1,200 units each per month. With the facelift, the company is expecting to sell 2,500 units of the Micra per month. That’s about 30,000 units per year. If you expect similar numbers for the Sunny too, there is a large gap to fill. Datsun isn’t being launched till next year so the only product to fall back on will be the Terrano. If it does as well as its badgeengineered sibling, the Duster, then Nissan is right on track. But skeptics would say that it’s improbable for the Terrano to do as well because pricing will be a big hindrance. News doing the rounds is that if Nissan badgeengineers a Renault, it will have to price it higher and vice-versa. So it’s a tough road ahead for the Terrano. But for the rest of the product line-up (Evalia not considered), the strategy has the potential to succeed.


8 JULY 2013

How can you offer differentiation? Cutting-edge yet competitively priced products that add value and deliver on the promise is what we aim for. The value for money proposition plays a critical role in high growth markets like India, China and Brazil. Our two-wheeler customers expect high degree of product customi-

sation, rich array of features and reliability. What initiatives are you taking to grow Continental’s presence in the aftermarket segment in India? We are considering an entry into vehicle servicing market in India. We have a few brands in Europe and are evaluating introducing one of these brands in India. We are yet to take a decision on the strategy and time frame of entering aftermarket. It is an interesting market with some of our global competitors already present. Would it be against the interest of your customers if you seek to establish a vehicle service network? Our idea to establish a vehicle service network, for passenger cars and/or two wheelers, will benefit end customers. We have a vibrant vehicle service network to cater to growing vehicle population as well as deliver spares worldwide. We are in discussions

13 Continental has been making inroads into the two wheelers and tractors segment in India by introducing driver information and safety related products. It is looking for a deeper penetration in India, China and Brazil by encouraging local thinking and product development efforts. Dr Michael Jorg Ruf, Executive Vice President, Business Unit Commercial Vehicles & Aftermarket, Continental, spoke to Abhishek Parekh on challenges to introducing advanced technologies and future plans for CV and aftermarket divisions.

“Meeting customers’ expectations is a challenge”

To what extent are your products driven by legislations or regulations in different vehicle segments across markets? Our product development efforts are driven by customer needs. The products need to comply with safety and related regulations in different countries. For instance, we are likely to see TFT displays in a few twowheeler models in India in addition to our next generation information clusters. Our products could add value to our customers (OEMs) products and help in providing much needed product differentiation in a competitive market.

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with OEMs to provide technical support and spare parts. We co- exist and, in most cases, complement the OE authorised service network. What are the hurdles you could face? Meeting customers’ expectations is a challenge and more so in markets where new technologies need to match up with business volumes. Our businesses are geared to meet the challenge of low volume production as we are also dealing with low volumes in our OES (Original Equipment Service) business where we supply spares that are at the end of the production cycle or discontinued by OEMs. What is the contribution of Indian operations in your product development? We have an R&D setup in India and employ a large workforce. Their major contribution is to help us in meeting targets of low cost solutions and suita-

bly engineered products for local needs. The solution offered by our Indian engineers are different compared to that offered by our workforce in North America or Europe. We would be looking to grow our teams in India and would like to outsource more development work to our Indian unit. One has to appreciate and take cognisance of customer demand in different markets. This implies that our local teams are engaged in developing products for that particular market. We generally do not encourage products for a market to be imposed from out-

We have some in Europe and are evaluating introducing one of these brands in India. We are yet to decide on the strategy and timeframe of entering aftermarket. side or from headquarters as that would defeat the purpose of local thinking and execution that we are looking to practise.


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8 JULY 2013

NEWS

14

Conti eyes service network in India

Abhishek Parekh Germany

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rankfurt based Continental is considering the possibility of introducing car service station network in India. The company may offer the service for passenger cars and probably to two-wheelers as well through its existing brand or a new brand identity. “We have a few brands in Europe for vehicle servicing network and would want to take this to India. It is a an interesting market that already harbours some of our global competitors,” said Dr Michael Jorg Ruf, Executive

Vice President, Business Unit Commercial Vehicles & Aftermarket, Continental, at an interaction with media held in Villingen near Stuttgart, Germany. Continental operates a vehicle service network across Europe under ATE and VDO and also sells parts to independent service stations. Bosch already operates 1,500 service centres for different types of vehicles in India. Two-wheeler segment has attained importance for the manufacturer as it wants to make inroads in India, China and Brazil. For better handling, Hemal Shah, Head of CVs and Aftermarket division in India relocated to Germany to oversee

Continental’s global two-wheeler and aftermarket business in a global role as Head of Program – Motorcycles & Off-Highway and Director of Vehicle Electronics late last year. In another move, Continental wants to introduce advanced and next-gen instrument clusters for two wheelers. “We can offer solutions that can be customised as well as ones that can be bought off-the shelf,” said Dr Ruf. Continental’s TFT units provide motorcyclists with an array

of information, from speed to air temperature to navigation to alerts on heated grip setting and the screen of the driver’s smartphone can be displayed as well. Its layout is designed to the extreme demands of open cockpits and motorcyclists can read the information without any difficulty irrespective of the light conditions. The 4.2-inch screen with 480 x 272 pixels can display graphics and information to the customers’ specifications. Electronic Instrument clus-

ter (EIC) with integrated speed sensor is intended to replace the mechanical instrument clusters. Budget friendly mopeds and scooters can be fitted with these models. Continental also wants to offer a one-stop shop for the entire value chain: from development and prototype construction, CAD development and extensive testing to just-in-time delivery. Electronic products that ensure greater safety and environmental compatibility are being heavily used for wheel loaders, excavators and bulldozers. It supplies components and systems that have already proven their worth in the commercial vehicle market: camera systems, displays and instrument clusters, sensors to measure speed, pressure, temperature, nitrogen oxides (NOx) and the fuel level, as well as radios and accelerator pedals. The company’s off-highway division has developed electronic solutions that supply precise information on work processes in the farming industry. They include MUX4-P, transmission control systems, customised body control units, sensors and instrumentation platforms such as flexible clusters. Continental supplies brake systems, systems and components for powertrains and chassis, instrumentation, infotainment solutions, vehicle electronics, tyres, and technical elastomers. Additionally, it also has safety and climate protection systems and products under its portfolio. The Automotive Group with its three divisions chassis & safety (about Euro seven billion), powertrain (around Euro 6.1 billion) and interior (around Euro 6.4 billion) had total sales in 2012 of around Euro 19.5 billion.


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8 JULY 2013

AUTONOMICS

16

MNC truck companies ready with revamp strategies for India Domestic OEMs -

Foreign OEMs

Strategy to retain market share Increased marketing costs Increased investment in R&D Continued focus on making technology available at a lower cost

Impact - Structural pressure on industry operating margins over the medium term. Major global CV players have lower operating margins over a business cycle as compared to Indian CV players Foreign OEMs

Geoffrey D’cunha Manager, CRISIL Research Ajay Srinivasan Director, CRISIL Research The popular adage, ‘once bitten, twice shy,’ does not seem to strike a chord with foreign truck makers, keen to enter the Indian MHCV market. Picking lessons from past experiences, foreign CV makers continue their foray, with customised models, fresh capacity additions and well-thought strategies. FOEMs will have to prove themselves in areas such as mileage and resale value, which are of critical importance to Indian buyers, and also price their products competitively, to significantly dent the market share of well-entrenched Indian players. CRISIL Research expects cumulative market share of foreign original equipment manufacturers (FOEMs) to rise to 22-24 per cent by 2017-18 from 17 per cent in 2012-13.

Where FOEMs lack Prior to 2001, Tata Motors and Ashok Leyland together held over 90 percent market share in the domestic MHCV market. Post 2000, several global players entered India, largely into premium and mid-premium segments (trucks priced over Rs 25 lakh). While few entered independently, others thought it wiser to enter into joint ventures with local manufacturers. Nevertheless, none of them managed to snatch away significant market share from the well-established Indian players. Cumulatively, Tata Motors and Ashok Leyland have lost just 9 percent market share over the past decade. The lack of success of FOEMs can be attributed to the high customer preference for low-cost trucks priced below Rs 25 lakh, significant pricing premium demanded compared to incum-

hitherto focused on niche and premium applications, comprising high horse-powered (HP) vehicles, such as tippers, pullers and trucks, used for carrying over-dimensional cargo. Midpremium and premium segment trucks, which were primary offerings of most foreign OEMs, have so far been relatively more successful in the tipper segment. Tippers constitute a smaller proportion of a contractor’s overall investments. Further, a mature customer base and non-requirement of a vast service network made it easier for players to penetrate into this segment. In contrast, the high volume cargo segment1 is yet to be tapped by foreign OEMs as it remains more price-sensitive and requires a vast service network. Having learnt from their past experiences, FOEMs are now gearing to compete with the established players in the cargo segment as well by launching customised products and offering a wide range of product options to customers at competitive pricing. Cumulatively, FOEMs have announced plans to add 1, 85,000 units of MHCV capacity over the next 5 years, which is higher than the estimated capacity of 1, 53,500 units as of March 2012. The strategy adopted by Daimler is a case in point. Based on research on Indian customer needs, the road and climatic conditions and trucks popularly used in India, Daimler set up a customised platform, Bharat Benz, and launched its trucks in the second half of 2012-13. Daimler claims to deliver better mileage compared to competition, and its trucks are also priced competitively at a 3-10 percent premium over prices offered by other market leaders,

proposition. Sensing intense competition, domestic players too are strengthening their product portfolio, distribution and service networks, investing in product development and upgrading existing platforms to include advanced truck models, to better compete with sophisticated truck offerings from FOEMs. During the initial phase, foreign OEMs are likely to witness demand from organised logistics players, primarily operating in the HCV segment. However, the actual success and sustenance of these players will be established over the next couple of years,

FOEMs competed best on productivity and other value-add factors like cabin comfort. They are yet to prove themselves on other critical areas, such as the initial cost involved in purchasing the vehicle, the resale value and mileage.

bent players, lack of financing options and a robust service network.

during which the reliability of their products and service network will be evaluated.

What will FOEMs have to prove to be successful? CRISIL Research drew a costbenefit comparison between trucks manufactured by a domestic OEM and a foreign OEM, based on a fixed set of assumptions and

…..But they have learnt from their experience and are retuning strategies Most foreign OEMs have

Service level observations FOEMs scored well on lower frequency of scheduled service and quality of service. However, they scored relatively lower on service network .

despite offering slightly superior features, such as cabin comfort, better quality of aggregates etc. This compares to a premium of over 15 per cent for similar trucks in the past. Besides, Daimler has set up a captive financing arm to further strengthen its value

and match the IRR of conventional low-cost trucks.

How do market participants perceive FOEM trucks? CRISIL Research ran a survey among seven large fleet transporters, who have trucks of various OEMs (including FOEMs) in their fleet to understand their perception on critical parameters that influence an operator’s purchase decision. At the product level, FOEMs fared well on parameters such as productivity and valueadd features like cabin comfort; however, they need to prove their mettle on critical areas, such as

CRISIL Research expects FOEMs to build a base, which could intensify competition by pushing up marketing and R&D costs. The mass market in India will remain low-cost, even though the shift from low-cost to mid-premium and premium trucks (priced over Rs 25 lakh) has begun. Growth in share of organised players, who have started considering the total cost of ownership, improvement in highway and road infrastructure and favourable regulatory changes are driving this change. However, this migration is likely to progress at a slow pace, which would collectively restrict

COMPARISON OF PLAYERS’ INDIA STRATEGY

KEY FINDINGS OF OUR SURVEY Product level observations

- Need deep pockets to survive business cycles initially - Agility to meet local requirements and balance price to performance equation - Wide product range – to de-risk and maintain volumes - Creating an ecosystem of spare parts - Strategy to penetrate the primary, secondary and tertiary market e.g. buy back of trucks to establish resale values

key parameters. Our analysis indicates that trucks made by a FOEM need to be at least 7.5 per cent more productive (in terms of the turnaround time) or have a 5.6 per cent greater fuel efficiency to offset the impact of the higher initial cost and lower resale value

the initial cost, resale value, mileage etc. Till such a point in time that their reliability gets established, they will need to price their products competitively. On the service front, most FOEMs have not been able to match the incumbents’ service and spares network, yet won a better score on lower frequency of scheduled service and the quality of service.

The road ahead In the near to medium term, (over the next 3-5 years), FOEMs are likely to focus on largely the organized freight market, which currently is estimated to form less than 15 percent of the overall freight market. But this segment is growing at a faster pace, in line with rising demand for niche applications, high tonnage vehicles and increasing demand for value-added services from FMCG and pharma sectors. Key impediments for migrating to advanced truck formats include the lower average speed of trucks on Indian roads, highly fragmented transport industry, overloading practices, and nonavailability of skilled drivers for high horse-powered vehicles. Both domestic and foreign OEMs need to focus upon following areas to retain competitiveness and strengthen foothold in India. Over the next five years,

the overall growth in market share for FOEMs in India. Cumulatively, we project the collective market share of foreign OEMs to increase from 17 per cent in 2012-13 to 22-24 percent by 2017-18. Much would depend on whether players such as Daimler are able to deliver on promises of better mileage, which could then further drive FOEMs’ penetration into the high volume cargo market. Thus, while the aggressive game plan of FOEMs for the Indian MHCV market suggests a likely change in industry dynamics, their ability to deliver on the promises made will be the best evaluator of their success and sustenance in India. (The views expressed here are those of CRISIL Research and not of CRISIL’s Ratings division. CRISIL Research operates independently of and does not have access to information obtained by CRISIL’s Ratings Division. Graphs are provided by Crisil Research). 1The cargo segment includes all goods carrying vehicles, comprising intermediate commercial vehicles (ICVs), medium commercial vehicles (MCVs), multi-axle vehicles (MAVs) and tractor trailers (TTs). These trucks are classified on the basis of gross vehicle weight (GV W), which is the vehicle’s kerb weight plus its rated payload.


8 JULY 2013

G L O B A L WAT C H

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17

FPT celebrates 10 years Renault brings the electric car of Beijing partnership within range of more people

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PT Industria l and Beijing Public Transport Holdings Ltd (BPT) held a grand ceremony at the Italian embassy in Beijing to celebrate the handover of 1,200 environmentally friendly CNG engines and ten years of successful partnership on 25 June 2013 Investing in public transport is a strategic choice and part of the on-going development of Beijing into an international metropolis, providing the best transportation solution for citizens. With financial subsidies and constant support from FPT Industrial, Beijing has been stepping towards lower emissions, better life quality and less traffic congestion. FPT has delivered over 4,000 CNG and advanced diesel engines to BPT since 2003, at which time the very first 300 CNG engines were put into action, beginning the long-standing partnership. Followed by more than 1,000 engines in 2008, FPT Industrial contributed and assisted BPT to achieve super low emissions in the heart of central Beijing during the Olympic Games. Five years later, FPT Industrial is now equipping BPT buses with another 1,200 CNG engines, which marks a profound new milestone for the ten-year partnership. Reducing emissions, the 1,200 new buses in Beijing will be equipped with 350 Cursor 8 and 850 NEF 6 engines. The Cursor 8 engine adopts a six-cylinder in-line layout with 7.8-litre displacement, producing 213 kW power and 1,300 Nm torque. Due to its high efficiency and

advanced technology, Cursor 8 engines power important routes in the heart of Beijing, for example route No.1 that runs in front of Tiananmen Square. Similar to the Cursor 8, the NEF 6 engine is another product featuring FPT Industrial’s advanced design and technology. With the identical six-cylinder in-line layout and a 5.9-litre displacement, the NEF 6 produces 147 kW power and 650 Nm torque. Both the Cursor 8 and NEF 6 apply MPI systems to ensure accurate fuel injection and stable in-cylinder combustion, whilst fuelling by compressed natural gas cuts operating costs, and the three-way catalytic converter reduces emissions. Compared with traditional diesel engines, the FPT Industrial CNG engines reduce over 97% PM2.5 emissions, which means the fulfilling of Europe’s EEV standard and significantly outperforming the Euro V standard. Hosted at the Italian embassy and enriched by a presentation of both FPT Industrial and Fiat Industrial products, such as FPT engines, Iveco and New Holland products, the ceremony was attended by Wang Chunjie, General Manager of BPT, and Giovanni Bartoli, FPT Industrial COO, alongside Corrado Clini from Italian Environment Protection Ministry, Liu Hua from China Env ironment Protection Ministry, Franco Amadei President of Fiat China, Luca Biagini Fiat Industrial China CEO, and Nathan Yu, FPT Industrial China Country Manager.

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enault t his week launched its fourth allelectric vehicle in the UK aiming to silence sceptics who say that it will be nothing more than a runaround second car for wealthy families looking to cut motoring bills. The ZOE is a small electric car available from £13,995 after a Government grant. Buyers are also charged from £70 a month to lease the expensive batteries which power it. A wall box to charge the car is included in the price. Renault says that puts the ZOE within range of more people than other electric cars, which typically cost closer to £30,000 after grants. Renault likens the cost of ZOE ownership to buying and running a £14,000 diesel-engined Ford Fiesta and filling it once a month with fuel. There are other savings to be

made by opting for a ZOE, the French company argues. It is exempt from road tax, attracts no benefit-in-kind levy if used as a company car, and businesses can write down the full cost of it against tax in the first year. Buyers in London are also excused the £10 weekday congestion charge, even with the more stringent conditions applied from the start of this week. “A ZOE is 75% cheaper per mile to fuel than a diesel car and 25% cheaper per mile to service and maintain,” Renault claims. “There are already 1,700 public charging points, and these are scattered around the country and not all in London, and in many cases parking and charging in them is free. The website www.zap-map shows where they are, and Sainsbury’s and Tesco have said they are going to start rolling out charging points soon.”

The public has so far been apathetic or even hostile to allelectric cars amid anxieties about the cost of buying them, running out of battery power miles from a charging point and the life expectancy and replacement price of batteries. Renault is seeking to address all these issues with ZOE. The batteries will be replaced or repaired once they can no longer hold more than 75% of maximum charge any time within 10 years and regardless of the number of owners the car has had. Meanwhile Renault is being candid about the realistic range drivers can expect on a full charge. On the official test cycle this is quoted at 130 miles, but Renault says a truer figure would be 90-100 miles in summer and around 65 miles in winter, when heaters, lights and wipers are in use for longer periods.


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A E R O DY N A M I C S

18

8 JULY 2013

Simulating Mercedes’ DDRS Marco Giachi Assomotoracing

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hen Nico Rosberg won the Chinese Grand Prix 2012 in Shanghai, illustrations started to circulate of a strange slot on the underside of the front wing from which a gush of air would blow out just at the right moment to cancel out (or at least reduce) the load generated by the wing itself. This was a revised and improved version of the McLaren F-duct from the year before, connected to the drag reduction system (DRS) so as to unload both front and rear wings at the same time and reduce the drag generated when the DRS is open. In addition, these slots kept the single-seater well balanced because the two wing surfaces were unloaded simultaneously. According to Ross Brawn, the advantage could be evaluated to around one-tenth of a second per lap, and in Monte Carlo, both Mercedes cars once again performed very well during qualifying. It seemed such an ingenious invention that the other teams immediately asked the FIA, in vain at first, to deem the device illegal.

Discovering slots Aerodynamics experts have always found holes and slots intriguing, and those used in racing are no exception. However, openings are generally used to increase, rather than reduce, the load that a wing profile is capable of generating. But as nothing is free in this world , a high load value comes at the price of a high resistance. This is where the stroke of genius of the DRS comes

In a very curved wing profile, the air flowing over the lower surface receives a real thrust from being blown out through the slot.

time as the DRS is opened. In 2012, the driver was still allowed to open the DRS anywhere on the track during qualifying, which enabled him to take full advantage of the device’s benefits; in competition, however, its usage was restricted to the designated overtaking zones, where the interference caused by the wake from the front vehicle limited its effectiveness. The benefits were then only measured in terms of resistance with respect to a car whose front wing had no special devices. The Ross Brawn/Aldo Costa duo believed in the solution from the onset and both carried the development of the idea right through to the end. As far as we could see, the system consisted of a long tube, 4 to 5 cm in diameter, which ran along the entire length of the vehicle, connecting an opening on the rear-wing endplate to the front wing. The hole on the rear endplate was blocked by a flap which was only opened when the driver activated the

regulations for 2013 outlawed the Mercedes-style double-DRS system, we at Paddock were fascinated by this success and wanted to try out our own slot (an original, not the same as Mercedes’, of which there is insufficient detail), with the help of numerical sim-

DRS. At that point, air entered the hole and almost instantaneously flew out through the slot on the underside of the front wing. In addition to its benefits in terms of lower resistance and increased balance, the DDRS could enable the use of a smaller, more flexible front wing, which could be placed closer to the ground at low speed and still generate the maximum load at high speed. This would avoid the risk of overstressing the front wing’s extended flaps, which have not been designed to withstand the higher load generated at maximum speed. This is a hypothesis proposed by Gary Anderson (the renowned designer of the ‘90s); somewhat complicated, but in the magical world of F1, nothing is impossible.

Simulating slots Although the FIA technical

and those with fewer resources, who may not have the time or money to explore the possibilities. At least eight to ten wings are needed (including spares) for two single-seater cars and new molds must be made for both the front and back wings, on which a channeling must be created to transfer the air. This is no mean feat in the middle of a championship, particularly if resources for the calculations and planning need to be reallocated to new projects. Furthermore, it is always good practice to validate the CFD solutions in a wind tunnel, which would involve building a scale model especially for this purpose. Finally, the balancing effect that involves the driver’s feeling for the car must be evaluated in the simulator. Another two or three days’ work! Everything used to be much easier. You went into the office with a hand-drawn sketch and, with a bit of metal plate and

When the DRS is closed (top), a standard slot is created, but when it is open (bottom), the slot disappears completely: the main plane and the flap become two separate wings and the load generated (and as a result the drag) drop.

ulation and Lucia Sclafani, a CD-adapco expert in these calculation techniques. Our tool of choice was STAR-CCM+, CD-adapco’s flagship CAE software, which is widely used for aerodynamic design across the

Maps showing the pressure under the nose and the front wing in STAR-CCM+. The blue indicates low pressure, the green a neutral area and the red shows high pressure. With the slot closed (left), the area of low pressure is significantly wider. With the slot open (right), even the side skirt has a different behaviour. With this information available, if we had been in charge of a team, we might have considered trying out the idea.

in. This system, in fact, gives the wing a variable geometry and the gap created when the driver activates the device is so large that it is no longer a slot but two separate wings which produce less vertical load and therefore less drag. The obvious benefits of this system can be seen on straightline sections, where the load is of no use and where a low resistance boosts the speed to help with overtaking. But the DRS only acts on the rear wing and so Mercedes came up with the clever idea to play with the slots, inventing a reverse one on the front wing (the doubleDRS or DDRS) to reduce the load rather than increase it, thus synchronizing both wings: they are loaded and unloaded together, so that the car is always balanced. The most important requirement for the DDRS to succeed is to feed the front slot at the same

The Paddock virtual Formula 1 car compared well with the actual Mercedes design. At first glance, the air flows from the numerical simulations clearly indicated an advantage: with the jet of air coming out of the slot, the resistance of the front wing was effectively reduced by 2.4% and the vertical load by as much as 18%. When looking closer at the details of the analysis, however, our enthusiasm began to wane. In aerodynamics, modifications almost always result in multiple conflicting effects on the performance of the system. These effects are usually geometry-dependent and as a consequence, the innovative concepts observed in the pit lane are not easily transferable from one vehicle to the next. For example, on the Paddock Formula 1 car, the variation in load on the front wing was just one of the effects produced by the air flowing out of the slot. The front wheel

motorsport industry. In a way, we were following the same procedure as the design engineer from an F1 team who has seen the idea on a rival car and wants to assess what effect it will have on his own car before constructing a prototype.

was also affected by the modification, with its resistance being increased by as much as 5.2% (!), whereas the rear wheel seemed 3.1% less resistant. The effect of the slot on the remaining parts (body and rear wing) of the car was insignificant, resulting in an overall drag reduction of 1.4%, which is a considerable improvement. If we invested some more time and managed to eliminate the negative effect on the wheels, our car would record a reduction of around one tenth of a second in the time it took to travel one kilometer in a straight line. Furthermore, supplying the driver with a balancing effect could give him more confidence to keep his foot down on the accelerator for a longer time, which would result in additional benefits. All of this is possible with our in-house system. Mercedes has no doubt created a more enhanced design and positioned the slot at a different point on the surface of the wing in order to achieve optimum results. But in our case, is it really worth the effort? This is where the difference lies between the well-organized, winning teams

a body work expert, the new wings would be ready in a day, maybe joined together by a piece of hydraulic hose, fixed to the outside of the chassis with something as ordinary as adhesive tape. Then you would go to the track to try it out. But times have changed: nowadays wings are no longer made of aluminum, no private tests on the track are allowed, and even the F1 teams have their own bureaucratic procedures to follow. This explains why certain ideas, even once they have appeared and have been shown to be valid, are not always implemented by everyone. Whoever thinks of it first, and works on it all winter long, will always have the advantage. And in this case, Mercedes’ brilliant idea enabled Nico Rosberg to join the select group of drivers who have won at least one Grand Prix and helped Michael Schumacher to savor once again the joys of the pole position when perhaps he was no longer expecting it. This article was originally published in the Italian magazine Paddock.

In 2008, Ferrari opened up a hole on the nose to connect the bottom to the top. With the nose raised, the car offers its underside to the air. This exerts pressure and tends to lift the nose, partly thwarting the action of the wing. By contrast, Brawn GP, the 2009 winning car driven by Jenson Button had an opening on the surface of the rear diffuser in order to increase the local airflow section.


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20

Young drivers feel the pressure of high insurance premiums

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oung drivers feel pressured into buying cheaper, older cars because they can’t afford to insure newer, safer models, according to a new survey of 1,300 drivers aged 17-24. Nearly half (41%) of those surveyed by Alfa Romeo and Marmalade also think that being forced into less advanced vehicles is part of the reason that young people are involved in more motor accidents than any other age bracket. Drivers aged 17-24 are involved in around 18% of all vehicle incidents on UK roads. Fatalities in reported accidents involving young car drivers accounted for 22% of all road deaths in 2011, according to the Department for Transport. Despite that, a 63% majority

8 JULY 2013

G L O B A L WAT C H

think it is wrong for young drivers to be charged higher premiums because of their age and nearly three quarters (73%) claim they were forced to opt for an older car, increasing their risk of an accident, because of the cost of car insurance. While almost all respondents (97%) said that having a car was important to their sense of independence or freedom - with 70% even considering it a rite of passage for young adults - more than four in five (81%) said they are reliant on their parents for financial support to get a first car. The survey was carried out by Alfa Romeo & Marmalade to support the launch of the Alfa MiTo Live, a limited edition available with Marmalade telematics insurance aimed at providing a stylish, yet affordable new car option for

young drivers, reducing premiums by as much as 50% in the first year. When asked if they would be happy for their parents to be able to monitor their driving if it made their insurance cheaper, 78% of respondents said they would be happy to use the telematics technology, with a further 16% saying ‘it’s not ideal’ but it wouldn’t stop them. Damien Dally, Head of Brand, Alfa Romeo UK said, “Young drivers are having to pay increasing amounts of money just to get behind the wheel of a car and often a new car is totally out of the question, despite the obvious benefits of safety, efficiency and modern technology. With the Alfa MiTo Live, fitted with Marmalade’s telematics insurance system, there’s a new affordable and desirable option. Based on our research, it’s a package that should strike a chord with those young drivers looking to get behind the wheel, perhaps for the first time.” The A lfa MiTo Live is powered by the multi-awardwinning TwinAir engine and features a BOSE sound system and Pioneer’s innovative AppRadioTM system which lets users connect and access their smartphone’s apps through a touch screen. The MiTo Live is offered with Marmalade telematics based insurance, potentially reducing insurance premiums by up to 50%.

JLR named Responsible Business of the Year

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aguar Land Rover has been named Responsible Business of the Year by Business in the Community (BITC). Jaguar Land Rover received the award in recognition of its significant investment in UK jobs and facilities, improving its environmental performance and increasing the skills and education opportunities for young people and existing employees. Jaguar Land Rover has created 9,000 new jobs since 2011 and will invest £2.75 billion this year, making it the largest UK automotive investor. This investment supports technology innovation and the company’s CO2 reduction strategy. Over the past few years, Jaguar Land Rover has reduced tailpipe CO2, lowered operational carbon emissions per vehicle, waste to landfill and water use. Carbon emissions from inbound logistics and emissions for outbound logistics have also been reduced. Jaguar Land Rover’s CO2 offset programme has compensated 5 million tonnes of CO2 over the last five years by funding 50 sustainable development projects which have positively impacted the lives of more than 1.2 million people. Ralf Speth, CEO, Jaguar Land Rover, said, “We are delighted to receive the Responsible Business of the Year Award, which recognises the achievements of our employees, suppliers, stakeholders and academic partnerships to deliver sustainability improvements across our business. Sustainability is integral to Jaguar Land Rover’s business plan and we are committed to achieving a sustainable future.” The company also won the ‘Education Award’ which recognises businesses that are building sustainable partnerships with schools to raise aspirations of young people to enable them to build successful working lives. JLR won the award for its Inspiring Tomorrow’s Engineers national school education programme. In 2012, more than 200,000 young people were engaged in the programme.


8 JULY 2013

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CLASSIFIEDS

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ADVERTISER’S LIST Advertiser’s Name & Contact Details Ace Micromatic Group

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Advertiser’s Name & Contact Details Fox Solutions

T: +91-80-40200555

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Carl Zeiss India (Bangalore) Pvt Lt

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T: +91-80-40224250

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Fresmak Arnold Precision Engg Pvt. 17

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Dhoot Transmission Pvt Ltd

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Ecocat India Pvt Ltd

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Greaves Cotton Limited

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Jyoti CNC Automation Pvt. Ltd.

T: +91-79-25890081

T: +91-2827-287081

E: salesfmi@milacron.com

E: info@jyoti.co.in

W: www.milacronindia.com

W: www.jyoti.co.in

FIC : Front Inside Cover BIC : Back Inside Cover BC: Back cover

Rohan Standox Autolack

T: +91-9967800456

T: +91-22-65803331

E: SM.Haridas@larsentoubro.com

E: sales@spraytec.net

W: www.larsentoubro.com

W: www.spraytec.net

Pg No 14

Safexpress Private Limited

6

T: +91-80-26860600

T: +1800-113-113

E: sales-turning@meibanengg.com

E: vineet.kanaujia@safexpress.com

W: www.meibanengg.com

W: www.safexpress.com

20

Sumitron Exports Pvt Ltd.

T: +91-80-40213600

T: +91-11-41410631

E: india@nordsonefd.com

E: sumitron@vsnl.com

21

19

T: +91-22-24397575

13

FIC

Nordson India Pvt. Ltd.

T: +91-129-4266500

Ferromatik Milacron India Pvt Ltd

Larsen & Toubro Limited

Advertiser’s Name & Contact Details

8

T: +91-80-40431252 E: info@gwindia.in

Pg No

Meiban Engineering Technologies Pvt 12

G W Precision Tools India Pvt Ltd

E: sales@dhoottransmission.com

Advertiser’s Name & Contact Details

W: www.sumitron.com

Padmini VNA Mechatronics Pvt. Ltd. 3

Tata Motors Ltd.

7

BIC T: +91-124-3207398

T: +91-22-66586195

E: sales@padminiengg.com

E: charu.gulati@tatamotors.com

W: www.padminivna.com

W: www.tatamotors.com

Not Applicable

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Auto Monitor

22

8 JULY 2013

OTHER SIDE

Getting Personal

In Real Life

with Heriberto Diarte, CEO, Oerlikon If not in the auto industry, where would you be? The energy industry. What car do you drive? What do you dream of driving? I drive a Mercedes R Class, it’s a family car. Actually I don’t drive it – I have a driver. Since I was of legal age, I’ve always wanted to drive a car called the Chaparral 3. It was one of the most advanced cars ever built. It has “wings” which lift the car up by creating a kind of air cushion, so you can go up to 160 kmph and take the curves very fast because it’s floating almost like a flying car. Your most recent indulgence… Nothing as such. What are you currently reading? Right now no books, only business magazines and financial reports. What do you do when not talking auto? Talking about my children. An outdoor activity you would miss office for… If one of my daughters has something important, participating in a show or giving a recital, I’d miss office for it. Where did you go for your last holiday? Jaipur in Rajasthan. You get angry when… When people cheat and lie. What is the one thing you would like to change about youself? I would like to lose some weight. The best thing to have happened to you… My marriage. I am happily married! The most wonderful moment of my life. So you can see I am a family man.

Illustration: Sachin Pandit Compiled by: Nabeel A Khan

Heriberto Diarte (born 1967 with dual Mexican and French citizenship) joined Oerlikon in December, 2012. He has previously held executive positions in Asia, Europe, the Middle East and Africa with companies such as Alstom Transport and Cemex. He holds an MBA from the Stanford Graduate School of Business and an MPA from Harvard’s Kennedy School of Government.


Regn. No. MH/MR/WEST/20/2012-2014. RNI No. MAHENG/2000/11414 Licenced to post at Mumbai patrika channel sorting office G.P.O. Mumbai 400 001. Date Of Mailing: 1st & 2nd Fortnightly Issue. Date Of Publication: 28th of Every Month

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Auto monitor 8 july 2013  
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