Auto Monitor - 25 April 2013

Auto Monitorwww.amonline.in22 April 2013Vol. 13 No. 13 24 Pages `50

I N D I A ’ S N O . 1 M A G A Z I N E F O R A U T O M O T I V E N E W S , V I E W S & A N A LY S I S

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At a time when the developed as well as emerging countries have encouraged and

stood beside their automotive industry during its develop-ment phase and some of these countries announced huge bail-out packages to sustain their automotive sector, the Indian government’s decision to sign the European Union-Free Trade Agreement (EUFTA) is a reason for concern. And no other than the Society of Indian Automobile Manufacturers (SIAM) has raised this issue. What it is argu-ing for is the fact that this move will reduce the competitiveness of the domestic manufacturer.

Recently a high-level delega-tion including Prime Minister Manmohan Singh and Commerce Minister Anand Sharma visit-ed Germany to hold talks with leaders of the European Union including German Chancellor, Angela Merkel. During the visit, delegates from either side had claimed that negotiations over FTA are in advanced stages, and so far no conclusions have been drawn. However, it has been

reported that India has agreed to allow import of 2.5 lakh new and pre-owned vehicles at a con-cessional duty of 10 percent for five years, and a commensurate increase in the number of vehi-cles priced at $40,000 or more would be liable to be taxed at 30 percent. A new round of nego-tiations is expected to start in Brussels in June this year.

In view of this, SIAM has released a white paper raising

the issue that India has signed FTAs with several important partners in the last few years and ‘has lost in all cases in terms of trade balance with respect to the automotive industry’.

The conundrumIn India, the automotive

industry contributed to almost Rs 40,000 crore in excise revenue alone. Going by this, it seems unfair that the Indian govern-

ment has not been highly active in promoting the welfare of the automotive sector at a time when figures are at an all time dismal low.

All the developed countries e.g. Japan, EU and USA have pro-tected their automotive industry during the time their industry was in the developing stage. Even now, EU maintains high duty on cars imported from Japan! The taxes imposed on shipping cars to Germany from Japan are high. Import duty comprises 10 percent of the cost of the vehi-cle added to freight charges to the city of destination and the insurance on the freight. Value added tax which is 15 percent of the purchase price added to freight costs and import duty is yet another tax imposed. This is against zero duty import allowed by Japan for German cars.

If the cars are imported as completely built units (CBUs) or fully built up, or even semi-knocked down, it would mean a higher demand for those cars, thus leading to a reduction in manufacturing activity in India as usually happens in any other country where there have been a significant increase in import of cars. For example, Australia

reduced import duties from 17.5 percent in 1999 to 15 percent in 2000 and 10 percent in 2005 and as a result its domestic produc-tion has stagnated. While the number of imported vehicles has jumped from 11 percent of new vehicle sales to 66 percent in 1999, domestic manufactured vehicle sales declined from 325,216 in 1987 to 302,615 in 1996 and fur-ther to 271,500 in 1999. In 2002, the local production was 350,000 against a domestic market of 825,000. Since a third of domes-tic production is exported, the share of imported vehicles in the domestic market has increased to over 70 percent. Currently, with further lower duty, import content has further gone up to over 75 percent.

A proportionate mixManufacturing being labour

intensive, it is pertinent that one creates employment which fur-ther buoys economic growth. Within manufacturing, the auto industry is a unique industry with a long value chain of Tier-1, Tier-2, Tier-3 vendors, dealers and service workshops, ...

SIAM voices concern over FTAPg 10 Pg 15

The taste of utility Faurecia to up localisationArun Dey, CEO, Reliance Autozone.

INTERVIEW PLASTICS

Contd. on Pg 8

Top 5 Car Makers

Company Mar-12 Mar-13 Change

Maruti 1,12,724 1,07,890 -4.29%

Hyundai 39,122 33,858 -13.46%

M&M 25,344 28,432 12.18%

Tata Motors 43,244 22,500 -47.97%

TKM 18,220 19,452 6.76%

Top 5 Car Exporters

Company Mar-12 Mar-13 Change

Hyundai 20,107 22,579 12.29%

Maruti 13,228 12,047 -8.93%

Nissan 11,294 10,159 -10.05%

Ford 3122 2228 -28.64%

TKM 812 1,691 108.25%

* Source: SIAM/ ** Excluding exports/ *** all sub segments considered/ ^ excluding MRPL

DATA MONITOR

Honda Motorcycle and Scooter India (HMSI) has launched a sec-ond motorcycle in the

Dream series, the 110cc Dream Neo. With this, the company is hoping to grow over 150 percent in the 100-110cc motorcycle seg-ment YoY. The Japanese auto major is also evaluating locations to set up its fourth plant in India. Currently, HMSI has two plants running at full capacity, while a third plant is expected to be oper-

ational in Karnataka soon. Honda say they will be able to sell three lakh Dream Yugas and five lakh Dream Neos in this financial year.

Talking about Honda’s strate-gic direction, Keita Muramatsu, President & CEO, HMSI, said, “Dream Neo is Honda’s next big leap towards creating deep inroads into the Indian commut-er segment. Our newly opened technical centre comprising R&D, engineering, purchase and quality team, overcame the ...

HMSI seeking to grow 150 pc in 100-110 cc

Brings out white paper highlighting the issues of reducing import duties on vehicles.

Mulls fourth plant in India; third plant to become operational in May. Nabeel A Khan

New Delhi

Nabeel A Khan New Delhi

Contd. on Pg 8

Plans to grow tier II supplier base

If the government allows reduction in import duties, it would mean a reduction in manufacturing activity in India.

Keita Muramatsu, President & CEO and Yadvinder S. Guleria, VP (Sales & Marketing), HMSI, at the launch of the new bike, Honda Dream Neo.

The auto industry is keenly waiting to see a conclusion to the proposal put forward in the ongoing free trade negotiations between India and the European Union (EU). What the EU expects India to do is concede

to reducing customs duty by 50 percent on all cars from 60 percent to 30 percent. Additionally, a quota of big cars of over 1500cc is also being negotiated that may allow EU to export these vehicles at 10-15 percent duty to India.

The automobile industry body, SIAM, has been fighting this tooth and nail. It has objected, and fiercely, to this suggestion and has cited its reasons, and rightly so.

At a time when developed countries (mainly Europe and US) have been protecting their automotive industry during slump times by offering them sops, it is simply unfair to expect India to bend backwards. It is bad enough that the Indian auto industry is in doldrums now. By asking India to reduce the import duties will only hit the country’s interests further.

Additionally, the EU is also negotiating that import duties on pre-owned cars also be reduced. This will be a complete reversal of the policy to invite more investment, local manu-facturing, and local employment. It would also undermine the

decisions announced during the Budget.

At a time when the automotive exports of EU to India grew by 51 percent (according to statistics mentioned by a manu-facturer), India’s exports to the EU grew by a mere 11 percent. According to data provided by SIAM, exports of small cars to the EU have also declined.

Taking all this into consideration, it is only apt that manu-facturers put all their weight behind the industry body and insist that none of this come to pass.

Not only is the industry reeling, but I think it’s high time that we took a stand. But how are we to explain this to the enthusiasts who would love to see the EU diktat come to pass?

Join the drive

QUOTESTakeshi Uchiyamada, Toyota Vice Chairman Dan Akerson, GM Chairman and Chief Executive Officer

Because of its shortcomings — driving range, cost and recharging time — the electric vehicle is not a viable replacement for most conventional cars. We need something entirely new.

“All good, robust and healthy joint ventures are based on self interest, and when you can’t pencil a car like the D-segment for either party, then you shouldn’t do it,”

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CONTENTS

Yamaha Ray wins India Design Mark award 17India Yamaha Motor Pvt. Ltd. (IYM) has won the India Design Mark (I Mark) award from the India Design Council for its Ray scooter.

Greaves launches ‘Ustad’ 18Greaves Cotton forays into the mini- tractor 11-12 HP range; adds new products to augment farm equipment product portfolio.

Nissan announces new senior management for Indian operations 18Nissan rejigged the management structure in India to deepen focus on the Indian market and set the stage for the launch of Datsun in India.

MyTVS launches extended warranty service in Kolkata 13MyTVS has announced its entry into yet another customer-centric car service business – certified used car warranty – which is expected to be a significant value addition to car customers.

CORPORATEInnovative services to lead to growth of authorised CV service stations 07Offerings like refurbished engines and gearboxes during vehicle servicing could attract a larger number of customers to OEM authorised service stations.

A longer life for lithium-sulfur batteries 14Scientists at the Fraunhofer Institute have developed a new design that increases the charge cycles of lithium-sulfur batteries by a factor of seven.

Plastic for embedding photovoltaic modules 14The market for solar modules is highly competitive and a new process embeds the cells twice as fast into their protective plastic sheathing – and therefore saves time and money.

22

13

14

THE OTHER SIDE

Mahendra Killedar, Country GM, Faurecia Emissions Control Technologies Killedar joined Emissions Control Technologies in June 2008 in a start up venture and established program teams and later took over the management of Emcon operations after their merger with Faurecia in 2010.

18

14

Auto Monitor

N E W S 722 APRIL 2013

Automechanika Kuala Lumpur, Malaysia’s leading international trade fair for the automotive industry target-ing trade visitors from ASEAN, attracted

a record number of exhibitors and visitors when it was held 7-9 March 2013 at the Kuala Lumpur Convention Centre, Kuala Lumpur, Malaysia.

Automechanika Kuala Lumpur is organised by Messe Frankfurt (HK) Ltd in collaboration with the Malaysia External Trade Development Corporation (MATRADE). It is supported by the Malaysia Automotive Institute (MAI) together with 17 local and overseas organisations.

The show attracted 190 exhibitors from 18 countries and regions. The exhibition was spread over 5,000 sq.m. Nearly 80 percent of exhibitors were from overseas countries includ-ing Australia, China, France, Germany, Hong Kong, India, Indonesia, Iran, Italy, Japan,

Korea, Pakistan, Singapore, Taiwan, Thailand, UK and the US. The total number of exhibi-tors was 15 percent more compared to the 2011 show. Visitors numbered nearly 4,500 with 15 percent coming from overseas. Among the 60 visiting countries and regions, the top 10 visiting countries (excluding Malaysia) were Australia, China, India, Indonesia, Japan, Pakistan, the Philippines, Russia, Singapore and Thailand.

A number of leading brand names exhib-ited at the show including Beta, CMC, Corghi, Launch Tech, Mazda, Ravaglioli, Shell Helix and Stahlwille.

Automechanika Kuala Lumpur is one of 12 Automechanika fairs held in Africa, Asia, Europe and Central and South America. The next event will take place 19 – 21 March 2015 at the Kuala Lumpur Convention Centre, Malaysia.

Innovative service offering which maximise the road life of commercial vehicles (CV) may give authorised

service stations an edge over small-time garages and work-shops. According to a recent primary survey carried out by the Automotive Component Manufacturers Association of India (ACMA), offerings like mobile servicing at the location of the vehicle breakdown, and providing refurbished engines and gearboxes during vehicle servicing could attract a larger number of customers to OEM authorised service stations.

The survey pointed out that the CV aftermarket is likely to follow a pattern of consolidation similar to the passenger vehicle segment, although the reduction in the number of retailers, wholesal-ers, and distributors may not be as much as that seen in the case of the passenger car network. The commercial vehicle segment is also likely to witness a signifi-cant reduction in the number of unorganised garages in coming months as a growing number of such garages are adopted by OEMs, or increase their capabil-ity to climb up the value chain.

“The longer the time the vehi-cle is not running on the road the larger is the loss to the customer, and hence our service offerings are geared towards ensuring that the vehicle owner does not lose out on business while servic-ing gets done,” said Nitin Seth, Executive Director, LCV Sales and Marketing and Defence Business, Ashok Leyland. He added that this is applicable in the case of heavy and light commercial vehi-

cles but more so for the latter as smaller commercial vehicles are frequently serviced outside the authorised service network.

Unorganised garages play a big role in the commercial vehi-cle segment and their role is unlikely to diminish significantly due to the nature of the business and sheer convenience offered by these garages, according to the ACMA survey. OEMs have been looking at ways to increase interaction with customers and spread the authorised network for better customer service deliv-ery and original spare parts.

There are some 4.63 million trucks and buses plying on roads across the country, according to the ACMA survey. Of these, Delhi accounts for around 144,424 units followed by Chennai at 137,081 units, and Bangalore 121,265 units. A growing vehicle parc and increasing sophistication of vehi-cles are the major reason for the demand of quality service, a gap that needs to be addressed by multi-brand or OEM authorised

garages at locations with a high concentration of commercial vehicles.

Commercial vehicle aftermar-ket and servicing is largely driven by macro factors including a dis-proportionately large amount of

time and money spent by oper-ators on preventive/routine maintenance, regular visits to service stations or mechanics, the time taken to get the vehicle ser-viced, and price sensitive nature of the customer/operator.

The ACMA survey pointed out that the CV

aftermarket is likely to follow a pattern of

consolidation similar to the passenger vehicle

aftermarket.

Value addition, innovative services key to authorised CV service station growth

A successful run

Auto Monitor

N E W S822 APRIL 2013

most of which are MSMEs and employ a large number of people. Also, the auto industry is a highly volume sensitive industry where only economies of scale can help make investments in modern manufacturing and technologies via-ble and cost competitive. A disproportionately large part of value-add and hence investments in manufacturing and technologies have to be made by auto component makers. In 2011-12, the automobile industry reached a turnover of `264,000 crores and vehicle exports revenue around `32,000 crores. The industry today sup-ports employment of about 1.95 crores people, both directly and indirectly.

The scenario todayThis is significantly higher than 2000-01

when our turnover was only ̀ 39,830 crores and exports revenue was `1,354 crores. The indus-try has been growing rapidly over the last one decade mainly through private initiatives and huge investments by Indian, Japanese, South Korean and US manufacturers. Recently, European companies have also started show-ing interest and have entered/entering India. In fact, all major European automobile com-panies are already present in India. Despite the late entry, European companies are sell-ing almost 5.5 percent of the total passenger vehicle sales in India today. This will be sig-nificantly more in value terms as European vehicles are mostly premium and luxury cat-egories. As per estimates, if the growth of the automotive industry is not hampered by exter-nal negative influences, it has the potential to grow to a level of nine million passenger cars, 30 million two wheelers and two million com-mercial vehicles by 2020, thus making India the third largest producer of cars in the world. This will support additional employment of around 2.5 million every year both directly in manufacturing and indirectly at different lev-els of the values chain. For this to happen it is imperative that the fiscal and trade policies remain stable and in line with the spirit of the Automotive Mission Plan (AMP).

Some of the leaders in the automotive indus-try has already expressed concern over the proposed EU-FTA. “It would give unfair advan-tage to a few and disadvantage to others,” Pawan Goenka, President, Automotive and Farm Equipment, Mahindra & Mahindra had told Auto Monitor in an interview a while ago.

The disadvantage would be for some of the European companies which have already invested huge amounts of money in India. There is expectation that the prices of cars may go down once the FTA comes into force by 2017, but by how much is not yet known.

...challenge of improving mile-age and meeting the competitive price point. Backed by our new product launches and network expansion, Honda aims to grow over 150 percent in the 100-110cc motorcycle segment YoY. Overall, we are confident of customer demand for Honda two-wheelers and eye 43 percent growth with 39.3 lakh unit sales in FY14.”

The 100-110cc segment con-tributes 48 percent to the overall market in the country. Rising fuel prices have been encouraging buyers to turn to low CC bikes. The Dream Neo, the cheapest motorcycle in the company at `43,150 (ex-showroom Delhi), gives the company an edge over its competitors. The compa-ny has sold around three lakh units of the Dream Yuga since its launch in May 2012. This was the first mass market model from HMSI. The Dream Neo is the first Honda bike in India to have HET technology, with its claim of bet-ter fuel efficiency. According to the company, Dream Neo offers a mileage of 74 kmpl and highest peak power of 6.15KW (8.25 BHP)

at 75 RPM. Honda also hopes that this bike will help them achieve 150 percent growth in sales in the 100-110 cc segments.

“We see a strong market for us in the mass segment where we will continue to beef up our pres-ence,” YS Guleria, Vice President - Sales & Marketing, HMSI, said. As reported by us in a past issue, HMSI is targeting the number one position in terms of volume in the country from its current second position. Capacity expansion is the major challenge facing the company. Capacity constraints have caused a fall in the sales of scooters in the past few months.

“The new plant will be opera-tional by the end of May this year. Once production starts there we will see how we can expand the production in our existing plants,” HMSI President and CEO Keita Muramatsu said. The company is said to be already evaluating a fourth plant option and talking to various state government for land acquisition; however it did not reveal any details on this. The company is investing `1,500 crore in setting up of its third plant in

Karnataka, which will take the company’s total production capacity to 40 lakh units a year. The company has two plants in operation with a join production capacity of around 28 lakh units.

HMSI achieved sales of 27.54 lakh units against 21.07 lakh units in the previous fiscal, recording a growth of 31 percent against the subdued two-wheel-er industry growth of two percent during the fiscal. HMSI also saw

a four percentage point jump in its domestic market share to 19 percent. Growing rapidly, the company crossed the 12 million customer mark in March ‘13. In terms of sales, India is the fastest growing market for Honda and accounts for around 18 percent of its total global sales in the two-wheeler segment, and is aiming to raise it to 25 percent by 2016.

The Dream Neo has a high-er ground clearance of 179 mm

which suits the requirement of the rural market. The compa-ny will also add at least 500 new touch points in the country and aim the Dream Neo particularly at the rural market. The HMSI sales and service network stood at over 1,950 outlets (including 654 dealers, 670 branches, and 565 service setups) across the country. The company now plans to open at least two new touch points every day.

Contd. from Pg 1

Contd. from Pg 1

HMSI seeking...

SIAM voices...

Auto Monitor

I N T E R V I E W1022 APRIL 2013

What is the current sce-nario of the automotive retail business at the showroom level as well as the aftermarket?

In automotive retail, on one hand, you have these showrooms managed by the OEMs that are reasonably organized because they have systems and processes in place and follow the standard operating procedures (SOPs). It is a dedicated model where the OEMs do not run any showrooms themselves, but have sought out dealers who have invested in the business. There is a fair amount of streamlining taking place in the additional revenue and mar-gin areas namely in servicing, accessories, finance, insurance and, of late, used cars business. This part of the trade is fairly organized because it is process-oriented, audited and aligns fairly with global practices.

Then there’s the other side to this. These comprise the small shops or the unorganized sec-tor rampant in Karol Bagh of Delhi or J C Road of Bangalore, or Milan Subway in Bombay. Then there are the lookalike outlets where some sell spu-rious parts, some do genuine work, and some extraordinary, but all the same cannot market themselves. For the consumer, this generates a lot of confusion in choosing which one to visit. The automotive retail business is not a day-to-day business like grocery but even then people will buy accessories few times a year. At times it could be a need for new tyres or battery, the lat-est high-end navigation system or upholstery.

It is in search for these that a consumer will visit an auto-motive aftermarket. More often than not, the experience is not pleasant or overwhelming for them. Most times the range on offer is limited, the quali-ty suspect, and as it’s available over-the-counter one does not get to have a look and feel or choose products before purchas-ing them. The lack of salespeople to offer a demonstration also makes the experience lackadai-sical. Since these amenities are not available, it leaves people constantly seeking out outlets that will help them buy the cor-rect product at the right price and the right place and most of all being assured of a warranty.

Where does Reliance Autozone position itself in this scenario?

As of now, the automobile aftermarket is yet to witness a branded retail concept. For showrooms and dealerships accessories are definitely not a priority area. When you walk into a showroom, they are pala-tial with sparkling cars on display, but try looking for the accessories section. You might ultimately locate it in a cor-ner with no dedicated person. Moreover, the range is limited and there is a tendency to sell at a high price, and most of them even charge for installation. Also a common practice that is fol-lowed could be a habit to push

only products that are company approved.

Now a company may have approved only the Sony music system. But then what is wrong with Pioneer or JVC? The reason is that the company would have negotiated with Sony on a bulk rate. Like say, I have 400 show-rooms and I want to pick up 4,000 pieces a month, and they take the best rate available to them. When one is negotiating in bulk, it makes sense to stick to one or two brands, get the best deal and thus manage to get higher mar-gins. In the process, the range is sacrificed. This is contrary to modern retail, which is where we operate.

In modern retail, one has to necessarily offer the entire range of products irrespective of whether or not you man-age to negotiate well with the vendor. For instance, when a prospective customer walks into an Autozone, they will see all major brands on display. We sell a whole range of products like speakers, woofers, tweet-

ers, amplifiers and so on. On our part, we try to understand what the customer requires, then make our suggestions, and then allow the customer to make a choice. We offer a complete solu-tion and we do not put pressure on the customer with respect to making a choice.

What is your value propo-sition? Why should a customer come to Reliance Autozone?

There are primarily four reasons: quality, price, conveni-ence, and approved products.

This is to counter the sort of products available in the mar-ket, be it showrooms that sell a limited range or the gray mar-ket that sells dubious products. We offer a plethora of devices across all segments and suit-ing all cars and are neutral to all manufacturers. We give cus-tomers complete freedom and guidance in choosing the prod-ucts they like. Our range is wide as we sell tyres, battery, music systems, and accessories cover-ing all reputed brands and their

range.We negotiate with our ven-

dors not only on prices but also aftersales and warranty aspects. Aftersales for auto accessories is an unheard of concept. We believe that accessories need to create customer confidence in quality. We also look for prod-ucts approved by agencies and government bodies like alloy wheels (approved by ARAI), and ISI-approved helmets.

Our Autozone outlets are at decent locations and we are not squeezed on space. Our average store size is around 3,000 square feet which is bigger than a typi-cal car showroom. Our stores are also air-conditioned and we use the best materials in terms of tiles, and the house-keeping guys maintain hygiene which increases convenience for cus-tomers. All these factors are devoid at the unorganized level. Also, a customer gets an oppor-tunity for a demo at our store.

The taste of utility

Our Autozone outlets are at decent locations and we are

not squeezed on space. Our average store size is around 3,000 square

feet which is bigger than a typical car showroom. Our stores are also air-conditioned and we use

the best materials.

Contd. on Pg 12

Reliance Autozone is aiming to become a major player in the aftermarket by pioneering itself as a branded automotive retail chain. With 15 company owned outlets in the country, the auto retail arm plans to reach more consumers. Reliance Autozone aims to distinguish itself from other players in the growing automotive accessory market. Pradeb Biswas finds out more in an interview with Arun Dey, CEO, Reliance Autozone.

Auto Monitor

I N T E R V I E W1222 APRIL 2013

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Wherever demonstrations are possible, we offer them and have trained our people. We have a customer lounge for the person to be at ease while the work gets carried out on the vehicle.

What is your strategy with respect to pricing of products at Autozone?

The new car showrooms are on MRP concept. We fol-low MOP (Market Operated Pricing) concept which means we have executed our research in the market place to figure out the best pricing available. This may not be possible month on month, day on day, so whatever best alignment of price we can do with MOP is what we do.

Like a typical retailer, we keep on bringing in new deals and have offers like those that one typically sees at grocery stores or any other store. Since we come from a retail background, we negotiate with the vendor and understand the market price and then bring in the best. Over

a period of time we want our customers to understand that Autozone is the best place for them to get the best deals and begin being confident about us and our price. Many customers go to the market and check our price offering versus others and then they come back to us. It is a testimony to the fact that they have liked our price.

We offer exchange deals on alloys and tyres. When you offer a customer some value for his current product and do not run it down, it prompts the customer to make an exchange. One avails of EMI for cars and consum-er durables but doesn’t get the same facility for tyres or acces-sories. We have tied up with HDFC, ICICI and Citibank and customers who buy goods worth Rs 5,000 or above prefer to opt for the EMI facility.

How many outlets does Reliance Autozone currently have? Are they franchised or company owned? What are you

expansion plans?Currently we have 15 stand-

alone stalls. Our stores are on rented land but owned by the company. The people are our employees. We also undertake our own marketing so nothing is outsourced.

As of now focus is the key and we would like to stick to the cit-ies where we are present and create bigger success stories and superior customer experi-ences in these cities. We would then like to use customer’s word-of-mouth to get into other cities. We would like to consolidate and ramp up in a fashion which doesn’t compromise with the customer experience.

But we plan to expand inside of malls. The malls have good parking area and there are a huge number of cars coming in.

So while the person is shopping around, any work that needs to be done in terms of accessories or tyres can be completed by the time his shopping is done. In the current financial year you can see our format being presented in malls.

When we expand into Tier II and Tier III cities, we do not see that as challenge as there is already a strong backend. We have over 650 Reliance fresh stores across towns and our systems are already in place to reach the remote areas of the country. We are part of a big-ger retail company and we can always ride on that strength.

The luxury car market has

been growing past few years. Are you planning to grab a pie of this niche segment as the after-

market options for such car owners are extremely limited?

We have been witnessing a trend in terms of an increasing number of luxury cars coming to Autozone. A luxury car owner is definitely looking for reliability. As the cars are expensive, own-ers won’t risk taking them to the unorganized market. The areas where we have a scope at the moment are tyres, navigation systems, battery and uphol-stery. Owners of luxury cars are particular about where they take the car and who handles them. They also value brands a lot and would like to confide in a brand-ed store which can do justice to their cars and all the risks are mitigated. So yes, the number of luxury cars is increasing and in the future we would like to do more business.

The taste of... Contd. from Pg 10

Auto Monitor

N E W S 1322 APRIL 2013

MyT V S h a s announced its entry into yet another customer-centric

car service business – certified used car warranty – which is expected to be a significant value addition to car customers. The service can be availed by car cus-tomers anytime after the expiry of manufacturing warranty and can be rolled over up to seven years or 100,000 km, whichever is earlier. The service was first launched in Kolkata and will sub-sequently be taken to other parts of the country.

MyTVS will offer this service under two categories – Plan A and Plan B. Accordingly, Plan A will be offered to cars that are up to five years old or have run less than 60,000 km from the date of first sale. Plan B will be offered to cars that are up to seven years old or have run less than 100,000 km from the date of first sale. Additionally, as a promotional offer, customers who avail the extended warranty services will be provided 24x7 emergency roadside assistance support dur-ing the warranty period free of cost.

Launching the service, Sanjay Nigam, President & CEO, TVS Automobile Solutions Limited said, “Kolkata is a key market for our business and expansion plans and we are happy to launch this service first here. We feel that this service will add a lot of

value to car customers in terms of controlling the maintenance expenses of the car and will enhance the resale value. With this new service, MyTVS will now be able to provide a gamut of services to multi-brand car customers under one umbrella.”

Speaking on the occasion, Ashish Rajgarhia, Director, TVS Rajgarhia Automobile Solutions, said, “The multi-brand car ser-vice business, though new to Kolkata, has been well received by the customers. We have been receiving encouraging response from the customers and will be inaugurating our second facility in Kolkata shortly.”

The certified used car war-ranty service will provide an extensive coverage of parts for cars, subject to a mandatory check-up at the service outlet. The customers will also have the option to choose the services on six-month and one-year terms.

MyTVS, which has a decade long experience in multi-brand car service business, formed a joint venture with Rajgarhia Automobile Solutions in 2012 for the Eastern Region market in order to expand its multi-brand car service business. MyTVS now owns about 70 outlets (includ-ing company-owned, franchisee and joint ventures across the four states of south India, Kolkata and Gujarat), and is aiming to increase them to 400 by 2015 across India.

MyTVS has spent a lot of time and resources obtaining training knowhow from man-ufacturers, and has invested extensively in its training acad-emy in Madurai, Tamil Nadu for training its employees. The service level and quality parameters in place conform to international standards, and have been developed with inputs from reputed interna-tional automotive consultants Carter & Carter (with offices in

Canada, USA, UK and Australia). Constant service benchmarking efforts are also being done with leaders in the industry such as A A A, A A of 5UK, RAC, Cross Country Club of USA and NRMA Australia.

The MyTVS outlet at Kolkata is a 17,000 sq.ft. state-of-the-art facility, located at A1-48, new Paharpur Road, opposite Nature Park, Kolkata. The outlet has 24 bays (including mechanical and body shop) to service cars

and will have the best-in class equipment to carry out repairs swiftly and to customers’ sat-isfaction. The state-of-the-art facility will also have 3D wheel alignment, wheel balancing, engine scanner, dust-free paint booth, water wash ramp, nitro-gen inflator, AC gas recharger, etc. The service centre aims to provide passenger car owners a complete servicing solution that a customer will find in an up-market car dealer workshop.

MyTVS goes to Kolkata with new scheme

“Kolkata is a key market for our business and expansion plans and we are happy to launch this service first here.”

Auto Monitor

P L A S T I C S1422 APRIL 2013

There are currently over 40 million cars on Germany’s roads. Only a fraction of them

are powered by electric energy – around 6,400 vehicles, accord-ing to the Federal Ministry of Transport, Building and Urban Development. The compara-tively short range of electric cars doesn’t help their popularity, with drivers often having to start the search for a charging sta-tion after a mere 100 kilometers, not to mention the high price of the batteries, which cost several thousand euros. Remedying this situation has researchers look-ing at new options in developing more efficient technologies. An extremely promising avenue of research is the lithium-sulfur battery, which is significantly more powerful and less expen-sive than the better-known lithium-ion battery. Although their short lifespan has made them unsuitable for use in cars before now, this may be about to change in the foreseeable future.

Scientists at the Fraunhofer

Institute for Material and Beam Technology IWS in Dresden have developed a new design that increases the charge cycles of lithium-sulfur batteries by a factor of seven. “During previ-ous tests, the batteries scarcely crossed the 200-cycle mark. By means of a special combination of anode and cathode material, we have now managed to extend the lifespan of lithium-sulfur button cells to 1,400 cycles,” says Dr. Holger Althues, head of the Chemical Surface Technology group at IWS, who is delighted with his team’s breakthrough. The anode of the team’s proto-type is not made from the usual metallic lithium, but from a sil-icon-carbon compound instead. This compound is significantly more stable, as it changes less during each charging process than metallic lithium. The more the structure of the anode chang-es, the more it interacts with the liquid electrolyte, which is situ-ated between the anode and the cathode and carries the lithi-um-ions. This process causes

the liquid to break down into gas and solids and the battery to dry out. “In extreme cases, the anode “grows” to reach the cath-ode, creating a short circuit and causing the battery to stop work-ing altogether,” explains Althues.

The interplay between anode and cathode is the critical factor determining the performance and lifespan of a battery. In the lithium-sulfur model, the cath-ode is composed of elemental sulfur. The advantage here is that unlike cobalt – the main cathode material used in lith-ium-ion batteries – sulfur is available in almost unlimit-ed quantities and is therefore cheaper. The problem remains, however, that sulfur also inter-acts with the liquid electrolyte, which impairs the performance of batteries and, in the worst case, causes them to lose capac-ity entirely. The IWS researchers are using porous carbons to slow down this process. “We have precisely altered the pores to allow the sulfur to lodge there, slowing down the rate at which

it combines with the electro-lyte,” clarifies Althues. He and his colleagues have developed a method of manufacturing these special cathodes.

The experts at IWS measure the capacity of a battery in watt-hours per kilogram (Wh/kg). Over the long term, they expect lithium-sulfur batteries to reach an energy density of up to 600 Wh/kg. For comparison: the maximum energy density of the lithium-ion batteries currently in use is a mere 250 Wh/kg. “In the medium term, figures around the 500 Wh/kg mark are more realistic. In practical terms, this means you can drive twice as far with the same battery weight,” says Althues. This of course implies that significantly lighter battery models are possible – an interesting prospect not only for

automakers but for smartphone manufacturers too. After all, the overall weight of smartphones would be greatly reduced if they had lighter batteries. “Lithium-sulfur technology might even make electric flying a realistic possibility. Although such pro-gress is still a long way off,” adds Althues.

The researchers are currently working on further optimizing the material and using it in larg-er battery models. They are also turning their attention to suit-able manufacturing methods. And with good reason, as this is the only way the technology will reach a mass market, lead-ing to a significant increase in the number of electric cars on Germany’s roads.

Courtesy: Fraunhofer Institute

Solar cells must endure a lot: snow, hot summer days, rain and humidi-ty. To provide maximum

protection to the cells, the manu-facturers embed them in plastic, usually in ethylene vinyl acetate (EVA). The principle is that they laminate the cells in the first step. For this, they encase the cells in a plastic film and heat it up. Once the plastic is soft, the entire stack is pressed together in the lami-nator so that it flows well around the cells and encases them. This process vulcanizes the plastic – in other words, it crosslinks it (meaning that a type of rubber is created). The advantage is that the material can no longer be melted once it is in this state; it is more stable and protects the cells better against mechanical and thermal stress. For the crosslink-ing, the solar cell plastic stack is heated in the vacuum lamina-tor to a temperature of up to 150 degrees Celsius; this high tem-

perature provides the “starting signal” for the crosslinking. The processing times for the vulcan-izing are rather long, however the stack of cells must remain in the laminator for about 20 minutes, sometimes even longer, driving production costs up.

Less than eight minutes for laminating

The manufacturers can coun-teract this cost pressure on either the process or the materials side, meaning you are able to optimize the process yourself or use bet-ter materials. Scientists from the Fraunhofer Center for Silicone Photovoltaics CSP in Halle will, from now on, support manufac-turers on the process side jointly with colleagues from LANXESS: “We have modified the lamina-tion process so that it only takes about 7 to 8 minutes instead of 20 minutes. We were therefore able to reduce the duration of the total process by more than 50 percent,”

says Dr. Stefan Schulze, Polymer Materials Team Leader at CSP. “In comparison to the standard process we are therefore able to laminate twice as many modules on one system, which directly positively affects the production costs per module.”

The researchers were inspired by printing ink for news prints, which vulcanize in a few seconds after being exposed to a UV light. The crosslinker used by LANXESS worked in the same manner – activated by UV radiation instead of by high temperatures, it crosslinks the plastic within a few seconds while maintaining the same quality. The reason for that were the plastic films. If the usual additives are used in the plastic, then care must be taken when mixing the ingredients to always stay below the crosslink-ing temperature – meaning that the mixing has to be carried out very gently. For this reason, the resulting film is often not very

homogenous. “However, if we crosslink the additives using UV radiation we are able to mix aggressively. We therefore achieve homogenous films and thus an improved crosslinking of the plastic,” Schulze makes clear.

The researchers at CSP developed the UV crosslinking process within the Fraunhofer Innovation Cluster SolarPlastics. They are looking for answers to the following questions: How can the process be controlled? What temperatures are required? And how much radiation is required? The LANXESS employees took care of the material, meaning

the composition and the type and amount of the UV crosslink-er. The CSP already has a pilot plant for crosslinking where the scientists are optimizing the four parameters – the amount of radiation, the temperature, the height of the lamp and the feed rate at which the modules trav-erse under the UV lamps. “The process is operational,” says Schulze. Interested manufac-turers need not fear high costs for retrofitting their produc-tion facilities; only one UV lamp would have to be added.

Courtesy: Fraunhofer Institute

Roll-to-roll coating of electrodes at IWS: The scientists now have optimized the design of anode and cathode for lithium-sulfur batteries.

A longer life for lithium-sulfur batteries

Plastic for embedding photovoltaic modules

Electric still have it tough in the German marketplace. They are too expensive and their range is too short. This is an opportune time for a breakthrough in efficient and low-cost lithium-sulfur batteries.

The market for solar modules is highly competitive. For this reason, companies must save on costs, such as by using a new process. It embeds the cells twice as fast into their protective plastic sheathing – and therefore saves time and money.

Scientists are laminating a solar cell at CSP in Halle. The process is twice as fast as it used to be.

Auto Monitor

P L A S T I C S 1522 APRIL 2013

French auto component supplier Faurecia is looking to expand the supplier base for plastics

and plastics to metal bonded inte-rior parts for supplying to local and global OEMs based in India as well as for exports. It is also looking to expand its research & development activities in India by increasing its headcount at its Pune R&D centre from the cur-rent 220 engineers and skilled workers.

“A major challenge we face is enrolling quality suppliers in order to help us maintain our global quality standards and customers’ expectations. We are looking to grow our manufactur-ing base in India to support our local growth as well as develop our facilities here as an export

hub,” said Raphael Berthoud, General Manager India-Thailand, Faurecia Interior Systems.

He further elaborated that key issues with tier II suppliers based in India is reliability and consistency in meeting quality standards. The company is look-ing to develop few suppliers with adequate support in terms of access to research & development as well as well defined quality parameters for interior parts and systems.

The French auto component major is looking to capitalise on its global relationship with Ford and Renault for growing its busi-ness in key markets of Brazil, India, Thailand and China. Faurecia’s Indian unit is already a major exporter for air vents to associate unit in Brazil and is eye-ing other markets where its major customer Ford may be looking to introduce existing and new mod-els from its global portfolio.

The company’s manufactur-ing capacity for interior systems is around 250,000 units per annum currently from its facility in Chennai.

French car manufactur-er PSA Peugeot Citroën is Faurecia’s controlling share-holder with around 57.4 percent

stake. Faurecia Interior Systems (FIS) operates a network of man-ufacturing and R&D sites that provide assistance to automakers in developing global programs and platforms. It manufactures and supplies instrument pan-els, centre consoles, door panels, door modules and acoustic solu-tions for different categories of vehicles. The Group also supplies turnkey cockpits from its just-in-time assembly plants. Faurecia’s know-how yields custom made solutions for automakers seek-ing to ensure the safety, comfort, perceived quality and lighter weight of their vehicles.

Faurecia entered India in 1995, with its Emissions Control business located in Nasik.

Currently, Faurecia is headquar-tered in Pune and has two R&D centres in the country, in Pune (interior, seating & exterior) and in Bangalore (emissions control technologies). The company has nine production facilities across different business divisions including Pune, Manesar (Delhi), Chennai and Bangalore with a total staff in India of over 1,600 people. In India, Faurecia serves leading automobile companies such as Fiat, Ford, GM, Hyundai, Maruti-Suzuki, Renault-Nissan, Tata, Toyota and Volkswagen.

In 2012, the group posted total sales of around Euro 17.4 billion. It employed around 94,000 peo-ple in 34 countries at 300 sites, including 40 R&D centres.

Abhishek Parekh Mumbai

A major challenge is

enrolling quality suppliers to help us maintain our global quality standards and customers’ expectations.

Faurecia to increase localisationPlans to grow tier II supplier base

Auto Monitor

P L A S T I C S1622 APRIL 2013

As emission norms become more stringent and efforts are made to bring down the car-

bon footprint, the automotive industry is struggling to increase fuel efficiency by light-weight-ing and reducing friction. In this process manufacturers have adopted various forms of plastic to replace sheet metal and other heavy metals.

“The plastic content is chang-ing every day. I can give an example of, let’s say, our light-ings. The reflector used to be of sheet metal and then the lens was of glass. Now both have changed to plastics such as polypropyl-ene,” said NK Minda, Chairman and Managing Director, Uno Minda. In the last ten years the plastic content in the lead-ing component manufacturers products has increased from 20 percent to 60 percent, and they hope to increase it to 70 percent in the next five years.

A recent annual survey con-ducted by ExxonMobil Chemical projected that light weighting measures in vehicles will cre-ate a 75 percent increase in fuel efficiency by 2040. Further, with every 10 percent reduc-tion in weight, the vehicle can achieve up to seven percent fuel efficiency. A spokesperson for ExxonMobil said that by 2040, the vehicles will be high on innovation in terms of usage of plastics, which will make them more fuel efficient than the auto-

mobiles manufactured today.“Plastic bumpers don’t take

huge energy absorption during crash. When there is impact, plastic deforms very easily. To make sure we don’t compro-mise on the crash, we have a crash bar behind the bumper. Earlier the bumper used to be metallic, which is now switch-ing over to plastic bumper. The bar is made of alloy or magne-sium alloy or aluminium. With this quality we can have a plas-tic bumper.” Jayant Kumar Dev, Vice President, Engineering and Design, Fiat India Automobiles Limited, told Auto Monitor over phone.

For the front lensing in the headlamps and tail lamps, man-ufacturers are replacing glass with plastic, which looks much better due to the easy moulding and shaping character of plastic. This is the reason why the head-lamps of new cars look more beautiful and sharp. The exte-rior rear view mirror, sun visor mirrors, all these things are changing into plastic.

Given that the component industry operates in an ever changing dynamic environ-ment, the adaptations to our manufacturing processes reflect the changed requirements of OEMs. With a shift in engi-neering demands towards light weighting and therefore plastics, component maker continually customise processes. Since 2005, plastic has been incorporated into many new models.

The trend in plastic use is moving towards styling,

ergonomics, paint quality, engineered products with equiv-alent bursting strengths such as bumpers, EA pads, etc. There is justified use of more plastics in vehicles over time.

According to specialty chem-ical company ExxonMobil , products such as Santoprene TPV can offer up to 29 percent weight saving as compared to the use of ethylene propylene diene monomer (EPDM) rub-ber. Also, Santoprene TPV, when used in making air ducts can offer 25 to 45 percent weight cut compared to the use of TSR (Technically Specified Rubber) compounds. ExxonMobil assert-ed that Exxtral polyolefins can replace some of the metal parts and thicker plastics on bumper fascia to provide weight savings of up to 10 percent. Exxtral poly-olefins can offer up to 50 percent weight reduction by replacing some metal parts.

Exxtral polyolefin is a special-ty thermoplastic olefin (TPO) compound based on polypropyl-ene that is designed to replace

higher cost, heavier and hard-to-recycle materials traditionally used in automobile parts.

In India, ExxonMobil recently introduced light weight bump-ers with the General Motors’ hatchback car Beat. The thick-ness of the bumper of Beat has been reduced from 3.2 mm to about 2.5 mm. It also provided the rack and pinion bellows for Mahindra Xylo, which was made of Santoprene TPV which deliv-ers lower weight and increased life. Ford Figo is another car which contains a lot of polymer products from ExxonMobil for lightweighting.

Commenting on the manufac-turing of plastic components, NK Minda said, “Successful manu-facturing of plastic components lies in imparting precise treat-ment to the raw material and a high level of tooling skills. We have made huge investments in our product lines towards designing and tool manufactur-ing. Added to this is the more than five decades experience in manufacturing quality tools. This gives us an edge over the competition in acquiring cus-tomer confidence.”

The trend in modern engine

development is towards down-sizing from eight or six cylinders to four to three cylinders, the upshot being that the heat on the plastic parts is increased. To avoid re-substitution by metal and to use the light weight poten-tial of plastics further, another specialty chemical firm BASF has developed a new polymide with a sophisticated heat stabilisation system.

According to BASF, Ultramid Endure is a polymide for high temperatures in the charge air duct that can compete well with more expensive high perfor-mance plastics of a completely different chemistry. Ultramid Endure can easily withstand continuous use at temperatures of up to 220 degree celsius as well as spikes of up to 240 degrees Celsius in turbocharged engines. This extends the field of applica-tion of polyamides into the high temperature area.

The amount of polyamide in a European mid-sized car was about six kg in 1970. Today it accounts for about 20 kg of the cars in Western Europe. In India, however, the use of high-grade engineering plastics is much lower.

International Automotive Components (IAC) recently kicked off its tenth manufac-turing facility in China, in

the Southwest city of Chongqing.The new facility supplies both

the Ford Kuga and Ford Mondeo door panel and floor console assemblies, along with instru-ment panels, cockpits modules, finish trim panels and ducts for the Ford Mondeo. Additionally, IAC Chongqing supplies door panel assemblies, glove boxes and instrument panels for the Volvo S80L and will begin manu-facturing instrument panel trim components for a new Suzuki model later this year.

The Chongqing facility is a greenfield operation and employs approximately 275 associates in a variety of posi-tions. The 10,400 square meter plant employs world-class man-ufacturing processes consistent with IAC’s global manufactur-ing and assembly footprint. This new facility, in support of IAC’s customers, was designed and prepared for production in approximately 20 months, quickly becoming an industry

benchmark for delivering excel-lent manufacturing quality, flexibility and service to custom-ers in the region.

The Chongqing facility is the first in Asia to introduce FastKast, IAC’s proprietary A-surface material manufacturing process. FastKast incorporates thermo-plastic polyolefin and polyvinyl chloride resins in conjunction with IAC’s advanced process development, which enhances product quality, improved tactile feel and aesthetics on instru-ment panels and other interior trim components. Late last year, FastKast debuted in support of Ford business at IAC’s manufac-turing site in Bals, Romania.

The new operation marks the company’s second manufactur-ing location in Chongqing, but will consolidate both locations, growing the total number of IAC manufacturing facilities in Asia to 17, supported by six technical and engineering centers.

“IAC’s Chongqing facility is a testament to this company’s commitment and dedication to our customers as they continue to expand in this growing region,”

said Jim Kamsickas, President and Chief Executive Officer of IAC. “We look forward to bring-ing innovative technologies and interior solutions to customers here as we continue to broaden our footprint in the world’s larg-est automotive market.”

Additional capabilities in Chongqing include seam-less airbag scoring, foaming, roll-coating, lamination, vari-ous welding techniques, punch trimming, vacuum forming and

cut and sew. The facility is also equipped with a full test lab capable of airbag deployment validation testing, material and environmental testing and pre-cision Coordinate Measuring Machine (CMM) data collection.

IAC’s presence in the Asia-Pacific region has expanded to include design and technical facilities and joint ventures in key markets including China, Korea, Japan, Malaysia and Thailand. This network supports a broad

customer base that includes multinational and domestic OEMs around the world. IAC’s Asian headquarters are located in Shanghai.

IAC customers, suppliers, government and industry repre-sentatives joined IAC employees and executives for the dedication ceremony today.

IAC is a leading global sup-plier of automotive components and systems, including interior and exterior trim. IAC’s 2012 sales were $4.7 billion. The company operates 78 manufac-turing facilities in 18 countries. IAC employs approximate-ly 26,000 people around the world and is headquartered in Luxembourg.

Nabeel A. Khan New Delhi

Given that the component

industry operates in an ever changing

environment, the adaptations to our

manufacturing processes reflect the

changed requirements of OEMs.

The Chongqing facility is the first in Asia to introduce FastKast, IAC’s

proprietary A-surface material manufacturing

process.

Automobiles plastic use continues to rise

IAC opens Chongquing Facility in China

Latest trend replacing glass with plastic in vehicles

Auto Monitor

N E W S 1722 APRIL 2013

Indian auto major Maruti Suzuki’s bestsellers Swift Dzire and Ertiga have been awarded the India

Design Mark award. The India Design Mark recognizes prod-uct designers and the products created as being well designed, trustworthy, reliable, offering a true value for money and most importantly, being manufac-tured in a responsible manner.

This is the second con-secutive year where Maruti Suzuki models have been won the award. In 2012, Wagon R and Swift won this prestigious award.

Dzire a nd Ertiga are also among the top sel l ing mod-els in t he industry. During 2012-13, these two models added handsomely to the Company’s top line helping Maruti Suzuki post a growth of over 4.4 percent in domestic market.

The jury for the India Design Mark comprises country’s lead-ing design experts and senior faculty members of India’s lead-ing design institutes.

Speaking on the occasion, Mr.

C.V. Raman, Executive Director, Engineering, said, “The core philosophy at Maruti Suzuki is to design products which have the highest standards in design and engineering. This prestigious award for the second consecu-tive year to Maruti Suzuki is an acknowledgment of our passion and commitment to maintain the highest design standards for our cars. It also showcases our maturity in design engineer-ing. The award motivates us to continue creating better and innovative cars.”

India Design Mark was ini-

tiated in cooperation with the Japan Institute of Design Promotion (JDP). Established in 1969, JDP contributes to the promotion of industrial activi-ties, cultural improvement of the daily life and wholesome development of society through the encouragement of design.

The Good Design Award is a compre-hensive program for the evaluation and encourage-ment of design orga ni zed by Japan Institute of Design Promotion (JDP).

India Yamaha Motor Pvt. Ltd. (IYM) has won the India Design Mark (I Mark) award from the India

Design Council for its Ray scoot-er. Following last year’s award for the YZF-R15, this is Yamaha Motor’s second consecutive I Mark win.

The India Design Council is affiliated with India’s Ministry of Commerce & Industry and is made up of eminent people in academia, design and industry organizations. Its India Design Mark awards program was ini-tiated in cooperation with the Japan Institute of Design Promotion, and in line with the same standards set by Japan’s Good Design Award (G Mark). Open application and judging for the first I Mark awards was in 2012, and in the award’s second year, 2013, the Yamaha Ray was one of the 39 I Mark recipients.

As the Indian economy grows and more young women play an increasingly large role in socie-ty, there is a growing demand for compact, easy-to-use, stylishly designed women-oriented scoot-ers. Launched in September 2012, the Ray was developed to meet these needs and is the Yamaha brand’s first scooter model for the Indian market.

Its innovative styling is based on a design concept of “cool & beauty,” and the model is full of fine touches that women appreci-ate, such as a seat designed with easy leg reach to the ground, good comfort with powerful and smooth acceleration for tandem

riding, good fuel mileage, con-venient and practical storage space and easy-to-operate cent-er and side stands.

Commenting on the achieve-ment, Mr. Hiroyuki Suzuki, CEO & MD, India Yamaha Motor

Pvt. Ltd., said, “Appreciation in any form is a welcome boost to a compa-ny and its products. I am very pleased with this recogni-tion that I Mark has bestowed upon us and our scooter Ray. The response that we have been receiving for Ray is indeed very positive and encouraging. We understand the needs of our cus-

tomers and thus take great detail in our products in terms of styl-ing and design. Therefore, this award not just realizes our efforts but also motivates us to continue creating more new and innova-tive products.”

Yamaha Ray wins India Design Mark award

Swift Dzire and Ertiga bag India Design Mark

Auto Monitor

N E W S1822 APRIL 2013

Nissan has appointed Kenichiro Yomura as President of Nissan’s India operations.

Yomura, who will report to Toru Hasegawa, Corporate Vice President for Africa, Middle East and India, will concurrently hold the position of Managing Director and Chief Executive Officer for Nissan Motor India Pvt. Ltd, and will be based at the company’s Chennai headquarters.

The appointment marks a significant change in Nissan’s senior management structure in India as Yomura will hold respon-sibility for Manufacturing, Research & Development and Joint Venture businesses.

This will accelerate strategic decision making and streamline operational efficiency to help achieve the company’s objective of securing 10% market share by 2016.

In this expanded role, Yomura will be responsi-ble for developing strategies to maximize Nissan’s busi-ness performance, managing product introduction and significantly increasing the presence and accessibility of the Nissan brand through con-tinuing network expansion.

Yomura’s experience spans over three decades in the auto-mobile industry. His recent role was as General Manager over-seeing Nissan’s operations in the

Middle East region. Since joining Nissan, he has held various roles of increasing seniority across

numerous functions including Public Relations, Government Affairs, Sales Planning and Marketing in the US, China, Japan and the Middle East. He has also been instrumental in establishing robust marketing and sales networks in multiple markets.

Appointment of Ajay Raghuvanshi, Vice President – Business Management

In line with its strong focus on the Indian market, Nissan has appointed Ajay Raghuvanshi as Vice President – Business Management, responsible for supporting pricing, marketing, sales and operations.

With over 24 years of lead-ership and experience, Raghuvanshi brings a wealth of knowledge and understand-ing of the Indian automotive, consumer durable and publish-ing industry specialising in the field of sales, marketing and distribution.

Prior to this assignment, Raghuvanshi was the nation-al head for dealer development and rural sales operations for Hyundai and the Business Head for the entire Western Zone.

Raghuvanshi has exten-sive work experience in the Indian automotive industry and worked with various auto majors including Hyundai, Honda, Tata Motors and Yamaha.

VE Commercial Vehicles Limited (VECV) – a Volvo group and Eicher Motors JV – have

inaugurated a modern and con-temporary dealership for Eicher branded trucks and buses in Guwahati to strengthen the company’s resolve and com-mitment to provide sales and after sales support to the rapidly growing Eicher customer base in North East India. The dealership sales showroom and spare parts distributorship is in Dispur, and the service centre is located in Amingaon. The workshop fea-tures six bays spread over 30,000 sq. Ft. with contemporary tools and equipment. The service per-sonnel have been trained at the Eicher Regional Competency Development Centre (RCDC) in Howrah.

The dealership will be man-aged by the Gargya Group, who have been in the automotive business for the past 14 years. It is headed by Rahul Dev Sharma, a local entrepreneur and an

engineer with a management degree from the Asian Institute of Technology. A seasoned team of professionals from the com-mercial vehicles industry will be operating under Sharma.

Eicher has 250 touch points nationally and two dealership in the North Eastern region. The spares parts division of Gargya Motors Pvt. Ltd. has already appointed 25 retailers covering the entire North East region.

At the inauguration, G Sekar, Senior Vice President, Sales and Marketing, VECV commented, “We want to get closer to our customers and ensure that they are able to get their products serviced much easier and faster. We are continuously enhancing the standards of our workshop facility so that we provide best-in-class service and uniform customer experience.”

Eicher has today trans-formed itself into a complete CV manufacturer with a wide product range from 5t to 40t GVW trucks and 15 to 65-seat-

er buses. It is making strong inroads into heavy duty trucks segment of 16T-40T with the VEseries of fuel efficient heavy duty trucks. With more than 21,000 VE series, the trucks have received very good response from the market with its prom-

ise of delivering enhanced value to the customers. The first Eicher branded truck rolled out from its manufacturing plant in 1986 and over the past 26 years, the products have got endorse-ment from happy customers of over 300,000 vehicles.

Mercedes-Benz India has announced that Boris Fitz (age 41) will take over as Head of Sales for the company. And Santosh Iyer (age 36) has been designated Head of Marketing at Mercedes-Benz India. The responsibilities will be effec-tive May 1, 2013.

Gr e a v e s F a r m Equipment Business, part of Greaves Cotton Limited, one of India’s

leading engineering companies, today launched its first mini-tractor ‘Ustad’. Greaves Ustad falls in the 11-12 HP range of entry-level tractors and caters to a land holding sizes of 3-5 acres. It is designed primarily for farming operations, and can be applied to multiple operations such as haulage, cultivator, seed drill, pesticide sprayer, rotavator, etc.

The Greaves Ustad is fitted with an emission-compliant, easy to service, economical and fuel-efficient Greaves G 600 W II engine with a low diesel con-sumption of 1 litre/hour. The 4-stroke direct injection single cylinder engine offers a maxi-

mum torque of 32 Nm. The Ustad features forward-

reverse with eight forward and two reverse gears, completely sealed waterproof mechanical brakes, and a pawl and ratchet type lock-ing arrangement as a standard fitment. It comes with a combina-tion of synchromesh, constant and sliding mesh gear shifting with epicyclical planetary reduction gear that is suited for all agricul-tural operations and haulage.

With a minimum turning radi-us of 2.1 m without brakes, which is by far the smallest in industry, Greaves Ustad offers users the easiest maneuverability. Ustad presents a three-point linkage allowing for attachment of vari-ous implements like plough, cultivator, and harrow seed drill, and for movement of implements.

Speaking at the launch, Mr. Sunil Pahilajani, MD & CEO, said, “The launch of Greaves Ustad is a testimony of our continuous focus on new product development and innovation. It symbolizes our commitment of providing the farming community a value for money product backed by strong aftermarket support.”

“Our foray into the tractor segment completes the wide range of existing farm offerings. Greaves Ustad is a smart mini-tractor option available in the entry level 11 HP range. Farmers can now avail of a fuel-efficient, easily maneuverable mini-trac-tor that can perform multiple tasks. Fuel-efficient features and advanced ergonomic design provide farmers a comforta-ble driving experience coupled

with functional superiority”, said Mr. C.M. Ashok Muni, CEO, Farm Equipment Business. He added, “Our endevour is to pro-vide agricultural products that suit the Indian soil condition and crop pattern. The newly

launched Greaves Power Weeder and Paddy Weeder have received a positive response in the mar-ket. We are confident that Ustad will also help in further improv-ing the lives of farmers through mechanized farming.”

Forays into the mini- tractor 11-12 HP range, adds new products to augment farm equipment product portfolio.

Eicher inagurates dealerships in Guwahati Mercedes-Benz India announces new sales and marketing heads

Nissan announces senior management for Indian operations

Kenichiro Yomura, President, Nissan India.

Eicher has 250 touch points nationally and two dealerships in the North Eastern region.service centre is located in Amingaon.

Greaves launches ‘Ustad’

Auto Monitor

N E W S 1922 APRIL 2013

Toyota Kirloskar Motor Pvt. Ltd. has signed a Memorandum of Understanding (MoU) with Mahindra & Mahindra Financial Services Ltd.

to extend auto retail finance to their pro-spective customers. Mahindra & Mahindra Financial Services Ltd. will be one of the pre-ferred financiers for the entire range of vehicles sold by Toyota Kirloskar Motor Private Limited (TKM). The MoU was signed by Rajnish Agarwal – Vice President Operations, Mahindra & Mahindra Financial Services Limited and Sailesh Shetty, VP, Sales & Dealer Development, Toyota Kirloskar Motor.

Speaking on the occasion, Rajnish Agarwal, Vice President Operations, Mahindra & Mahindra Financial Services, said, “Our wide network of 640+ offices and customer pres-ence in more than 1,50,000 villages across India gives us an edge in reaching out to the deepest parts of the country. We have a customer-cen-tric approach and have developed loan products suitable for all profiles of customers. This ability also will create strong synergies.”

Also speaking on the occasion, N. Raja, Senior VP, Sales & Marketing, Toyota Kirloskar Motor said, “We are pleased to announce this part-nership with M&M Financial Services as our customers will greatly benefit with the com-petitive rates and convenient locations that Mahindra & Mahindra Financial Services is present in. Even though the overall auto market seems to be challenging at the moment, we have seen a surge for automobile loans in semi-urban and rural areas and we hope this new association of ours will help us reach out to more prospective customers. This is the right time for us to step up our efforts to reach out to more customers with better and easier finance options.”

Mohite Automotive marks its foray into the auto-motive segment

with the launch of Volkswagen Goa North. This also marks the foray of Mohite Automotive into this segment.

This expansion strength-ens the brands commitment to its consumers in the state by bringing its world class product closer to the brand and enthusiast. Commenting on the occasion Arvind Saxena, Managing Director of Volkswagen passenger cars said, “We have a strong line up of cars in the country and need to make this accessi-ble to customers..”

Volkswagen Goa North boasts of a state of the art facili-ty. Abhishek Mohite, Director, Mohite Automotive, said, ”We are happy to have made its foray into the automotive business with a company like Volkswagen and hope to continue to strengthen this association in the future.”

All over the world, original equipment manufacturers (OEMs) and suppliers of dual

clutch transmission (DCT) tech-nology are constantly innovating and improving technologies to adhere to stringent emission norms. Due to transmission technologies’ ability to provide better efficiency and perfor-mance, stakeholders expect DCTs to play a defining role in the global transmission mix by 2020.

New analysis from Frost & Sullivan (http://www.automo-tive.frost.com), Strategic Analysis of the Global Market for Dual Clutch Transmission Technology in Passenger Vehicles, finds that DCTs are expected to account for 9 to 11 percent share of the

overall transmissions market, translating to approximately 9.4 to 9.6 million vehicles with this technology by 2020. The dry clutch DCT is likely to be more dominant by 2020 due to its antic-ipated adoption within the small car segment and lower costs compared to wet clutch DCT. Its popularity among European and American OEMs will further con-tribute to its pervasiveness.

“Globally, emission stand-ards and fuel economy targets are pushing OEMs to constantly adopt cleaner and greener tech-nology while simultaneously meeting consumer expectations for smoother transmissions,” said Frost & Sullivan Analyst. “Leading OEMs across regions are strategically implementing DCT technology within their power-train technology portfolios.”

Automatic transmission is

dominant in North America, while Europe and China have shown a marked preference for manual transmission. However, by 2020, Europe and China are expected to be the most attractive DCT markets. While European consumers have react-ed positively to OEMs’ promotion of DCTs, consumers in China are looking for next-generation tech-nologies. Therefore, a number of foreign OEMs in the country are introducing DCTs while others are partnering with suppliers to purchase and develop sophisti-cated DCTs. Furthermore, China and India are also expected to be attractive low-cost DCT markets by 2020.

Even though OEMs are active-ly incorporating DCT in their vehicles, the technology might not find eager acceptance across all regions, especially in cost-

sensitive markets. Moreover, some regions are also set in their preference for certain types of transmission technologies. Supplier-OEM partnerships are therefore critical for region-specific deployments of DCT. A number of suppliers are expect-ed to offer entire transmission packages in the future, possibly in partnership with other market participants.

“A global powertrain strategy for OEMs is expected to have a key role to play in achieving econo-mies of scale for DCT technology. Numerous OEMs are also resort-ing to in-house transmission development, as it is considered a core competence and a key pillar of the overall global powertrain strategy,” noted the analyst. “All of these efforts are expected to accelerate the global uptake of DCT technology.”

DCT use on the riseDual clutch transmission offers best of both worlds — combining comfort of an automatic transmission and sportiness and driving experience of a manual transmission.

TKM inks MoU with M&M Financial Services

VW Opens Goa North

L-R: N. Raja, Sr VP, Sales & Marketing, Toyota Kirloskar Motor & Rajnish Agarwal – VP, Operations, M&M Financial Services.

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Getting Personalwith Mahendra Killedar, Country General Manager, Faurecia Emissions Control Technologies

In Real Life

If not in the auto industry, where would you be? I’d be in sports.

What car do you drive? What do you dream of driving? Octavia L&K. I dream of driving the Toyota Land Cruiser Prado.

Your most recent indulgence… A day at Oktoberfest in Munich.

What are you currently reading? I just finished Achyut Godbole’s Musafir.

What do you do when not talking auto? Listening to music – it is a great stress reliever.

An activity you would miss office for…Watching a T20 game.

Where did you go for your last holiday? Odisha.

You get angry when… People don’t anticipate.

What is the one thing you would like to change about yourself? I am quite happy with the way I am.

The best thing to have happened to you…Getting the opportunity to contribute to a growing economy!

Ma hend ra K i l leda r joi ned Emissions Control Technologies in June 2008 in a start up venture and established program teams. He took over the management of Emcon oper-ations after their merger with Faurecia in 2010. Killedar has previously worked for Cummins, Fleetguard Filters, Concentric Pumps, Mahle Filters, and Honeywell. He holds a bachelor’s degree in mechanical engineering, and an MBA in international business.

An experience I won’t forget…This experience dates back to 2004. I was on my early morning walk in China one day. I heard loud music emanating from a big square. As I followed the

music what I saw was astonishing. On one side of that square there were a hundred or more elderly people doing synchronised dance. It looked like some kind of an exercise (like yoga in our culture). They had a leader in front and the others were following his steps to some oriental music. It was so perfect. No one missed a step! And they looked so energetic and happy. I can not forget the smiles and satisfaction on their faces. They had no worries! There were several others like me watching what looked like their everyday routine. Now whenever I travel to China, I

expect to see those people again!

24

Regn. No. MH/MR/WEST/20/2012-2014. RNI No. MAHENG/2000/11414Licenced to post at Mumbai patrika channel sorting office G.P.O. Mumbai 400 001.Date Of Mailing:16th & 17th Fortnightly Issue. Date Of Publication: 13th of Every Month

Auto Monitor - 25 April 2013

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