Auto Monitor - 8 April 2013

Auto Monitorwww.amonline.in8 April 2013Vol. 13 No. 11 26 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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A case of just too many. More often than not, automobile companies have competing sub-

brands and products in the same market and vehicle segment. Vehicles share the same engines, platforms and since they are made in the same factory, it is logical that automobile manu-facturers must find a way to keep sibling rivalry at bay.

We spoke to various dealers of Skoda, Volkswagen, Renault and Nissan to understand how exact-ly they push brands that are quite similar inside. Most dealers we spoke to said they follow a poli-cy of not undermining any of the sub-brands, while simultaneous-ly meeting sales targets.

Since prospective buyers have no issues with badge engineering or platform sharing, dealers have little to worry about. Dealers say there are buyers who are not aware about the similarities between, say, the Rapid and Vento, or Fabia and Polo, or the tie-up between Nissan and Renault. Apparently

for prospective customers, it’s still the traditional looks, features and discounts available that mat-ters most.

“People are aware that VW and Skoda products are same, made in the same factory, but have dif-ferences in power output and cosmetic changes. The feedback that customers give us is, change the looks, change the clothes. It does not matter if the engine or other technical specifications are the same. There should be good

offerings in terms of features and looks. Out of the prospec-tive customer footfalls in the showroom, around 35 percent have knowledge of the product. They cross-check facts and read reviews, know about the products or have owned an offering from the brand and have the desire to buy another one,” said Sachin Bobate, Senior Sales Consultant at Autobahn Enterprises, a Skoda dealership located at Prabhadevi, Mumbai.

“We tell prospective custom-ers that if they have any queries, then take a test drive of both Volkswagen and Skoda cars. All cars are assembled in the same factory. There are only differ-ences in terms of ride quality, cosmetic appeal and features. The general feedback from our customers is that Skoda cars have better ride quality. Our products are selling better because our features are different from VW even though they share the same platform. We do not give any false hope or information to the cus-tomer,” he added.

“Some customers are aware that Volkswagen and Skoda are both from the same family. We have better features, finance schemes and offers for the cus-tomers. Our cars are definitely same but we are a better brand in terms of value. We do not pull down brands in front of custom-

ers. We get a lot of customers who are knowledgeable about platform similarities between VW and Skoda. Customers have become very demanding as they know the industry is having a tough time. Hoping to get the best out of the situation, customers are looking for hefty discounts and additional features,” said Sachin Devikar, member of the sales team at Volkswagen Mumbai West.

“Not many prospective customers are aware of the simi-larities. There are a few who do a complete research before com-ing to the showroom, but such customers are not first time car buyers. We do not lie to custom-ers in the interests of making a sale. Some features of our cars are good which are attracting...

Sibling rivalry Pradeb Biswas

Mumbai

Pg 08 Pg 11

On unsure ground So far so goodInterview with Harish Lakshman, VP, ACMA

INTERVIEW NEWS

Contd. on Pg 12

Top 5 2W Makers

Company Feb-12 Feb-13 Change

HML 5,09,931 4,88,930 -4.12%

HMSI 1,97,496 2,15,144 8.94%

Bajaj Auto 2,03,919 1,78,632 -12.40%

TVS 1,52,795 1,42,800 -6.54%

Suzuki 36,781 33,474 -8.99%

Top 5 2W Exporters

Company Feb-12 Feb-13 Change

Bajaj Auto 98,042 1,12,665 14.92%

TVS 16,200 18,095 11.70%

HML 13,534 12,341 -8.81%

IYM 13,605 15,393 13.14%

HMSI 8,551 13,364 56.29%

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

DATA MONITOR

Even as the passenger vehicle segment has been witnessing a major down-turn over the last few

months, there may be an improve-ment in sales in the medium term as factors affecting growth sub-side in a gradual manner.

The Passenger Vehicle (PV) industry’s domestic volume growth is expected to be around two percent in 2012-13, as the small car segment which accounts

for 55-60 percent of industry vol-umes is likely to continue to grow at a slower rate compared to other PV segments, according to a recent ICRA release.

However, ICRA is of the opin-ion that as some of the cyclical variables become less spiteful, the passenger vehicle industry is expected to revert to a volume Compounded Annual Growth Rate (CAGR) of 10-11 percent (domestic+exports) over the medium term.

Dealers are witnessing a sig-nificant drop in customer enquiry

rates and are less sanguine about demand recovery over the near term. The drop in enquiry rates has been observed in urban mar-kets as well as the smaller towns and rural areas, which portends a weak PV demand environment in 2013-14, according to Senior Group Vice President, ICRA, Subrata Ray.

The profitability metrics of industry participants will be impacted over the near term in view of an increase in expenses related to the launch of new mod-els, an increase in employee costs as several OEMs have announced

substantial wage hikes, like-ly sustenance of discounts-led sales push, and restricted pric-ing power in the wake of intense competition.

Market share in the domestic PV industry still remains con-centrated in the hands of a few players, reflected in the fact that the top four players account for 75 percent of industry volumes. This implies that profitability pressures on the relatively low...

A glimmer on the horizon

How do dealers deal with selling competing sub-brands in the same market and vehicle segment?

4-wheeler growth may revive 10-11 percent in medium term: ICRA report

Our Bureau Mumbai

Contd. on Pg 12

Faurecia seeks greater presence

The silver lining in the current automotive scenario is the continuing growth in light commercial vehicles sales. Sales have grown around 15 percent Year on Year (YoY) over the last three years or so. Moreover,

the sales growth has sustained despite the headwinds in the goods transport carrier segment over the last two years.

Admittedly, marketing managers in the LCV (or SCV) busi-ness would be a happy lot. But if one were to probe deeper, one would find that the segment would have grown much faster if financing were more readily available. The industry has been complaining that banks and finance companies are simply unwilling to take ‘undue’ risks by extending loans to first time buyers, the target customer segment for SCVs. Repeat customers get a priority or are the only ones consid-ered for any auto loans.

An official from a major South-based commercial vehi-cle manufacturer pointed out that growth in LCV segment (in turn driven by SCVs) could have been much bigger were it not for banks and finance companies turning away new or first time truck buyers. The pent-up demand for SCVs is not only leading to the stunted growth of entrepreneurship but also hampering last mile connectivity, leading to higher logistics cost.

There are no easy solutions. Banks cannot be expected to

lower lending standards and see bad loans on their books piling up. It may serve both sides (financiers and vehi-cle manufacturers) if some partnership could be struck to mutual advantage. Vehicle manufacturers could identify a low-risk customer segment, or become willing to take a hit on a bad loan pool thereby providing the necessary confidence to financiers in extending loans. Alternatively, more special-ised modes of financing could be created that take the risk farther away from financiers’ books.

Any measures that could help in kick starting growth in the CV segment would be more than welcome by the indus-try, even as it braces up for a prolonged cyclical downturn. More so if such moves could lead to demand rubbing off on other vehicle segments as well.

Risk Aversion

QUOTESJeremy Hicks, Jaguar Land Rover UK Managing Director

Mark Ovenden, Ford of Britain managing director

“The strong sales performance of Jaguar Land Rover products in March has been driven by new product, considered model year updates and a strong luxury sector performance.”

“The important March sales month, when the number plate change boosts registrations, has provided more positive news for the UK market and seen Ford’s car and CV ranges continue their terrific 2013 sales record.”

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CONTENTS

Daimler wholly integrates Benz bus division 18Daimler India Commercial Vehicles has announced its integration with the Mercedes-Benz Bus division that was handled by Mercedes-Benz India till recently.

Honda to invest `2500 crore at Rajasthan plant 18Honda Cars India is investing `2500 crore for its Tapukara plant in Alwar district, Rajasthan, to build a new assembly line for cars with an annual installed capacity of 120,000 units.

Ashok Leyland ‘Dost’ completes one full year of operations 19ALL-Nissan’s Dost, the 2.5 tonne LCV completed one full year of successful operations clocking sales volumes of 34,917 units garnered from the 12 states.

Fiat & Chrysler appoint new President & MD for India 19Nagesh Basavanahalli has taken charge as President and MD for Fiat and Chrysler India operations as part of ongoing efforts to strengthen their business position in India.

Honda registers annual growth of 35 pc 14Honda Cars India registered an annual growth of 35 percent by selling an all time high volume of 73,483 units during Apr 2012-Mar 2013 as compared to 54,427 units in the corresponding period the previous year.

CORPORATESo far, so good 11French auto component supplier Faurecia is looking to expand India presence, eyes global platforms of OEMs.

Lanxess presents strong results for 2012 14Lanxess has announced strong figures globally in the past fiscal year, with improvements in key reported numbers with Indian unit notching up sales of Rs 1672 crore last fiscal.

For a smoother drive 16Driving a car at low rpms cause torsional vibrations, perceived by passengers as a hum. A new type of centrifugal pendulum helps reduce these vibrations.

Auto Monitor

I N T E R V I E W88 APRIL 2013

The auto components industry has seen severe ups and downs in the last year. How is ACMA helping the industry in maintaining some stability in business, helping it to survive?

It is unfortunate that the business has hit a low this year. However, it is also a fact that it is no longer possible to sustain the high rates of growth that we wit-nessed in the last few years. The industry needs to internalise the fact that the business will be cyclical, there will be crests and troughs, and I think the indus-try has matured sufficiently to handle these challenges. Having said that, each compa-ny is responding to the current challenges according to their strategy and resources. Some are utilizing the time to invest in upgrading the skills of their people, while some are taking a keener look at their portfo-lios and even consolidating it. At ACMA, we are stressing on the need to explore external markets as well as considering adjacent markets such as aero-space and defence. We are also urging ACMA members to focus attention on value addition through R&D and new product development. All this is, howev-er, much easier said than done. A lot of infrastructure and gov-ernment support will be needed.

What government grants are available and expected to come to auto vendors to help them diversify their product range and customer base?

While various schemes are available with various govern-ment departments for promotion of R&D, we haven’t harnessed them well. Some schemes are dif-ficult to make use of as these are not extended to individual com-panies but can only be given to a consortium through the associa-tion. Others have to be made use of in collaboration with academ-ic institutions. I am confident that sooner rather than later you will witness the industry taking steps for R&D and innovation, whether that happens through government schemes or other-wise remains to be seen. One of the requests we have made to the government is a 5% interest sub-vention scheme towards capital investments.

For a long time, OEMs have been dictating the prices of aftermarket products. Vendors have little say. How can this be changed so as to make the aftermarket more lucrative for vendors?

This is somewhat complicat-ed. We hope competitive forces will prevail and the market will open up for the benefit of all. The aftermarket in India is growing very rapidly and we believe that there is enough room for both OEMs and component manu-facturers to further develop this market and grow.

Given that OEMs are slash-ing the prices of their models, what does that bode for vendors? Should they follow suit? Kindly explain.

The component industry is dependent entirely on the automobile industry for their survival. With vehicle sales spi-ralling down, the impact is surely being felt on the compo-nent industry as well. This has probably been one of the worst years for our industry. The vehi-cle industry is slashing prices to sustain itself. There is pressure on us to always reduce prices. We hope that the economy and the industry recover soon, or else the situation will further worsen for all of us.

With more manufactur-ers resorting to just-in-time manufacturing, how do ven-dors manage the product supply chain? How does it help them in terms of costs?

One of the strengths of the Indian auto component industry has been its flexibility. However there are inefficiencies when you benchmark with, say, Japan. The inefficiencies increase as you go from Tier-1 to Tier-2 to Tier-3. However with more and more OEMs resorting to just-in-time manufacturing the efficiencies have improved significantly in the last few years. This has hap-pened especially at the Tier-1

levels. Recently there has been a trend to implement the just-in-time concept to Tier-2 and Tier-3 as well. Many large Tier-1 companies are successfully implementing this. There is a clear recognition that more and more just-in-time will lead to lower cost across the value chain.

In January this year, you had pegged the Indian auto com-ponents industry to grow at 12% during 2012-2021. What are the steps you have taken or intend to take to see this through?

There is no denying that the Indian economy is under stress, and this is well reflected in the state of the manufacturing sec-tor in the country including the automotive sector. Speaking of the automotive sector in par-ticular, in the current fiscal while most segments of the industry, be they CVs or passenger cars or two-wheelers, will witness nega-tive growth, it is the aspirations of the people of the country to own vehicles which will drive this sector in the long run. Even today the automotive sector has emerged as the hub for manu-facturing small vehicles. Going forward we will have to invest in R&D, new product develop-

ment and eventually owning our own IPs to be globally competi-tive. I am fairly confident that by 2020 we will be a USD 115 billion industry as envisioned by ACMA.

We have been constant-ly hearing at various fora that Indian components manufac-turers need to make a transition in terms of product innovation. What could these transitions be? What are the new growth oppor-tunities for this sector? Please elaborate.

Today, a majority of vehi-cles and components are developed overseas, creating a gap in local knowledge and expertise. Consequently, the Indian auto component industry is largely a ‘build to print’ indus-try. The industry needs not only to scale-up in capacity but also needs to invest in technology to support local automotive industry growth. India possesses a com-petitive advantage in its low-cost, high-quality frugal engineer-ing capabilities. This needs to be maintained and further enhanced to be competitive. This will be the next phase in the evolution of the Indian auto component industry and this is the transformation we need to bring about.

On unsure ground

It is the aspirations of the

people of the country to own vehicles which will drive this sector

in the long run. Going forward we will have to invest in R&D, new product development and eventually owning

our own IPs to be globally competitive. I am fairly confident that by 2020 we will be a USD 115 billion

industry as envisioned by ACMA.

The current slowdown in the automotive industry has hit the components sector particularly hard. Harish Lakshman, Vice President, ACMA, and Managing Director, Rane TRW Steering Systems Ltd, talks about the measures component manufacturers are taking to combat the downturn, in an interview with Jayashree Kini-Mendes.

Auto Monitor

N E W S 118 APRIL 2013

we would finalise our plans to grow local pres-ence in due course,” said Raphael Berthoud, General Manager India-Thailand, Faurecia Interior Systems.

The French auto components major is look-ing to capitalise on its global relationship with Ford and Renault for growing its business in the key markets of Brazil, India, Thailand and China. OEMs are looking to introduce global platforms or models in key markets to garner major volumes and this is likely to provide major opportunities to suppliers like Faurecia to expand in these markets. Ford, for instance, is looking to garner major volumes for the Ecosport in India, Thailand, Brazil and China.

“We are in the process of identifying products that could be exported to other markets and this objective could become more feasible if we enrol ourselves as a supplier for a large volume man-ufacturer or a large volume model,” he added. The Indian unit is already a major exporter of air vents to the associate unit in Brazil. It is looking to target B and C segment car manufac-turers in India as well as expand its base of Tier II suppliers to help it in sustaining business and maintaining quality benchmarks.

“One of the major challenges of expand-ing into a market like India is maintaining quality standards as business or operations

Faurecia is evaluating the feasibility of setting up two additional manu-facturing facilities in

India. One facility may come up near their existing R&D facil-ity in Pune, with the other one in Sanand, Gujarat. However a company official pointed out that the expansion plans are still on the drawing boards, and would be implemented when addition-al business from global and local OEMs comes in and not in the anticipation of such business.

“Our priority is increasing local presence as that would not only help us in keeping cost competitive but also help us win business from Indian and global OEMs. We are evaluating vari-ous options for expansion and

We are in the process of identifying products that

could be exported to other markets and this objective

could become more feasible if we enrol ourselves as a

supplier for a large volume manufacturer or a large

volume model.

So far, so goodFaurecia looking to expand India presence, eyes global platforms of OEMs

Abhishek Parekh Mumbai

grow to global scales. Our sup-pliers would play a critical role in this process,” he said. The compa ny’s ma nufacturing capacity for interior systems is around 250,000 units per annum currently.

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 manufacturing and R&D sites that provide assistance to automakers in developing glob-al programs and platforms.

It manufactures and supplies instrument panels, centre con-soles, door panels, door modules and acoustic solutions for differ-ent categories of vehicles. The Group also supplies turnkey cockpits from its just-in-time assembly plants. Faurecia’s

knowhow yields custom-made solutions for automakers seek-ing to ensure the safety, comfort, perceived quality and lighter weight of their vehicles.

Based at eight different R&D sites, R&D employees identify and analyse market trends and transform the latest concepts into innovative products that offer value to the consumer. They focus special attention on customisable features, the use of authentic materials, comfort — including noise reduction — and solutions that use light-weight, eco-friendly products. The company’s innovation pro-cess is tightly structured, with five benchmarks, to ensure that only the most promising prod-ucts are selected, so as to offer a customized solution that is tailored to each customer’s needs.

Faurecia focus special attention on customisable features, the use of authentic materials, comfort, and solutions that use lightweight, eco-friendly products.

We are evaluating various options for expansion and we will finalise our plans to grow local presence in due course.

Auto Monitor

N E W S128 APRIL 2013

.... customers. We also offer a four-year warranty, while at Nissan you get only two years of free warranty. We do not pull down any brand to make a sale. Also, with a widespread dealer network there are no worries for the customer,” said Ivan Pais, General Manager, Gen Next Motors, a Renault dealership located at Andheri, Mumbai.

Echoing similar sentiments is Mohammad Naqshab, a sales consultant with Nissan dealer

Torrent Motors, Mumbai, who says, “Ninety percent of cus-tomers are not aware of the similarities between Renault and Nissan products. They are not too concerned about the technical aspects. What makes a difference is the features that our cars have. Our vehicles are also around a lakh cheaper than those from the Renault stables.”

“At times a customer may go test drive the Jetta first and then walk into a Skoda showroom. The salesperson won’t be aware about this. But if the buyer likes

the presentation of the sales-person, feels more comfortable, and gets relevant information in a transparent manner, then the job is done. Nobody has any issues with the product. It is the

aftersales part that is crucial and makes the difference. There are customers who have bought cars from us inspite of bigger discounts available elsewhere because of the assured service from us,” added Sachin.

While some customers are aware about product similari-ties and platform sharing, they clearly do not comprise the majority. With most buyers not being concerned with what lies under the hood or where the cars come from, sibling rivalry is unlikely to be a headache for automobile manufacturers with competing sub-brands. As the adage goes, make hay while the sun shines!

Satisfaction with origi-nal equipment tyres continues to increase in India year over year,

according to the JD Power Asia Pacific 2013 India Original Equipment Tyre Customer Satisfaction Index (TCSI) Study.

MRF ranks highest in over-all customer satisfaction for the fourth consecutive year, with a score of 840 points. JK Tyres ranks second with 839 points, while Bridgestone, which improved the most among tyre companies included in the study, ranks third with a score of 836, a 26-point increase year over year.

“Perception of high qual-ity and reliability, aided by a positive reputation for brand image, continues to drive high customer satisfaction with MRF tyres,” said Mohit Arora, executive director, J.D. Power Asia Pacific Singapore.

The percentage of custom-ers reporting problems with their OE tyres in 2013 remains consistent with the 2012 study at 12 percent. Again this year, customers experiencing a tyre-related problem prefer to have their tyres repaired at an authorized retail outlet.

“The propensity of cus-tomers to have their tyres serviced at an authorized retail outlet is a trend that we note has increased dur-ing the past two years,” said Arora. “Authorized tyre retail outlets continue to upgrade their services, in terms of pro-cesses, facilities, and type of services offered.As observed in other markets, this retail segment, if managed well, is likely to be one of the key drivers of a vibrant aftermar-ket in India.”

.... volume players may be even higher, resulting in sustained external financing depend-ence to offset losses and capital expenditure require-ments, according to the report.

The sales volumes in the Utility Vehicle (UV) segment have grown at 26 percent CAGR over the last three years (2009-10 to 2012-13E), much higher than the growth of 11 percent recorded by the domestic PV industry during this period. In the last two years, the UV seg-ment’s volume growth has been even faster with volume growth of 16.5 percent recorded in 2011-12 (versus 4.7 percent volume growth of the PV industry) and a still higher growth of 54.5 per-cent recorded in 2012-13 (versus 4.1 percent volume growth of the PV industry). With this, the share of the UV segment in the domestic PV industry increased from 12.6 percent in 2010-11 to 20.6 percent in 2012-13.

In contrast, Passenger Car (PC) segment volumes have been

sluggish, reflected in a 2.2 per-cent volume growth in 2011-12 and minus (-) 4.6 percent year-on-year growth in 2012-13.

Within the PC segment, vol-ume performance has been characterised by a wide disper-sion in growth rates between petrol and diesel models. While diesel car volumes expanded by 37 percent in 2011-12, and 27 per-cent YoY in 2012-13, petrol car sales have stopped short of a 14 percent decline in 2011-12, and a 17 percent YoY decline in 2012-13.

The continued trend towards ‘dieselisation’ of the PV indus-try 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 estimates, the industry’s growth (in value terms) in 2011-12 and 2012-13, was relatively higher at around 13 percent and 10 percent, respectively; against a volume growth of 4.7 percent in 2011-12 and 4.1 percent YoY in 2012-13.

The last two fiscals were among the most challenging for

market leader Maruti Suzuki as it saw its market share slide sharp-ly from 45.3 percent in 2010-11 to 38.9 percent in 2012-13.

The other key players who saw their market share dip dur-ing the 11 months in 2012-13 were Tata Motors (market share down 1.9 percent) and General Motors (market share down one per-cent). The primary market share gainers over the last two years have been Mahindra & Mahindra (M&M) -- supported by volume expansion of Bolero and XUV500 models; Renault -- on the back of strong customer response to the Duster; Toyota -- on the strength of its new cars Etios and Liva as well as customer response to the Innova facelift; and Nissan -- driven by a scale-up in the vol-umes of the Sunny.

The highly capital-intensive nature of the PV industry, grow-ing competition, and a slow growing market have combined to add pressure on OEM profita-bility. OEMs including Hyundai, Toyota, Renault-Nissan and Volkswagen currently rely on imported diesel powertrains for their vehicles. Given the rapid shift in consumer preference towards diesel-run cars over the last two years, most OEMs are struggling to meet the strong demand for diesel-run cars, according to the ICRA analyst.

Between Maruti Suzuki, Hyundai, Renault-Nissan and Toyota, the industry is witness-ing a capital expenditure of around `3,000 crore that may be incurred over the next two years, to enhance diesel engine manu-facturing capacity. Additionally, Ford and Maruti Suzuki are at varying project stages towards setting up greenfield manu-facturing facilities in Gujarat, which may involve a combined investment outlay of around `12,000 crore over the next three years.

Tata Motors, along with its partner Diesel & Motor Engineering PLC, have launched the Tata

Prima range of commercial vehi-cles in Sri Lanka. The Tata Prima range is the most technologically advanced offering in the Medium and Heavy Commercial Vehicles segment from Tata Motors. The models introduced in Sri Lanka are the Tata Prima 4023 LX (4X2), Tata Prima 4923 LX (6X4), Tata Prima 4028 (4X2), Tata Prima 4938 (6X4), Tata Prima 4038 (4X2) and the Tata Prima 4928 (6X4), which are primarily targeted at container movement, cement transportation and gas logistics across the island. In their power, speed, carrying capacity, operat-ing economy and trims, they will introduce new benchmarks in Sri Lanka and match the best in the world in performance.

According to Mr. Ravindra Pisharody, Executive Director, Commercial Vehicles Business Unit, Tata Motors, “The Tata Prima range is an output of col-laboration across the Tata Motors family, supplemented by inputs from partners across the world.

The revamped infrastructure in Sri Lanka makes it possible for transporters to reap the benefit of the Tata Prima trucks with higher power, speed and carrying capac-ity. This new range from Tata Motors will meet the changing needs in the Sri Lankan market.”

The launch has culminated with the transformation which is taking place in Sri Lanka as reflect-ed in the revamped infrastructure of world-class ports, expressways and new economic hubs being developed. The Tata Prima range comprises tractor-trailers, tip-pers, and special application vehicles which can meet varied end user requirements.

The Tata Prima has been joint-ly developed by Tata Motors and its two subsidiaries, Tata Daewoo Commercial Vehicle Company, South Korea, and the Tata Motors European Technical Centre PLC, UK. The company has harnessed the best of inputs and tech-nologies -- in styling, engines, transmission, suspension, chassis frames, fabrication and dies — from partners based in countries such as Italy, Germany, Sweden, United States of America, Japan and South Korea.

The new generation of Tata Prima tractor heads offer a

completely new stylized, air con-ditioned cabin. The driveline comprises of the latest engine tech-nology from Cummins Inc. The power train option stretches from 230 HP to 380 HP, with suitable engines, transmissions and axles

of different makes. The high pres-sure common-rail engines with an optimized drive-line offer faster turnaround time, and enhanced profitability in the business. The Tata Prima range will come fitted with a global positioning system

(GPS) for effective vehicle track-ing as standard fitment. Equipped with strong aggregates and a robust chassis frame and suspension, the Tata Prima range can overcome all terrain requirements for these applications.

Contd. from Pg 1

Contd. from Pg 1

Most buyers are not concerned with what lies under the

hood or where the cars come from. Sibling

rivalry is unlikely to be a headache for mfrs

with competing sub-brands.

The trend towards ‘dieselisation’

has enabled the PV industry’s growth.

Tata Prima trucks launched in Sri Lanka

Satisfaction with OE tyres continues in India

Our Bureau Mumbai

Sibling rivalry

A glimmer on the horizon....

Auto Monitor


Lanxess, the global specialty chemicals company headquar-tered in Germany, has

announced strong figures glob-ally in the past fiscal year, with improvements in key reported numbers. “2012 was the best year in our growth story so far. Our business model proved itself once again,” said Lanxess’ Chairman of the Board of Management, Axel C Heitmann, at the Annual Press Conference in Dusseldorf.

India performanceLanxess in India was also

consistent in its performance in 2012 as compared to 2011, achieving sales of about `1672 cr (EUR 238.9 mio) in this fis-cal. “Despite the volatility in the economic scenario and fluctuations in exchange rates, Lanxess has shown positive growth in terms of sales in the Indian subcontinent. This also implies that we are optimis-tic about the Indian market in the long term and consid-er these uncertainties only a blip in the potential growth”, said Dr. Joerg Strassburger, Managing Director and Country Representative, Lanxess India.

“We have benefited from the increase in domestic demand in certain segments like paints and coatings, pharmaceuti-cals and agrochemicals, and done well in businesses that are driven by these segments. The business unit Advanced Intermediates has shown a sig-nificant growth of 11 percent this year, majorly coming from our manufacturing facility at Nagda. This has somewhat off-set the drop in demand from the automotive and tyre industries in 2012, on which our rubber businesses are dependent,” added Venkatesh Sankaran, Chief Financial Officer, Lanxess India, explaining the situation.

Global PerformanceLanxess confirmed the pre-

liminary results for 2012 that it published on March 7, 2013. Group sales grew by 4 percent in fiscal 2012 to EUR 9,094 mil-lion. Business development was driven notably by the focus on emerging markets, solid demand for agrochemicals, pleasing contributions from acquisitions and the price-before-volume strategy.

EBITDA pre-exceptionals improved by 7 percent to EUR 1,225 million, compared with EUR 1,146 million in the previ-ous year. The operating results thus came within the target corridor of a 5 to 10 percent increase. The EBITDA margin pre-exceptionals amounted to 13.5 percent, compared with 13.1 percent in the previous year. Net income and earnings per share (EPS) improved by 2 percent in 2012, to EUR 514 mil-lion and EUR 6.18, respectively.

The company will propose to the annual stockholders’ meeting on May 23, 2013, that a dividend of EUR 1.00 per share be paid for 2012. This represents an increase of about 18 percent compared with the prior year and results in a payout of rough-ly EUR 83 million.

Employees will also ben-efit from the strong earnings, receiving some EUR 115 million in profit-sharing payouts for the year. This figure compares to about EUR 100 million for 2011.

Regional sales development

The Asia-Pacific region again proved to be a stabilizing factor in 2012. Sales grew by about 10 percent to about EUR 2.2 billion. In Greater China (Hong Kong, China, Taiwan), the EUR 1 billion sales threshold was exceeded for the first time. Business in North America also gained strongly, with sales advancing by more than 10 percent to roughly EUR 1.6 billion. The EMEA region (Europe [excluding Germany], Middle East, and Africa) – with sales of EUR 2.5 billion – once

again accounted for the largest share of Lanxess sales, although business in this region showed a slight decline of just under 1 percent. In Germany, sales rose slightly to approximately EUR 1.6 billion. In the BRICS countries (Brazil, Russia, India, China, South Africa), sales moved for-ward by 1 percent year-on-year to over EUR 2.2 billion.

“Green Mobility” In 2012, Lanxess had sales of

approximately EUR 1.6 billion with products and technolo-gies for “Green Mobility”, which accounted for some 17 percent of overall sales. The company expects to achieve sales of some EUR 2.7 billion in sales from “Green Mobility” by 2015.

Sound financial positionThe good business develop-

ment led to a strong operating cash flow, as well as a sound balance sheet. Capital expendi-tures grew to EUR 696 million, compared with EUR 679 million a year prior. Operating cash flow showed a positive development in 2012. Despite an increase in working capital, this key indi-cator improved from EUR 672 million to EUR 838 million.

“Net financial liabilities declined by EUR 32 million year-on-year to EUR 1,483 mil-lion at the end of the year despite acquisitions and increased

investment activity,” explained Lanxess Chief Financial Officer Bernhard Duettmann. The ratio of net financial liabilities to EBITDA pre-exceptionals fell from 1.3 to 1.2. “This underlines our conservative financial pol-icy, which is characterized by long-term financing and far-sighted steering of financial risks,” he added.

Move to Cologne on trackThe transfer of company

headquarters to Cologne is pro-ceeding on schedule. Some 1,000 employees will move into the Lanxess Tower on the banks of the Rhine, which provides about 36,000 square meters of office space. The new Group headquar-ters building will be inaugurated on September 3, 2013.

Outlook Contrary to the usual season-

al trend, the low level of demand that was already apparent in the second half of 2012 has contin-ued into the start of the year in most businesses. Against the backdrop of the current weak demand in the tyre and auto-motive industries in Europe, Lanxess expects a significant-ly lower year-on-year EBITDA pre-exceptionals of between EUR 160 and 180 million in the first quarter of 2013. This esti-mate already reflects start-up costs of EUR 20 million for the new butyl plant in Singapore. In the previous year’s quarter, Lanxess achieved an EBITDA pre-exceptionals of EUR 369 million, which was the compa-ny’s strongest quarter ever.

Based on the weak business development in the first quar-ter, Lanxess currently expects that the EBITDA pre-exception-als in the business year 2013 will not reach the record level of the previous year. As usual, Lanxess will give a more precise outlook for the current full year when it publishes its first-quarter report on May 8, 2013.

In this persistently vola-

tile environment, Lanxess will continue to focus on cost dis-cipline and its proven flexible asset management and expects a pick-up in demand in the sec-ond half of the year, so that the full year 2013 can develop into another positive one.

The company is sticking to its mid-term targets of EUR 1.4 billion and EUR 1.8 bil-lion EBITDA pre-exceptionals in 2014 and 2018 respectively. For the current year, Lanxess is again planning capital expendi-tures of some EUR 650 million to EUR 700 million. Research and development expenditures are expected to grow by about 10 percent in 2013 from EUR 192 million in the previous year.

The megatrend of mobility remains intact. The company believes the agrochemical end markets will continue to devel-op positively, particularly in Asia. Lanxess also expects a moderate recovery in the con-struction industry, with growth occurring mainly in Asia and Latin America. Even assuming a slow pace of economic growth, the Group aims to strengthen its market positions, especially in the BRICS countries.

New capacities coming on stream during the year will con-tribute to growth in all three segments. “The new butyl rub-ber plant in Singapore – our biggest capital expenditure project so far, at some EUR 400 million – has started up in the first quarter and will begin commercial production in the third quarter as planned,” said Heitmann. In addition, Lanxess will start up a new leather chem-icals facility in China in April. At the beginning of March, a new project for high-perfor-mance rubbers used in “Green Tires” was initiated in Brazil. “Conditions may be more tur-bulent at the moment – but we remain optimistic thanks to our strategic set-up with a focus on the emerging markets and meg-atrends,” noted Heitmann.

Lanxess presents strong results for 2012

Honda Cars India Ltd (HCIL), leading man-ufacturer of premium cars in India, regis-

tered an annual growth of 35 percent by selling an all time high volume of 73,483 units dur-ing April 2012-March 2013 as compared to 54,427 units in the corresponding period the previ-ous year.

The company also exported a total volume of 2,622 units dur-ing the fiscal year 2012-13. HCIL sold 10,044 units in the month of March’13 as against 11,016 units i

n March’12. According to Jnaneswar

Sen, Sr. VP, Sales and

Marketing, HCIL, “We are delighted to witness a remarkable growth of 35 percent over the last year although the market envi-ronment has been quite tough. Strong demand for Honda Brio and Honda City has been instru-mental in achieving this success. 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 there-fore we have been expanding our sales network to reach out to newer cities and markets.”

Honda Cars India Ltd expand-ed its sales and distribution network across the country dur-ing the fiscal year 2012-13 to 150 facilities in 97 cities. The net-work included 135 facilities in 83 cities during 2011-12.

We have benefited from the

increase in domestic demand in certain

segments like paints and coatings,

pharmaceuticals and agrochemicals,

and done well in businesses that

are driven by these segments.

Strong demand for the Brio and City

has been instrumental in achieving this

success. The launch of Amaze this month will be a significant step in

Honda’s strategy.

Honda registers annual growth of 35 pc

Lanxess India achieved sales of `1672 cr in fiscal 2012, global sales grew 4 percent

Model-wise break-up of domestic sales (March ’13)Brio 3917

Amaze 2552

City 3432

Accord 113

CR-V 30

Auto Monitor

R E P O R T 158 APRIL 2013

Weak demand indicators bedevil near-term recovery

CV industry entered a cyclical phase since the beginning of 2012-13

After experiencing a volume growth of over 30 percent during 2009-10 and 2010-11, the buoy-ancy in domestic CV industry has been on the wane. Slowing industrial growth and weakening investment sentiment across sec-tors has had a significant adverse impact on CV demand since the second half of 2011-12. While in 2011-12 the domestic CV indus-try volumes slowed down to 18.2 percent, industry volume growth entered into the negative territo-ry in 11m 2012-13, also due to the high base of the last three years. Segment-wise performance has been characterized by a wide dis-persion in growth rates. While the light commercial vehicle (LCV) segment continued to sustain its growth momentum with an increase of 14.5 percent YoY in 11m 2012-13, M&HCV bore the brunt of slowing industrial activity, weak investment sentiment and the impact of significant fleet capac-ity addition over the past three years, especially in the heavy-duty categories of the trucking market. Within the M&HCV seg-ment, while demand for buses has not been affected significantly compared to the previous year on back of healthy off take from the private segment and improving order inflows from STUs, the con-traction in demand for the higher tonnage category of trucks such as tippers, tractor trailers and multi-axle vehicles (MAVs) has been the sharpest. These factors caused M&HCV volumes to shrink by

a sharp 22.8 percent YoY in 11m 2012-13.

Surplus fleet capacity and weak transporter viability post grim picture for the near-term

Our interaction with a host of dealers, transporters and financ-ing institutions reflect an overall pessimistic outlook for the near term. It primarily stems from weak visibility on cargo availa-bility, a key factor that continued to support fleet operators’ viabil-ity in 2011-12 despite almost flat freight rates and rising operating costs. From transporters’ viabili-ty standpoint, the current phase is characterized by reduced cargo volumes, stiff competition owing to surplus capacities (M&HCV sales doubled from the lows of 2008-09, bringing down the aver-age age of M&HCV population to a 10 year low) and rising operat-ing costs, especially in the wake of the recent hike in diesel prices. Although the freight rates have inched upwards following the hike in diesel prices, the extent of rise has not been adequate (on an aggregate basis) as it continues to be influenced by demand-sup-ply dynamics in each market. As a result, capacity deferment and implementation of cost rationali-zation measures have been at the forefront for even the organized fleet transporters. That apart, the currently high level of discounts, especially on heavy duty trucks has also not been able to stimulate demand in a meaningful man-ner. Over the past 4-6 months, the financing environment of CV industry has also started show-ing signs of weakness, largely reflected by the rise in delinquen-cy levels. The only silver lining so far has been that credit availabil-ity continues to remain stable and there has not been a perceptible change in lending norms. With some deterioration in asset qual-ity indicators, credit evaluation has become somewhat stringent and so have the collection effi-ciency efforts.

OEMs with new model introductions and expanding market coverage gain market share

The current year has been marked by a market share loss for industry leader Tata Motors, especially in the M&HCV segment as some of the other OEMs have managed to offset; the impact of slowdown to an extent with an expanding dealership network and wider model offerings. More specifically, the Volvo Eicher JV gained market share (albeit on a low base) on the back of increasing acceptability in the heavy-duty trucks segment, while Mahindra (erstwhile Mahindra Navistar) also performed better than the industry though on low volumes. Ashok Leyland’s expanding mar-ket coverage outside the Southern region also helped in countering the impact of the slowdown to an extent. Along expected lines, the Ashok Leyland-Nissan JV made a good head start in the LCV seg-ment with its first product offering named ‘Dost’. With more mod-els planned for launch and plans to set up a Greenfield facility, we expect the JV to build upon its 7-8 percent market share in the LCV segment.

Product development-led initiatives remain core investment plans for OEMs; pressure on profitability

Having concluded capac-ity expansion plans over the past couple of years, CV OEMs are currently investing in devel-oping new products, engine technologies and even pursu-ing diversification plans in other sectors. Most of the investments plans at present are not associated with capacity expansion (barring debottlenecking or investments for new product categories) and are continuing as per plans. For some of the OEMs, the invest-ment plans are sizeable and in view of weak cash flow generation would require equity infusion or

external financing to maintain a stable credit profile. The prof-itability indicators of industry participants have been under pressure on account of rising dis-counts and weak M&HCV sales. OEMs have resorted to produc-tion cuts in sporadic intervals and cost rationalization measures to withstand the impact of the slow-down. In our view, a meaningful recovery in the margins however will be driven by gradual recovery in M&HCV sales accompanied by better pricing power.

Recovery in M&HCVs expected to be gradual

We expect M&HCV volumes to remain weak in the near-term as underlying demand indica-tors continue to post a subdued picture. Surplus capacity in the trucking system and currently weak transporter viability suggest that recovery in M&HCV demand is likely to be gradual. While ICRA expects the GDP growth to gradually improve in 2013-14e, and potential for further interest rate cuts, pick up in capex cycle, and infrastructure development would be critical to sustain the demand for commercial vehi-cles over the medium-term. The scenario would start improving gradually from 2013-14 as the positive impact of some of the recent policy initiatives and low-base effect may help M&HCV sales to recover. Overall, pick-up in cargo volumes and improve-ment in freight rates would be the key indicators to gauge early signs of improvement. So far, such a trend remains elusive. We expect M&HCV sales to fall by 23 percent in 2012-13e followed by a relatively modest 4-6 percent volume growth in 2013-14 on the back of low-base and expectations of improvement in economic environment. The M&HCV bus segment which in general is not influenced by industrial environ-ment would manage a growth of 12 percent in volumes. The segment will also start seeing benefits of the budgetary allocation towards

JNNURM with specific plan to add 10,000 buses. In ICRA’s view, the proposed order will be spread over the next two years and con-tribute significantly (~8 percent) to M&HCV bus sales in each of the next two years.

LCVs to continue to see strong growth on back of increasing penetration

Unlike M&HCVs, the demand for LCVs has continued to remain strong both in volume as well as capacity tonnage terms (up 12.5 percent in 11m 2012-13)dur-ing the current fiscal and has also provided some cushion-ing to the cyclicality that the CV industry is currently witnessing. Our channel check suggest that the demand for LCVs, which is predominantly driven by Small Commercial Vehicles (SCVs) has largely been driven by non-urban markets as improving road network is enabling better connectivity in tier III/IV cities. Notwithstanding the modera-tion in growth over the past few months, we expect the demand for LCVs to remain buoyant over the medium-term as it would need to match the extent of capac-ity added by M&HCVs trucks over the past few years. The growth will be led by SCVs, which are increasingly being favoured over their three-wheeler counterparts and costlier LCVs on grounds of better power, manoeuvrability and cost economics. With mod-est initial investment (~Rs. 1.0 lakh is the estimated equity con-tribution for entry-level trucks), such vehicles offer attractive pay-back and attractive employment opportunities to first-time users (FTUs). Moreover, the demand for smaller vehicles is also gain-ing preference on the back of stringent restrictions on the entry of heavy-duty trucks and expand-ing city limits. As these factors support demand for SCVs, we expect growth momentum in the LCV sales to continue and fore-cast a 13-14 percent CAGR over FY14-16.

Trend in Domestic Commercial Vehicle Volumes – Segment-wise

Source: SIAM, ICRA Estimates

An executive summary of ICRA’s March 2013 quarterly review on the Indian CV industry

Auto Monitor

T E C H N O L O G Y168 APRIL 2013

In stop-and-go traffic where drivers are forced to fre-quently hit the brakes, they may sometimes forget to

first switch to a lower gear. When this happens, a hum can often be heard. The unpleasant noise is the result of torsional vibrations; it occurs because the rotation of the internal combustion engine’s crankshaft is never completely steady. Such torsional vibration can damage the gearbox, and in the worst case it may even short-en the engine’s service life. This undesired effect can also occur in other types of drivetrain that are combined with internal com-bustion engines, for instance in ships or production equipment.

In principle, there are a num-ber of solutions available to reduce vibrations. However, more effi-cient motors have led to more vibrations, and this has pushed conventional solutions to their limits. For instance, the engines of passenger vehicles are increasing-ly being designed either with fewer cylinders or with cylinder deacti-vation in certain circumstances. As a result, the engine runs less smoothly and torsional vibra-tions are more prevalent. In ships, vibrations occur in harbours, where propulsion systems run on gas rather than crude oil or diesel in order to reduce emissions.

A centrifugal pendulum pre-sents a possible solution for the efficient reduction of tor-sional vibrations. Instead of hanging from a string, the pen-

dulum is fixed to a rotating disc. This means it is not driven by the forces of gravity, but rath-er by centrifugal force – and it is the level of this force that deter-mines the frequency at which the pendulum oscillates. The pendu-lum’s oscillation works against the torsional moment, and this diminishes vibrations on the overall system. While the cen-trifugal pendulum has been used in aircraft for decades, it was first applied to cars in 2008. Until now, these pendulums have played a passive role. The engine speed determines the pendulum fre-quency, and the only frequency at which the pendulum can oscillate is the one set by the engine speed. Experts refer to this as the first-order oscillation frequency.

One pendulum instead of two

In addition to a number of other vibration-reducing systems, researchers at the Fraunhofer Institute for Structural Durability and System Reliability LBF in Darmstadt, Germany, have now developed a semi-active pendu-lum. It oscillates not only at the first-order frequency, which is the frequency set by the engine speed, but also at half frequency, or at the 0.5th order. As a result, it can reduce torsional vibrations in a broader frequency range. “Our pendulum covers a frequency area that would otherwise require two pendulums: one for the first order, and one for the 0.5th order,”

said Daniel Schlote, a scientist at Fraunhofer LBF. “But in a car, the available space is too small for two pendulums. This new design significantly expands the range of vibrations that can be reduced with a single pendulum.”

The pendulum can be con-trolled in two ways. First, it can be operated in an open loop control, in which case the system meas-

ures the engine speed and based on a setpoint value determining the order that dominates at the specific engine speed, adjusts the pendulum to the dominant order and has it oscillate accord-ingly. Alternatively, the system can measure the vibration ampli-tude and automatically calculate which order is dominant.

LBF researchers have already

come up with a prototype of the pendulum, which they will be pre-senting from April 8-12, 2013, at the Hannover Messe (Hall 2, Booth D15). As their next step, experts aim to make the pendulum even more compact by optimizing the switching mechanism between the first and 0.5th order.

Courtesy: Fraunhofer Institute

For a smoother driveDriving a car at low rpms cause torsional vibrations, perceived by passengers as a hum. A new type of centrifugal pendulum helps reduce these vibrations.

Auto Monitor


Da i m l e r I n d i a Commercial Vehicles Pvt. Ltd (DICV), a wholly owned sub-

sidiary of Daimler AG, has announced its integration with the Mercedes-Benz Bus division. The Mercedes-Benz Bus busi-ness 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 vehi-cle divisions of Daimler into one cohesive unit. This is in line with our global practice to ensure bet-ter synergies in various business verticals. With this alignment Daimler will be able to expand its presence in India through a deal-er 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 poten-tial. 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 custom-ers. 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 intro-duced 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 integra-tion. 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 custom-ers with the most appropriate service.”

Mercedes-Benz India Private Limited (MB India), Pune, a 100 percent wholly-owned subsidi-ary of Daimler AG is focused on

the manufacture and market-ing of Mercedes-Benz passenger cars. Due to the fact that the commercial vehicle division of Daimler AG was being set up in Chennai (Daimler India Commercial Vehicles Pvt. Ltd.),

the bus business was initiated through MB India. MB India has sold over 300 buses since 2008. The coach builder is M/s Sutlej.

In line with this integration the marketing, sales and after-sales of Mercedes-Benz buses will now be handled by DICV. Production will continue at MB India for some more time. The Daimler Bus division at DICV is headed by Markus Villinger.

With the current integra-tion with DICV, Mercedes-Benz buses will now be promoted using the growing network of state-of-the-art dealerships cre-ated for its brand BharatBenz. While the sale of the buses will be carried out directly by DICV, the servicing of these buses will be carried out by select dealers of BharatBenz.

All BharatBenz dealers have been planned with the capac-

ity necessary to handle the bus business. However, initially only seven dealers along with two other dealers who have been servicing MB buses through MB India will handle the servicing of buses. These dealers have been selected based on the market regions where their 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 organ-ization which is focused on captive finance for Daimler cus-tomers, 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.

Daimler wholly integrates Benz bus division

Building on its vision for the Indian mar-ket, Honda Cars India Limited (HCIL) has

announced an investment of `2500 crore for its Tapukara plant in Alwar district, Rajasthan, to build a new assembly line for cars with an annual installed capacity of 1,20,000 units, a new diesel engine component pro-duction line, and a forging plant.

With the objective of strengthening and providing products which exceed diverse customer expectation, Honda changed its global organization structure from 1st April 2013 and has appointed Yoshiyuki Matsumoto, Managing Officer, Honda Motor Company as “Representative of Development, Purchasing and Production in Asia & Oceania Region” who will be based in India to control all Asia & Oceania Region.

The company also show-cased its revolutionary 1.5L i-DTEC diesel engine, the first Indian application of Honda’s

next generation Earth Dreams Technology, which will change the face of diesel capabilities available in India. The i-DTEC technology will debut in the soon-to-be-launched Honda Amaze and will be adopted sequentially in new models being introduced. The all new 1.5L i-DTEC diesel engine, spe-cifically developed for the Indian market, will create a new bench-mark with the lightest body (among engines with similar torque configuration), top of class acceleration of 100PS in its segment, and industry leading fuel efficiency of 25.8 km/l on Amaze.

Located in HCIL’s Tapukara plant in Alwar district, Rajasthan, about 75 km from Delhi, the new assembly line and forging plant is scheduled to be ready within 2014 and is expect-ed to generate fresh employment for 2,200 people at the start of production. Combined with the capacity of the new plant, HCIL’s total installed production capac-

ity will be increased to 240,000 units/annum in 2014.

The new diesel engine com-ponent production line with a manpower of 265 employees has just begun the mass pro-duction of the critical engine components for the i-DTEC engine manufacturing the cyl-inder head, cylinder block, crankshaft, connecting rod, clutch case and transmission assembly which are supplied to Greater Noida plant where Amaze is being manufactured. In addition to fulfilling domes-tic market needs, it will also export transmission parts to the European market.

Speaking on the occasion, Hironori Kanayama, President & CEO, Honda Cars India Ltd., said, “We are now set to expand our business in the country by enter-ing the diesel segment with the all new Amaze scheduled to be launched on April 11. With addi-tion of diesel power, the universe in which we operate will increase to around 50 pc of the total pas-

senger vehicle market over the next few years. We have opened the bookings for the Honda Amaze from 1st April 2013.”

Announcing the invest-ment, Yoshiyuki Matsumoto, Managing Officer, Honda Motor Company, Japan, said, “India is a key market for us and over the next three years, HCIL will launch five important models including the Amaze. To expand our business in the country, we are starting our prepara-tions to create new capacity and are investing a total of `2500 crore towards setting up a new

assembly line for cars, a new diesel engine component pro-duction line and a forging plant at Tapukara in Rajasthan. The Rajasthan plant will have an installed capacity of 120,000 cars per year and will be ready to roll out its first car next year.”

The Tapukara production facility will be an integrated manufacturing plant includ-ing all functions of Forging, Press Shop, Powertrain shop, Weld shop, Paint shop, Plastic Moulding, Engine assembly, Frame assembly and Engine Testing facility.

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 practice to

ensure better synergies in various business

verticals.

Honda to invest `2500 crore at Rajasthan plant

DICV assumes responsibility for Mercedes-Benz buses

Raises annual production capacity to 2.4 lakh units

(L-R) Yoshiyuki Matsumoto, Managing Officer, Honda Motor Company and Hironori Kanayama, President & CEO - Honda Cars India Ltd., during the unveiling of the new

Honda 1.5L i-DTEC diesel engine exclusively developed for the Indian market

Auto Monitor

N E W S 198 APRIL 2013

Fiat Group Automobiles India Private Limited (FGAIPL) and Chrysler India Automotive Private Limited (CIAPL) have announced the appointment

of Nagesh A. Basavanahalli as President and Managing Director for Fiat and Chrysler India operations as part of ongoing efforts to strength-en their business position in India. Previously, as head of CIAPL, Basavanahalli was responsi-ble for Fiat and Chrysler’s APAC (Asia Pacific) Technical Center located in Chennai, India.

In the newly created position, Basavanahalli will manage Fiat and Chrysler India operations, reporting to Mike Manley, Chief Operating Officer for the APAC region, Fiat S.p.A. The appointment is effective immediately.

Enrico Atanasio, who previously was the managing director of FGAIPL, the national sales company in India, will take on new responsi-bilities with the APAC region to be announced at a later date. “In the short term, Enrico will work closely with Nagesh on a smooth transi-tion of responsibilities and integration of the new structure to support the continued devel-opment of our business in India,” said Manley.

Basavanahalli joined Chrysler in 1994 and has since held numerous positions of increas-ing responsibility in engineering and product planning. He holds a Bachelor of Science in Mechanical Engineering from Bangalore University, a Master of Science from the University of Texas, and an MBA from the University of Chicago Business School where he was awarded the “Booth India Business Leader - 2009” by Chicago Booth Business School.

Dost, the 2.5T Light Commercial Vehicle from Ashok Leyland, the Hinduja Group

flagship, completed one full year of successful operations clock-ing sales volumes of 34,917 units garnered from the 12 states it is presently sold in. Riding on this success, the company has also bagged export orders for Dost from the SAARC markets.

“We set out to create a vehicle to meet the requirements of an evolving LCV customer in India and we are deeply appreciative of the overwhelming custom-er response to Dost,” said Dr. V. Sumantran, Vice Chairman,

Ashok Leyland. “Dost has truly re-defined the benchmark among small LCVs with its class-leading performance, superior reliability and low cost of own-ership. We still have a long road in front of us but this surely is a journey that has started off well for us,” he added.

A true measure of its success is the fact that the Ashok Leyland Dost has already emerged as the market leader with a mar-ket share of 19 percent (all India) in its 2-3.5T category. With the help of an entirely new dealer-ship network equipped with modern infrastructure that is already 100-strong, the Company

plans to progressively offer Dost pan India as well as feed the over-seas markets. At the same time, plans are afoot to enhance its LCV portfolio with the introduc-tion of variants both in the goods and passenger segments.

Dost, which has a payload capacity of 1.25T, is available in three versions with the top-end version featuring air-condition-

ing, power steering, and a palette of four colours to choose from: white, beige, blue and aqua green. Ashok Leyland also offers Ready-to-Use Vehicles (RUVs) on the Dost platform for various applications such as refrigerat-ed containers, steel containers, ambulance, aluminium fixed side decks and service-at-site vehicles.

We set out to create a vehicle to

meet the requirements of an evolving LCV

customer in India. We are deeply appreciative

of the overwhelming customer response.

Ashok Leyland Dost completes one full year of operations

Fiat & Chrysler appoint new President & MD for India

Over 34,900 units sold in just 12 states, bags export orders from SAARC markets

Nagesh A Basavanahalli, President and MD for Fiat and Chrysler India operations

Auto Monitor

N O R T H A M E R I C A N A S S E M B LY208 APRIL 2013

North America Assembly Tracking 1-2013 (Tracking by Brand & Nameplate)AUTOFACTS Global Automotive Outlook

PricewaterhouseCoopers LLP

November 2012 Last 3 Months Year to Date

Ownership Org/ YOY Assembly YOY YOY Assembly YOY YOY Assembly YOY

Brand & Nameplate Volume % Chg Share % Share Chg Volume % Chg Share % Share Chg Volume % Chg Share % Share Chg

Auto Alliance International (USA) - -100.0% - (-1.0) - -100.0% - (-1.0) - -100.0% - (-1.0)

Ford Mustang - -100.0% - (-0.6) - -100.0% - (-0.5) - -100.0% - (-0.6)

Mazda Mazda6 - -100.0% - (-0.4) - -100.0% - (-0.5) - -100.0% - (-0.4)

BMW (Germany) 25,461 5.4% 2.0% (-0.0) 71,541 2.9% 2.0% (-0.1) 25,461 5.4% 2.0% (-0.0)

BMW X3 12,018 5.0% 0.9% (-0.0) 33,642 4.4% 0.9% (-0.0) 12,018 5.0% 0.9% (-0.0)

BMW X5 11,057 24.0% 0.9% 0.1 28,171 6.9% 0.8% (-0.0) 11,057 24.0% 0.9% 0.1

BMW X6 2,386 -36.9% 0.2% (-0.1) 9,728 -11.2% 0.3% (-0.1) 2,386 -36.9% 0.2% (-0.1)

Chrysler Group LLC (USA) 1,72,931 -6.7% 13.3% (-1.9) 5,43,448 1.4% 14.9% (-0.8) 1,72,931 -6.7% 13.3% (-1.9)

Chrysler 200 11,434 30.7% 0.9% 0.2 33,932 17.5% 0.9% 0.1 11,434 30.7% 0.9% 0.2

Chrysler 300 6,565 -2.5% 0.5% (-0.0) 19,042 6.6% 0.5% (-0.0) 6,565 -2.5% 0.5% (-0.0)

Chrysler Town & Country 5,273 -29.7% 0.4% (-0.2) 24,752 -9.9% 0.7% (-0.1) 5,273 -29.7% 0.4% (-0.2)

Dodge Avenger 12,149 90.4% 0.9% 0.4 30,803 51.5% 0.8% 0.2 12,149 90.4% 0.9% 0.4

Dodge Caliber - - - - - -100.0% - (-0.2) - - - -

Dodge Caravan 6,490 -53.9% 0.5% (-0.7) 38,149 -12.4% 1.0% (-0.2) 6,490 -53.9% 0.5% (-0.7)

Dodge Challenger 4,541 29.2% 0.3% 0.1 12,095 6.8% 0.3% (-0.0) 4,541 29.2% 0.3% 0.1

Dodge Charger 9,049 11.2% 0.7% 0 26,035 4.8% 0.7% (-0.0) 9,049 11.2% 0.7% 0

Dodge Dart 7,046 - 0.5% 0.5 30,085 - 0.8% 0.8 7,046 - 0.5% 0.5

Dodge Durango 3,538 35.3% 0.3% 0.1 14,207 20.5% 0.4% 0 3,538 35.3% 0.3% 0.1

Dodge Journey 11,465 6.9% 0.9% 0 31,841 17.7% 0.9% 0.1 11,465 6.9% 0.9% 0

Dodge Nitro - - - - - -100.0% - (-0.1) - - - -

Fiat 500 3,616 -41.5% 0.3% (-0.2) 12,014 -25.8% 0.3% (-0.1) 3,616 -41.5% 0.3% (-0.2)

Fiat Freemont 4,089 -34.8% 0.3% (-0.2) 10,492 -31.6% 0.3% (-0.2) 4,089 -34.8% 0.3% (-0.2)

Jeep Compass 11,381 14.4% 0.9% 0.1 27,312 -2.4% 0.8% (-0.1) 11,381 14.4% 0.9% 0.1

Jeep Grand Cherokee 14,616 -30.3% 1.1% (-0.6) 51,550 -2.7% 1.4% (-0.1) 14,616 -30.3% 1.1% (-0.6)

Jeep Liberty - -100.0% - (-0.8) - -100.0% - (-0.8) - -100.0% - (-0.8)

Jeep Patriot 9,741 -7.8% 0.7% (-0.1) 23,962 -11.7% 0.7% (-0.1) 9,741 -7.8% 0.7% (-0.1)

Jeep Wrangler 5,798 -4.2% 0.4% (-0.1) 15,654 -13.1% 0.4% (-0.1) 5,798 -4.2% 0.4% (-0.1)

Jeep Wrangler Unlimited 12,498 26.7% 1.0% 0.2 31,735 13.3% 0.9% 0 12,498 26.7% 1.0% 0.2

Lancia Flavia 189 - 0.0% 0 223 - 0.0% 0 189 - 0.0% 0

Lancia Grand Voyager 481 5.3% 0.0% (-0.0) 1,184 -35.8% 0.0% (-0.0) 481 5.3% 0.0% (-0.0)

Lancia Thema 241 -67.8% 0.0% (-0.0) 2,376 6.4% 0.1% (-0.0) 241 -67.8% 0.0% (-0.0)

Ram Cargo Van 482 -48.8% 0.0% (-0.0) 2,304 -13.4% 0.1% (-0.0) 482 -48.8% 0.0% (-0.0)

Chrysler Group LLC (USA) 1,72,931 -6.7% 13.3% (-1.9) 5,43,448 1.4% 14.9% (-0.8) 1,72,931 -6.7% 13.3% (-1.9)

Ram Pickup 32,240 -5.1% 2.5% (-0.3) 1,03,692 16.7% 2.9% 0.2 32,240 -5.1% 2.5% (-0.3)

SRT Viper 9 - 0.0% 0 9 - 0.0% 0 9 - 0.0% 0

Volkswagen Routan - -100.0% - (-0.1) - -100.0% - (-0.1) - -100.0% - (-0.1)

Daimler AG (Germany) 19,272 24.0% 1.5% 0.2 46,890 7.6% 1.3% 0 19,272 24.0% 1.5% 0.2

Freightliner Sprinter 177 -76.8% 0.0% (-0.0) 1,530 -25.7% 0.0% (-0.0) 177 -76.8% 0.0% (-0.0)

Mercedes-Benz GL-Class 5,254 56.4% 0.4% 0.1 15,075 65.3% 0.4% 0.1 5,254 56.4% 0.4% 0.1

Mercedes-Benz GL-Class AMG 26 - 0.0% 0 75 - 0.0% 0 26 - 0.0% 0

Mercedes-Benz M-Class 11,821 17.9% 0.9% 0.1 27,692 -1.3% 0.8% (-0.1) 11,821 17.9% 0.9% 0.1

Mercedes-Benz M-Class AMG 59 18.0% 0.0% 0 138 -1.4% 0.0% (-0.0) 59 18.0% 0.0% 0

Mercedes-Benz R-Class 1,262 -6.1% 0.1% (-0.0) 1,707 -59.6% 0.0% (-0.1) 1,262 -6.1% 0.1% (-0.0)

Mercedes-Benz Sprinter 673 - 0.1% 0.1 673 - 0.0% 0 673 - 0.1% 0.1

Ford Motor Company (USA) 2,60,836 30.1% 20.1% 3.6 7,11,736 14.7% 19.6% 1.3 2,60,836 30.1% 20.1% 3.6

Ford C-MAX 4,174 208600.0% 0.3% 0.3 12,370 618400.0% 0.3% 0.3 4,174 208600.0% 0.3% 0.3

Ford Edge 17,210 11.4% 1.3% 0.1 48,069 6.3% 1.3% (-0.0) 17,210 11.4% 1.3% 0.1

Ford Escape 31,748 14.6% 2.4% 0.2 90,201 15.3% 2.5% 0.2 31,748 14.6% 2.4% 0.2

Ford E-Series 9,483 16.2% 0.7% 0.1 29,079 -4.6% 0.8% (-0.1) 9,483 16.2% 0.7% 0.1

Ford Expedition 6,268 21.2% 0.5% 0.1 16,604 3.1% 0.5% (-0.0) 6,268 21.2% 0.5% 0.1

Ford Explorer 20,086 32.7% 1.5% 0.3 53,943 21.0% 1.5% 0.2 20,086 32.7% 1.5% 0.3

Ford Fiesta 13,181 6.6% 1.0% (-0.0) 34,903 3.5% 1.0% (-0.0) 13,181 6.6% 1.0% (-0.0)

Ford Flex 3,084 -4.8% 0.2% (-0.0) 8,299 -7.3% 0.2% (-0.0) 3,084 -4.8% 0.2% (-0.0)

Ford Focus 26,139 34.3% 2.0% 0.4 68,870 14.2% 1.9% 0.1 26,139 34.3% 2.0% 0.4

Ford F-Series 79,247 26.3% 6.1% 0.9 2,09,386 16.8% 5.8% 0.5 79,247 26.3% 6.1% 0.9

Ford Fusion 26,752 67.5% 2.1% 0.7 75,877 16.9% 2.1% 0.2 26,752 67.5% 2.1% 0.7

Ford Mustang 5,941 - 0.5% 0.5 16,673 - 0.5% 0.5 5,941 - 0.5% 0.5

Ford Ranger - - - - - -100.0% - (-0.4) - - - -

Ford Taurus 8,075 7.5% 0.6% 0 25,339 28.8% 0.7% 0.1 8,075 7.5% 0.6% 0

Lincoln Mark LT 44 76.0% 0.0% 0 134 22.9% 0.0% 0 44 76.0% 0.0% 0

Lincoln MKS 928 -22.9% 0.1% (-0.0) 2,740 -28.3% 0.1% (-0.0) 928 -22.9% 0.1% (-0.0)

Lincoln MKT 664 12.2% 0.1% 0 2,368 26.8% 0.1% 0 664 12.2% 0.1% 0

Lincoln MKX 2,921 5.2% 0.2% (-0.0) 8,842 -8.6% 0.2% (-0.0) 2,921 5.2% 0.2% (-0.0)

Lincoln MKZ 4,035 85.9% 0.3% 0.1 5,753 -30.6% 0.2% (-0.1) 4,035 85.9% 0.3% 0.1

Lincoln Navigator 856 5.0% 0.1% (-0.0) 2,286 10.6% 0.1% 0 856 5.0% 0.1% (-0.0)

Fuji Heavy Industries (Japan) 25,004 -5.1% 1.9% (-0.2) 65,696 -9.1% 1.8% (-0.3) 25,004 -5.1% 1.9% (-0.2)

Subaru Legacy 4,657 -6.7% 0.4% (-0.1) 12,420 -12.2% 0.3% (-0.1) 4,657 -6.7% 0.4% (-0.1)

Subaru Outback 11,883 -1.8% 0.9% (-0.1) 30,821 -6.9% 0.8% (-0.1) 11,883 -1.8% 0.9% (-0.1)

Subaru Tribeca - -100.0% - (-0.0) 674 -53.1% 0.0% (-0.0) - -100.0% - (-0.0)

Toyota Camry 8,464 -4.2% 0.7% (-0.1) 21,781 -7.5% 0.6% (-0.1) 8,464 -4.2% 0.7% (-0.1)

General Motors Company (USA) 2,60,042 2.6% 20.0% (-0.8) 7,36,057 2.5% 20.2% (-0.9) 2,60,042 2.6% 20.0% (-0.8)

Buick Enclave 5,131 -2.2% 0.4% (-0.0) 14,865 20.0% 0.4% 0 5,131 -2.2% 0.4% (-0.0)

Buick LaCrosse 5,426 55.1% 0.4% 0.1 11,142 -16.4% 0.3% (-0.1) 5,426 55.1% 0.4% 0.1

Buick Regal 1,550 -33.4% 0.1% (-0.1) 5,388 -45.5% 0.1% (-0.1) 1,550 -33.4% 0.1% (-0.1)

Buick Verano 4,382 6.3% 0.3% (-0.0) 11,961 45.7% 0.3% 0.1 4,382 6.3% 0.3% (-0.0)

Cadillac ATS 3,464 - 0.3% 0.3 15,451 - 0.4% 0.4 3,464 - 0.3% 0.3

Cadillac CTS 1,472 -65.9% 0.1% (-0.2) 5,664 -64.1% 0.2% (-0.3) 1,472 -65.9% 0.1% (-0.2)

Cadillac Escalade 178 -87.1% 0.0% (-0.1) 2,815 -10.7% 0.1% (-0.0) 178 -87.1% 0.0% (-0.1)

Cadillac Escalade ESV 75 -88.1% 0.0% (-0.0) 1,620 -7.0% 0.0% (-0.0) 75 -88.1% 0.0% (-0.0)

Cadillac Escalade EXT 333 150.4% 0.0% 0 866 87.9% 0.0% 0 333 150.4% 0.0% 0

Cadillac SRX 4,851 -38.6% 0.4% (-0.3) 16,143 -22.8% 0.4% (-0.2) 4,851 -38.6% 0.4% (-0.3)

Cadillac XTS 2,653 - 0.2% 0.2 9,873 - 0.3% 0.3 2,653 - 0.2% 0.2

Chevrolet Avalanche 3,860 121.3% 0.3% 0.2 9,590 71.3% 0.3% 0.1 3,860 121.3% 0.3% 0.2

Chevrolet Aveo 7,303 7.5% 0.6% 0 19,859 13.8% 0.5% 0 7,303 7.5% 0.6% 0

Chevrolet C2 - - - - - -100.0% - (-0.0) - - - -

Chevrolet Camaro 7,903 -26.3% 0.6% (-0.3) 25,810 2.3% 0.7% (-0.0) 7,903 -26.3% 0.6% (-0.3)

Chevrolet Captiva 4,837 13.1% 0.4% 0 11,879 -20.5% 0.3% (-0.1) 4,837 13.1% 0.4% 0

Auto Monitor

N O R T H A M E R I C A N A S S E M B LY 218 APRIL 2013

Chevrolet Colorado - -100.0% - (-0.3) - -100.0% - (-0.3) - -100.0% - (-0.3)

Chevrolet Corvette 1,717 116.5% 0.1% 0.1 4,307 42.6% 0.1% 0 1,717 116.5% 0.1% 0.1

Chevrolet Cruze 21,274 -9.7% 1.6% (-0.3) 55,861 0.1% 1.5% (-0.1) 21,274 -9.7% 1.6% (-0.3)

Chevrolet Equinox 23,390 9.4% 1.8% 0 63,652 1.9% 1.8% (-0.1) 23,390 9.4% 1.8% 0

Chevrolet Express 2,381 -51.9% 0.2% (-0.2) 16,132 4.4% 0.4% (-0.0) 2,381 -51.9% 0.2% (-0.2)

Chevrolet Impala 14,018 -13.4% 1.1% (-0.3) 34,656 -21.3% 1.0% (-0.3) 14,018 -13.4% 1.1% (-0.3)

Chevrolet Malibu 19,649 -8.7% 1.5% (-0.3) 41,085 -28.5% 1.1% (-0.6) 19,649 -8.7% 1.5% (-0.3)

Chevrolet Silverado 52,358 34.5% 4.0% 0.8 1,31,143 22.5% 3.6% 0.5 52,358 34.5% 4.0% 0.8

Chevrolet Sonic 13,179 71.0% 1.0% 0.4 33,987 44.2% 0.9% 0.2 13,179 71.0% 1.0% 0.4

Chevrolet Suburban 386 -90.9% 0.0% (-0.3) 7,989 -39.8% 0.2% (-0.2) 386 -90.9% 0.0% (-0.3)

Chevrolet Tahoe 997 -88.2% 0.1% (-0.6) 17,036 -23.5% 0.5% (-0.2) 997 -88.2% 0.1% (-0.6)

General Motors Company (USA) 2,60,042 2.6% 20.0% (-0.8) 7,36,057 2.5% 20.2% (-0.9) 2,60,042 2.6% 20.0% (-0.8)

Chevrolet Traverse 7,654 22.1% 0.6% 0.1 25,821 39.8% 0.7% 0.2 7,654 22.1% 0.6% 0.1

Chevrolet Trax 4,234 - 0.3% 0.3 13,117 - 0.4% 0.4 4,234 - 0.3% 0.3

Chevrolet Volt 2,915 - 0.2% 0.2 6,652 84.1% 0.2% 0.1 2,915 - 0.2% 0.2

GMC Acadia 10,505 64.1% 0.8% 0.3 19,540 -15.9% 0.5% (-0.1) 10,505 64.1% 0.8% 0.3

GMC Canyon - -100.0% - (-0.1) - -100.0% - (-0.1) - -100.0% - (-0.1)

GMC Savana 405 -81.1% 0.0% (-0.1) 4,341 -36.5% 0.1% (-0.1) 405 -81.1% 0.0% (-0.1)

GMC Sierra Pickups 21,397 41.4% 1.6% 0.4 57,311 20.2% 1.6% 0.2 21,397 41.4% 1.6% 0.4

GMC Terrain 9,286 -14.3% 0.7% (-0.2) 26,458 -13.3% 0.7% (-0.2) 9,286 -14.3% 0.7% (-0.2)

GMC Yukon 445 -89.3% 0.0% (-0.3) 8,982 -17.0% 0.2% (-0.1) 445 -89.3% 0.0% (-0.3)

GMC Yukon XL 358 -87.5% 0.0% (-0.2) 4,883 -38.6% 0.1% (-0.1) 358 -87.5% 0.0% (-0.2)

Holden Volt 34 - 0.0% 0 111 - 0.0% 0 34 - 0.0% 0

Opel-Vauxhall Ampera 42 - 0.0% 0 67 -91.9% 0.0% (-0.0) 42 - 0.0% 0

Honda Motor Company (Japan) 1,50,666 0.6% 11.6% (-0.7) 4,05,719 19.8% 11.2% 1.2 1,50,666 0.6% 11.6% (-0.7)

Acura ILX 425 - 0.0% 0 2,638 - 0.1% 0.1 425 - 0.0% 0

Acura MDX 1,860 -71.5% 0.1% (-0.4) 9,476 -38.4% 0.3% (-0.2) 1,860 -71.5% 0.1% (-0.4)

Acura RDX 5,047 38723.1% 0.4% 0.4 12,850 198.4% 0.4% 0.2 5,047 38723.1% 0.4% 0.4

Acura TL 3,062 -46.3% 0.2% (-0.2) 9,059 -24.2% 0.2% (-0.1) 3,062 -46.3% 0.2% (-0.2)

Acura ZDX - - - - 119 -20.1% 0.0% (-0.0) - - - -

Honda Accord 37,539 6.2% 2.9% (-0.0) 1,01,503 45.9% 2.8% 0.7 37,539 6.2% 2.9% (-0.0)

Honda Civic 42,307 -4.6% 3.3% (-0.4) 1,01,121 -4.2% 2.8% (-0.3) 42,307 -4.6% 3.3% (-0.4)

Honda Crosstour 2,167 8.3% 0.2% 0 7,139 21.4% 0.2% 0 2,167 8.3% 0.2% 0

Honda CR-V 31,400 15.6% 2.4% 0.2 84,954 52.3% 2.3% 0.7 31,400 15.6% 2.4% 0.2

Honda Odyssey 10,390 -30.1% 0.8% (-0.4) 31,120 -14.5% 0.9% (-0.2) 10,390 -30.1% 0.8% (-0.4)

Honda Pilot 14,347 22.7% 1.1% 0.1 38,685 37.8% 1.1% 0.2 14,347 22.7% 1.1% 0.1

Honda Ridgeline 2,122 2.4% 0.2% (-0.0) 7,055 23.1% 0.2% 0 2,122 2.4% 0.2% (-0.0)

Hyundai Motor Company (South Korea) 64,810 15.6% 5.0% 0.4 1,74,426 16.9% 4.8% 0.4 64,810 15.6% 5.0% 0.4

Hyundai Elantra/i30 15,073 59.9% 1.2% 0.4 38,940 76.6% 1.1% 0.4 15,073 59.9% 1.2% 0.4

Hyundai Santa Fe - -100.0% - (-0.7) - -100.0% - (-0.5) - -100.0% - (-0.7)

Hyundai Santa Fe/ix45 9,712 - 0.7% 0.7 25,804 - 0.7% 0.7 9,712 - 0.7% 0.7

Hyundai Sonata/i40 19,027 -4.0% 1.5% (-0.2) 50,860 -9.6% 1.4% (-0.3) 19,027 -4.0% 1.5% (-0.2)

Kia Optima 13,118 54.6% 1.0% 0.3 32,732 19.8% 0.9% 0.1 13,118 54.6% 1.0% 0.3

Kia Sorento 7,880 -23.9% 0.6% (-0.2) 26,090 -6.1% 0.7% (-0.1) 7,880 -23.9% 0.6% (-0.2)

Mitsubishi Motors Corp (Japan) 6,184 253.0% 0.5% 0.3 15,864 183.8% 0.4% 0.3 6,184 253.0% 0.5% 0.3

Mitsubishi Galant - -100.0% - (-0.1) - -100.0% - (-0.2) - -100.0% - (-0.1)

Mitsubishi Outlander Sport 6,184 - 0.5% 0.5 15,864 - 0.4% 0.4 6,184 - 0.5% 0.5

Nissan Motor (Japan) 1,19,539 5.3% 9.2% (-0.1) 3,20,530 4.8% 8.8% (-0.2) 1,19,539 5.3% 9.2% (-0.1)

Infiniti JX Series 3,886 10402.7% 0.3% 0.3 9,998 6655.4% 0.3% 0.3 3,886 10402.7% 0.3% 0.3

Nissan Altima 30,495 5.1% 2.3% (-0.0) 88,598 7.2% 2.4% 0 30,495 5.1% 2.3% (-0.0)

Nissan Armada 714 -65.8% 0.1% (-0.1) 3,138 -44.6% 0.1% (-0.1) 714 -65.8% 0.1% (-0.1)

Nissan Frontier 4,656 -25.5% 0.4% (-0.2) 6,053 -64.8% 0.2% (-0.3) 4,656 -25.5% 0.4% (-0.2)

Nissan Leaf 2,044 - 0.2% 0.2 2,130 - 0.1% 0.1 2,044 - 0.2% 0.2

Nissan March 1,895 -76.8% 0.1% (-0.5) 10,724 -48.6% 0.3% (-0.3) 1,895 -76.8% 0.1% (-0.5)

Nissan Maxima 4,346 -38.5% 0.3% (-0.2) 15,074 -14.1% 0.4% (-0.1) 4,346 -38.5% 0.3% (-0.2)

Nissan NV200 88 - 0.0% 0 88 - 0.0% 0 88 - 0.0% 0

Nissan NV-Series 804 -13.2% 0.1% (-0.0) 2,164 -16.0% 0.1% (-0.0) 804 -13.2% 0.1% (-0.0)

Nissan Pathfinder 8,162 177.1% 0.6% 0.4 28,677 230.0% 0.8% 0.5 8,162 177.1% 0.6% 0.4

Nissan Pickup 9,136 72.2% 0.7% 0.3 22,464 81.2% 0.6% 0.3 9,136 72.2% 0.7% 0.3

Nissan Sentra 19,247 50.2% 1.5% 0.4 47,111 36.7% 1.3% 0.3 19,247 50.2% 1.5% 0.4

Nissan Tiida 5,579 -65.2% 0.4% (-0.9) 19,354 -54.7% 0.5% (-0.7) 5,579 -65.2% 0.4% (-0.9)

Nissan Titan 260 -89.1% 0.0% (-0.2) 2,642 -58.3% 0.1% (-0.1) 260 -89.1% 0.0% (-0.2)

Nissan Tsuru 5,661 22.2% 0.4% 0.1 11,407 -0.7% 0.3% (-0.0) 5,661 22.2% 0.4% 0.1

Nissan Versa 21,447 62.3% 1.6% 0.6 47,775 30.9% 1.3% 0.2 21,447 62.3% 1.6% 0.6

Nissan Xterra 1,119 -55.2% 0.1% (-0.1) 3,133 -50.6% 0.1% (-0.1) 1,119 -55.2% 0.1% (-0.1)

Suzuki Equator - -100.0% - (-0.0) - -100.0% - (-0.0) - -100.0% - (-0.0)

Tesla Motors (USA) 1,680 - 0.1% 0.1 3,730 1323.7% 0.1% 0.1 1,680 - 0.1% 0.1

Tesla Model S 1,680 - 0.1% 0.1 3,730 - 0.1% 0.1 1,680 - 0.1% 0.1

Tesla Roadster - - - - - -100.0% - (-0.0) - - - -

Toyota Motor Corporation (Japan) 1,45,803 2.5% 11.2% (-0.5) 3,89,106 2.4% 10.7% (-0.5) 1,45,803 2.5% 11.2% (-0.5)

Lexus RX Series 7,625 1.4% 0.6% (-0.0) 20,999 0.0% 0.6% (-0.0) 7,625 1.4% 0.6% (-0.0)

Toyota Avalon 9,069 175.9% 0.7% 0.4 21,456 156.7% 0.6% 0.3 9,069 175.9% 0.7% 0.4

Toyota Camry 31,357 -11.5% 2.4% (-0.5) 71,694 -22.7% 2.0% (-0.8) 31,357 -11.5% 2.4% (-0.5)

Toyota Corolla 29,151 21.8% 2.2% 0.3 86,792 37.0% 2.4% 0.5 29,151 21.8% 2.2% 0.3

Toyota Highlander 12,759 15.7% 1.0% 0.1 31,957 11.6% 0.9% 0 12,759 15.7% 1.0% 0.1

Toyota Matrix 1,312 -37.0% 0.1% (-0.1) 3,464 -17.8% 0.1% (-0.0) 1,312 -37.0% 0.1% (-0.1)

Toyota RAV4 7,992 -45.9% 0.6% (-0.6) 30,591 -32.4% 0.8% (-0.5) 7,992 -45.9% 0.6% (-0.6)

Toyota Motor Corporation (Japan) 1,45,803 2.5% 11.2% (-0.5) 3,89,106 2.4% 10.7% (-0.5) 1,45,803 2.5% 11.2% (-0.5)

Toyota Sequoia 2,417 22.4% 0.2% 0 7,047 13.8% 0.2% 0 2,417 22.4% 0.2% 0

Toyota Sienna 12,941 -0.4% 1.0% (-0.1) 33,755 -4.1% 0.9% (-0.1) 12,941 -0.4% 1.0% (-0.1)

Toyota Tacoma 15,195 24.9% 1.2% 0.2 40,230 17.4% 1.1% 0.1 15,195 24.9% 1.2% 0.2

Toyota Tundra 10,346 -8.6% 0.8% (-0.1) 25,705 -11.6% 0.7% (-0.1) 10,346 -8.6% 0.8% (-0.1)

Toyota Venza 5,639 -0.5% 0.4% (-0.0) 15,416 31.5% 0.4% 0.1 5,639 -0.5% 0.4% (-0.0)

Volkswagen (Germany) 48,344 29.4% 3.7% 0.6 1,52,019 19.3% 4.2% 0.4 48,344 29.4% 3.7% 0.6

Volkswagen Beetle 6,601 141.7% 0.5% 0.3 21,163 132.7% 0.6% 0.3 6,601 141.7% 0.5% 0.3

Volkswagen Bora - - - - - -100.0% - (-0.0) - - - -

Volkswagen Golf/Jetta Variant 8,894 23.0% 0.7% 0.1 29,209 3.1% 0.8% (-0.0) 8,894 23.0% 0.7% 0.1

Volkswagen Jetta 20,749 22.9% 1.6% 0.2 68,147 3.1% 1.9% (-0.1) 20,749 22.9% 1.6% 0.2

Volkswagen Passat 12,100 15.0% 0.9% 0.1 33,500 40.6% 0.9% 0.2 12,100 15.0% 0.9% 0.1

Total Light Vehicle 13,00,572 6.8% 100.0% - 36,36,762 6.9% 100.0% - 13,00,572 6.8% 100.0% -

November 2012 Last 3 Months Year to Date

Ownership Org/ YOY Assembly YOY YOY Assembly YOY YOY Assembly YOY Brand & Nameplate Volume % Chg Share % Share Chg Volume % Chg Share % Share Chg Volume % Chg Share % Share Chg

Auto Monitor

G L O B A L W A T C H228 APRIL 2013

Experts at independent automotive informa-tion experts CAP today called on Renault to

“give some great electric cars a real chance” in the company car market.

The call came as CAP reaf-firmed its decision not to forecast used values for Renault electric vehicles until the bat-tery is included, rather than leased separately.

The issue has again sur-faced after it was reported that Benefit In Kind tax rules for company car drivers will see the Renault Zoe’s battery replacement cost added to the car’s list price for P11D purpos-es. That situation was described by CAP as “another nail in the coffin” of Renault electric vehi-cle prospects in the company car market under the manu-facturer’s current approach of treating the battery as a sepa-rate entity from the car itself.

CAP has been in discus-sion with Renault for several years over the issue of forecast-ing used values for a vehicle for which the battery is leased separately from the car. CAP’s forecasters have maintained that it is not possible to forecast the value of a vehicle with no intrinsic source of power - lik-ening it to forecasting the value of a conventional car with no engine.

Now tax rules revealed by Fleet News magazine have added to the challenges created by Renault’s approach by fur-ther weakening the commercial prospects for Renault EVs in the company car market.

Under the rules, which come into force in 2015, a company car driver choosing a Renault Zoe would pay BIK tax on the full list price of the car before

the government’s ‘plug-in car’ grant is deducted. On top of that the driver would also pay BIK on the value of the battery - understood to be currently £7,392 inc VAT for a Zoe bat-tery. But the car user also has to lease the battery separately, a combination of factors which CAP believes many would-be business customers will view as prohibitively expensive.

CAP believes HMRC has made a fair decision by includ-ing the battery in the BIK equation and argues that Renault should reconsider its position as the chances of acceptance for Renault EVs in the crucial company car market recede further into the distance

C A P M a nu f a c t u r e r Relationship Manager, Martin Ward, said: “HMRC’s decision to base the BIK on the total is only fair, otherwise Ford, for example, could deflate the P11D value of a Mondeo by excluding the engine.

“Our frustration with Renault’s approach is based on the fact that we believe the Zoe is a very good car that isn’t getting a chance in the all-important fleet market.

“We have every confidence in the quality and reliability of the Renault Zoe. We have seen it, driven it, lived with it and its 90 mile range means it definite-ly has a place in fleets for shorter range driving purposes.

“But until Renault removes the unnecessary layer of com-plexity caused by treating the battery as a separate entity to the car CAP will be unable to forecast its used values so fleets can work out competitive lease rates.

“And now it has emerged that HMRC is including the battery for BIK purposes the Zoe no

New Octavia: The all-new ŠKODA Octavia, which only went on sale in mid-March,

qualifies for a £500 deposit contribution and three years’ free servicing when the car is bought with a ŠKODA Finance Hire Purchase (HP) or Personal Contract Plan (PCP) at 6.9% APR representative.

Citigo: The recently announced ŠKODA Citigo Sport, which offers enhanced styling and greater levels of equipment over the standard Citigo, comes with one year’s fully comprehensive insurance free for drivers aged 21 and over. Terms and condi-tions apply.Fabia and Octavia (outgoing

model): There are exception-al savings on the ŠKODA Fabia Hatch SE 1.2 69PS and ŠKODA Octavia SE Connect 1.6 TDI (outgoing model) with a 25% discount off the Recommended Retail Price (RRP).

Customers opting for select-ed Fabia and outgoing Octavia Estate models qualify for the brand’s popular ‘no VAT’ offer as well as 0% HP over two years on higher spec models when a min-imum of 50% deposit is paid.Superb: Selected models in ŠKODA’s flagship Superb range qualify for the ‘no VAT’ offer and are offered with 0% HP over two years on selected models. A 50% deposit is required.Rapid: Buyers opting for HP finance agreements on the

ŠKODA Rapid SE and Elegance qualify for 0% interest over 24-36 months if they pay a 30% deposit.

ŠKODA is also offering £1,000 deposit contribution on any Rapid when bought with a PCP or HP 7.9% APR finance agreement.Roomster: ŠKODA’s spacious and versatile Roomster range qualifies for the ‘no VAT’ offer. With a 50% deposit, 0% HP over two years on higher trim mod-els is available for qualifying customers.

When purchased with a PCP or HP 7.9% APR finance agree-ment every car in ŠKODA’s range continues to qualify for three years’ free servicing, apart from the ŠKODA Citigo S, Citigo Sport and Octavia SE Connect.

Kia set a new record for sales in the UK dur-ing March with 12,608 vehicles delivered to

customers - helping the brand to its best first quarter result since the height of the Government’s scrappage scheme in 2010.

With 19,204 vehicles regis-tered in the first three months Kia captured a 3.17 per cent share of the new car market - up by almost 12 per cent against 2012. The March month fig-ures showed a near 13 per cent increase against 2012’s figure of 11,178.

Kia’s bestselling car in the first quarter - for the first time - was the Slovakian-built Sportage, followed closely by Picanto, Rio and cee’d.

President and Chief Executive of Kia Motors (UK) Limited, Paul Philpott said: “this is a fantas-

tic result for Kia and its dealer network and is the culmina-tion of a lot of hard work by our dealers. At a time when there is still a lot of uncertainty over big ticket item spending our performance show s t he importance of good quality product with a still-untouchable seven year warranty delivered by dealers who care about their customers.

“I am particularly pleased that the March results simply add to our success this year as a whole. This has been our best first quarter since 2010 when the market was aided by the scrap-

page incentive that encouraged a lot of people to trade in old cars at a very advantageous price. As we come out of a long recession to get close to those num-bers is extremely encouraging and shows the importance of ensuring that we and our deal-ers work hand in hand to deliver what the customer truly wants,” he added.

Suzuki has announced a further extension of its VAT free campaign which now includes four of its stylish

small car models - Alto, Splash, Swift (except Sport) and SX4 com-pact Crossover. This latest offer helps customers take advantage of a cost effective way to buy a new car with the added benefit of low cost of ownership too.

By popular demand, Suzuki is also continuing its flexible PCP (Personal Contract Purchase) offers until the end of June. Alto SZ3 is available for a deposit of £885 followed by 49 monthly pay-ments of just £109 with the option to pay a final balloon payment of £2,352 at the end of the agree-ment to keep the car.

Alto offers very low cost of ownership with no annual road tax to pay thanks to emissions of 99g/km, combined fuel con-sumption of 65.7mpg and an insurance group rating of 4E.

Moving up the small car range to the Splash SZ2 1.0-litre, the latest PCP offer requires a low deposit of £995 followed by 48 monthly payments of £129 and an optional final payment of £2,471.

The good news also continues again for Swift buyers with the SZ2 three-door at £8,999 available for a deposit of £159 followed by 42 monthly payments of £159 and an optional final payment of £3,535. The five-door SZ2 is also avail-able for £159 per month but with a slightly higher deposit of £639

required. At the top of the Swift range, the award winning and highly equipped 1.6-litre Sport is also included in the low rate Driveplan PCP offer and requires a deposit of only £1,409 and 42 monthly payments of £239.

The SX4 models have now joined the VAT free campaign with 1.6 SZ3 2WD available for £10,495 representing a custom-er saving of £2,100. SX4 offers a combination of SUV and passen-ger car styling within a compact body and is equipped as standard with six airbags, air conditioning, four electric windows and an MP3 compatible CD tuner with eight speakers. The 4WD 1.6-litre model is now available for £13,249 which represents a saving of £2,650.

Keeping small car costs downVAT-free campaign further extended on Suzuki’s small cars until the end of June 2013 and now includes the SX4 model.

ŠKODA UK has unveiled a host of spring offers designed to save money on a range of award-winning cars.

CAP calls on Renault to end ‘battery not included’ approach

ŠKODA UK spring offers

Best ever March for Kia sales

Auto Monitor

C L A S S I F I E D S248 APRIL 2013

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Schuler India Pvt Ltd 7

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Auto Monitor - 8 April 2013

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