Fast growing markets / Special focus Asia

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© SKF Group Fast growing markets / Special focus Asia Market update Key market drivers Manufacturing footprint Engineering footprint Successful business Ulrich Selig Director, Automotive Asia

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Fast growing markets / Special focus Asia. Market update Key market drivers Manufacturing footprint Engineering footprint Successful business. Ulrich Selig Director, Automotive Asia. Passenger car production - Asia. Asia ~ 50% of global car production - PowerPoint PPT Presentation

Transcript of Fast growing markets / Special focus Asia

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Fast growing markets / Special focus Asia

• Market update

• Key market drivers

• Manufacturing footprint

• Engineering footprint

• Successful business

Ulrich SeligDirector, Automotive Asia

© SKF Group

2011 2012 2013 2014 20200

20000000

40000000

60000000

80000000

100000000

120000000

-5%

0%

5%

10%

15%

20%

25%

-0.3%

10.3%

5.4% 4.6%

22.5%

Passenger Car Production

AsiaWorld TotalYOY AsiaYOY World

Passenger car production - Asia

• Asia ~ 50% of global car production

• Out of top 15, six are Japanese manufacturers

• Foreign JVs market leadership in China

Source: IHS August 2014CMD 2014

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Heavy and medium truck production - Asia

2011 2012 2013 2014 20200

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

4,500,000

-20%

-10%

0%

10%

20%

30%

40%

50%

60%

70%

-10.9%

3.6% 2.6%

56.7%

Heavy & Medium Truck Production

AsiaWorld TotalYOY AsiaYOY World

• Asia ~ 60% of global truck production

• Top 5 heavy truck manufacturers come from China

Source: LMC Report Q2 2014CMD 2014

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Key drivers to impact the Asian automotive market

• Urbanization

• Disposable income growth

• Infrastructure development

• Rapid growth in small cars

• Electric vehicles

• Total cost of ownership

CMD 2014

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Manufacturing and engineering footprint - Asia

Wuhu

JinanTaegu

Jakarta

Mysore

Pune

HaridwarBusan

Shanghai ATC I + SSBC

Bangalore

Shanghai ATC II

Singpore

• New factories established₋ ACTII factory, Shanghai, China - production started 2014

₋ Jinan factory, China - production started 2012

₋ Mysore factory, India - production started 2012

• SKF Global Technical Centres expanding

• 13 production sites

CMD 2014

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Global Technical Centres in Asia

Global Technical Centre ChinaShanghai (Jiading Campus)

Employees : ~400 (to 2016) Opened : 2013 Q4

Automotive Testing Centre Japan, Chino

Global Technical Centre IndiaBengaluruEmployees : ~400 (to 2016) Opened : 2012

CMD 2014

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Product engineering centre - Asia

Truck

• Meet local customer specific challenges

• Quicker answers

• Specialized and dedicated engineering teams

• Global product development and design process to ensure worldwide quality standards

Trucks

Two wheelers

Light vehicles

Trucks

Seals

Global Technical Centre India Global Technical Centre China

CMD 2014

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Key automotive customers in Asia

Passenger cars Commercial vehicles

CMD 2014

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2014 - YTD• 4 OEM customer days

• 21 VSM distributor days

• 10 Truck Fleet customer days

Customer technical days

2013• 18 OEM customer days

• 25 VSM distributor days

• 50 locations 4,000 visitors

2014.04.23 VSM Distributor Day 2014.04.29 Hande Axle Tech Day

2013.09.21 Volvo China Tech Day2013.11.20 GAC Tech Day2014.03.12 Sweden Innovation Day

2014.05.23 SAGW Tech Day

CMD 2014

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Great Wall - China

‘000 units

Strategic partnership agreement

Solutions • Wheel hub bearing unit (HBU)• Transmission bearing• Engine and driveshaft seals

Great WallLeading local car brand in China

Strong growth plans

Sales target 2015:

“Focus Dedication Specialization”

Russia

South Africa Australia

Italy

Chile

Source: Great Wall

CMD 2014

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Great Wall

To grow our business in China and globally we need high quality suppliers with advanced engineering capabilities, close to us locally and a solid footprint globally.

Great Wall wants SKF, as our strategic partner, to support us to reach global fame with the aim of building the best Chinese vehicles.

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Geely - China

Solutions • Transmission bearings

(deep groove ball bearing, bearing retainer)

• Transmission seal (low friction bonded piston seal)

• Engine seal

GeelyMission: Build the safest, most environmentally-friendly and most energy-efficient cars, and bring Geely cars to the world!

In 2013,GEELY Holding Group revenue achieved 24.55 Billion US dollars, listed as the 477th company of world fortune 500

“Happy life, Geely drive.”

CMD 2014

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Dongfeng Commercial Vehicle - China

Solutions • Engine idler bearing• Tapered roller bearing for transmission • Maintenance-free universal joint bearing

and hanger bearing for propeller shaft• Tapered roller bearing for axle

DongfengLeading heavy and medium duty trucks manufacturer in China

Sold over 172,000 heavy and medium duty trucks in year 2013

A strategic alliance established with AB Volvo to build Dongfeng into a global brand

“Chinese Dongfeng Global Dongfeng”

CMD 2014

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Dongfeng Commercial Vehicle Mr. Huang Gang, General Manager

● Competence, technology and quality products● Deepen and widen cooperation● Support to improve trucks for global customers

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Mazda - Japan

SolutionsTransmission seal (low friction bonded piston seal)

Robust MacPherson supspension bearing unit

Mazda Sold 1.3M vehicles worldwide in 2013

Over 80% sold outside Japan

New plant in Mexico for Mazda 2 and Mazda 3 started operation in 2014

Forecast 1.5M vehicles worldwide in 2015

”Zoom Zoom”

CMD 2014

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Isuzu – Japan

Solution• Tapered roller bearing

Isuzu• Global truck manufacturer• Aims to be a leader in

transportation, commercial vehicles and diesel engines, supporting customers and respecting the environment

• More than 70% of Isuzu turnover comes from overseas countries

CMD 2014

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Hyundai/Kia - Korea

Solutions• Wheel hub bearing unit• Robust MacPherson

suspension bearing unit

Hyundai/Kia• Overseas production expected to

grow slightly to exceed domestic• Hyundai-Kia 5th largest automotive

OEM group• Global footprint:

“The power to surprise”

“New thinkingNew possibilities”

CMD 2014

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Hyundai MotorsMr. Byeong-Jun, Kim, Purchasing Director

“ Working with SKF, we know we get the advanced and highest performing solutions we need for our vehicles to reach the world best level of the cars.

Hyundai & Kia have grown tremendously over the last years globally, and we recognize that SKF’s global engineering and manufacturing footprint are a highly valuable support to us in our continued growth.

We are pleased to work with SKF as we also have their timely and skilled support close to us in Korea and we look forward to continued growth with SKF. “

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Honda - Indonesia

Solution• Wheel hub bearing unit (HBU)

Honda• Leading car manufacturer in

Indonesia• Opening for further HBU business

also with other car manufacturer

Indonesia• Fast growth of small cars due to

economical development transition from TW

• Local Indonesia manufactured parts will enable customer to meet government requirement for incentive scheme

“The Power of Dreams”

CMD 2014

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Key message for Automotive Asia

• Increasing engineering capacity close to the customer

• Utilizing manufacturing capacity including new factory to grow with our customers

• Signing strategic partnership agreements strengthens growth for future market share

• Continue building strong relationship with customers; recognition with quality and business awards

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SKF Automotive strategy

Cost and capital

efficiencyProduct-

ivityRobust supplier

base

Cost reductions

CMD 2014