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MOTOWN INDIA Vol 3 / Issue 7 april 2013 www.motownindia.com

Motown Vol-3 • Issue-7 • April 2013 • 100

The pulse of the automotive industry

india

Honda launches 1.5litre

diesel engine for India

National Engineering industries LTD.

A company on a roll

RNI No DEL ENG/2010/34562

Rohit Saboo, President & CEO, National Engineering Industries Ltd. FORD ECOSPORT PREVIEW

MAHINDRA e2o

Spyker C8 Aileron in India by end 2013


mi Editor’s note

National Engineering Industries Ltd.,is a company based in Jaipur, Rajasthan is part of the CK Birla group. The company is known by the products it sells- NBC Bearings. The cover report in this issue is based on an interview with the company’s President & CEO Rohit Saboo. Mr Saboo is extremely optimistic about his company. He says his investment in his people has started paying rich dividends. He has hired some of the best brains to ensure that his company grows. The company has in place a four-year strategy. The aim is to double its turnover by FY17 to approximately 2,650 crore. The report gives a lot of insight into this strategy and the ambitious plans of the company. Among the major news that has been covered in this issue of Motown India is the report on Dutch carmaker Spyker’s plans to enter India with its cars beginning 2013. Spyker is an unknown brand in India and it will be interesting how this company fares in the super luxury car market of India. There are two reports on the Honda Amaze car. The reports discuss Honda’s winning strategy with the new Amaze as well as the diesel technology based on its Earth Dreams Technology. In the ‘Industry Overview’ we have charts based on the SIAM automobile sales figures for the month of February 2013. In the ‘Sales Overview’ pages we have a combined sales report of the automobile companies for the month of March 2013 and also for the fiscal 2012-13. Apart from all the technology news, global and national news, there are interviews with top honchos of companies like Shell India, JD Power and Steelbird. The magazine is a must-read for all those keen on knowing the latest in the automotive industry.

P. Tharyan

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

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

no responsibility for any effects from errors or omissions. Any unauthorised reproduction of Motown India content is strictly forbidden. -------------------------Motown India is printed, published, edited and owned by Punnoose Tharyan and published from 4058 / D-4, Vasant Kunj, New Delhi-110070. Printed at Pearl Printers, 52, DSIDC Shed, Okhla, Phase 1, New Delhi. This issue of Motown India magazine contains 100 pages including both covers.

April 2013 / 3


Contents

14. Ford EcoSport launched in China; India witnesses a preview While the production-spec version of the EcoSport was just previewed in India at a swanky mall in two major metropolises, Ford Motor Company has already rolled out the urban crossover in China. While the EcoSport for the Chinese market will be manufactured by Changan-Ford joint venture, it will be built here by the American carmaker’s wholly-owned subsidiary only by June 2013.

30. National Engineering industries LTD. : A company on a roll

16. The Honda Amaze diesel set to usher in a revolution Honda’s debut with a diesel engine comes with the launch of the Amaze. The car is technically a small car. Hence it would fall in a category that attracts lower excise compared to bigger cars. The pricing of the car is expected to ruffle a lot of its competitors.

For the last several years, the winds of change have been sweeping the National Engineering Industries Ltd. (NEI) popularly referred to as NBC Bearings, part of the CK Birla Group. The company has in the recent past been hiring some of the best brains in the country for its different departments, primarily its Research and Development wing.

86. Auto majors see fall in sales in March 2013: Swift Dzire, Ertiga prop up Maruti Suzuki annual sales growth Maruti Suzuki India Ltd, the country’s largest car manufacturer, recorded a 4.4pc increase in total domestic sales for the 12-month period ended March 31, 2013 as compared to the corresponding period last year, primarily because of increased demand for its Swift Dzire car as well as its Ertiga utility vehicle.

4 / April 2013

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Candid views

Inspiration from unexpected source Salil Sharma, Partner, Kapur Sharma & Co., www.kapursharma.com

T

he popular saying goes – when the going gets tough, the tough get going. In the current economic scenario, especially for the automobile industry in India, when it is experiencing the worst growth numbers for the decade, it makes a lot of sense to take inspiration from one of the little known comeback by the Showman of the Indian film industry --- Raj Kapoor. These chapters of the film industry do not make it to the text books of the Indian management schools but

make no mistake that the effort required to pull off the turnaround in such cases could put to shame the best companies which succumbed to economic slowdown. The incident throws light on the fact that under such circumstances, it is not always advisable to go in for a complicated strategy. If one sticks to one’s knitting and does what one knows the best, one can work wonders. The story started somewhere in the late 40s when a budding actor on the Indian silver screen, combined his acting talent with his directorial expertise to produce one of the biggest blockbusters of those times namely “Barsaat”. This movie

He was the man who reveled in love and this was the subject he knew like the back of his hand.

6 / April 2013

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Candid views

“The movie, which he thought was his creative pinnacle was much ahead of its times for the Indian audience. The problem was that his personal wealth had got eroded, his studio was mortgaged and there were not many people who were willing to back him.”

could be said to be the starting point of the making of the most prolific actor/director/producer the Hindi film industry has ever had. The economic gains from this venture enabled the fledgling R.K Films to set up its eponymous R.K Studios. The saga continued with this creative genius coming up with one hit after another catapulting him to become one of the most successful producer, actor and director. It was then that he gained confidence to launch his biggest movie ever, a semi autobiographical called “Mera Naam Joker”. The length of the movie exceeded four hours (against a normal two and a half hours), it had two intervals and had all the ingredients of a hit Hindi movie like good songs, brilliant acting and the top stars. Yet the movie was the biggest commercial disaster of not only Raj Kapoor but also in the history of Indian cinema. It was similar to a successful company investing all its resources in a revolutionary product which in its wisdom would be remembered as its most successful launch. The case would be worse if it had borrowed to the extent that its debt equity ratio would shoot up four times to 4:1and then the product fails. The immediate outcome of the corporate

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disaster would have been the market cap of the company being reduced by 50-60pc. The investors would have deserted it, the lenders would have hounded it and the analysts would have written it off. This incident made Raj Kapoor and his think tank go into a phase of introspection to understand the implications and reasons of this disaster. The first obvious conclusion was that his days of being the leading hero were over. The movie, which he thought was his creative pinnacle was much ahead of its times for the Indian audience. The problem was that his personal wealth had got eroded, his studio was mortgaged and there were not many people who were willing to back him. In these circumstances, an ordinary person or corporate for that matter, would have tried to come up with a product which would carry the least risk. This product would be one which has the general approval, is similar to something which is already selling and particularly in this case has stars that are doing well in the industry. The obvious trap for a run of the mill director would have been to look around at the movies which were doing well while his own magnum opus had failed. This would have been the action taken by a less

competent man who had lost faith in his own abilities. The biggest hits of those times were Johnny Mera Naam and Aradhana. Both these movies were of a much different genre than the ones Raj Kapoor used to create. He was the man who reveled in love and this was the subject he knew like the back of his hand. Against all conventional wisdom, he started working on a teenage love story with two newcomers in the lead. In fact, it seems that he wanted to make a clean break from his past because despite working with his team of lyricist, music director, story writer for 20 uninterrupted years, for this movie he changed them all. He did not take long to understand that whole new youth audience had taken over with different taste and on a look out for their own idols. The movie he created addressed these demands beyond expectations of not just industry observers but also its creator’s. The final product— Bobby--- was so successful that it created a template for love story which was used by Hindi movie industry in coming decades. The industry in the current gloom and doom scenario should look up to such episodes for inspiration. (Views expressed by the author are personal)

April 2013 / 7


Motown india highlights

Land Rover India launches 2013 Freelander 2

Land Rover has launched the 2013 edition of its Freelander 2. The premium SUV has been built at the plant in Pune since May 2011 to meet the increasing demand from Indian customers. The Freelander 2 gets a premium overhaul, delivering even better comfort, convenience and driving enjoyment. The Freelander 2 is available in two derivatives viz the 2.2 litre diesel TD4 SE (147.9bhp) priced at 38.67 lakh and a 2.2. litre diesel SD4 HSE (187.4bhp) priced at 43.92 lakh. The interior of Freelander 2 features a brand new centre console, 7-inch colour touchscreen with enhanced audio systems from Meridian, and a fully integrated navigation system. Passive start replaces key dock and there’s a new ‘intelligent’ electric parking brake which adjusts brake force according to the slope the vehicle is parked on. The rear view camera capability is also new to the Freelander 2 and is available as standard. All-new 17-inch alloy wheels become available on HSE models.

8 / April 2013

SKF equips the new Ferrari limited series special

LaFerrari at the Geneva International Motor Show

Bearings major SKF has announced that the company will supply bearings for the new hypercar model named LaFerrari, which recently made its public debut at the Geneva International Motor Show. The bearings are used for both the front and the rear wheels, as well as the gearbox, the engine and essential components for the functioning of the scissor doors of the car. This limited-series special, produced for only 499 clients, is a hybrid supercar featuring 963bhp and that includes an electric motor developed from technology used in Scuderia Ferrari’s F1 KERS, where SKF has been working in the technical partnership connected to this very innovative application area since the early development stages in 2007. The result expressed through this

hyper car is a solution that exalts both Ferrari and SKF’s fundamental technical values – excellence and performance. SKF also provides the special SKF hub knuckle module for the wheel ends, featuring a light-alloy aluminium knuckle permanently fixed to the bearing outer ring, but adding a dedicated single nut design, already mounted on the Ferrari Challenge cars (F430 and now F458 Italia). The complete system provided by SKF delivers several design advantages such as improved bearing and wheel end performance, reduced weight of the complete knuckle and bearing assembly, and easy wheel change. SKF also supplies bearings for the differential, the oil pump and the electric motor of this brand new high performance car.

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Tata Motors launches 6 new trucks for north Indian market

Tata Motors has launched its 6 new advanced heavy trucks and intelligent vehicle and driver management solution - Tata FleetMan Telematics Services -for the North Indian market. The 6 new advanced heavy trucks launched are: • Tata LPT3723 – The first 5-axle rigid truck in the country, in the 10x4 configuration. • The Tata Prima range – Two new engine capacities of 380HP & 230HP. - In the 380HP range – Tata Prima 4938 tractor and Tata Prima 3138K tipper. - Tata Prima LX range – Tata Prima 4923 & Tata Prima 4023 tractor. • The Tata Motors Construck range has been further fortified with the launch of the Tata LPK 3118 tipper. The 6 new trucks have been designed and built specifically to offer lowest TCO (Total Cost of Ownership), best-in-class fuel efficiency; longer service runs and enhanced levels of driver comfort, resulting in best-in-class profitability and lowest payback period for fleet operators

10 / April 2013

Isuzu to set up manufacturing unit for LCVs in Andhra Pradesh

L to R - K. Pradeep Chandra, Principal Secretary and commissioner for industrial promotion, industries and commerce department and Tsukioka, Executive Vice-President, Isuzu Motors Japan

Isuzu Motors India Private Limited has signed an agreement with the Andhra Pradesh State Government to start LCV manufacturing operation in the country. It has acquired land for the new plant, which would be the centre for full-scale LCV operations. This acquired Land is located in Sricity in the southern part of Andhra Pradesh State. Isuzu has decided Sricity as the most suited location based upon the easy access to Chennai, where many automobile related industries are situated, and the port Isuzu has acquired has

a area of 430,000 square metres. The company is hoping to produce 100,000 units from this new plant. Isuzu has in the meantime started sales of its pick up truck (D-MAX) and pick up derivative (MU-7) importing completely built units (CBUs). Isuzu will build up the sales network in two states, Andhra Pradesh and Tamil Nadu, and would gradually expand this network. India’s automobile industry has grown to a size of 3,600,000 units in the pick-up truck segment. Isuzu has recorded sales of 200,000 units.

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Secondary Air Injection Valves

Electrical EGR with feedback

Roll over valve

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Motown india highlights

LA Sovereign establishes

‘green’ footprint with new launches In a world consumed by obesity and rising pollution, there is hope in the form of ‘green’ products. Bicycles are one means of transport that ensures not only good health to the user but keeps the environment clean and green. Further establishing its green commitment, India’s leading bicycle company, LA Sovereign Bicycles Pvt Ltd has now introduced new models in the Indian market. The company’s current line-up includes about 35 models of children toys and MTB range for those between the ages of two year and 60 years. During the Holi festival, LA Sovereign has announced the launch of the Wave Alloy 27.5” and the Skylight 29”. The bikes have an alloy frame with suspension fork and integrated thread-less headrest. The gear system is by Shimano and is a 21 gear system with Easyfire shifters

Wave Alloy 27.5”

12 / April 2013

Skylight 29”

for quick shifting. Wave Alloy 27.5” has a disc brake up front and the rear has a V brake along with tire size 2.75 X 2.10 (650 B). The Skylight

29” comes with both front and rear disc brakes and a wider tire size of 29 X 1.95 LA Sovereign Bicycles Pvt. Ltd. is an Indo-Thai joint venture between Sovereign and LA Thailand companies to market high quality bicycles and kids toys to the Indian consumer. The products are manufactured under the LA Sovereign brand in Thailand and made available to the consumer through a vast dealer network in India. A complete service backup and spares are available with the local dealers. Sovereign is an India based company and has been in the bicycle trade for the last 40 years now. LA Thailand is a Thai company manufacturing bicycles, toys and electric vehicles for Asian, European

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Karbon 24”

Karbon 26”

Force 26”

Knock out 26”

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Rohit Kalra (right), Managing Director, with Nitin Ghai, Marketing Manager, LA Sovereign

and American markets. LA is a leading brand in Thailand and commands about 90pc market share in country. The bicycles are made using high grade materials from Japan and Taiwan. All bikes sport alloy rims and stainless steel spokes which are anti-rust and prevent corrosion. LA Sovereign offers a two-year warranty on all rigid frame and fork. The salient features of the bikes are: 1. All plastic used in kids toys is of food grade material having no health hazard 2. All the bicycles are

fitted with only high quality Taiwanese/Japanese components. 3. The bikes use alloy rims and anti rust stainless steel spokes. 4. All the bicycles are assembled and packed individually in strong carton box easy to carry & handle. Some of the other popular products of LA Sovereign include Karbon 24”, Karbon 26”, Force 26” and Knockout 26”. Common features include hi –tensile oversize steel frame with front suspension, alloy rims with stainless spokes and Shimano gears.

April 2013 / 13


Motown india highlights

Ford EcoSport launched in China; India witnesses a preview Report: Avishek Banerjee, Photography: Mohd. Nasir

Joginder Singh, Managing Director (R) and Vinay Piparsania, Executive Director, Marketing, Sales & Service, Ford India share a light moment during the unveiling of the Ford EcoSport in New Delhi

While the production-spec version of the EcoSport was just previewed in India at a swanky mall in two major metropolises, Ford Motor Company has already rolled out the urban crossover in China. While the EcoSport for the Chinese market will be manufactured by ChanganFord joint venture, it will be built here by the American carmaker’s

14 / April 2013

wholly-owned subsidiary only by June 2013. Unlike the India-bound EcoSport which measures under 4 metres to qualify for the excise duty concessions, the Chinese version measures 4.28 metres in length. Based on the all-new Fiesta platform, it’s made global debut in a preproduction form at the Auto Expo in January 2012 in New Delhi. The

vehicle is built in Brazil (in its second generation), and was developed at Ford’s Camaçari Engineering Center in Brazil’s Bahia state. In India, the compact SUV will be available in three engine options---1.0 litre EcoBoost petrol engine, 1.5 litre turbocharged diesel engine and 1.5 litre Ti-VCT naturally aspirated petrol engine. All the three engines

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Motown india highlights

India as global RHD production hub

The Ford EcoSport on display at a mall in New Delhi

will be mated to a five speed manual gearbox, with the petrol engine getting an optional automatic transmission. The sub-four metre Ford EcoSport will be offered in four trims, eight colours and three engine options. EcoSport is an urban SUV and will be offered in 2WD. A 4WD is also expected to be added later once its export-specific version also rolls off the production line Ford EcoSport will come equipped with a number of features like aircon, rear demister, power steering, power windows, central locking, 60:40 split seats, 200mm ground clearance, 550mm water wading ability, in-car entertainment system with CD/MP3/AUX compatibility, rear parking sensors, driver’s airbag, front passenger airbag and curtain airbags, ABS and EBD, SYNC, Keyless entry system and push-button start system. EcoSport will be the first vehicle in its segment to feature a voice enabled interactive system better known as SYNC, which the

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manufacturer has co-developed with Microsoft. Ford will, for the first time offer an SUV with its award-winning 1.0L EcoBoost turbocharged engine. The engine lineup includes the 1.5 litre petrol engine which produces 107bhp of power and 170Nm of torque. The EcoSport is offered in 5 variants, the 1.5 litre engine is available with both manual and automatic transmissions but the 1.0 litre EcoBoost gets only the manual option for now. In China, the base version of the Ford EcoSport is priced at 94,800 Yuan (around 8.29 lakh) while the top end variant has a price tag of 127,800 Yuan (around 11.17 lakh). Estimated to be priced in the range of 7-11 lakh in the Indian market, the low-cost SUV will be highly indigenised and built at its existing facility in Chennai. It will be locking horns with Renault Duster, Mahindra Quanto and Maruti Suzuki’s upcoming XAV Alpha.

Toeing the line of Renault (with Duster SUV), Ford Motor Company will be earmaking India as the global hub for the right-hand-drive version of the EcoSport model with the first shipment likely to head to the UK and Ireland by 2013end. It is also speculated that the export versions for LHD European markets will also be sourced from the Maraimalai Nagar (Chennai) plant. “While exports will follow, we are excited about first launching the product for our consumers in India to meet the much anticipated demand. As you know, our flexible manufacturing facility in Maraimalai Nagar near Chennai is a hub of excellence for global products and engines. “We will export the EcoSport to several markets, including Europe and will be able to share information closer to launch”, said an official spokesperson of Ford India. The company has invested 750 crore for building the assembly lines for the said model. Recently, Chang’an Ford launched the EcoSport compact crossover in the Chinese car market. The EcoSport launched in China comes with two engine options, both in petrol. The two petrol engine options are: 1.5 litre Ti-VCT naturally aspirated petrol engine and a 1 litre EcoBoost turbo petrol engine. Both these engines are available with a 5 speed manual gearbox as standard. The 1.5 litre petrol engine also gets an automatic gearbox as an option. The automatic gearbox in question is the 6 speed PowerShift dual clutch gearbox, a gearbox that India first saw in the new Fiesta automatic sedan.

April 2013 / 15


Motown india highlights

The Honda Amaze diesel set to usher in a revolution Report & Photography: P.Tharyan

It’s been around 15 years since the first car (Honda City was launched in 1998) from the Honda Motor Company of Japan rolled out from its India plant. It’s now for the first time in these 15 years that Honda would be bringing a diesel model in a country that has such great infatuation for diesel cars. The Honda Amaze diesel engine is a result of the company’s

16 / April 2013

determination to pursue the Earth Dreams Technology. It’s a matter of time before it sends the shivers down the spine of every major car manufacturer in India that includes the likes of Maruti Suzuki, Toyota Kirloskar Motor India, Mahindra & Mahindra, etc. India’s largest car manufacturer Maruti Suzuki recorded a 4.4pc increase in total domestic sales

for the 12-month period ended March 31, 2013 as compared to the corresponding period last year, primarily because of increased demand for its Swift Dzire car as well as its Ertiga utility vehicle. In March 2013 alone, the Swift Dzire showed an increase of 54pc in domestic sales. It sold 20,078 units this March compared to 16,451 units in March last year. Most of the Swift cars sold

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are diesel. The story is similar with other car manufacturers too. Toyota’s Etios diesel is bringing in the numbers for the company. It is in this segment that the Honda Amaze would be entering. With the coming in of Honda with a diesel powertrain, things are bound to change. Honda is a well-respected name in the Indian automobile industry. It carries tremendous amount of clout and respect among different age groups. Unfortunately for the last 15 years or so, the absence of a diesel engine in its stable clearly affected its sales. The situation worsened in the last few years as price of petrol fuel increased dramatically to more than 70 a litre. This resulted in a sudden surge in the demand for diesel vehicles. Even though the price difference between diesel and petrol will narrow in the months to come, one cannot rule out the continuing demand for diesel vehicles.

Finally a diesel car for India Honda’s debut with a diesel engine comes with the launch of the Amaze. The car is technically a small car. Hence it would fall in a category that attracts lower excise compared to bigger cars. The pricing of the car is expected to ruffle a lot of its competitors. For the fiscal 201213, the company sold 73,483 units as compared to 54,427 units in the corresponding period last year. In the month of March 2013 the company sold 10,044 units as against 11,016 units in March’12. Model wise sales break-up of domestic sales (wholesale) are as follows: Brio: 3917, Amaze: 2552, City: 3432, Accord: 113, CR-V: 30. The company has accounted for

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2552 Honda Amaze cars for the month of March 2013 even before the car has been officially launched in the country. This is because the company has already paid excise on these vehicles and these have then been sent out to the dealerships as display cars, demo cars and for retail purposes. It is very likely that the Honda Amaze could now be the leader in its stable with the highest number of sales. Says Jnaneswar Sen, Sr. VP - Sales and Marketing, HCIL, “The launch of Amaze this month will be a significant step in Honda’s strategy to begin a new phase of growth for our business in Indian market. We expect huge growth potential in tier 2 & tier 3 markets with this car and therefore we have been expanding our sales network to reach out to newer cities and markets.” Honda has expanded its sales and distribution network across the country during the fiscal year 2012 – 13 to 150 facilities in 97 cities. The network included 135 facilities in 83 cities during 2011 - 12.

Formerly known as Honda Siel Cars India Ltd, the company began operations in December 1995 as a joint venture between Honda Motor Company and Usha International of Siddharth Shriram Group. In August, 2012, Honda bought out Usha International’s entire 3.16pc stake. The company officially changed its name to Honda Cars India Ltd. (HCIL), which is now a 100pc subsidiary of the Honda Motor Company, Japan. It operates production facilities at Greater Noida in Uttar Pradesh and at Alwar in Rajasthan. Honda’s first manufacturing unit at Greater Noida commenced operations in 1997. Over the years it has launched several models in India. These include the Honda City (launched 1998), Honda Accord (launched 2001), Honda Civic (launched 2006, production discontinued in 2012), Honda Jazz (launched 2009, production temporarily discontinued in early 2013 in anticipation of allnew model), Honda Brio (launched 2011) and Honda CR-V (Imported

April 2013 / 17


Motown india highlights

since 2003 but in 2013 model is locally assembled) HCIL has announced a 2,500 crore investment in Tapukara plant and the addition of a new assembly line to increase production capacity. The Tapukara plant is located in district Alwar of Rajasthan. The plant has an annual installed capacity of 1,20,000 units and will feature a new diesel engine component production line along with a forging plant. Said Yoshiyuki Matsumoto, President & CEO, Honda Motor India Pvt Ltd, “India is a key market for us and over the next three years HCIL will launch five important models including the Amaze. We are not late in the diesel passenger market”. Hironori Kanayama, President and CEO, HCIL mentioned that by foraying in the diesel segment, HCIL’s operating field will spread from 10pc to 50pc in the total passenger vehicle market in the coming years.

18 / April 2013

The development of Amaze In his presentation to the media, Atsushi Arisaka, Team Leader of Honda Amaze Development noted that in order to deliver a good product with speed and right for Asian customer needs, “we started local development at Honda R&D Asia Pacific Co. Ltd located in Bangkok, Thailand. This is the first time that engineers from the R&D centre in Thailand took part in new model’s research and development and made a big contribution to the first local development in Asia,” Arisaka referred to the Honda Amaze as “truly born as a car of Asia”. The new Honda Amaze is powered by a newly developed 1.5 litre i-DTEC diesel engine and a 1.2 litre i-VTEC petrol engine. The diesel engine is supposedly the lightest engine among the engines with a similar torque configuration. The engineers at Honda have used a lightweight

crankshaft and a number of frictionreduction technologies. To ensure that the engine is well lubricated, the company developed ultra low viscosity diesel engine oil, the world lowest, so that it brings out the best in the 1.5 litre diesel engine. The concept for the Amaze is ‘Smart Micro Limousine’. With that in mind, a lot of emphasis has been laid on the styling of the vehicle and the rear cabin space. The wheelbase of the Amaze has been extended by 60mm as compared to the Brio resulting in superior knee clearance, head clearance and leg room. With a trunk space of 400 litres, the car has the best of both the worlds-styling and practicality. Though everything finally depends on price of the vehicle, it can be assumed that it would be extremely competitive. With an eye on large volumes, it is unlikely that Honda can go wrong on the pricing. The car is perfect for the Indian middle class, the price too would just be right!

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Mahindra Reva’s next step in electric mobility: The e2o Mahindra Reva has launched its second offering for the India market, the e2o. It is the next stepping stone for Mahindra in the pursuit of harnessing clean energy for the future of mobility. Speaking at the occasion, Anand Mahindra, Chairman, Mahindra Group noted,” The launch of the Mahindra e2o marks an important milestone for us.” The e2o is available in six colours and is priced at 5.96 lakh (on road Delhi, post state subsidy). At the heart of the e2o lies the next generation of lithium ion batteries powering a 3-phase induction motor. The vehicle comes with an automatic transmission for hassle free driving in the city. Anand Mahindra (extreme right) with Dr. Pawan Geonka, Rajan Wadhera, Chetan Maini and Pravin Shah

On a single charge the e2o can be driven 100 kilometres which shall be enough for any city, big or small. Apart from this the e2o has a small turning radius for ease and features a hill hold feature for inclines. The e2o can be charged from any 15A power socket. A full charge takes 5 hours. The interior space has been designed to accommodate four passengers. On the creature comfort front the e2o has a plethora of toys such as touchscreen audio, a GPS navigation system, full digital cluster, electrically operated wing mirrors, keyless entry with start/stop button, projector head lamps, LED tail lamps

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and a reversing camera. Mahindra has incorporated the regenerative braking system in the e2o which recharges the car under braking. Another first for Mahindra is the Connected car technology. The system implies that a customer may gain remote access to multiple functions by the use of their smart phone or palm held device. The user may simply download the application for the e2o and gain access to their car. For example the smartphone can help lock the car by simply sending it a lock command and activate the car’s airconditioning.

April 2013 / 19


Motown india highlights

DSK Motowheels sells 145 units of Aquila Pro

Harley Davidson Softail cruisers now get cheaper Fat Boy

DSK Motowheels has announced that it has clocked 145 units of 650cc Aquila Pro since its launch on January 16, 2013. Powered by a V twin-cylinder, oil-cooled 4-stroke engine, Aquila Pro produces 74bhp of maximum power at 9000rpm, and 62.1Nm of maximum torque at 7500rpm. The bike has a top speed of 195kmph. The cruiser is available in three colour variants – Red, Silver & Black and is priced at 479,000 (Ex-showroom Delhi). Shirish Kulkarni- Managing Director, DSK Motowheels said “We were confident that this world class product will get an overwhelming response from the bike aficionados in India. We always had the first mover’s advantage in the 650cc segment. The other thing which played to our advantage was the timely delivery of the bikes, they were delivered within 1 week from the time the bikes were booked. It’s a clear indication that brand Hyosung is being taken seriously in India and that’s very invigorating for us. We have certainly kept our promise to deliver quality products in India as we have the numbers to back our claims now. ”

20 / April 2013

Close on the heels of Union Finance Minister announcing a custom duty hike on imported bikes above 800cc engine displacement, Harley Davidson India has announced further expansion of its Completely Knocked Down (CKD) operations in India with an addition of three models from its Softail range of cruisers comprising Fat Boy, Heritage Softail Classic and Fat Boy Special. Previously offered as Completely

Built-Up (CBU) imports, these models will now be assembled at the Harley-Davidson facility in Bawal, Haryana. CKD assembly of the SoftTail range is has resulted in a price drop of up to 5 lakh. The Harley-Davidson Fat Boy will now be offered at 14.9 lakh (ex- showroom Delhi) as against the previous CBU price of 19.45 Lakh. Similarly, Fat Boy Special will be offered at 15.6 lakh (ex-showroom

Fat Boy Special

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Suzuki to crack the premium segment with Inazuma

Heritage Softail Classic

Delhi) as against the previous CBU pricing of 19.70 lakh. The HarleyDavidson Heritage Softail Classic would be offered at 16.25 lakh (ex- showroom Delhi) as against the previous CBU pricing of 20.45 lakh. Unitil now, Harley Davidson assembled only the Sportster range and select models from the Dyna range of cruisers in India. With the addition of the SoftTail range, the number of CKD assembled Harley Davidson motorcycle models in India go up to nine out of 12 models in its total lineup. On this milestone, Anoop Prakash, Managing Director, Harley-Davidson India said, “The Fat Boy, Heritage Softail Classic and Fat Boy Special have been embraced by our customers due to their outstanding riding performance, classic cruiser styling, and now we can offer them at even greater value. At HarleyDavidson India, we continue to adopt and invest in strategies that make our products and ownership experience accessible to more enthusiasts and customers across the country.” The other CKD models are from the Sportster model family

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Anoop Prakash, Managing Director, Harley-Davidson India

(SuperLow, Iron 883, Forty-Eight) and Dyna model family (Street Bob, Super Glide Custom, and Fat Bob). Harley-Davidson’s price range in India starts at 5.6 lakh (ex-showroom Delhi) for the Harley-Davidson SuperLow. The four remaining Harley Davidsons that continue to be brought into India through the completely built unit (CBU) route are the Night Rod Special, the Road King and the Street Glide and all three of them are priced over 20 lakh.

While Kawasaki and Honda are looking to establish itself in the premium bike segment in India with the Ninja 250R and the CBR250R respectively, another Japanese automaker Suzuki is reportedly planning to enter this segment with Inazuma by the middle or end of this year. Also known as GW250, the premium bike is expected to follow the CKD route in the initial phase. Estimated to be priced above 2 lakh, the 250cc bike is believed to be retailed at select outlets of Suzuki Motorcycle India. As it’s a scaled down version of 1340cc B-King, it is also known as baby King in various markets. According to sources who requested anonymity, “The baby B-King becomes the latest of the slew of 250cc motorcycles that Indian motorcyclists would be able to take their pick from in 2013.” A senior official of the company was contacted, maintained. “We are exploring all the segments where we are not present and a 250cc segment is under feasibility study. We cannot share anything beyond that.”

April 2013 / 21


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R. Seshasayee to become ALL’s non-exec VC

R. Seshasayee, Executive Vice Chairman of Ashok Leyland, will take on a new role as its Non-Executive Vice Chairman from April 1, 2013. This was unanimously decided at a meeting of the Board of Ashok Leyland. “This change is preparatory to Mr. Seshasayee taking on higher responsibilities involving the global operations of the Hinduja Group. This is also in recognition of his tremendous contribution in leading Ashok Leyland to become one of the country’s premier commercial vehicle manufacturers,” is how Dheeraj G. Hinduja, Chairman, Ashok Leyland, described the change. Seshasayee started his journey with Ashok Leyland in 1976 and became its Managing Director in 1998. At the helm of affairs, he spear-headed the growth and development of the company which today commands a pan-India presence with a most comprehensive product portfolio as also a significant global footprint.

22 / April 2013

HMSI keen to grab No. 1 slot in Indian two-wheeler market

With the launch of their new sports commuter CB Trigger, Honda Motorcycle & Scooter India (HMSI) is determined to increase its stronghold in the Indian 2-wheeler industry. This motorcycle comes in the 150cc180cc segment of the market and is primarily aimed at young riders in the age group of 18 to 24 years. The Trigger shares engine and a few bits and pieces with its siblings CB Unicorn and CB Dazzler. The engine produces 13.8bhp of maximum power at 8500rpm and peak torque of 12.5Nm at 6500rpm. The motorcycle returns a fuel efficiency figure of 60kmpl. Honda will also offer the Combined Braking System on the CB Trigger as an option.

At the event HMSI President and Managing Director Shinji Aoyama noted that they want to grab the number one spot in the Indian two-wheeler industry. Aoyama said that they may become the top twowheeler manufacturer by the year 2015-16. Hero and Bajaj share bigger chunks of the market but Aoyama is confident that Hero is losing market share and HMSI is gaining. To further facilitate its expansion HMSI is taking necessary steps like looking for more places to set up new plants and launching new models continuously. Also Aoyama stated that HMSI is not eyeing for any partnerships in the country. The motorcycle was launched by Bollywood actor Akshay Kumar.

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Piaggio India launches new Apé City autorickshaw

Kenichi Ayukawa, new MD & CEO of Maruti Suzuki Maruti Suzuki India Limited (MSIL) has appointed Kenichi Ayukawa as the new Managing Director and Chief Executive Officer, who will succeed Shinzo Nakanishi. The appointment will be effective April 1, 2013 as Nakanishi has attained the age of retirement. “The board of directors of the company appointed Ayukawa as the new Managing Director and Chief Executive Officer in place of Nakanishi as the latter has attained the age of retirement,” the company said in a statement. Kenichi Ayukawa has been associated with the European operations of Suzuki Motor Corporation

Piaggio India has launched a new Apé City autorickshaw in Mumbai. The three-wheeler by the Indian arm of the Italian automaker will be available in three fuel options: petrol, LPG and CNG in Maharashtra. While the petrol variant of the Ape City is priced at 1.1 lakh, the LPG and CNG variants are priced at 1.23 lakh and 1.25 lakh respectively, all-prices, ex-showroom, Mahrashtra. The Ape City will also be gradually available in other Indian states. The vehicle is powered by a four stroke 200cc engine that runs on a three valve set up. The passenger carrier comes with a 1 year/36,000 kilometers warranty as standard and will be taking on Bajaj RE and TVS King autorickshaws. Explaining the company’s new initiative, Ravi Chopra, Chairman & Managing Director of Piaggio

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India Pvt. Ltd. noted, “Anticipating the regulatory shift towards more eco-friendly vehicles and customer’s needs for a small, fuel efficient and comfortable 3-wheeler, we conceived the Apé City to deliver exceptional value and a superior experience to our customers. Today, we are confident the Apé City will outclass others in the alternative fuel segment and will help consolidate our position in the 3 wheeler segment.” To reduce maintenance costs, Piaggio India has designed the Apé City’s engine to have oil change intervals of 10,000 kilometers. Piaggio India claims that the new Apé City is 10pc more fuel efficient, delivers more power and torque, higher pick-up and acceleration than its competitors.

H S Goindi of TVS Motor quits Chennai-based TVS Motor head of marketing H S Goindi has called it quits. A company statement stated that Goindi “has expressed his desire to pursue interests outside the company”.The company immediately accepted his resignation. H.S. Goindi has been relieved by March 31, 2013. Goindi had been with the company for almost 12 years and was at time in charge of the company’s overseas business before becoming its head of marketing in 2008.

April 2013 / 23


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Varroc Group concludes acquisition of Chinese JV Varroc Group has announced the acquisition of the Visteon equity interest in its Chinabased lighting joint venture, Visteon TYC Auto Lamps Co., Ltd. TYC Brothers Ltd of Taiwan will remain the 50pc partner in the new entity, named Varroc TYC Auto Lamps Co., Ltd. Tarang Jain, Managing Director, Varroc Group speaking about the new venture noted, “I am pleased with the acquisition completion. The transaction completes an important step in our strategic plan to focus on our core businesses and expand our footprint into China, the world’s largest automotive market.” Varroc Group’s China entity will be part of Varroc Lighting Systems which was recently formed after Varroc Group’s acquisition of Visteon’s global automotive lighting business. This purchase price for equity stake of VTYC, on a cash-and debt-free basis, was approx. US$ 20 million. The deal includes manufacturing and engineering facilities in Changzhou and Chongqing.

24 / April 2013

Picture for representation purpose only

Safety features in cars to become mandatory by FY’14: Frost & Sullivan study Vehicle manufacturers have to walk the fine line between reducing the vehicle’s weight and still offering new functionalities, as the new analysis from Frost & Sullivan on ‘Indian Vehicle Technologies Evolution’ states that safety features like airbags, Electronic Brake Distribution (EBD) and Anti-lock Braking System (ABS) are likely to become mandatory in Indian

passenger vehicles by FY’14. The report also states that features like keyless entry, engine immobilizer and seat-belt warning are expected to have high penetration rates. It is to be mentioned that vehicle manufacturers offer vehicle stability features only in the highend variants of compact segment models. However, by FY 2014, ABS is expected to become mandatory

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in all models at all trim levels. Tyre pressure monitoring systems and electronic stability programs (ESPs) are likely to witness 100pc penetration by FY’16 in the utility vehicle segment. Comfort and convenience features such as power windows, remote locking, fog lamp, and rear AC vents will witness more than 80pc penetration over the next five years. The 58.2pc penetration rate for electric power steering in passenger vehicles is projected to grow by 20-22 pc by FY’17. Multilink suspension systems will continue to be used over the next five years, as these systems are economical. Original equipment manufacturers (OEMs) tend to gravitate toward entry-level sedans under 4 meters

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for the domestic market to avail duty benefits and meet emission norms. Using superior technologies such as variable valve timing (VVT) and double overhead cam (DOHC), vehicle manufacturers have been able to extract more horse power and thereby, higher efficiency and torque, from a low-capacity engine. “OEMs are focusing their R&D initiatives on developing alternative fuel vehicles, which run on compressed natural gas/ liquefied petroleum gas,” said Frost & Sullivan Analyst. “Penetration levels for automatic transmission, currently at 4pc, are expected to increase in the near future. In the infotainment technology segment, Bluetooth connectivity and USB port are expected to witness higher uptake,” noted the analyst. “AUX In-Port and Bluetooth user interface are also generally offered in highend vehicles due to the price factor, but with time, the penetration rate of AUX In-Port is anticipated to increase in the mid-size car and hatchback segments.” Social and legislative factors such as better urban infrastructure, and safety and emission norms play a vital role in the evolution of automotive technologies. India’s large population and a low car penetration rate of approximately eight cars per 1,000 people translate to significant untapped potential for the automotive industry. Government’s continued reduction of import tariffs coupled with investorfriendly laws are expected to go a long way in enhancing the prospects of the automotive industry. Further, the rising middle class is moving away from motorcycles to entry-level cars, giving vehicle manufacturers opportunities to strategise and innovate.

Renault India inaugurates 50,000 sqft warehouse Renault India Pvt. Ltd. has announced the inauguration of a new 50,000 sq. feet warehouse in the automotive hub of Talegaon MIDC, Pune. The warehouse is part of the International Parts Center (IPC) network, which enables Renault to source and consolidate vehicle parts in large volumes from local suppliers. These parts are then used for manufacturing by the Renault-Nissan alliance overseas manufacturing plants. “The IPC in Pune is an integral part of Renault India’s efforts towards providing customers across the globe with competitive parts, said Marc Nassif, Managing Director, Renault India Pvt. Ltd. “With the IPC, we can leverage not just the presence of competitive suppliers in India, but also benefit from savings through volume consolidation – a strategy that enables localisation and affordability, while also leveraging the high standards of quality offered by our supply partners in the country.” Established in 2007, the IPC in Pune is part of a network of 20 Alliance International Logistics Centers worldwide set up to ensure cost-competitive supply chain management and has been an extremely successful platform for Renault India’s export of parts.

April 2013 / 25


Motown india highlights

Apollo rolls out ‘XMR’ steel axle tyre

Apollo has introduced a new Steer Axle tyre ‘XMR’ in cross ply construction, which is designed for superior mileage and structural durability to deliver best cost of ownership in terms of ‘Total Mileage’; and the total mileage is derived from Initial Tread Mileage (ITM) and Retreaded Tyre Mileage (RTM). Tread rib pattern and groove were designed and optimised using ‘thermography’ techniques for the tyre to remain cooler while running and thus extend casing life for multiple retreads. Design considerations were also given for uniform ‘foot pressure distribution’ and to nullify ‘hot spot’ on the ‘tread rib’ & ‘rib groove’ to benefit uniform wear & part worn appearance which are important parameters to decide on timely removal for retreading.

26 / April 2013

JK Tyre thrilling rally in Sikkim, Darjeeling

East India got its fair share of thrills recently when the JK Tyre Himalayan Drive 2013 TSD (Time-SpeedDistance) Rally covered the eastern regions of Sikkim, West Bengal, Darjeeling Hills and the pristine Eastern Himalayas. The three-day event was flagged off on March 22, 2013 from Siliguri’s City Centre and concluded on March 24, 2013. The JK Tyre Himalayan Drive 2013 was the first ever motorsport event organised in the Eastern Himalayan Region, by Just Sportz Management Pvt. Ltd. with support from the Government of Sikkim, West Bengal and GTA. The event attracted more than 50 drivers and navigators from Kolkata, Siliguri, North Bengal, Darjeeling and Gangtok. Soham Hazra (Driver) and Nirav Mehta (Navigator) won the Rally, while SK. Ajgar Ali (Driver) and MK. Mohammad Mustafa (Navigator) and Subir Roy (Driver) and Amit Saha (Navigator) took second and

third positions respectively. Bibhas Bhattacharya was the only local participants to complete both the leg successfully. Sanjay Sharma, Head - Motorsport, JK Tyre & Industries Limited said, “The JK Tyre Himalayan Drive 2013 was a new milestone in the promotion of motorsport in the Sikkim, Darjeeling and North Bengal region. We have already made a mark in Bhutan through our IndoBhutan Car Rally and through these activities we aspire to take the sport to every nook and corner of the country. It was a memorable experience for all of us and hopefully, there will be many more to come.”

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ACMA signs MoU with SIDBI for auto component MSMEs

The Automotive Component Manufacturers Association of India (ACMA) has signed a Memorandum of Understanding (MoU) with Small Industries Development Bank of India (SIDBI) for easy credit access for auto component companies in the Micro, Small and Medium Enterprises (MSME) sector. ACMA has also organised the 2nd MSME Summit on Innovation. Inaugurating the Summit, Madhav Lal, Secretary MSME said, “It is indeed heartening to see the auto component fraternity come together for the 2nd MSME summit. The MSME sector is a key driver of nation’s industrial output. The Indian auto component industry needs to invest in technology, R&D, and new product development to surmount the challenges posed by emission norms, diminishing oil supply and increasing fuel prices. The government understands the need for technology in the MSME segment and hence special emphasis has been given in the 12th five-year

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plan. I hope this summit paves way for more innovative solutions, to brace challenges faced by the sector today”. Currently there are 2.6 million MSMEs in the country across various sectors and the automotive space is likewise dominated by them; in ACMA out of the total membership base of over 670, over 70pc fall in that category. ACMA consistently works for the development of its MSME members. Speaking on the challenges of the MSME sector, Surinder Kanwar, President, ACMA noted, “The key challenges faced by MSMEs are similar to those of the large enterprises. But considering the relative smaller size of the sector, the issues become more pronounced whether these relate to access to capital or access to technology. I believe that this MSME summit would help in streamlining and resolving growth and exploration in newer dimensions”.

FIAT India opens its stockyard at Ranjangaon FIAT Group Automobiles India Private Limited (FGAIPL) has inaugurated its first stockyard at Ranjangaon, Pune. The stockyard, designed and constructed by FIAT’s logistics partner Mercurio Pallia, is spread across an area of 12 acres within the Ranjangaon Industrial premises and in close proximity to FIAT’s manufacturing plant. It has the capacity to house 2,000 cars at any given point of time. At the onset, the stockyard will cater to the incumbent Fiat Linea and Fiat Punto models. In due course of time it will store cars from the FIAT and the Chrysler group as and when they are introduced in the Indian market. In order to ensure that the cars are stored in impeccable condition, the storage area is paved with concrete paver block. The stockyard also comprises of a separate loading area to allow loading of cars into car carrier trailors. The facility has round the clock security supported with CCTV surveillance system for better safety of cars and people. The system has been designed with high mast lighting systems to avoid minimum interference in storage area and there by optimizing storage with utmost safety considerations.

April 2013 / 27


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M&M recalls select batch of XUV500 models in India

On March 8, 2013 Mahindra & Mahindra Ltd informed the Bombay Stock Exchange that it would be recalling some XUV500 models of a select batch that were manufactured during 2011 and 2012. “The Company on March 08, 2013 announced that it would carry out replacement of certain parts for a select batch of its XUV500 model. This is in keeping with its customer centric approach as well as in compliance with the recently announced voluntary code on vehicle recall. “The company will carry out preventive replacement of some parts in a select batch of XUV500s manufactured during 2011 and 2012. The replacement of three parts, including the fluid hose, front power window units as well as the left wiper blade cover, would be carried out with immediate effect. This replacement would be free of cost for XUV500 customers who would be individually contacted by the company,” the note to BSE said.

28 / April 2013

Hero MotoCorp begins operations in Africa, Latin America In keeping with its stated objective of a million unit volume sales from international business in five years’ time, Hero MotoCorp Ltd. has announced commencement of its operations in Latin America and Africa. Pawan Munjal, Managing Director & Chief Executive Officer, Hero MotoCorp Ltd., said “We have started despatches to our new international markets in Central and Latin America and Africa. Our first consignments of twoPawan Munjal, Managing Director & Chief wheelers have already Executive Officer, Hero MotoCorp Ltd been shipped to Peru in Latin America, El Salvador, Guatemala and Honduras in Central America with Hero MotoCorp’s vision of and to Burkina Faso and Ivory reaching a total of 10 million unit Coast in Africa. We shall also be volumes in a few years’ time, and despatching the first lot of our twogarnering a million units - 10pc of wheelers to Kenya later this month.” that - from international business. To The Hero motorcycles to be meet this ambitious objective, the sold in these markets include a company has already short-listed as mix of models from the 100cc and many as 30 countries across Latin 125cc range. The company has America, Central America, Africa and already appointed new distributors South East Asia. and channel partners in all these Currently, Colombia is the only markets, where retail sales of the country in Latin America where Hero Hero two-wheelers is likely to MotoCorp currently exports to. The commence in the first quarter of other international markets where this fiscal. Hero two-wheelers are sold include These initiatives are in keeping Sri Lanka, Bangladesh and Nepal.

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Mahindra opens largest tractor facility in India The Farm Equipment Sector of Mahindra & Mahindra Ltd has announced the launch of its first tractor manufacturing plant in Zaheerabad, Andhra Pradesh. The plant has been set-up at a substantial investment of over 300 crore will have an installed capacity of 100,000 tractors per annum, which can be scaled up to meet additional demand. The world class facility which is equipped to meet international manufacturing standards is spread across 80 acres of land and is built over 60,000 sqmt. making it the largest tractor plant in India. The new plant was inaugurated by Chief Minister of Andhra Pradesh Kiran Kumar Reddy in the presence of Dr. J. Geeta Reddy, Minister of Major Industries, Sugar, Commerce & Export Promotion, Government of Andhra Pradesh. Anand Mahindra, Chairman, Mahindra Group and Dr. Pawan Goenka, President, Automotive and Farm Equipment Sectors, Mahindra & Mahindra Ltd. were present along with other senior officials from Mahindra. Mahindra & Mahindra sells tractors under 2 leading brands, i.e. ‘Mahindra’ & ‘Swaraj’. Mahindra Tractors has had the highest market share in the domestic market for the last 29 years. Last year, the company sold 2,21,730 tractors in the domestic market. Mahindra has tractor manufacturing plants in Mumbai, Nagpur, Rudrapur, Jaipur, Mohali and

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Rajkot. It also has plants overseas - in the USA (2 plants), China (2 plants) and one in Australia. The new tractor plant at Zaheerabad has been designed as a fully integrated facility for multiple platforms from press to body shop to paint shop to transmission assembly with the aggregates all coming up simultaneously. “The Group has always believed in investing for the future and this new tractor plant at Zaheerabad is yet another example of our philosophy in action. Our endeavour is to be present in the entire eco system of Agri Business and this new facility will help brand Mahindra to deliver on its promise of Farm Tech Prosperity. This push towards rural prosperity will help India, which is currently poised at a tipping point, to emerge as one of the fastest growing economies in the world. The government of Andhra Pradesh and its administration has been proactive in their support to Mahindra which has helped us to set up this facility in record time.” said Anand Mahindra, Chairman, Mahindra Group.

Mahindra Maxximo Plus minitruck launched Mahindra & Mahindra Ltd. has announced the launch of the new Maxximo Plus, a 0.85 ton payload mini-truck, in Mumbai. Equipped with the pioneering yet simple-to-use Fuel Smart technology, the new Maxximo Plus allows the customer to choose between higher power (26bhp; 19.2 kw) or higher mileage (21.9kmpl), as and when he needs, at the press of a switch. An upgrade over the successful Maxximo launched in 2010, the Maxximo Plus is attractively priced at 3.40 lakh (BS3, Ex-showroom Thane). Built at its Chakan plant in Maharashtra, the Maxximo Plus has undergone rigorous and full test cycle runs and has been validated on all performance, safety and reliability parameters. The new Maxximo Plus also comes with a class-leading 2 year/60,000km warranty, which provides greater peace-ofmind to the customer. Apart from these significant new advantages, the new Maxximo Plus retains the delight-features which give it the lead in comfort, style & safety. The new Maxximo Plus will continue to be available in two attractive shades of Appy Red and Diamond White.

April 2013 / 29


Cover Report

National Engineering industries LTD.

A company on a roll Report P. Tharyan Photography Mohd. nasir

30 / April 2013

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Cover Report

W

Rohit Saboo President & CEO, National Engineering Industries Ltd.

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hat do you say when a company files eight patents in a single year? How would you react when the company develops more than 30 bearings for a leading German commercial vehicle manufacturer? And to add to that, how will you rate a bearing company that is most likely to work with Europe’s leading car manufacturer for their electric vehicles? To top this all, the company is not only going in for major expansion in the country, but is also looking at a US $100 million acquisition globally. Finally, how would you assess a company that plans to double its turnover in the next four years? The answer is simple. The company is obviously on a roll! For the last several years, the winds of change have been sweeping the National Engineering Industries Ltd. (NEI) popularly referred to as NBC Bearings, part of the CK Birla Group. The company has in the recent past been hiring some of the best brains in the country for its different departments, primarily its Research and Development wing. The company now has a brand new R&D building with a large number of testing equipment. Among its R&D team members are those with PhD qualifications and Masters from the prestigious IIT centres across the country who are working in the critical areas of metallurgy, metrology, testing etc. “The entire profile of NEI has changed in the last four years,” says Rohit Saboo, President & CEO, National Engineering Industries. “We are so positive about our growth that we have almost

April 2013 / 31


Cover Report

Heat treatment furnace for Railway bearings

completed all our hiring for 2015. We hired 150 people in the last one year, a majority in R&D, sales & marketing and production. Yes, it increased our expenses, but this is our investment for the future,” notes Saboo in an exclusive interview with Motown India. It is very apparent that Saboo has rock solid faith in the people he has hired. The results have begun to show. “Since 2008, we have doubled our turnover in three years. In 2008 we were around 450 crore and we crossed 900 crore in 2011. This year we will cross 1,250 crore. We are the fastest growing bearing manufacturer in the country,” he says. This is despite the fact that the company is facing competition from multi-nationals in the country.

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Big focus on R&D Till around the year 2000, NEI was a successful, yet traditional familyowned company. “We realised that the world around was changing very fast. The transformation journey started around 2001. The speed picked up around 2008-09. We infused fresh blood that included highly qualified professionals. One thing we realised was that we had to be self sufficient in R&D. Earlier we were spending 0.2pc of our turnover in R&D. Now with our increased turnover, we are spending around 1pc of our turnover on R&D. We shall take this up to 2pc in the near future,” informs Saboo. It’s obvious that the company’s profile is changing and that there

is now a buzz around NEI. The company recently hired a very reputed international consultant to conduct a lean management programme in its factory. The company got great results out of that. It is also doing a lot of HR oriented programmes. And even though the company is affected by the current downturn in the industry, it remains the fastest growing bearing company in the country. Thrust on R&D is showing its results in different ways. The company has filed eight patents in the last one year. “We have developed a low torque bearing on our own for one of our motorcycle customers. We have got very good reviews on that. Low torque

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Cover Report

bearing is a slightly different kind of technology. Only the top five companies in the world, almost 100 times our size, have this technology and we have developed this on our own,” says Saboo proudly. As far as quality and performance are concerned, NBC bearings are as good or better performing than that of the multinationals. “If that was not the case, we would not be having such a high market share in the automobile segment. Automobile companies are very stringent on quality and we are very clear that we will not play on a low quality front. We will play in the high quality arena,” says Saboo. With emphasis on high quality standards in manufacturing, the company relies on very sophisticated machines at its plants. Around 80pc of the machines are Japanese, 15pc European and 5pc American. “That is because we have

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to maintain a high level of quality. We are the only bearing company in India to have got the Deming Award in 2010,” adds Saboo.

Plant expansion and an acquisition drive NEI is currently on a massive

expansion drive. At present, the company has three plants—the first in Jaipur, the second in Newai and the third in Manesar. It recently bought a land in Savli near Vadodara for setting up a fourth plant. The company has plans to set up yet another plant in the country and the search is on for the right

April 2013 / 33


Cover Report

Spherical Roller Bearing Assembly

location. “We just bought land in Savli near Vadodara in Gujarat and have done the bhoomi poojan. We expect to start production in SeptemberOctober 2013. We are already looking for land for another plant that will come up in the next two years time,” says Saboo. The Jaipur plant is the mother plant. Around 80pc of production comes from the Jaipur plant. All types of bearings are made here, from 25mm bore to 1.3 metre Outer Diameter (OD). The bearings are primarily manufactured for the auto sector, with industrial and other sectors constituting a smaller share. The company’s second plant is in Newai, a small village 60km south of Jaipur in Rajasthan. Here the company manufactures around 20

34 / April 2013

lakh bearings per month. These are all small-sized bearings for the auto sector. The third plant is located in Manesar and is the smallest plant but has very high productivity lines. Here the company manufactures around 15 lakh bearings a month. It has only three lines. This plant caters to companies like Hero MotoCorp, Maruti Suzuki etc. The decision to set up a fourth plant was based on the fact that a lot of its customers had started setting up plants in Gujarat. “We realised that lot of our customers are moving or are already there in Gujarat. We thought it would make a lot of sense to be closer to our customers. The Gujarat plant would eventually manufacture around 5 crore bearings a year. It will be slightly smaller than the Jaipur

plant,” discloses Saboo. The Gujarat plant would get into full production mode in a phased manner that would span four years. “This is a four-year programme wherein it will reach the 5 crore bearings level. We shall be making investments every year. This year we expect to get only three months production. Next year there will be a full year production. Every year, an equal number of lines will be added. We will be catering to Gujarat and all states south of Gujarat,” says Saboo. Apart from the expansion of its plants in India, the company is actively considering an acquisition abroad. “We are seriously looking for acquisition of any target company that has a turnover of less than US $100 million. We want to

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Cover Report

Material flow for Grinding process

bite as much as we can chew. That is why we have limited ourselves to a US $100 million company. There are very few companies in the bearing industry that can be acquired. We are working very hard to identify a good company. We did identify a few companies but either they are asking for too high a price or they are not compatible to our growth plans and strategies. So we had to give them the pass. We are still on the lookout and we feel that in the next one and a half years we should be able to identify the right company for acquisition. We are mostly looking at companies in Europe and America. We have looked at one company in South America also. We have also seen a company in Asia too but it’s too early to say which one we shall

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eventually acquire,” points out Saboo.

Catering to automobile manufacturers Around 65pc of NBC bearings go to auto OEMs, 30pc to the aftermarket and 5pc for industrial applications. Traditionally, NBC Bearings has been very strong in the auto sector. “We have had a marginal rise where industrials are concerned. In the strategy we evolved last year we decided that we have to focus on industrials also. We are developing special bearings for industrial applications like cement, power plants, etc. Around 65pc of our share will continue to come from auto segment,” says Saboo.

Doing business in the auto industry is not very easy. It took NBC Bearings around four years to get an approval from a European auto manufacturer. There were at least six or seven audits and the company had to pass all the audits. Besides, there were two or three levels of trials. “I am happy to say that we have started business with them in a small way and the future looks very promising. This is an auto major in Europe,” notes Saboo. NBC Bearings is also one of the largest exporters of bearings from India. Around 50pc of its exports is for railways. The company exports to the US, Brazil, South Africa along with its collaborators Amsted Rail of US. The remaining 50pc of exports is for automobiles. “The biggest customer is a wheel hub

April 2013 / 35


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Heat treatment furnace for Rollers

manufacturer in the US by the name of ConMet. Half of our exports go to them. We have two technical collaborations. One with Amsted Rail of the US for special cartridge tapered roller bearings for railways. And for all other bearings we have a tie up with NTN of Japan,” informs Saboo. NBC Bearings today manufactures all kinds of bearings ball bearings, tapered roller bearings, cylindrical roller bearings, spherical roller bearings, double row angular contact bearings etc. The bearings are of sizes 25mm bore to 1.3 metre OD and the capability exists to develop bearings upto 2 metre OD that go into steel mills and other heavy industries. “We have the widest range of

36 / April 2013

bearings in India. As far as volumes are concerned, major contributors are ball bearings and tapered roller bearings. Ball bearings are used in two-wheelers while both ball bearings and tapered roller bearings are used in cars. Tapered roller bearings are mostly used in heavy commercial vehicles. Tapered roller bearings take more load, hence their use in heavy vehicles. “In the export business, we are catering to both OE as well as aftermarket segments. It’s in the ratio of 70:30. The aftermarket is a very huge market abroad, but Indian brands at present face a challenge on the brand front. We are generally pegged against the Chinese products and our price point is slightly higher. Our products

are of better quality and are slightly higher priced. We are in the process of creating a brand of our own. There are tier II players from India who play on price and compete with the Chinese. They are only in the aftermarket,” notes Saboo.

The road ahead The company also caters to the tractor industry and it does good business in this segment. The company is now planning to get into off-road vehicle segment such as mining and construction vehicles. “We are currently in the phase of development and we may take one or two years to enter this market. Mostly our bearings are high carbon steel while these use low carbon

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Cover Report

Metallurgy Lab

steel. The latter has more capacity to handle shock loads,” says Saboo. NBC Bearings currently supplies to almost all auto companies in India that include manufacturers of trucks, two-wheelers, tractors etc. “For cars we supply to Maruti Suzuki and Mahindra and as a tier II supplier we supply to GM and Ford. All the wheel bearings of Nissan Micra wherever they are made in the world, are produced by us. The worldwide contract is with NEI. Globally we are supplying to Daimler Benz. Bharat Benz is also our customer. In fact, we have developed more than 30 bearings for Bharat Benz India in a record time. We are in a very advanced stage in working with one of the leading German car manufacturer

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for their electric vehicles. There are companies in Brazil and Italy to whom we cater,” reveals Saboo. The company has in place a fouryear strategy. The aim is to double its turnover by FY17. Currently exports constitute 12pc of the company’s turnover. The company wants to increase this share to 20pc of the turnover. As for the turnover target, the company plans to increase it to approximately 2,650 crore by 2016-17 from the estimated 1,300 crore level in 2013-14. With all

critical business enablers in place and the massive expansion drive being undertaken by the company, achieving this target could just be a cakewalk for Saboo!

April 2013 / 37


india Report - exclusive

Spyker C8 Aileron

in India by end 2013 B6 Venator to follow in 2014 Report P.Tharyan

he car market in India may be down and out, but that’s not deterring luxury car makers to continue their focus on India. The latest to join the luxury car market in India will be Dutch car maker Spyker. The company will be bringing into India the C8 Aileron at the end of 2013, which would be followed by

38 / April 2013

the B6 Venator by early 2014. The B6 Venator Concept was unveiled at the Geneva International Motor Show in early March 2013. In communication with Motown India magazine, Spyker N.V. Chief Commercial Officer John Walton said that his company was planning to launch the Spyker brand in India in the second half of this year. “We certainly see the Republic of India as an important market, where the

heritage of the Spyker brand and the bespoke design of our product will be appreciated by the growing number of luxury car buyers. For a number of years we have studied the Indian car market, and short listed potential dealer candidates,” Walton noted. He said that with the C8 Spyder and C8 Laviolette models his company offered compact sports cars with manual gearbox only.

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india Report - exclusive

“Now the time is right for us to enter the Indian market. The C8 Aileron has an automatic gearbox and is a bigger car compared to our previous models. The C8 Aileron will be presented in New Delhi later this year. With the B6 Venator Concept, which was unveiled in Geneva last week, we will have a second automatic available, but also a manual version for the more traditional driver. With a fresh model line-up and latest technology we look forward to presenting Spyker to Indian customers,” he stated. However, keeping in mind the exclusivity of the company’s product, only a handful of C8 Ailerons will be made available to India in the first 12 months after launch. Initially unveiled at the 2009 Salon International de l’Automobile in Geneva, and the Spyker C8 Aileron coupe took pride of place at the 2010 show just before entering production. Inspired by the company’s aviation heritage, Spyker’s second-generation sports car features cues from secondgeneration aircraft propulsion, highlighting the turbine blade, rather than the propeller which adorned many elements of Spyker’s first generation cars. With sleek aerodynamics, a long GT wheelbase, luxurious and spacious cabin and world class ZF six-speed automatic transmission, the new C8 Aileron broadens the appeal of the Spyker brand while maintaining the marque’s exclusivity.

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Latest-generation LEDs are used for the front and rear turn indicators and the sidelights within the sharply-styled headlight units. The cockpit canopy, for example, is extended rearwards to optimise the aerodynamic performance of the car. Power comes from a naturally aspirated Audi 4.2-litre V8 petrol engine. This power unit features a 90 degree angle block, 40 valves (5 valves-per-cylinder, 3 intake and 2 exhaust), and variable valve timing. Highly responsive, the V8 generates 394.5bhp at 6,800rpm and a torque of 480Nm at 3,500rpm. It goes from 0-to-100kmph in 4.5 seconds and a top speed of 300kmph. As standard, the Aileron is

equipped with unique 19-inch alloy wheels. High-impact 10-blade 19inch directional Rotorblade wheels are available as an option. The C8 Aileron’s generously proportioned Michelin tyres – 235/35 ZR19 (front) and 295/30 ZR19 (rear) – provide exceptional grip and progressive handling. The car is priced in the Middle East at US$ 244,990 ( 1.33 crore).

April 2013 / 39


india Report - exclusive

B6 Venator concept mong the super luxury cars with extremely potent drool factors that were unveiled at the 83rd Geneva International Motor Show, was the B6 Venator concept which is expected to be in India early 2014. The company feels that the year 2013 will mark the global

40 / April 2013

resurgence of Spyker as a creator of meticulously built automobiles. The Spyker B6 Venator Concept is a compact, 2-door mid-engine sports car. Designed by Victor R. Muller, Chief Executive Officer of Spyker N.V., the Spyker B6 Venator Concept makes a defiantly contemporary statement whilst paying homage to its past, making it instantly recognisable as a Spyker. Highly detailed design, bespoke materials

and aviation-inspired elements are a core part of the Spyker DNA. The name “Venator” is Latin as well, meaning “Hunter” – a nod back to Spyker’s “Hunter” fighter aircraft of the early 20th century. The leather used in the interior of the car is sourced from the Litano range produced by the Royal Hulshof Dutch Tanneries in Lichtenvoorde. Hulshof uses only West European first choice bull hides and a special

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india Report - exclusive

tanning process that produces the beautifully rich colour palette. The aerodynamically shaped glass aircraft canopy extends rearwards to minimise drag, optimising performance. The Spyker B6 Venator Concept will begin production in early 2014 for key markets including Europe, the Middle East, Asia Pacific and India, followed by the US in autumn 2014. . The Spyker B6 Venator Concept price point will be

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approximately $125,000 / $150,000 (approx. 67.95 lakh / 81.53 lakh). With the announcement of the Spyker B6 Venator Concept, the company once again proves its Latin axiom: “Nulla tenaci invia est via” – “For the tenacious no road is impassable.” Exterior highlights of the concept car include the trademark V-shaped radiator grille, 1903 Spyker logo, 3D LED rear lights and 19” Turbofan

wheels. The red cover on the ignition switch evokes the spirit of starting an aeroplane, as does the dashboard that lights up as part of the ‘preflight check.’ The dashboard is shown with a turned aluminium fascia, similar to those seen on Spykers of the 1920s. Pressing the engine start button brings to life a powerful V6 engine that delivers 375+bhp.

April 2013 / 41


india Report

Earth Dreams Technology

Honda launches 1.5litre diesel engine for India

Report: Abhijeet Singh & Karan Joshi, Photography: Mohd. Nasir

H

onda Cars India Limited (HCIL) has unveiled its new diesel engine which will debut in the soon to be launched Honda Amaze. The new 1.5 litre i-DTEC engine has been specifically developed for the Indian market. The new i-DTEC engine is a result of Honda’s next generation Earth Dreams Technology. The engine produces 98.6bhp and returns a fuel efficiency figure of 25.8kmpl. Amaze is scheduled to be launched on the April 11, 2013. Bookings for the car opened from April 1. In the meantime, HCIL has announced a 2,500 crore investment in Tapukara plant and the addition of a new assembly line to increase production capacity. The Tapukara plant is located in district Alwar of Rajasthan. The plant has an annual installed capacity of 1,20,000 units and will feature a new diesel engine component production line along with a forging plant. Yoshiyuki Matsumoto, Representative of Development, Purchasing and Production in Asia and Oceania, Honda Motor Company, Japan stated, “India is a key market for us and over the next

42 / April 2013

(R) Hironori Kanayama, President and CEO, HCIL, Yoshiyuki Matsumoto, President and CEO, Honda Motor India Pvt. Ltd.

three years HCIL will launch five important models including the Amaze. We are not late in the diesel passenger market”. Matsumoto is President and CEO of Honda Motor India w.e.f April 1, 2013 (HMIL). HMIL engages in the development, production and manufacture of motor products. It operates as a subsidiary of Honda Motor

Company, Japan. Hironori Kanayama, President and CEO, HCIL mentioned that by foraying in the diesel segment, HCIL’s operating field will spread from 10pc to 50pc in the total passenger vehicle market in the coming years. Kanayama added, “Attaining targets is important, but customer support is our prime importance”.

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india Report

Earth Dreams Technology Honda shared its insight on the Earth Dreams Technology in the end of the year 2011. “Earth Dreams Technology” is a next generation set of technological advancements which greatly enhance both driving performance and fuel efficiency at a high level, using as its base advanced environmental technologies to pursue the joy of driving unique to Honda. It is a series of measures in which efficiency of internal combustion components including engine, and transmission, as well as electricpowered motor technology, is further improved. Through its implementation first in the mini-vehicle N BOX and gradually onto other vehicle models, Honda aims to achieve top-of-industry fuel efficiency for every category within three years, while simultaneously setting a timeline of 2020 to reduce by 30pc CO2 emissions for all products sold worldwide, relative to emission figures for 2000.

which combines superior driving and environmental performance. 6. A compact, high efficiency electric powertrain for EVs.

Key features of “Earth Dreams Technology” are: 1. A gasoline engine which realises top level driving performance and fuel efficiency. 2. A compact diesel engine which realizes the world’s lightest body*1, top-of-class acceleration performance and fuel efficiency. 3. CVT which combines at a high level the fun of driving and fuel efficiency. 4. A two-motor hybrid system which realizes top-of-industry efficiency. 5. A high-efficiency, high output electric SH-AWD hybrid system

A wide range of engine classes including the 660cc, 1.3L, 1.5L, 1.8L, 2.0L, 2.4L, and 3.5L classes will feature the technology. The compact 1.5 litre diesel engine is constructed using aluminum and is the lightest engine in its class. A friction level equivalent to present petrol engine was achieved by downsizing from the present 2.2L engine and extensively reducing mechanical friction in each section. In addition to this thermal management system has been optimised, thanks to improvements in the cooling system, which reduces

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CO2 output by over 15pc. Also a two-motor hybrid system realises top-of-industry efficiency for Honda Hybrid vehicles. Earth Dreams Technology also improves efficiency of electric powertrains as well. The spotlight is on the upcoming Brio based compact saloon the Amaze. Amaze will be the first vehicle in Honda’s arsenal featuring a diesel engine based on the Earth Dreams Technology. It is quiet safe to presume that the 1.5 litre i-DTEC is a detuned version of the 1.6 litre i-DTEC unit sold in the European market. Honda will be introducing diesel engines for all its models in due course of time. The company finally enters a segment that it missed so sorely in India—the diesel car segment!

April 2013 / 43


india Report

Mercedes-Benz bus

division integrated with Daimler CV in India has announced the integration of the Mercedes-Benz bus division with itself. The Mercedes-Benz bus business was until now handled by Mercedes-Benz India Pvt. Ltd., Pune. Marc Llistosella, Managing

Director & CEO, DICV said, “The alignment of the Bus division with DICV is a logical step in integrating the commercial vehicle divisions of Daimler into one cohesive unit. This is in line with our global

Photography: Mohd. Nasir

D

aimler India Commercial Vehicles Pvt. Ltd (DICV), a wholly owned subsidiary of Daimler AG,

44 / April 2013

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india Report

practice to ensure better synergies in various business verticals. With this alignment Daimler will be able to expand its presence in India through a dealer network oriented and trained in the operations of commercial vehicles”. Markus Villinger, Head, Daimler Bus Division, India, said, “As the global leader in buses, Daimler sees India as a market with growing potential. However, the luxury coach segment is still very small in comparison to the total market. We will initially focus on this segment. The integration of the Daimler bus division with DICV while creating greater synergies will also open several business opportunities in future”. Eberhard Kern, Managing Director and CEO, Mercedes-Benz India said, “We have nurtured the bus business since its launch in India and are happy that our sister company will take over this business and continue to offer superior products and brand experience to our customers. We will continue to support by assembling the Mercedes-Benz buses at our facility in Chakan, Pune. V R V Sriprasad, Vice-President, Marketing, Sales & After-sales, DICV, said, “Mercedes-Benz India had introduced Mercedes-Benz Buses in India in 2008. As DICV was still in a project phase and focused on the introduction of BharatBenz Trucks, we had to wait for an appropriate time for this integration. Our dealer network is now available in all initial markets and is fast expanding. With this we are confident that we will be able to focus on our Bus customers with the most appropriate service”. Mercedes-Benz India Private Limited (MB India), Pune, a 100pc wholly-owned subsidiary of Daimler AG is focused on the manufacture

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and marketing of Mercedes-Benz passenger cars. Due to the fact that the Commercial Vehicle division of Daimler AG was being set-up at Chennai (Daimler India Commercial Vehicles Pvt. Ltd.), the bus business was initiated through MB India. MB India has sold over 300 buses since 2008 and has successfully raised the expectations of the market with the Mercedes-Benz Inter-city Luxury Coaches. The coach builder is M/s Sutlej. In line with this integration the Marketing, Sales & After-sales of Mercedes-Benz Buses will now be handled by DICV. The production of these buses will continue at MB India for some more time. The organisation for Buses has been transferred to DICV and will now operate from DICV’s manufacturing plant at Oragadam, near Chennai. The Daimler Bus division at DICV is headed by Markus Villinger. With the current integration with DICV, Mercedes-Benz buses will now be promoted using the growing network of state-of-the-art

dealerships created for its brand BharatBenz. While the sale of the buses will be carried out directly by DICV, the service of these buses will be carried out by select dealers of BharatBenz. All BharatBenz dealers have been planned with the capacity necessary to handle the bus business. However, initially only 7 dealers along with 2 other dealers who have been servicing MB buses through MB India will handle the service of buses. These dealers have been selected based on the market regions where our Bus business is currently focused. However, as expansion takes place, other dealers of the DICV network will be nominated. Daimler Financial Services (DFS), another Daimler organisation which is focused on captive finance for Daimler customers, will support the bus business through its tailored financial product “Mercedes-Benz Financial”. Further tie-ups through the existing relationship between DICV and various other financial institutions will also be explored.

April 2013 / 45


Tête-à-tête

Nitin Prasad Managing Director, Shell Lubricants India Report: Avishek Banerjee, Photography: Mohd. Nasir

Shell Lubricants India is a 100pc subsidiary of Shell. With corporate office in Gurgaon and 6 regional offices Shell Lubricants India employs around 400 people across the board. The Indian arm of the multinational firm sells its lubes through a network of 250 distributors across the country in high-street, franchisee workshops, independent workshops etc. Shell Lubricants has set up a Customer Service Centre (CSC) in Chennai in 2008 for an effective lubricants supply chain. Since 1997, Shell India has been manufacturing its lubricants at its blending plant at Taloja, near Mumbai. In India, Shell Lubricants has entered marketing alliances with companies like Maruti Suzuki, Hyundai, Mahindra & Mahindra, Skoda, Ford, Wartsila, Same and Thermax. Shell is also the largest and most diversified international investor in India’s energy sector, with nearly US$1 billion already invested.

You have held several positions of responsibility within Shell. How exciting and challenging is it for you to head the India operations? All my positions were actually very rewarding. At Shell, we strongly believe in people and more importantly about leadership development. So one of the big things that we do, as an organisation, is that we ensure that people have roles and responsibilities that are stretched. We also develop individuals in areas with leadership attributes. For example: one of the big things that is really important in an organisation is managing operations. That was what my last role was all about. We were moving 5 or 6 billion tonnes of product all across Asia Pacific and Middle East. I was also responsible for the operational startup of a multi-billion dollar facility in Jurong Island and Bukom Island in

46 / April 2013

Singapore. It was a very exciting stint to be involved in building such a massive facility there and it has its own set of unique challenges. I enjoyed all my roles in Shell and this is (heading Indian operations) the next step to take up another challenging role and an exciting opportunity. How important is the Indian market among BRIC nations for Shell when it comes to contributions to global operations? The answer is that the Indian market is very important. Shell is investing quite heavily in India. It is clearly one of our key focus markets, specifically for lubricant even though other sectors are equally important. If you look at our operations here, we have a manpower strength of 2,500-3,000 on the ground across the range of various opportunities.

We have invested over US$ 1 billion in this country and we are investing even beyond that across different options. I think we are already the most diversified firm in the oil and gas industry in India. Specifically for lubricants, the BRIC nations are very important. If you look at China as an example, we are considered one of the leading players here for lubricants. In India also, we have a similar aspiration to reach that level. Shell is renowned globally to make 3,000 different lubricants to meet customer needs across a wide range of applications. Do you have plans to gradually bring all your products here? Or would you consider churning out Indiaspecific products? The answer is yes to both. But you must understand that across the range of 3,000 lubes that we are selling globally, there are some

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Tête-à-tête

products which are country-specific. There may be some lubes which are OEM-specific for the country to operate in. So we won’t bring in those products unless there is a particular materiality of scale of business over here. So what we do is that we have a constant evaluation on an annual or six-monthly basis to take a look at our portfolio and decide on what lubricants we want to bring in. Today, we feel that we are covering around 90pc of the market. We will be introducing more grades this year and we will cover about 95pc of the domestic lubricant market. There are some grades that are too specialised and too lowvolume that we will evaluate on a strategic basis. In terms of Indiaspecific products, we always have specific grades. For example: we work very closely with our OEMs like Maruti Suzuki and Tata Motors. For Tata Motors, we are working on a coengineering basis to evaluate new lubricants for them. So those are the kind of opportunities that may exist. There are also vehicles that are unique to India and for them we have introduced lubricants that are only available in our portfolio. What about exporting lubricants from India? We are actually looking at exporting some lubricants out of the country. We move into a few countries in terms of their local or regional needs. We have a network of blending units across all the AsiaPacific nations and Europe. So some of our lubricants come in from Canada, Europe, etc to India. What we like to do is take a look at what the optimal point is to manufacture a specific lubricant based on scale and capacity. It may be possible that it (the lubes) is not available in that

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Nitin Prasad

country itself but is centralised in one spot. It’s more economical for us to then ship it across the globe (from that spot) but manufacture in that specific location. From India, we generally consider shipping out our products to SAARC nations, Middle East et al. There are of course constraints in terms of shipping out lubricants from India. We do have a tax structure in terms of

manufacturing in India itself. The excise duty levied here does make us a bit less competitive as compared to other nations in terms of providing a regional export hub. So do you support free trade agreements with other countries? As I mentioned earlier, we have a network of plants and have products that are imported directly. We April 2013 / 47


Tête-à-tête

import base oil to create our finished lubricants. We also bring in finished lubricants. So from our perspective, it’s advantageous if there is a free trade agreement that is available across various countries. If we have well-defined FTAs with various countries, it would be an easier basis for us to export from here. Honestly, the answer is that the government knows the best in these cases. We look forward to seeing more from them. Globally, Shell Lubricants has five lubricants research and development centres in the UK, Germany, France, the US and Japan. How crucial will be your upcoming Indian centre at Bangalore? Will it be contributing

48 / April 2013

to your global operations too? Absolutely! It will contribute to our global operations. I think the important point to understand is that being part of the Fortune 500 Group, technology is in our DNA. It’s one of the biggest things that we are focusing on. Infact, as a Shell Group, it is touted to be the most innovative and competitive company in this (lubricants) industry. We have invested quite a handsome amount for the R&D centre in Bangalore. We have just announced that we are going to expand that facility and have acquired a new land for the same. Bangalore will be one of the three central hubs for the group level technology development. The exact investment amount is confidential. But what I can tell you

is that we invest over US$1 billion in R&D globally every year and Bangalore will be one of the central locations for the same. The very same amount has been invested by Shell India across its operations, including R&D. We are having about 800 people in that facility which will be growing substantially for the next five years. Specifically, what we are looking at is how the Bangalore unit supports not only the rest of the globe but also in areas where it can help the domestic market. We have some options that we are exploring. We will make an announcement on that front later on. Shell’s worldwide portfolio of lubricant brands includes Shell Helix, Shell Advance, Shell Rimula

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Tête-à-tête

etc. It also owns a portfolio of car care products and Jiffy Lube services. But in India you have earmarked only a handful of them? Is there any specific reason? This is the same question in terms of 3,000 products in our global portfolio. We used to have ‘Pennzoil’ portfolio in the country. We are continuing to have that. However, we would like to transition to the ‘Shell’ portfolio that we have today. As far as rolling ‘Jiffy Lube’ as a service is concerned, it depends on the maturity in the country. If you look at the car industry here, it’s largely centrailsed around the franchised workshops. So we need the car parc to reach a certain age wherein the consumers would be moving beyond the franchised workshops and are looking for top quality service before a ‘Jiffy Lube’ type service makes sense. We certainly have several competitors who are there in the marketplace and are looking at various options in terms of servicing. But you still find them to be more oriented towards full service workshops rather than a fast lube service. So this is the question of governmental maturity in the industry and when the industry is going to be ready for a service like that. There are a number of cars that are beyond the franchised workshops in the aftermarket. That is certainly a big focus for us. That’s why we continue to launch an increasing set of products that offer benefits to the consumer. We have a number of promotions, schemes and marketing programmes that communicate these benefits to the consumers. And we continue to drive that through our distribution channel. We will work on improving our distribution channel and will then ultimately work closely with

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the mechanics on the ground and retailers to position our products. How important is the automotive aftermarket for Shell India? What strategies do you have to enhance your presence in that space? It is very important. I think what is important for Shell India is to be involved with the car parc throughout the lifecycle of the car. So we work very closely with the OEMs when the car is at the production line. We work very closely with them at the franchised workshop space. One of the big areas that we focus at the workshops is to make sure that our lubricants are lowering the total cost of ownership for the OEMs and its customers. And we use technology specifically for that. What are the benefits derived from your partnership with Ferrari in Formula One racing? Our association with Ferrari is over 60 years old. And there are a number of benefits that we derive out of it. Formula One is all about raw speed, power, engine

performance, etc. It is not only the question of heat and power, but also about gearshifts and engine life of the vehicle. We partner incredibly closely with Ferrari to work on fuels and lubricants that can give them a performance edge on the track. Infact, we are the only company that has a track lab that is available right next to the Ferrari pit. We are constantly monitoring the fuels and lubricants that are being used at the race itself. We develop and formulate specific lubricants and fuels for them. The important part of this association is the level of understanding that we have gathered from developing these products under extreme performance conditions. It gives us the information and data to then be able to develop lubricants for our regular customers that are based on the knowledge that we develop there (for F1). For example, our ‘Helix Ultra’ is based on the technology that we have developed along with Ferrari. But now we have made it available for our consumers. So that is one clear tangible benefit that we get out of

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Tête-à-tête

lubricants. Both sectors are equally important for us.

this strong association. There are of course other intangible benefits too. Ferrari is a well-known and wellrecognised brand and we certainly benefit from having a co-branded relationship with them. While the Shell brand is known very well in some countries, similar is the case with Ferrari in other countries. I think what works for us there is that both companies are well understood as the pioneers in their fields. And there is a lot of synergy between the Ferrari brand and the Shell brand.

that account for 55-65pc of the passenger car market. It tells you that we have a proposition that is attractive to the OEMs. Firstly, the technological benefits that we are bringing to them are outstanding. The second thing is lowering their total cost of ownership. We work very closely with the OEMs to improve the service level that they can deliver to their customers. Some have a very strong proposition for the market-leading OEMs which will appeal to others (new OEMs) too.

Going forward, are you confident of bagging new clients in India? Unfortunately, I can’t share the details as they are very confidential and are under negotiations. But just take a look at some of the companies, in terms of servicing,

What is the size of the Indian lubricant market? How much does the automotive segment account for? It is estimated at around 2-2.5 billion litres per annum. It is evenly split between automotive and industrial

50 / April 2013

Lastly, do you foresee a lot of growth in India in the next few years in your line of business? We of course foresee a lot of growth in our line of business. We have been in the Indian market since 1993 and have been operating as a wholly-owned entity since 2008. We have been growing very strongly on a yearon-year basis. We are proud to say that we have been growing at double digits every year for the last couple of years. We plan to continue that trend. We expect to see that level of growth coming through different areas. We do invest quite heavily in the country. And the expectation is that we want to see return on those investments. We would like to see ‘Shell’ as a brand that is not only widely known in the marketplace, but is also widely preferred amongst our buyers. And on the back of that, we want to widely establish ourselves as a technology leader in the marketplace. We are investing quite heavily for that at our Bangalore unit and also in some of our other areas of ours. We aim to be recognised by our partners and customers as a technology leader. We believe that if we get the brand and the technology right, our business and sales will grow on the back of that.

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Tête-à-tête

Gerrit Kuyntjes

Vice President and General Manager, J. D. Power Asia Pacific

Mohit Arora

,

Executive Director, J.D. Power Asia Pacific

Report: Avishek Banerjee, Photography: Mohd. Nasir

J.D. Power and Associates is a US based global marketing information services firm founded in 1968 by James David Power III. The firm conducts surveys of customer satisfaction, product quality, and buyer behavior for industries ranging from cars to marketing and advertising firms. The firm is best known for its customer satisfaction research on new-car quality and long-term dependability. Its service offerings include industry-wide syndicated studies, proprietary research, consulting, training, and automotive forecasting.

Gerrit Kuyntjes (L) and Mohit Arora

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April 2013 / 51


Tête-à-tête

with the customer’s expectations. MA: Adding to what Mr. Kuyntjes has said, a car bought 10 years back, in terms of feature and performance content, was very much bare bones. The distribution network of the carmakers was not that dense at that point of time. But now, OEMs are looking at providing not only content-rich cars but are also improving the quality of their products and services. They are basically providing the right experience at the dealer’s end. I think from that perspective, our offerings have also changed dramatically over the last two years. We are looking at identifying the gaps of the carmakers and filling it. As the market evolves, we are now providing very sophisticated marketing solutions which cater to car buyers with different tastes and aspirations across different geographies.

JD Power has been offering its automotive consultancy services for more than a decade. How do you see your ratings evolving visà-vis buying patterns in India? GK: We started in India with the syndicated strategy system. As an organisation, we actually invested in our own research unlike our peers. We conduct research on behalf of our customers and independently determine the benchmark performance for the automobile industry. Those reports

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actually become a health check for the industry. Most of our customers purchase our syndicated market reports. Today, apart from doing a syndicated research we are actively involved with our clients to work on improving their products’ quality as well services offered to their customers. We also help them in enhancing the quality of the dealer networks by proving them a health card. So we actually work with these manufacturers to redevelop their service processes which are aligned

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TĂŞte-Ă -tĂŞte

Is India a promising market? GK: The investments in the infrastructure sector are already pouring in. The automotive industry is capital intensive and the investment plans by all the global OEMs are fairly on track. These global automakers have already understood where India is going to be in the next decade. MA: Yes, India is a very promising market. Above all, we are looking at a base of first-time buyers. Right now, 50-55pc of the customers in India are first-time buyers. Going forward, we are going to see a larger proportion of buyers making a firsttime purchase. As a result, you will have a bigger base of customers to service. While this is good news on one side, it also brings its own set of challenges on the other side. Generally speaking, India is heading into the right direction where you are looking at increased number of vehicle sales. But whether it will

hit 9.3 million units or 9.9 million units, it is very difficult to predict. However, India will figure among the top three markets in the world in the next decade.

India offers a great opportunity for the suppliers which has to be capitalised. India has done better when it comes to setting up an R&D base.

Do you think global OEMs will leverage India as an export hub to emerging markets? MA: I think the primary driver will be the domestic market rather than an export base for supplies internationally. Unfortunately, India is not like Thailand where any company can establish a manufacturing base to cater to global markets. From the policy perspective, India clearly needs to incentivise manufacturers. Although some companies like Hyundai, Maruti, Nissan, etc have done so to a limited extent in the past, some sort of encouragement needs to be provided by the government in actively wooing global companies to come to India and set up a base for global supply. Furthermore,

You have maintained that China has robust growth as opposed to India because it is not market driven. Can you please elaborate? MA: We are trying to illustrate the fact that in India, a large percentage of sales is driven by an individual enterprise. It is more from the domestic growth perspective that is attracting these companies to set up a base here. In China, it is the other way round where the government is actually incentivising the global automakers to set up a footprint there. It is more from their policy perspective where the government said it needs to bring in better technology in the market and declare auto industry as one of the core sectors of the economy.

Winners of JD Power Asia Pacific Awards in New Delhi

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Tête-à-tête

GK: The scenario is different in China where there is a maximum amount of FDI flowing in. The volumes have reached a significant threshold. The OEMs have tied up with domestic firms there. The Indian government is aggressively planning to price diesel at par with petrol prices. So what impact will it have on people’s sentiments? MA: I still think there will be some amount of difference between the average retail price of diesel and petrol. In terms of fuel efficiency and low-end torque performance, diesel-driven cars definitely have an edge. Earlier, the consumers still think that such cars are high on maintenance vis-à-vis petrol-driven ones. But these perceptions have changed over time as some of the gaps have been bridged. As the disparity between petrol and diesel prices reduces, consumers are going to have a greater propensity toward petrol version of an existing model. But it is very difficult to forecast whether there will be a radical shift to petrol or diesel run cars. This is because consumers tend to be a bit more irrational in the purchase decision. A person who is driving 12,000km/year doesn’t need to shift to a higher-priced diesel version as it doesn’t pay off before three years. Talking about a specific company, don’t you think Tata Motors needs to come out with some revival strategies to arrest the sagging sales of its passenger vehicles? MA: At this point of time, from a vehicle sales strategy point of view, many companies need to relook at their portfolios. But Tata Motors is clearly a bigger case in point. I think they are trying to look

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inside to improve their operational effectiveness, product quality and distribution efficiency and the overall experience that is provided to its customers. But I think some of these initiatives have come a bit late in the day. I can say that the brand name ‘Tata’ enjoys a

huge amount of thrust and is very formidable. Tata enjoys a huge amount of trust among the average Indian population. Everything is not lost for them as there is clearly some opportunity for them to turn around. A strong product lineup, a dramatic improvement in product

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Tête-à-tête

quality, and a massive improvement in the network performance in terms of morale, effectiveness, etc are the areas they need to focus on. Let see how it goes. Considering the fact that an ultra-cheap car like Nano has not done too well, do you still think that brands like ‘Datsun’ will be a proven success? MA: First of all, I would like to state that Nano is still a ‘Tata’ brand. It is one of the products under the Tata stable. With the ‘Datsun’, it is an arrival of a new brand coming in. It is an old brand (in overseas countries) which will now be revived in emerging countries like India. From that perspective, the dual-brand strategy has not really worked in India because the market is not matured enough. While a brand continues to be a very strong reason to purchase, its positioning is not very clear in the minds of the customer. With the Nissan, what I can say is that its brand positioning is itself not very clear. It is very early days for them. It’s a fairly large country and it takes a lot of time for the people to really associate with the brand. So from that perspective, it is too early for Datsun. But again, the automobile market is all about experimentation and trying out new things. Maybe we can create a case study out of that. Looking at the marketplace at this point of time, it is definitely going to be a challenge for them. Do you think multi-branded service outfits can find favour in India? MA: For an average Indian customer, a greater choice is always good. But at the same time you need to understand that such outfits should

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be able to provide you the right options with the right kind of an experience. For that such outfits need to have a regular traffic in order to be commercially viable. Moreover, dealers of existing car brands are also looking at ways to hedge their risks by focusing on other brands. That appears to be a stronger strategy. Besides compact SUVs, which are the other segments that will witness unprecedented growth? MA: If the market moves in the direction that we are expecting, then I think there will be growth across all the segments. But clearly, people movers or compact MPV segments like the Ertiga or lifestyle products like compact SUVs will see increased traction. Luxury cars are also seeing a lot of traction with the rising disposable income of the consumers and positive GDP growth. With the recent announcement of National Electric Mobility Mission Plan 2020 by the Indian government, do you think electric mobility in this country will get a fillip? MA: Governments around the world are focusing on electric mobility. I think countries in Asia Pacific like Singapore and China, and also countries like Israel, United States, Japan, etc have some kind of an electric vehicle policy. At this point of time, we have not really seen actions to support the policy directions or the policy vision. As it’s a recently announced electric vehicle policy by the government, it’s too early to comment about it. The question is that do we really have that infrastructure support and are we shifting the source of pollution from the road to the factories (run

on coal). The hybrid vehicles would definitely be a good alternative at this point of time as it reduces the carbon footprint. But again, the affordability question comes into play. In the next few years how do you see the Indian automotive market progressing? MA: India is currently the sixth or the seventh largest market in the world. But you will clearly see a movement up north. The single reason that will drive the growth is that the current penetration levels are pretty low from an international perspective. With the improving GDP and per capita income, we find a clear correlation to increasing penetration of car ownership per 1,000 people (presently 10). So there is a latent demand. The biggest challenge is that it is not that you can realise the demand by any product that you bring out and hope that you will be successful just because you were doing good (with the same product) in China, Europe, United States or Japan for that matter. That may not be a recipe for success. That is the biggest challenge. So it calls for resources, logistics, gestation periods, investment, etc. So the business cases for many OEMs have not worked here because they have not garnered adequate volumes. A carmaker clearly needs to understand local market requirements and the finer nuances of the country. An increasing amount of focus is also on regional nuances and building that into your product portfolio, performance and quality requirements. A customer is also looking at a network which is responsive and is in tune with global standards.

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Tête-à-tête

Rajiv Kapoor

Managing Director, Steelbird Hi-Tech India Ltd. (SBHT) Report: Avishek Banerjee, Photography: Mohd. Nasir

Steelbird Hi-Tech India Ltd. (SBHT) is the flagship company of Steelbird group of industries in India. Founded in 1964 by Subhash Kapur, SBHT is one of the oldest manufacturers of helmets, pannier boxes and auto accessories in India. SBHT, entered in to technical collaboration with Composites Bieffe S.r.l. (previously known as Finim S.P.A,) Italy, in 1995. SBHT also has a tie – up with AD Engineering, Italy for supply and distribution of its quality laboratory equipments for Indian market. SBHT has also entered in to exclusive supply agreements with M/s Nava S.r.l, Italy and M/s GP One S.r.l, Italy for exports of helmets and auto accessories of certain defined models. The company has 25 helmet models and 8 pannier box models, each having on an average 3 to 9 colour variations and different decals, and have around 800 product variants.

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Tête-à-tête

What is size of the Indian helmet industry? In the next few years, the size will be 100 million units per annum. When the helmet becomes legally mandatory in all the cities, both the rider and the pillion rider will be compelled to wear them. As a result, there will be a lot of demand in the replacement market. Right now, the organised market accounts for only 3 million units. Going forward, it will be 10pc of the total market at 10 million units. What are the different kinds of products that you manufacture? We are selling five different kinds of helmets i.e. jets, demi-jets, full-face helmets, flip-ups, and motocross. We have 25 models and 8 Pannier Box models, each having on an average 3 to 9 colour variations and different decals, which means we have around 800 product variants. Our products are serving various purposes like safety, ski, bulletproof, grand prix, integral, off-road, etc in different sizes from XXS to XXL catering to all customer segments viz men, ladies and kids. We are also selling customised helmets fitted with antiscratch, antiglare and antifog visors, exclusively for its buyers carrying our own brand name. In addition to that, we also manufacture Helmet Locking Devices (HLD) and auto accessories. Which particular segment gives you the maximum volumes? We are the masters in making motorcycle helmets. The entry-level segments give us the maximum numbers. We have brands like ‘Adonis’ and ‘SB1’ which are nonpainted and are very economical. And which one is your most expensive product?

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Rajiv Kapoor

Our helmets are designed in technical collaboration with Bieffe. It has unveiled its first carbon fibre helmet that has been designed inhouse and costs 13,000, which is the most expensive helmet from an Indian manufacturer. Are you planning to roll out any new products? We have already launched a helmet especially for ladies and that is doing very well. We have also tied up with

Yamaha for supplying our helmets for their Ray scooters. Our flip-up helmet has also done fantastic sales for us. We have also made helmets especially for Royal Enfield Bullet riders. Going forward, we would also be looking to ally with global heavyweights like Triumph, Harley Davidson, Ducati, etc. What strategies are you working on to sell your premium products? We have established our own

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TĂŞte-Ă -tĂŞte

Steelbird plant in Baddi, Himachal Pradesh

RiderZ Shop across the country. It is a one stop shop for bikers, with a range of helmets, jackets and suits, gloves, goggles and pannier boxes in store. We are drawing up plans to set up 200 such signature stores across metros and tier 1 cities including Mumbai, Bangalore, Kolkata, Chennai, Chandigarh, Jaipur, Lucknow, Ahmadabad and Indore. In such outlets, we will be displaying 400 different helmets from our stable under one roof. We are also generating a lot of demand in nonmetro cities. What about marketing and promotional strategies? We have established our brand name in the corporate sector because of its quality products

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combined with brand promotional activities like participation in international exhibitions and trade shows, advertisements in satellite TV channels, auto magazines and newspapers, hoardings, translates, glow signs and gift articles. SBHT had participated in several trade exhibitions in India and abroad. Apart from running a fan community on Facebook, we are also the sponsor for the MTV Hero Roadies X. Could you shed some light on the current trends and challenges in the Indian helmet industry? People are increasingly becoming quality and brand conscious. Even though motorcycles account for a huge share of the Indian twowheeler market, riders hardly have

any choice if they wish to buy authentic, branded and international quality riding gear. Around 90pc of the helmet industry is catered by the unorganised sector selling fake helmets. As riders are risk prone, their needs should be addressed. So there needs to be a heavy clampdown from the government on non-ISI marked helmets. Currently, where are you exporting your models to? We are exporting to various OEMs in 50 countries. Our Steelbird-branded helmets are being shipped out to the Middle East and Africa. Lastly, what is your vision for the company? We aim to provide the best quality

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TĂŞte-Ă -tĂŞte

and services to the customer with the innovative technologies. The focus of Steelbird R&D Design team is to design and develop products at par with international standards and best fit to Indian pockets. A few examples are SB Zorro, Adonis, Cruse, and Carbon Fiber etc. We want to be the leading helmet maker in India and intend to provide the best value-for-money products to the customer. We are also eyeing to expand our base in the entrylevel segments that will ensure that such high-technology products are accessible to more customers. We are also planning to set up one more plant at Greater Noida that will be increasingly catering to the domestic market.

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April 2013 / 59


Global Report

Lexus LFA: The journey ends

Alas the day has arrived. The last of the 500 models ever built of the Lexus LFA were delivered to a buyer in Europe marking the end of the limited run of this phenomenal supercar. This car is an engineer’s dream and a caveman’s nightmare. The attention to detail is almost surgical. The V10 in the LFA revs to 9000rpm in 0.6seconds, so quickly in fact that engineers had to design a digital rev counter because an analog needle simply cannot keep up. The journey began in 2000 when Haruhiko Tanahashi, Chief Engineer at LFA, assembled a team of committed engineers and began working on Lexus’s first ever supercar. He wanted to create a vehicle that would stir all the senses of the drivers in multiple ways. Also working on the project was Hiromu Naruse, one of the most experienced drivers at Lexus. In December 2002 the first 4.8litre V10 designed for the

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LFA roared to life. Initially while development, majority of the components of the hand rolled chassis were created out of aluminum for its lightness and strength. However after five years of development, Haruhiko Tanahashi said that aluminum had to be abandoned and replaced by carbon fibre. Perhaps one of the most radical decisions in vehicle development ever, the engineers obliged and replaced the aluminum for lighter and stronger carbon fibre. Here is where the microscopic attention to detail shows, a new mill was invented to weave the carbon fibre strands to shapes. Added to this the component shapes created by this mill were already 3D and not flat which means that it was not required to bend carbon fibre sheets. The word ‘immediate’ was invented for the throttle response from the V10 engine. Also LFA engineers worked with Yamaha

to produce musical symphony from the exhaust of this technical masterpiece. The first prototype was displayed at the 2005 North American International Auto Show in Detroit. The model created quite a stir in public, but Lexus never gave the confirmation of production. In 2006 high levels of testing were performed on the LFA at the Nurburgring in Germany. Many problems were discovered during testing, proving that there still is a long to go for the LFA. Naruse provided vital feedback pertaining to which engineers made necessary adjustments thus creating the emotional feel of the LFA. Lexus also entered the LFA in the 2008 Nurburgring 24-hour race and completed 1,750miles on it drawing more attention than any other vehicle. Finally after nine years from the start of the project the first production LFA debut at the Tokyo Motor Show. A year later Lexus started accepting applications by interested clients for the 500 units that will be built. On 18th January 2011, the first production LFA was delivered to the owner in Long Beach, California. A year later into production LFA was offered with a Nurburgring package with more power and a faster shifting gearbox. And finally on March 26, 2013 the last Lexus LFA is delivered marking the end of sales for this iconic supercar. The LFA #500 is a white colour model with the Nurburgring package equipped.

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Global Report

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Global Report

Delphi technologies feature on new vehicles at Geneva Motor Show

Pictures Courtesy: Automobile Citroen

Citroen C4 Picasso

Many of the vehicles unveiled at the Geneva Auto Show featured Delphi technology designed to keep passengers safe and connected while respecting the environment.

SAFE — Reducing the number of accidents At the Opel stand, the company unveiled the Zafira Tourer Biturbo, which featured Delphi’s radarbased adaptive cruise control (ACC) with collision mitigation system.

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The ACC system constantly monitors the distance to the vehicle ahead allowing the system to automatically adjust the vehicle speed to help maintain a safe distance from the vehicle in front. If the driver does not react to the warnings, the system automatically applies the brakes to avoid or considerably

reduce the effects of the collision. Already available on several Volvo models, Delphi’s Collision Mitigation System (CMS) will be available on

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Global Report

Ferrari Laferrari

the new V60. CMS is the world’s first driver assistance sensor system that automatically activates a vehicle’s full braking power to avoid or considerably reduce the effects of a collision with pedestrians and vehicles. CMS enables multiple safety features including full speed range adaptive cruise control, forward collision warning with full autonomous braking for pedestrians and vehicles, pre-crash sensing, lane departure warning, as well as automatic head lamp control and traffic sign recognition. The V60 also features Delphi’s rear and side detection system, a single radar that enables three features: blind spot

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detection, lane change aid and cross traffic alert.

GREEN — Low CO2 emissions and fuel consumption The Delphi Multec light duty diesel common rail system was featured on the new Citroën C4 Picasso, Infiniti Q50 and Mercedes-Benz CLA which debuted at the show. With its smart balanced valve solenoid injector design, this system is extremely fast and has injection performances similar to competitive servo-piezo technologies. Additionally, its unique control strategies allow

the system to deliver precise fuel quantities over the life of the vehicle and provide optimal emissions control and acoustic performance.

CONNECTED — Highperformance reception systems The new BMW 3er GT and the Rolls-Royce Wraith featured Delphi’s integrated antennas, which offer vehicle manufacturers the flexibility of multiple high-performance reception systems. These integrated antennas provide extremely high performance without compromising styling.

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Global Report

Chevrolet Corvette Stingray convertible

Vehicles at the Geneva Motor Show with Delphi technologies included: Alfa Romeo 4C — body computer module, key fob, steering column module, full wiring harness, A/C compressor, connection systems BMW 3er GT — antenna system Chevrolet Corvette Stingray convertible — Ultrasonic alarm module, crash sensors, integrated center panel, passive occupant detection system, connection systems, ignition products, cylinder deactivation control valve, compressor and HVAC components Citroën C4 Picasso — alarm

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sounder, ultrasonic alarm module, integrated center panel, various switches, underhood body controller, transponder antenna, rear body controller, manifold vacuum recirculation valve, diesel common rail, EGR valvetrain, cam phaser, ignition coil, oxygen sensor Ferrari LaFerrari — complete air conditioning system with integrated battery cooling, high voltage wiring systems, high voltage electrical center, battery cable and low voltage PPE (polyphenylene ether) cable Infiniti Q50 — diesel common rail Mercedes-Benz CLA — diesel common rail, ignition, fuse and relay box, passive occupant detection system, head lamp levelling control,

alarm system, satellite digital audio reception system, DAB Tuner Mercedes-Benz E-Class Facelift — diesel common rail, ignition coils for gasoline engines, passive occupant detection system, alarm system, DAB Tuner, satellite digital audio reception system, TV reception system, integrated antenna Nissan Note — connection systems Opel Cascada — condenser radiator fan module (CRFM), compressor, integrated center panel, ultrasonic alarm module, power sounder Opel Zafira Tourer BiTurbo — adaptive cruise control, ultrasonic alarm module, power sounder, fuel

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Global Report

tank wiring, condenser radiator fan module (CRFM), compressor Peugeot 2008 — connection systems Porsche 911 GT — canister, antenna system, passive occupant detection system, SRS (safety restraint systems) connectors , connection systems

and oil control valve Rolls-Royce Wraith — antenna system Seat Leon SC (3-door) — charge air cooler, low temperature radiator, SRS (safety restraint systems) connectors, connection systems

Renault Captur — switches, connection systems

Škoda Octavia — charge air cooler, low temperature radiator, SRS (safety restraint systems) connectors, connection systems

Renault Kangoo facelift — switches

SsangYong Rodius — diesel common rail

Renault Scénic XMOD — various switches, connection systems, diesel common rail, variable cam phaser

Volkswagen Golf Variant — antitheft systems, passive occupant detection system, charge air

cooler, low temperature radiator, LED module, connection systems (electronic distribution system, SRS (safety restraint systems) connectors) Volvo V60 — collision mitigation system (enables multiple safety features: adaptive cruise control, forward collision warning with full autonomous braking for pedestrians and vehicles, pre-crash sensing, lane keeping aid, automatic head beam control, traffic sign recognition), rear and side detection system (enables blind spot detection, lane change aid, cross traffic alert), passive occupant detection system, head-up display, complete wiring, connection systems, electrical centers, body computer module, immobilizer.

Rolls-Royce Wraith

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Global Report

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Global Report

Xcient - Hyundai’s new heavy duty truck

Hyundai Motor Company’s commercial division has unveiled its new heavy duty truck Xcient at the 2013 Seoul Motor Show. The next generation of Trago, which debuted in 2006, returns with greater styling and a variety of improved features. The Xcient is expected to set new standards in the heavy duty truck market with an impressive combination of grand, dynamic style, best-in-class fuel economy and spacious cabin room. The name ‘Xcient’ was made combining XC, the biggest unit measuring data, and the word ‘efficient,’ conveying the truck’s power and efficiency. “The Xcient is the result of Hyundai Motor’s relentless pursuit of excellence and technology innovation,” said Hanyoung Choi,

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“The Xcient is the result of Hyundai Motor’s relentless pursuit of excellence and technology innovation,” said Hanyoung Choi, Hyundai Motor’s Vice Chairman

Hyundai Motor’s Vice Chairman. “We believe that this new vehicle will help us achieve our goal of becoming a major player in the commercial vehicle market.” The Xcient, which took three years and 200 billion won of investment to develop, offers a full lineup including cargo, tractor and dump. From the early development stages, truck customers’ needs and market trends were fully reflected. The wide grille strengthens its confident look, while side character lines add to its bold yet sophisticated image. The cabin height was increased by 330mm to 1,895mm, giving drivers more space. The width of the bed inside the cabin has also been increased to 800mm from 650mm, optimising the truck for long distance driving. The 1,046 litre storage room offers more convenience as well. The Xcient comes with two diesel engines: 10L H-engine, with maximum output of 414bhp, maximum torque of 1961.33Nm, and Powertech engine, with maximum output of 512bhp, maximum torque of 2500Nm. Due to improved engine

performance, the new model’s fuel economy has been enhanced by seven percent from the previous model. In addition, the new model boasts enhanced durability resulting from improved components, including dump spring, twin clutch and air suspension, making the truck more economically efficient by lowering maintenance costs. The Xcient adopted a number of convenience features for the first time in the commercial vehicle market, such as driver seat with cold/ warm air ventilation, button-start. In particular, Hyundai’s advanced invehicle telematics service ‘Blue Link’ was included for the first time in its commercial vehicles. Hyundai Xcient will go on sale in the second half of this year with a target of 60,000 global sales by 2017. Hyundai is set to hold events for the new car in overseas markets including Peru and Russia. During the 2013 Seoul Motor Show, Hyundai displayed a total of eight models, including the Xcient, CNG hybrid bus and electric bus at a separate booth dedicated to commercial vehicles.

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Global Report

JLR jacks up UK engine plant

investment to £500m+ Tata Motors-owned Jaguar Land Rover has said it is ramping up the investment for its engine plant in the UK by over 40pc to more than £500 million (over 4,100 crore), besides doubling employee strength at the site. In addition, Jaguar Land Rover will invest £2.75 billion in product development which will support the launch of eight new innovative products to help achieve its business growth strategy. These include the Jaguar F-Type and the introduction of the world’s first ninespeed gearbox in its Land Rover product line-up. The new engine plant will be opened later this year with the first engine coming off the production line in 2015. Commenting on the development, JLR Chief Executive Officer Ralf Speth said: “Jaguar Land Rover’s new engine manufacturing centre in the UK is a clear demonstration of our business strategy guiding our investment plans. Not only does it bring our engine supply back to our production doorstep, but it gives us significant new resource as

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we continue to innovate with new products and markets.” In 2011, the company had announced to invest £355 million for setting up the engine plant. “Jaguar Land Rover will reinforce its commitment to manufacturing in the UK by increasing the investment in its new engine manufacturing centre to more than 500 million pound,” JLR said in a statement. This will almost double the number of highly skilled engineering and manufacturing jobs at the plant, taking the total number of people who will be employed at the site to almost 1,400,” the company said in a statement. The company has stated that the upcoming facility will support the company’s long-term growth strategies and will be the home for a new generation of advanced,

lightweight 4-cylinder low emission diesel and petrol engines. The new family of engines is currently under development at JLR’s advanced research and development facility that will strengthen and expand the company’s engine range supporting future product development plans. The facility is the first in the company’s history to be entirely designed and specified by Jaguar Land Rover. At almost 100,000sq m, the plant will include an engine testing centre alongside the manufacturing and assembly halls. The building will meet the highest standards of sustainable production and will feature a variety of energy efficiency technologies. JLR currently employs around 25,000 people globally and has hired nearly 9,000 people in the last two years.

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Global Report

VW e-up!

The first all-electric with range of up to 150 km

Volkswagen is writing a new chapter in mobility in presenting its first fully electric production vehicle: the new e-up! The four-seat car – which operates with nearly zero noise – impresses with its driving range of 150km. A car for daily use in the city – the VW e-up! is also ideal for commuters or as an innovative second car. It can handle distances of up to 150km effortlessly. Afterwards, the e-up! can be recharged to as much as 80pc of its energy storage capacity within 30 minutes. The e-up! is powered by an electric motor with 60kW/80bhp peak power – without any disturbing

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gearshift interruptions or powertrain noise. Its continuous power is 40 kW/55bhp. Its maximum torque of

210Nm is available immediately with the first revolution. It accelerates from 0 to 100kmph within 14 seconds and reaches a top speed of 135kmph. The lithium-ion battery integrated in the under floor area has a total energy storage capacity of 18.7 Kilowatt-hours (kWh); this means that the car can cover up to 150km (per NEDC) on a single charge thanks to its low vehicle weight of 1,185kg. The port for charging the battery in the e-up! is hidden behind the ‘fuel filling flap’. As an option, the Combined Charging System (CCS) is used, which has been standardised by Volkswagen and other carmakers. It supports both DC and AC charging, so that drivers can easily charge their cars at most charging stations – regardless of the power sources or charging rates that they offer.

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Technology

Chevrolet Cruze with

the cleanest diesel passenger car engine

The all-new 2014 Chevrolet Cruze Clean Turbo Diesel features an advanced 2.0 litre clean diesel engine that will offer an estimated 42mpg highway with an automatic transmission and expected bestin-segment range based on GM testing. Clean diesels generate at least 90pc Nitrogen Oxide (NOx) and particulate emissions when compared to previous-generation diesels. It is the cleanest diesel passenger car engine ever produced by General Motors. Cruze’s 2.0 litre turbo-diesel is based on proven architecture already used in European models, where approximately 40pc of all Cruze models sold feature a diesel engine. Collaborating with Italian and German engineering groups, GM’s diesel experts in the United States adapted the engine to accommodate more stringent diesel emission standards and a wider range of driving conditions – including colder climates and higher altitudes – for the United States and Canada. “This Cruze Clean Turbo Diesel represents a new era in diesel performance for American cars,” said Jens Wartha, GM chief engineer. “We’ve adapted a proven engine from Europe, the world’s diesel capital, and married it with the emissions-reducing technology that was perfected in the United States. It’s a great example of how Chevrolet’s global resources work harmoniously to produce the right

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product at the right time and for the right market.” Cruze’s new 2.0 litre turbodiesel delivers a segment-leading estimated 148bhp and estimated 350Nm of torque. Peak torque is achieved at a low 2,000rpm for a sustained feeling of power on demand at almost all speeds – particularly when passing or entering a freeway onramp. The engine has an overboost feature capable of increasing torque to an estimated 380Nm, for stronger acceleration periods of about 10

seconds. “With the benefit of continuous refinement in other markets, the 2.0 litre turbo-diesel comes to the United States and Canada with performance that will impress,” said Mike Siegrist, assistant chief engineer. “It is powerful, efficient and clean. It will change perceptions of what a diesel car can be while giving customers another fuel efficient choice in the Cruze lineup.” Cruze models in the United States and Canada offer a 1.4 litre turbo, a 1.4 litre Eco model and

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Technology

1.8 litre naturally aspirated engine. The 2.0 litre turbo-diesel engine provides greater fuel economy than a comparably sized gasoline engine through greater thermal efficiency, a higher compression ratio and an unthrottled combustion process. It features an iron cylinder block and a forged steel crankshaft, each designed to stand up to the greater cylinder pressures that come with a turbo-diesel engine. A lightweight aluminum cylinder head and aluminum intake manifold contribute to the engine’s comparatively low weight of 185kg, helping the Cruze Clean Turbo Diesel deliver a balanced ride with outstanding handling characteristics. Additional highlights include: • Dual overhead camshafts with four valves per cylinder and maintenancefree hydraulic lifters with low-friction roller-finger followers • Quiet belt-driven cams/valvetrain with high-strength belt material and tensioner rated for 100,000 miles • High-strength aluminum pistons with reinforced top ring and integral combustion bowl design • Central direct injection, with the injector positioned in the middle of the cylinder, with the bowl in the piston serving as the combustion chamber. This enables a high 16.5:1 compression ratio that enhances power and combustion efficiency • Variable-swirl intake manifold design, which optimises air charge mixture motion in the cylinders for a more-efficient combustion that enhances performance and reduces emissions • Common-rail fuel system with Piezo fuel injectors that create multiple injections per combustion for greater performance, combustion efficiency and quietness

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• Variable-nozzle turbocharger that broadens the engine’s torque curve, particularly at low rpm, and supports greater high-rpm horsepower. It is mounted close to the exhaust outlet of the engine for quicker “spool up” of the turbine and faster “light off” of the exhaust catalyst • Intercooling system produces a cooler, denser air charge for greater power • Piston oil jets that help reduce friction and optimise piston temperature for greater performance and efficiency • Turbocharger bearings are oillubricated and cooled via an oil cooler • Variable-displacement oil pump helps save fuel by optimising the oil pressure, which reduces friction • Vacuum pump designed for lower engine friction • Ceramic glow plugs, which provide greater cold-start performance over conventional metal glow plugs (an engine oil heater is offered for cold climates) • B20 bio-diesel compatibility.

Quiet, smooth performance is enabled by a number of features on and around the engine. There are also sound-absorbing features added to the Cruze, specific to the diesel model, including a unique dash mat, hood blanket and more. A precise exhaust gas recirculation control system features a highcapacity cooler and bypass feature that enable the engine to meet United States and Canada’s tough diesel emissions regulations. There is also an exhaust after-treatment system is similar to what is used on Chevrolet’s heavy-duty trucks and vans equipped with the Duramax diesel, including a diesel particulate filter and urea injection, that helps make the 2.0L the cleanest diesel passenger car engine ever from GM. An approximately 17 litre tank in the Cruze Clean Turbo Diesel holds enough diesel emissions fluid to provide at least 16,000km of driving between refills. The system is also designed for servicing to coincide with oil changes, for greater convenience.

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Technology

Volvo

Now cars that detects cyclists on the roads Doug Speck, Senior Vice President Marketing, Sales and Customer Service at Volvo Car Group, literally rolled out another Volvo world first in automotive safety at a press conference at the 2013 Geneva Motor Show. He introduced the groundbreaking safety feature - a technology that detects and automatically brakes for cyclists swerving out in front of the car - by entering the stage on a bicycle. The new functionality is an enhancement of the present detection and auto brake technology, and the package will be called Pedestrian and Cyclist Detection with full auto brake. All cars equipped with pedestrian detection will also incorporate cyclist

detection. “As the leader in automotive safety, we have been first in the industry with all detection and auto brake technologies, from the firstgeneration brake support in 2006 to pedestrian detection with full auto brake in 2010,” said Doug Speck.

Counteracts accidents According to accident data, about 50pc of all cyclists killed in European traffic have collided with a car - a number that is counteracted by Volvo Cars’ new Pedestrian and Cyclist Detection technology. New advanced software, including more rapid vision processing, has made it possible to extend the present detection and auto brake technology to cover also certain cyclist situations. “Our solutions for avoiding collisions with unprotected road users are unique in the industry. By covering more and more objects and situations, we reinforce our worldleading position within automotive safety. We keep moving towards our long-term vision to design cars that do not crash,” said Doug Speck.

Automatic braking A cyclist in the same lane swerving out in front of the car is one incident

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type that is addressed by the Pedestrian and Cyclist Detection with full auto brake, which will be available in the Volvo V40, S60, V60, XC60, V70, XC70 and S80 models from mid-May in 2013. The advanced sensor system scans the area ahead. If a cyclist heading in the same direction as the car suddenly swerves out in front of the car as it approaches from behind and a collision is imminent, there is an instant warning and full braking power is applied. The car’s speed has considerable importance for the outcome of an

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accident. A lower speed of impact means that the risk of serious injury is significantly reduced.

Combining camera and radar Pedestrian and Cyclist Detection with full auto brake consists of a radar unit integrated into the car’s grille, a camera fitted in front of the interior rear-view mirror and a central control unit. The radar’s task is to detect objects in front of the car and to determine the distance to them. The camera determines the type of the objects. Thanks to

the dual-mode radar’s wide field of vision, pedestrians and cyclists can be detected early on. The highresolution camera makes it possible to spot the moving pattern of pedestrians and cyclists. The central control unit continuously monitors and evaluates the traffic situation. The auto brake system requires both the radar and the camera to confirm the object. With the advanced sensor technology, it is then possible to apply full braking power immediately when necessary. The technology also covers vehicles driving in the same lane.

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Technology

3M introduces new paint

rectification process Diversified technology company 3M is changing the face of paint rectification by introducing a new upgraded process, and three innovative products, resulting in a system that is easier, faster and delivers an improved and more consistent finish. Daniel Fletcher of the 3M Automotive Aftermarket Division, explains: “Saving time without compromising on quality is key to body shop profitability. We have added three key new products to our range that, when combined, provide important advances in paint rectification and offer a new solution that makes the system stronger than ever.”

A compound with extra life For paint rectification over large areas, 3M has launched Perfect-it III Fast Cut XL, a newly-formulated,

fast-acting compound designed to eliminate scratches and deliver a superior high-gloss finish on refinished or original paintwork. As well as offering greater coverage, Fast Cut XL reduces the amount of dusting in the air and onto adjacent panels and is easier to clean up. With reduced splatter and improved

clean-up performance, Fast Cut XL is easy to use and produces a superior finish. Daniel adds: “The ‘XL’ in Fast Cut XL refers to the extra life this new product provides, enabling bodyshop technicians to compound large areas without the abrasive drying while they are working. As well as being particularly beneficial for jobs that involve work over a bigger area, it can be a preferable solution for many smaller jobs because it is easier to clean up and less likely to splatter onto adjacent panels.”

Quick compounding and polishing To make the job of the professional vehicle repairer easier, faster and more cost-effective, 3M has also introduced Quick Connect System, an innovative new system for

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Technology

compounding and polishing. The system is based around a Quick Connect adaptor that fits directly onto the buffer, with doublesided 150mm and 216mm foam compounding and polishing pads and 150mm and 229mm doublesided wool compounding pads. The adaptor eliminates the need for a back-up pad and enables the technician to quickly switch between different size pads on the same job. A flexible plastic plate provides optimised support for the foam pad, which increases the life of the foam and produces a faster cut. The high-quality, colour-coded foam pads are long-lasting, improving both productivity and quality, while a rounded edge design enables technicians to polish in difficult areas. The wool pads feature a wear indicator which shows when it is time to reverse or replace the pad to ensure consistent quality.

A new approach to finishing The most exciting part of the new paint rectification process recommended by 3M focuses on the addition of a new step in the scratch refinement stage of paint rectification. Following ongoing development in Trizact Technology, 3M has added a new Trizact Foam Finishing Disc, 6000 Grade that makes compounding and polishing easier. The principle behind the disc’s design is to reduce the depth of scratches further after using a Trizact Fine Finishing Disc, 3000 Grade. The unique pyramid surface structure of the blue foam disc produces a uniform and consistent finish. By ensuring that scratches are properly removed before polishing, it can reduce the number of labour hours required and substantially reduce

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re-work. Although adding an extra step, in body shop trials, the new disc has been proved to save time and improve quality in the paint rectification process. Describing the findings from field trials, Daniel adds: “By using the Trizact 6000 grade disc, you get a much finer surface finish and so can reduce the time required for polishing. You can actually see a clear difference in the level of gloss on a panel when the Trizact 6000 disc is used after the Trizact 3000, with an almost polished look, even before compounding. For the operator, this is an easier, less tiring and more convenient process and customers who have trialled the process

found they achieved a consistently improved finish and an overall time saving.”

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Technology

Brembo, leading supplier of

braking systems to F1 teams In Formula One since 1975, Brembo claims leader status yet again in 2013 as supplier of braking systems to five teams: Infiniti Red Bull Racing, Mercedes AMG Petronas F1 Team, Sauber F1 Team, Scuderia Ferrari and Scuderia Toro Rosso, all of which have relied on the Italian company for many years to optimise the braking performances of their single-seater. From the regulations point

of view, the 2013 Formula One season does not present significant changes compared to 2012, in view of the important technical developments expected in 2014, when the Italian company will be ready for a new technological challenge. The main technical innovation for 2013 season concerns the evolution of tyres, which are 2kg heavier and have softer compounds,

with consequent greater wear, thereby reaching optimal exercise temperature faster, an increase in the number of pit stops, and more overtaking opportunities. Therefore, it will be even more important to manage the car during braking to avoid the damage caused by locking the wheels up and limit wear for tires. Having a braking system that ensures efficient modulation can be essential from this point of view and Brembo’s friction material has this feature as one of its basic qualities.

Greater ventilation for new brake discs In recent years Brembo engineers completely changed the cooling of brakes, which in Formula One can reach the maximum temperature of 1,200 °C, by adapting the cooling system, which now features up to 1,000 ventilation holes. The ventilation of Brembo carbon brake discs went through a development process, considerably increasing overall performances of braking system. In 2008 Brembo introduced a “spline” fastener between disc and cup; that is, the insertion of a titanium element linking braking ring to hub. In previous years ventilation was highly restricted by the block caused by the fasteners of the braking ring. But with the introduction of a “spline” - a sort of helical-toothed wheels - the inner part of disc opened at airflow.

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Technology

The increase of airflow was also achieved through CFD calculations (Computational Fluid Dynamics, fluid dynamics study through computer), a synergic study, developed by each race team, of the air flow between the intake and the brake disc. This resulted in an optimal design of ventilation holes, which increased in number but reduced in diameter, thereby increasing exponentially the carbon surface open to airflow and therefore thermic discharge. It’s possible to further summarize this evolution, with a simple numerical comparison. Before 2008 the design featured 30 holes, in 2011 it increased to 200 holes, and today some of the Brembo teams use discs with more than 1.000 holes. This structural evolution required a much more complex mechanical processing, along with a growing effort in terms of in-depth analysis of fluid dynamics. The support of each team has been crucial to the design of air intakes for new cars. Lower wear of brake system thanks to new CER and customisation of systems Material is considerably changed as well. New CER represents an evolution of CCR material that considerably reduces wear, guaranteeing more effective thermic conductivity. Compared to previous material, CER offers excellent warmup time, that is, maximum rapidity in reaching more efficient operating temperatures; a wide application range in terms of both pressure

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and temperature; and very smooth friction performance. All these features provide the driver with a perfect modulation of the braking system. The incredibly low wear results in more reliable performance from the start to the end of race. Disc material is the same for all teams supplied by Brembo, which continues to research and develop materials that are more manageable. Formula One demands an extensive customisation of brake systems, deriving from the different solutions adopted by F1 car designers. The five teams supplied by Brembo require a brake system that is increasingly “tailor-made”, closely integrated with the design of the car and certain to undergo continual development during the course of the season. The factors involved in customization of a system are its rigidity, signifying the

most advantageous compromise between the various parts making up the corner assembly — wheel, hub carrier, disc and brake caliper — and control of the airflow within the wheel, which is a factor in determining the number of aerodynamic load points. In a full season, Brembo supplies each team with the following material for its 2 cars: • 10 sets of calipers (i.e. 4 x 10 components) • From 140 to 240 discs • From 280 to 480 pads Some ten hours of continuous manufacturing activity are required to produce a caliper, although in reality the process is interrupted by other steps including various surface treatments, hand assembly and subsequent testing. Both the materials and the steps of the entire process are always 100pc tested.

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Technology

Continental’s new generation brake boosters

Continental, the international automotive supplier, is launching a new generation of brake boosters. At around half the weight of its predecessor, the new brake booster generation satisfies the requests from vehicle manufacturers for lightweight components in order to reduce the weight of their vehicles. Nevertheless, regardless of enhancements to brake system functionality, it remains the case that weight means CO2 emissions. Consequently, even the most highperformance brake system needs to be light and compact. “For this third generation, we have developed for the first time a full-aluminum brake booster. By reducing the wall thickness of the metal parts and producing an extremely small fitting length, the booster unit is even lighter and saves even more space than its predecessors”, said Stephan Krebs, Vice President R&D Actuation Systems in the Hydraulic Brake Systems Business Unit at Continental’s Chassis & Safety Division. The latest brake booster generation features further weight reduction and an ultrashort installation length.nCompared with the classical steel brake booster, the weight of the new generation booster (Booster Gen. III) has been reduced by just about 50pc or 1,700 grams. It is also 12pc (15mm) shorter. This weight reduction and the improved packaging have been

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achieved by using thinner metal and by optimising the component’s internal dimensions. For example, compared with traditional aluminum technologies, the metal thickness has been reduced by 50pc – from 2.4mm to 1.2mm – without compromising brake booster service life. The Hydraulic Brake Systems Business Unit at Continental’s Chassis & Safety Division produces single and tandem vacuum brake boosters in all sizes. Every product variant is conventionally manufactured from steel but weight-reduced versions with aluminum shells are also available. The tie-rod version, available in each design variant, offers further reduced weight plus optimized elongation properties. In addition, front bolt designs based on a tie rod basis make them easier to fit. At a front bolt design the tierods are hollow which means that fastening bolts can be inserted from

the engine side in order to attach the booster unit to the vehicle bulkhead. This latest, particularly light and short brake booster generation III is available in 8/8”, 8/9”, 9/9” and 9/10” sizes and also as a front bolt version on request.

Brake boosters are vital pre-requisites for innovative safety systems Demand for brake boosters continues unabated because they are an important foundation on which to build innovative safety systems such as Anti-lock Brake Systems (ABS), Electronic Stability Control (ESC) and advanced driver assistance systems. A main focus of Continental’s work is developing safety technologies which either prevent accidents or which at least reduce their severity. One of the

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Technology

most important pre-requisites for this is a good braking system which is able to deliver the braking power demanded as quickly as possible in an emergency; this is the only way for any emergency braking system

to function. The essential factor is the interaction between all the brake components in the system as a whole. The brake booster is of prime importance here; if the driver, in an emergency, removes his foot from

the accelerator and immediately steps on the brake, the brake booster generates the necessary hydraulic pressure in the brake calipers for effective braking power to be applied.

Continental to provide

ABS for Asian two-wheelers To improve the active safety of motorcycles, German automotive supplier Continental AG is expanding its range of electronic braking systems by introducing a onechannel ABS for smaller motorcycle and scooters. Based on its proven ABS technology for passenger cars it was developed especially for costsensitive markets such as Asia, Where at the wheelers must be equipped only with a hydraulic brake on the front wheel. Production launch of the onechannel ABS is planned for the beginning of 2014. With a box volume of significantly less than 300 cubic centimeters and weighing roughly 420 grams the motorcycle ABS is very light and can be easily applied to suit the widest range of motorcycle and motor scooter models. ABS control of the front wheel stops it from locking up even during a panic brake by the driver and prevents a fall. A wheel speed sensor constantly monitors the front wheel’s turning speed and from this the algorithms in the control unit

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calculate whether braking could potentially cause the front wheel to lock up. If so, the system will reduce the brake pressure, thus preventing loss of directional stability and road holding. The one-channel ABS is the newest addition to Continental’s portfolio of motorcycle systems currently in series production: Motorcycle Integral Brake Systems and Motorcycle Anti-Lock Brake Systems (2-Channel ABS). “In line with our Motto, ‘Safety for Everyone’, we want to make the one-channel ABS available to all road users and offer the world’s motorcyclists a significant safety gain”, said Lothar Kienle, Head of Development Motorcycle in the Business Unit Electronic Braking Systems of Continental’s Chassis & Safety Division. Just how great the requirement is, throughout Asia for example, is demonstrated by a study into global traffic safety carried out by the World Health Organization (WHO) in 2009. It found that roughly 28 percent of traffic fatalities in India

and China were suffered by drivers of two and three-wheeled vehicles. In countries such as Indonesia and Thailand, the figure rose to 61 and 70pc respectively. “The widespread use of ABS for motorcycles and scooters would contribute considerably to reducing the number of serious injuries and fatalities”, said Kienle. Even in Europe, the ratio of motorcycles fitted with ABS is still low. This is something that the European Union (EU) intends to change: For all motorcycles over 125 cubic centimeters ABS will become mandatory Europe-wide. This regulation is effective for all new type-approved motorcycles from 2016 and for all new motorcycles from 2017.

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Technology

Nissan to expand use of

advanced high tensile strength steel Nissan Motor Co. has announced its plan to expand the use of Advanced High Tensile Strength Steel (AHSS) in to up to 25pc of the vehicle parts (measured by weight) installed in its new production models. Nissan will make use of advanced high tensile strength steel starting in 2017 as one of its initiatives to help reduce vehicle weight. Nissan has developed (Jointly developed by Nissan Motor Co., Ltd., Nippon Steel & Sumitomo Metal Corporation and Kobe Steel, Ltd )1.2 gigapascal (GPa) Ultra High Tensile Strength Steel with High Formability and has employed it in the new Infiniti Q50, which goes on sale in North America in 2013. Prior to the development of 1.2GPa ultra high strength steel it had been difficult to use high tensile steels for vehicle parts with highly complex shapes. Nissan continues to be the only auto manufacturer (For use as structural body parts in cold pressing) using 1.2 GPa Ultra High Tensile Strength Steel with High Formability. With the active adoption of 1.2 GPa ultra high strength steel, which is one grade among several types of advanced high tensile strength steels, Nissan will increase the adoption rate of AHSS as far as 25pc of the gross weight of the parts installed per vehicle. This effort will begin in 2017 and aims to reduce the weight of Nissan’s vehicles by 15pc with corresponding body structure rationalisation.

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Through an optimal combination of materials, the jointly-developed 1.2 GPa Ultra High Tensile Strength Steel with High Formability provides greater elongation, and offers strength and high formability, to make lighter-weight steel sheets. These attributes enable it to be used for parts with complex shapes, which had been difficult to manufacture using established high tensile steels. Combined with high-precision die design and a welding process suitable for materials during the production process, the 1.2GPa Ultra High Tensile Strength Steel with Formability can now be applied to the production of more vehicle parts. In addition, employing 1.2 GPa

high tensile strength steel leads to fewer materials used per vehicle produced, and existing production lines can be used without a big modification. This results in a reduction in total cost per unit. Under the Nissan Green Program 2016, Nissan’s mid-term environmental plan, the company is aiming for a 35pc improvement in fuel economy compared with 2005 on a corporate average for all Nissan vehicles by the end of fiscal 2016. To that end, the extensive use of Advanced High Tensile Strength steels, including the new 1.2GPa ultra high tensile steel, will contribute to reduced vehicle weight and better fuel economy.

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Technology

Volvo’s car-enveloping airbag technology

Volvo Car Group (Volvo Cars) is known all around the world as the undisputed car industry leader in terms of automobile safety. The company has now unveiled another world premiere with the External Vehicle Protection (EnVeloP) system. The announcement comes one year after Volvo Cars launched a worldfirst with the Pedestrian Airbag Technology on the all-new Volvo V40. The External Vehicle Protection system consists of a small container built in the roof of the car, which contains a folded-in, vacuum pulled balloon of similar material to existing airbags. In case of an unavoidable collision, whether it is with another car, a roadside object or even when coming into contact with surface water, the balloon unfolds within the blink of an eye around the car. By completely enveloping the car, the

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External Vehicle Protection system ensures that damage and personal injury as a result of the collision is minimised. Volvo Cars has a long history of leading automobile safety research and innovation, exemplified by many breakthroughs and world-firsts. With this new, revolutionary External

Vehicle Protection solution, Volvo Cars takes this heritage up to the next level. “For years, we have been looking at how to increase safety in our vehicles, and the airbag has played a central role in that journey,” says Thomas Broberg, Senior Technical Adviser Safety at the Volvo Cars Safety Centre. “This new safety feature is the embodiment of the Volvo brand philosophy, Designed Around You. All we did was take a very literal approach to Designed Around You. Instead of finding new areas inside the car where we could add more airbag-like safety systems, we asked ourselves: why not cover the complete car in an airbag-like solution?” At this moment the External Vehicle Protection system is still in a testing phase, but Volvo Cars is investigating whether the system can be fitted in future Volvo cars.

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Technology

Honda US installs new fuel cell system in campus

Continuing its efforts to reduce the environmental footprint of its operations, American Honda Motor Co., Inc. has announced the installation of a new fuel cell system on its Torrance, California campus that will produce one megawatt of clean, reliable energy, and significantly reduce CO2 emissions from Honda’s operations in the region. The fuel cell system consists of five energy servers each producing 200 kw of power, and will provide 25pc of Honda’s electricity needs for its 1.13 million square feet of office space, research, design and

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development operations, and parts distribution centre on the 101 acre campus. The power generated by the fuel cell system would power approximately 750 average-sized homes each day. For each megawatt-hour of power the fuel cell system generates, CO2 emissions will be reduced by 18pc to 25pc. Over a project life of ten years, the system will reduce Honda’s carbon dioxide emissions by approximately 16 million pounds. Fuel cells convert fuels – in this case, natural gas – into electricity through an electrochemical process that is much more efficient than

combustion, thereby reducing CO2 emissions of fossil fuels. Additionally, fuel cell technology delivers extraordinary water savings as it requires no water beyond an injection of 240 gallons at start-up. Compared to the average water demands of California power plants, it is estimated that Honda will save more than 3.25 million gallons of equivalent water used per year. Over the past decade, American Honda has implemented a number of initiatives to reduce the company’s carbon footprint at its Torrance campus, including the installation of high efficiency cooling

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Technology

systems and a recent lighting retrofit that cut the facility’s CO2 emissions by nearly 750,000 pounds per year. American Honda contracted with Bloom Energy and its partner, Core States Group, to design, develop and implement this project. Bloom Energy will provide all monitoring and maintenance for the fuel cells. Honda is a leader in the development of leading-edge technologies to improve fuel efficiency and reduce CO2 emissions. Honda has led the Union of Concerned Scientists (UCS) rankings of overall vehicle environmental performance since 2000, and a Honda vehicle has

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topped the list of America’s greenest vehicles from the American Council for an Energy-Efficient Economy (ACEEE) for eleven out of the past twelve years. The company leads all automakers with twelve LEEDcertified “Green Buildings” in North America. Ten of its 14 North American manufacturing facilities are zero-waste to landfill. In 2006, Honda became the first automaker to announce voluntary CO2 emissions reduction targets for its global fleet of automobile, power sports and power equipment products and its global network of manufacturing plants. Today, the company is striving for even

greater reductions in CO2 emissions that contribute to global climate change, while also working to minimise waste, water use and the total environmental footprint of its operations worldwide. “A stationary fuel cell system is a natural next step in our ongoing efforts to further reduce American Honda’s environmental impact” said Garth Sellers, Honda’s manager of North American corporate facilities “Honda already produces a hydrogen fuel cell electric vehicle – the FCX Clarity – so we know this type of technology is an effective means of reducing our carbon footprint.”

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Technology

Honda starts rollout of updated software for Riding Trainer

Honda Motor Co., Ltd. has announced the development of updated software for the Riding Trainer designed to teach motorcycle safety effectively. Installation of the new software programme started with Riding Trainer models produced in February 2013, including those for overseas. The new software is designed to further advance the ability to foresee and predict the dangers encountered in motorcycle riding, by providing even more realistic situations and conditions. A major enhancement in this update is the adoption of exteriors of actual 15 motorcycle models and the faithfully recreated meter display and engine sound of each model. A variety of

the models includes small scooters such as the PCX, midsize sports models such as the CBR250R, and large sports models such as the CB1100 and VFR1200F. They are simulated to imitate various use in numerous countries around the world. Additional new features include a function for experiencing advanced

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braking systems such as the Combined Brake System (CBS), a front- and rearwheel combination brake system, and Combined ABS, which brings together the CBS and the Anti-lock Brake System (ABS). Honda plans to roll out the software update at motorcycle dealers with existing installations of the Riding

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Technology

Trainer. The Riding Trainer was created to promote widespread adoption of useful motorcycle safety training devices for developing riders’ ability to foresee and predict the dangers encountered in motorcycle riding.

Overseas sales of the Riding Trainer started in November 2005 at Honda motorcycle dealers across Europe and in February 2006 for Honda motorcycle dealers and other corporations in Japan. Approximately 5,000 units are currently in use

in 53 countries throughout the world. Honda aims to expand the sales so that the system will enjoy more widespread use and further demonstrate Honda’s commitment to safety - a key element of its activities.

Honda process to reuse rare

earth metals from batteries Honda Motor Co has established the world’s first process to reuse rare earth metals extracted from nickelmetal hydride batteries for new nickel-metal hydride batteries to recycle precious resources. So far, Honda has been extracting an oxide containing rare earth metals from used nickel-metal hydride batteries at the plant of Japan Metals & Chemicals Co., Ltd. (JMC). Now, by applying molten salt electrolysis to this oxide, Honda has succeeded in extracting metallised rare earth that can be used directly as negativeelectrode materials for nickel-metal hydride batteries. The rare earth metals extracted in this process has a purity of more than 99pc which is as high as that of ordinary traded, newly mined rare earth metals. In addition, the new process enables the extraction of as much as above 80pc of rare earth metals contained in nickel-metal hydride battery. Under the newly established process, the extracted rare earth metals will be supplied from JMC

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to a battery manufacturer, which will reuse them as negativeelectrode materials for nickel-metal hydride batteries for hybrid vehicles. This time, the rare earth metals were extracted from nickel-metal hydride batteries collected from 386 Honda hybrid vehicles that were stored prior to being on sale but became unusable by the Great East Japan Earthquake. Further, as soon as a sufficient volume is secured, Honda will begin applying the same process and recycle rare earth metals extracted from used nickel-metal hydride batteries collected by Honda dealers through battery replacement. Honda strives to extract rare

earth metals not only from nickelmetal hydride batteries but also from various used parts to achieve the further recycling of limited and precious resources. Honda will remain committed to reduce the environmental footprint of the mobility society as a whole by developing fuel-efficient vehicles including hybrid vehicles, and also by strengthening networks which lead to the reuse and recycling of Honda products.

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Sales overview

Auto majors see fall in sales in March 2013

Swift Dzire, Ertiga prop up Maruti Suzuki annual sales growth

M

aruti Suzuki India Ltd, the country’s largest car manufacturer, recorded a 4.4pc increase in total domestic sales for the 12-month period ended March 31, 2013 as compared to the corresponding period last year, primarily because of increased demand for its Swift Dzire car as well as its Ertiga utility vehicle. Sub segments within its portfolio that did not do well included the Mini with its M800, Alto, A-Star and WagonR. Together these cars sold 4,29,569 units in 2012-13, as compared to 4,91,389 units sold in 2011-12 (-12.6pc drop). SX4 sales too dropped big time from 17,997 units last year to 6,707 units this year. The utility vehicles sub segment comprising the Gypsy, Grand Vitara and Ertiga sold 79,192 units as compared to 6,525 units last year. The model which made all the difference was the Ertiga which was launched in April 2012. Overall, Maruti Suzuki sold a total of 119,937 units in March 2013. This includes 12,047 units of exports. With this, the Company closed the fiscal 201213 with a total sale of 1,171,434 units, a growth of 3.3pc over previous year. During the year, the

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Picture for representation purpose only

company sold 1,051,046 units in the domestic market, a growth of 4.4pc over the previous year. However, for March 2013, the sales have not been very encouraging. Total domestic sales for the month was 1,07,890 in March 2013 as compared to 1,12,724 units in March 2012, a drop of -4.3pc. If exports were to be included, the drop is -4.8pc ( 1,19937 units in March 2013 compared to 1,25,952 units in March 2012)

year, the domestic sales accounted for 33,858 units and exports stood at 22,579 units. The segment-wise cumulative sales for March 2013 are: A2 segment 47,678 units (Santro, Eon, i10); A3 Segment 8,143 Units (Accent and Verna); A4 Segment 546 units (Elantra); A5 segment 20 (Sonata); SUV 50 units (Santa Fe).

Hyundai sales down by 4.7pc

This company has overthrown Tata Motors to remain in the third slot after Maruti and Hyundai in terms of overall sales. Mahindra & Mahindra Ltd. (M&M Ltd.) announced a 17pc growth in its auto sales numbers for the financial year 2012-13, with

Hyundai Motor India Limited’s (HMIL) cumulative sales dropped by 56,437 units from 59,229 units. Out of the total units clocked during March last

Mahindra’s Auto Sector sales up by 11pc

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Sales overview

a sales figure of 563,373 units as against 483164 units in FY 2011-12. The company’s auto sales numbers for the month of March 2013 stood at 51,904 units as against 46,919 units during March 2012, a growth of 11pc. The company’s domestic sales stood at 49,225 units during March 2013, as against 44260 units during March 2012, an increase of 11pc. The Passenger Vehicles segment (which includes the UVs and Verito) has registered a growth of 13pc, having sold 25,847 units in March 2013, as against 22,961 units during March 2012. The 4 wheeler commercial segment which includes the passenger and load vehicles registered a sale of 17,212 units, while the 3-wheelers segment clocked 4,831 units in March 2013. Exports for the month of March 2013 stood at 2,679 units.

TKM registers 7pc growth Toyota Kirloskar Motor (TKM) sold 19,452 units, in the domestic market, in March 2013 as compared to 18,220 units in the corresponding month in 2012, thereby registering a 7pc growth. The company exported 1,691 units in March 2013. The total sales registered were 21,143 units including exports.

Tata Motors sales down at 72,712 units Tata Motors’ total sales (including exports) of Tata commercial and passenger vehicles in March 2013 were 72,712 vehicles. The company’s domestic sales of Tata commercial and passenger vehicles for March 2013 were 69,160 units. Cumulative sales (including exports) for the company for the fiscal were 810,086

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units.

GM India sales down by 15pc at 9,006 units General Motors India sold only 9,006 cars in March, nearly 15pc less than what it sold the same month last year. Of the 10588 units sold in March, customers bought 3,006 units of Beat, 3,272 units of Sail and 1,853 units of Tavera. “Despite offering various schemes, the show-room traffic has come down drastically and enquiry conversions are also not taking place. The market sentiment continues to remain subdued due to poor economic conditions and various other factors,” GM India Vice President (Corporate Affairs) P. Balendran said in a statement. “High interest rates, high fuel prices and political uncertainties have impacted the sales of automobile manufacturers,” he added. “We are not expecting any improvement in the short term, but there can be some movement during the festival season, which is also possible only if the interest rate comes down and economic situation improves in the coming months,” Balendran said.

Renault India sales up 8-fold to 8,232 units Renault India Pvt. Ltd. continued its growth trend with all-time high sales of 8,232 units in March 2013, achieving an eight-fold increase year on year from 1,005 units in

P. Balendran, GM India Vice President (Corporate Affairs)

March 2012. Renault India sold a total of 8,232 units, with the Duster accounting for 6,313 units, Scala 1,026 units, Pulse 541 units, Fluence 337 units and Koleos 15 units. “March was a tremendously successful month for Renault India, despite a challenging market,” said Sumit Sawhney, Executive Director, Marketing & Sales, Renault India Pvt. Ltd. “Not only did we achieve overall record-breaking sales, but we also surpassed our benchmarks for the Duster, Fluence and Scala – yet another indication of Renault’s increasing strength in the Indian automotive space as well as the continuing appeal and acceptability of our products among customers.”

Ford India sales down to 7,400 units Ford India sold more than 7,400 vehicles in combined wholesales and exports in March 2013. The company

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Sales overview

Picture for representation purpose only

sold 5,271 units in domestic wholesales in March, compared with 9,026 units a year earlier, while the exports stood at 2,228 vehicles, compared with 3,122 units a year earlier. Ford India added one new export market – Gabon, this month.

Mercedes-Benz India sales up by 5.3pc Mercedes-Benz India announced their first quarter sales result of 2,009 units for January to March 2013. The company has recorded a growth of 5.3pc at over the corresponding period of 2012 (total 1,908 units were sold by MercedesBenz in the period January till March 2012). Eberhard Kern, Managing Director and CEO, Mercedes-Benz India commented: “We are very satisfied

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with the company performance in this quarter. Given the overall strain in the Indian economy and the fact that the Passenger Vehicles market has de-grown by double digits in Jan-Feb 2013, an incremental 5.3pc performance enhancement is encouraging. There are several exciting product launches slated in the next months and riding the wave of these fascinating products, we envisage a double-digit growth in the next quarter.�

Hero MotoCorp sales down Hero MotoCorp reported sales of 468,283 units of two-wheelers in the month of March 2013. The company has closed the financial year 2012-13 with 6,075,583 units. Hero MotoCorp had sold 528,290 units in the

corresponding month last year, and 6.2 million in FY 2011-12.

Yamaha Motor India posts 20.5pc sales growth Yamaha Motor India Sales Pvt. Ltd. has registered a growth of 20.5pc in sales during March 2013 as compared to the corresponding period last year. The company sold 35,782 units in March 2013 as against 29,819 units sold in March last year in the domestic markets thereby registering a domestic sales growth of 20pc. In the export markets the company sold 14,691 units in March 2013 as compared to 12,067 units in the same month last year achieving a growth of 22pc. The overall sales stood at 50,473 units in March 2013 while 41,886 units

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Sales overview

were sold in March 2012, thereby registering a 20.5pc overall growth.

Honda Motorcycle & Scooter India (HMSI) posts 15pc growth The company reported 15pc growth in its total sales for March 2013 at 252,773 units. The company’s total sales stood at 220,487 units in the corresponding month last year. Motorcycle sales jumped 47pc to 120,738 units in March 2013

from 82,353 units in March 2012. The company, however, reported a 4pc decline in its scooter sales at 132,035 units from 138,134 units in March 2012, it said. For the fiscal 2012-13, HMSI said its total sales grew by 31pc to 2,754,685 units as against 2,107,183 units in the previous fiscal. Motorcycle sales during FY13 grew 49pc to 1,291,723 units as against 864,208 units in 2011-12. Scooter sales during the year stood at 1,462,962, as against 1,242,975 units in FY12, up 18pc.

Nissan India FY 2012-13 sales up by 11pc Nissan reported its annual sales figures in India for the financial year ending March 2013, registering 11pc year-on-year increase. In total Nissan sold 36,975 vehicles in 2012 against 33,270 units in 2011. Nissan’s mid-size Sunny sedan accounted for 24,011 units while the Micra sold 11,454 units. Evalia MPV achieved 1,396 sales.

Demand sentiment subdued Arun Agarwal, Auto Analyst, Kotak Securities Auto volumes in the month of March 2013 were not very different from the trend that had been witnessed in the past few months. Overall weak economic growth continues to keep demand sentiment subdued. Most of the companies continue to report negative growth. Hero MotoCorp reported very weak set of dispatch figures. Tata Motors performance in LCV remained strong, but lagged in the M&HCV and passenger car segment. M&M continue to report positive growth in the auto business but tractor performance stayed subdued. TVS Motors too witnessed volume decline in March 2013. Given lack of near term trigger, we expect volumes to stay weak in the near term. Over the medium term, factors such as monsoon and economic recovery will play a key role in reviving demand sentiments.

Fiscal 2013-14 to remain a challenging year for domestic PV industry: ICRA

T

he Passenger Vehicle (PV) industry’s domestic volume growth is expected to be around 2pc in 2012-13, as small car segment that accounts for 55-60pc of the

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industry’s volumes is likely to continue to grow at a rate slower than other PV segments, says ICRA in its latest update on the industry. Most of the dealers with whom ICRA interacted recently have reported worrisome drop in customer enquiry rates and are accordingly less sanguine about demand recovery

over the near term. The drop in enquiry rates has been observed both in urban markets as well as in smaller towns and rural areas, which portends a likely weak PV demand environment in 2013-14 as well, says ICRA’s report on PV industry. ICRA says that profitability metrics of industry participants will

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Sales overview

Picture for representation purpose only

be impacted over the near term in view of (a) increase in expenses related to launch of new models, (b) increase in employee costs as several OEMs have announced substantial wage hikes, (c) likely sustenance of discounts-led sales push, and (e) restricted pricing power in the wake of intense competition. However, ICRA says that as some of the cyclical variables become less spiteful, the PV industry is expected to revert to a volume CAGR of 1011pc (domestic + exports) over the medium term. Market share in the domestic PV industry still remains concentrated in the hands of few players, reflected in the fact that top four players account for 75pc of industry volumes. This implies that profitability pressures on the relatively low volume players may be even higher resulting in sustained external financing dependence to fund losses and capital expenditure requirements, says the ICRA report on PV industry.

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Sales volumes in UV segment high ICRA report states that sales volumes in the Utility Vehicle (UV) segment have grown at 26pc CAGR over the last three years (2009-10 to 2012-13E), much higher than the growth of 11pc recorded by the domestic PV industry during this period. In the last two years, the UV segment’s volume growth has been even faster with volume growth of 16.5pc recorded in 2011-12 (Vs 4.7pc volume growth of the PV industry) and a still higher growth of 54.5pc recorded in 11m 2012-13 (Vs 4.1pc volume growth of the PV industry). With this, the share of the UV segment in the domestic PV industry increased from 12.6pc in 2010-11 to 20.6pc in 11m 2012-13. In contrast, Passenger Car (PC) segment volumes have been sluggish, reflected in 2.2pc volume growth in 2011-12 and minus (-) 4.6pc YoY in 11m 2012-13. Within the PC segment, volume performance has been characterised

by a wide dispersion in growth rates between petrol and diesel models. While diesel car volumes expanded by 37pc in 2011-12 and 27pc YoY in 11m 2012-13, petrol car sales have stopped short of being cataclysmic – 14pc decline in 2011-12 and 17pc YoY decline in 11m 2012-13. The continued trend towards ‘dieselisation’ of the PV industry as also the sustained run of strong volume growth of the UV segment has enabled the PV industry’s growth, by value, to be much higher than its volume growth. As per ICRA’s estimates, the industry’s growth (in value terms) in 2011-12 and 11m 2012-13, was relatively higher at ~13pc and ~10pc, respectively; against volume growth of 4.7pc in 2011-12 and 4.1pc YoY in 11m 2012-13. The years 2011-12 and 11m201213 were amongst the most challenging periods for the market leader Maruti Suzuki as it saw its market share slide sharply from 45.3pc in 2010-11 to 38.9pc in 11m 2012-13.. The other key players who saw their market share dip in 11m 201213 were Tata Motors (market share down 1.9pc) and General Motors (market share down 1.0pc). The primary market share gainers over the last two years have been M&M (supported by volume expansion of Bolero and XUV500 models), Renault (strong customer response to Duster), Toyota (on the back of its new cars Etios and Liva, besides strong customer response for the Innova facelift) and Nissan (driven by scale-up in volumes of Sunny). Over 20 new PV brands like Toyota

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Sales overview

A majority of the capex is being done keeping in mind the strong medium term growth opportunities offered by the domestic small car segment, besides the strong exports potential. Picture for representation purpose only

Liva, Honda Brio, Nissan Micra and Renault Pulse etc, launched in the Indian market have experienced lukewarm market response. The OEMs have been left with limited choices to sustain capacity utilisation and one of the preferred option has been to look towards exports. Notwithstanding the above, the highly capital intensive nature of the PV industry, growing competition and a slow growing market have combined to add pressure on OEMs’ profitability.

Investment in diesel powertrains Several OEMs including Hyundai,

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Toyota, Renault-Nissan and Volkswagen currently rely on imported diesel powertrains to produce their vehicles. Following the rapid shift in consumer preference towards diesel-run cars over the last two years, most OEMs have struggled to meet the strong demand for diesel-run cars. Accordingly, a bulk of the capacity expansion programmes of PV OEMs proposed over the next two years is oriented towards creation/ expansion of diesel engine capacity. Between Maruti Suzuki, Hyundai, Renault-Nissan and Toyota, a capex of 30 billion may be incurred over the next two years, to enhance diesel engine manufacturing capacity. This apart,

select OEMs viz., Ford and Maruti Suzuki are at respective project stages towards setting-up Greenfield manufacturing facilities in Gujarat, which may involve a combined capex outlay of ~ 120 billion over the next three years. A majority of the above capex is being done keeping in mind the strong medium term growth opportunities offered by the domestic small car segment, besides the strong exports potential. While the above capex figures may appear daunting given the current environment wherein demand remains sluggish, these investments may be necessary for the industry to gear up with adequate capacity when domestic demand recovers.

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Industry overview Passenger Vehicle Manufacturers in India Total Domestic Sales + Exports -February 2013 2,04,310 Units

Others GM 2.32% India Toyota 2.47% Kirloskar 2.92% VW India 3.18% Honda Cars 3.41% Ford India 3.49% Tata Motors 4.04%

Maruti Suzuki 46.68%

Nissan Motors 4.77%

Hyundai Motor 26.72%

Others Skoda Auto India Pvt. Ltd. (0.90%)

Renault India Pvt. Ltd. (0.54%)

Hindustan Motors Ltd. (0.27%)

Fiat India Automobiles Pvt. Ltd. (0.10%)

Mahindra & Mahindra Ltd. (0.51%)

Based on SIAM figures

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Industry overview Utility Vehicles Manufacturers in India

Total Domestic Sales + Exports - February 2013 69,101 Units

GM India 2.97 %

Others 1.70 %

Renault India 8.13 %

Mahindra & Mahindra 37.22 %

Toyota Kirloskar 11.61 %

Tata Motors 17.80 % Maruti Suzuki 20.57 %

Others Force Motors Ltd (0.58%)

Hindustan Motors (0.39%)

Nissan Motor India Pvt.Ltd. (0.21%)

Ford India Pvt. Ltd. (0.17%)

Skoda Auto India Pvt. Ltd (0.16%)

Hyundai Motor India Ltd. (0.10%)

Honda Cars India Ltd. (0.08%)

Volkswagen India Pvt. Ltd. (0.01%) Based on SIAM figures

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Industry overview Two Wheeler Manufacturers in India

Total Domestic Sales + Exports - February 2013 12,84,825 Units

Suzuki Others Motorcycle 1.70% 2.61% India Yamaha Motor 3.70%

TVS Motor 12.52% Hero MotoCorp 39.01 %

Honda Motorcycle & Scooter India 17.79%

Bajaj Auto 22.67%

Others Royal Enfield (0.87%)

Mahindra Two Wheelers (0.47%)

Piaggio Vehicles (0.35%)

H-D Motor Company (0.01%)

Based on SIAM figures

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Industry overview Three Wheelers in India

Total Domestic Sales + Exports - February 2013 71,643 Units

Atul Auto 3.64%

Others 2.34%

TVS Motor 6.70%

Mahindra & Mahindra 7.08%

Bajaj Auto 57.35% Piaggio Vehicles 22.89%

Others Scooters India (2.20%)

Force Motors (0.14%)

Based on SIAM figures

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Industry overview Light Commercial Vehicle Manufacturers in India Total Domestic Sales + Exports - February 2013 51,838 Units

Force Motors 3.86%

Others 3.36%

Ashok Leyland 5.88%

Mahindra & Mahindra 28.92%

Tata Motors 57.98%

Others VECV - Eicher (1.35%)

Mahindra Navistar (1.25%)

Piaggio Vehicles (0.03%)

Hindustan Motors (0.02%)

SML Isuzu (0.71%)

Based on SIAM figures

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Industry overview Medium and Heavy Commercial Vehicle Manufacturers in India Total Domestic Sales + Exports -February 2013 22,922 Units

Others Asia 1.88% Motor Works SML 2.40% Isuzu 2.50%

VECV - Eicher (13.04%) Tata Motors 49.67%

Ashok Leyland 30.51%

Others Mahindra Navistar (1.57%)

VECV - Volvo (0.19%)

Volvo Buses (0.12%)

Based on SIAM figures

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Industry overview Auto Industry Overview

Total Domestic Sales + Exports - February 2013 17,04,639 Units

Three Wheelers 4.20%

Commercial Vehicles 4.39%

Passenger Vehicles 16.04%

Two Wheelers 75.37%

Based on SIAM figures

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RNI No DEL ENG/2010/34562


Motown India April 2013