Future of Indian Automotive &

Expectations from Indian Steel Industry

Mr. Sandeep Raina

Vice President (Engineering)

Maruti Suzuki India Ltd

Content:

2

•India – A Rising Story

•Changing Dynamics

•Way Forward & MSIL Approach

•Expectations from Steel Industry

ERD-PD/ EN-P1 : Confidential

INDIA: A Rising Story

3

Information

technology

Agriculture

Manufacturing

Largest IT Industry globally

Low cost Manufacturing

Global Agriculture Powerhouse

One of Fastest Growing

Economy with GDP growth

of 6.7% in 2017-18

2.3

8

2018 2030

4

India likely to grow at a potential ~8 % on average

from 2018 to 2030

GDP ($ Trillion)

x 3.5

Main driver for growth

“Make in India”

Source: Niti Aayog

Auto industry contributes ~7% to India’s GDP

ERD-PD/ EN-P1 : Confidential 5

S.No. Region 2017 Market Size (Mn Units)

1 China 29.1

2 USA 17.6

3 Japan 5.2

4 India 4.0 (PV: 3.3; CV: 0.7)

5 Germany 3.8

6 UK 3.0

7 France 2.6

8 Rest of World 31.5

Total Market (PV + CV) 96.8

India in Global Automotive Scenario

*Source: OICA 2017

India is

expected to

become

3rd Largest

Market

by 2020-21

6

Let’s look at how MSIL has transformed

the Indian auto industry

7

1.55

2.69

3.28

0.72 1.05

1.64

2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18

Industry MSIL

MSIL has been the key driver for transforming the Indian auto industry

20 Million+ units produced since 1983!

Annual

Sales

(Millions)

MSIL – Transforming the Auto Industry

~46%

~50%

“Transformotion”

8

Youthful Design

New Technology

Exciting Experience

+

9

Baleno

Stylish & Sophisticated Premium Hatch

“Make In India” for the World

Fastest vehicle to cross 500,000 sales in 38 months

in India

Maruti Suzuki’s 1st Compact SUV

Maruti Suzuki’s symbol for “Create in India”

The 1st Model - Designed & developed by Maruti

Suzuki on Suzuki Platform & Powertrain

29 Awards & 350,000+ delighted customers.

Vitara Brezza

Youthful Design

1st Generation

~0.6 Mn

2005

2nd Generation:

~1.2 Mn

2011

3rd Generation:

All New Swift

~0.18 Mn

2018

Youthful Design

~2 Mn SWIFT sold only in India since 2005

11

Stronger, Safer, Lighter [by 100 kg.]

More Fuel efficient

provides better driving performance

Next Generation HEARTECT platform

SHVS (Smart Hybrid Vehicle by Suzuki)

Environment Friendly

Fuel Efficient

Affordable Price

Maruti Suzuki’s first step to offer Hybrid Technology to Indian

Consumers

New Technology

Enhanced Experience for smartphone users

Smart Link Audio Infotainment system With Android Auto & Apple Car play

Available in 7 models across MSIL lineup

AGS [Auto Gear Shift] Affordable, Economical & Efficient 2-pedal technology

Exciting Experience

Suzuki Connect Advance Connected Car Solution

Based on Embedded Telematics control Unit

Automatic Transmission (AT) Auto Gear Shift (AGS) Transmission

AGS provides the same convenience & comfort as that of AT but is

~ 50 % lesser in Price;

~ 17% more Fuel efficient ;

~ 33% lighter

Auto Gear Shift

14

Progress in FE over the years

1.0L Engine

Fuel Efficiency

(km/L)

Wagon R A-Star Alto K10 Alto K10 Celerio

F10D K10 (Petrol)

17

19.620.2

20.9

23.124.07

10

15

20

25

2007 2008 2010 2013 2014 2014

Alto K10

(Current)

Fuel Efficiency

(km/L)

Improvement in Fuel Efficiency by ~40% in 7 years

FE Improvement

FE improvement through:

New generation powertrain

Friction reduction

(engine oil, Tyre improvement)

Product design improvement

(focus on Cd)

Weight reduction

(design mod., alternate material)

Kitna Deti Hai?

14kg 54kg

2005 2011 2018

Vehicle Body Optimization

~22% weight reduction in BIW with enhanced crash performance

At Maruti Suzuki we also ensure

Enhanced Customer Experience

Along with product, MSIL focused on enhancing customer experience with introduction of premium

sales channel “NEXA” in 2015 & revamped existing sales channel as “ARENA”

17

MSIL is able to do

Transformotion

due to great emphasis on both

Products via R&D

And

Customer Experience

Content:

18

•India – A Rising Story

•Changing Dynamics

•Way Forward & MSIL Approach

•Expectations from Steel Industry

19

Increasing Customer Aspirations

Need to address evolving customer expectations

Yesterday’s customer

I just need a

product that

is affordable

Welcome me

I need

experience

Affordable

+

New tech

Make it Easy

for Me

Next Gen customer (Gen Y/Z/Glass)

Connected India

E-Connectivity in India is increasing

Source: Statista 2018

Units in Millions

294

204

131

India

USA

IndonesiaFacebook Users

772

462

312

China

India

USA

Internet Users

775

387

235

China

India

USASmartphone Users

21

Indian Consumer becoming Globe Trotters

2010 2015 2020

Market size $ Bn

Air travel

Foreign Travel Source: BCG Report, AZ research

No of travelers (Mn)

15 30

35 12

18

10

With these changes, Indian consumer aspirations

are becoming similar or at par with that of

developed countries

But…..

$55,800

$38,100

$37,800

$14,100

$6,200

United States

Japan

European Union

China

India x 9

GDP Per Capita (PPP)

Source: OCIA 2015 data

Indian consumers are “Value Oriented” & hence need Affordable Solution

Affordability Index: Value oriented consumer

Disruptions w.r.t. Auto Industry (Global)

Connected Electric Mobility

Shared Mobility Autonomous

Connected Shared Electric

Indian Govt. Vision to Transform Future Mobility

Govt. also emphasized its vision on future mobility at

the 2018 MOVE Summit

26

Connected Car

Connected Car + Connected Car Ecosystem

Ecosystem Stakeholders

1. Car Makers

2. Mobile Operators

3. App Developers

Cross-industry collaboration required to develop Connected Car Ecosystem

Improved asset utilization and new business opportunities 27

Shared Mobility

One Vehicle for Every Trip Purpose A Solution for each specific purpose

An innovative transportation strategy that enables users to gain

short-term access to transportation modes on an “as-needed” basis.

Avg. share of annual driving time

Source: Mckinsey

Electric Mobility

28

Affordable Electric Car (Platform/Powertrain)

+

Electric Car Ecosystem (Charging Infrastructure)

Need to develop

To address Energy Security & Global Climate Change concerns,

Govt. of India’s vision is Electrification

ERD-PD/ EN-P1 : Confidential

Traffic Congestion

High Road Accidents Limited Parking

Major concerns for India

High Pollution

2017 2018 2019 2020 2021 2022 2023

Safety

Offset & Side impact New models All models

Pedestrian New models All models

ABS New models All models

SBR , RPAS, Speed Warning All models

Emission

CAFÉ Phase1 Phase2

BS6 All models RDE

Indian regulations will be at par with developed nations in near future

SBR – Seat Belt reminder RPAS – Reverse Parking Sensor CAFÉ – Corporate Average Fuel Efficiency

Stringent Regulations Compliance

31

Stringent Regulations to continue..

Content:

32

•India – A Rising Story

•Changing Dynamics

•Way Forward & MSIL Approach

•Expectations from Steel Industry

2017-18 2019-20 2024-25 2029-30

Sale

s V

olu

me (

Mill

ion

)

MSIL has plan for consistent growth in the Industry

Industry

India poised to become 3rd largest PV market

3.3

~ 4.2

~10.0

~ 6.0

34 From Make in India Create in India

Strengthening Designing Capability

35

Rohtak R&D Center complete vehicle evaluation capability with World Class Test Course

Creating Evaluation Capability

36

Investing in R&D Capability Development

Design Capability New Model Design @ MSIL

Design Capability

Rohtak Test Track & Labs

Evaluation Capability

MSIL R&D Approach

ERD-PD/ EN-P1 : Confidential 37

Future Vehicle Requirements

Advanced

Lightweighting More Fuel Efficient

Vehicles need to be More Safer, More Fuel Efficient vis-a-vis Advanced

Lightweighting

More Safer

38

Steel will continue to

play a critical role in

addressing the

Customer Needs

and

Future Requirements

39

“Steel” has similar weight reduction potential and is also cost effective

STEEL – A “Conscious” Choice for Automotive

CO

ST IM

PA

CT

WEIG

HT D

OW

N

AH

SS/U

HSS

CO

MP

OSIT

ES

ALU

MIN

IUM

100 % recyclable & Lower CO2 emissions during material production

• Scores over Aluminum & Composites

Compatibility with current Infrastructure of OEMs & Suppliers

Stronger and Lighter (AHSS & UHSS)

• Can reduce Vehicle CO2 emissions by up to 15% with Extensive Light weighting

Easy availability of Design know-how, Material behavior prediction etc.

STEEL – A “Conscious” Choice for Automotive

“STEEL” is fully capable to meet much Stringent safety protocols like Euro-NCAP

Extensive application of AHSS and UHSS along with

crash load path Optimization in BIW

Previous Platform HEARTECT Platform

STEEL – A “Conscious” Choice for Automotive

Content:

42

•India – A Rising Story

•Changing Dynamics

•Way forward and MSIL approach

•Expectations from Steel Industry

43

EVI (Early vendor involvement) with Steel Mills is required to:

• Ease of Product design and Tool design for AHSS/UHSS deep draw parts

• Exact behavior prediction of part deformation in CAE Crash analysis

Thinning Analysis Spring back Analysis

Wrinkle Analysis

Steel Mills must collaborate with OEMs & Tier-1 for effective application of Material property data

A typical collaborative approach for manufacturing analysis during

Initial design stage of an AHSS part

Collaborative work with Steel industry is needed!

OEM

Steel Mill Toolmaker

Concept

Product design

Virtual

Validation

Part

Manufacturing

& Proto Build

Testing &

Validation

Collaborative work with Steel industry is needed!

Inputs from Steel Mills

(Current Practice)

Concept

Product design

Virtual

Validation

Part

Manufacturing

& Proto Build

Testing &

Validation

Collaborative work with Steel industry is needed!

Actual Inputs required from Steel

Mills for cost effective and

optimized vehicle design

46

We must co-develop Steel alloys specific to the structure application requirement

Crumple

zone

Safety

cage

Crumple zone

Side Pole Impact (EV Vehicle)

ODB Crash test

Different recipes for Crash energy management is desired!

Safety Cage

47

Collaborative approach for Light-weighting of Battery box is required

Rigid, crashworthy and lightweight

battery box structures would be

future of EV

Steel must be “Future ready”!

48

“Touch and Feel of Vehicle Exterior”

– Key to Premium Perception

Special Steel grades should enhance product “premium-ness”

(e.g. Dent resistance) with no significant cost impact

Steel should add value to the product aesthetically!

49

Strict “Range Control” of Steel manufacturing process parameters is desired

Strict process control is desired!

Wide variations in RM parameters (YS, Elongation etc.) has significant effect on manufacturability

of deep draw and AHSS/UHSS parts

Spring back simulation as per RM parameter 1

Spring back simulation as per RM parameter 2

Gen

era

l Ste

el

man

ufa

cturi

ng

Tole

ran

ce

OEM

Desi

red

Tole

ran

ce

Significant variation in spring back due

to change in RM parameters

2005 2010 2015 2020 2025 2030

Steel Industry must address future AHSS/UHSS/PHS needs with Huge Impetus to Make In India

Mild Steel / HSS

AHSS

Trend of usage of Steel

Must meet increasing requirement of AHSS, UHSS & PHS

51

Local availability for all types of RM (Skin Panel, GA, AHSS & UHSS) across thickness range

Technical knowhow and support for Mass production stamping problems

Collaborative support for “Local Tooling” so as to mitigate cost impact of AHSS/UHSS

Focus on capability enhancement & effective project management

Expectations….

“Great things in business are never done by one person,

They’re done by a team of people”

-Steve Jobs

Let’s Collaborate and become Future Ready!

53

Thank You