Professional Documents
Culture Documents
64 Pages `50
Polaris Industries
NEWS
CUTTING EDGE
Driving Simulators
INTERVIEW
Auto Monitor
EDITORIAL
Partner in Progress
IT is always a jubilant time for the automotive industry in September or from this month onwards, as this is the harbinger of the festive season. Maintaining the tradition followed every year, the passenger car industry grew last September after a series of poor performing months due to hardening interest rates. The increasing price of petrol has also put the spanner on the sales of petrol vehicles. However, this phenomenon has paved the way for two different avenues of opportunitiesfirstly, it has spurred the sales of diesel vehicles in the used car market and secondly, it also made people look at high technology options in petrol driven vehicles, to offset the increased fuel costs. Off late, the used car market has been witnessing a sudden surge in demand for diesel vehicles since those who are planning to sell their cars, defer now, hoping that the cars would fetch more value. It is also due to the fact that they are deferring their new vehicle purchase decision because of increased cost of finance. In the new car sales too, the demand for diesel vehicles has been increasing significantly. Diesel cars that accounted for about 30 percent of the total vehicle sales about three years ago, have increased to more than 50 percent now. Due to issues related to supply of components for engines, diesel car production is not matching demand. The changing scenario has also spurred an increase in the activities in aftermarket, and as a result, the sale of accessories is set to soar significantly. In addition, the spare part sales for the older vehicles will further catalyse business growth. Though the vehicle sales have been moderating since the beginning of this calendar, there are enough indications that it will grow, despite the cost of finance becoming dearer. This is because of the shear population and poor motorisation of the country. And Indian OEMs are focussing more on the aftermarket now than even before. In fact, some of the vehicle manufacturers have gone a step ahead; in order to train their dealerships / service centres on new generation tools and equipment, the OEMs have approached even overseas garage equipment manufacturers. This is to serve the customers not only with sophisticated services, but also its execution in a shortest possible time. In this scenario, knowing the vehicle parameters well ahead of the launch of the new models will help the garage equipment manufacturers to simultaneously develop dedicated tools. However, it is still not happening, as it should be. OEMs should look at garage equipment manufacturers as partners in progress to cater to the requirement of the end users. Wishing you much pleasure reading. Do send us your feedback.
T. Murrali
t.murrali@infomedia18.in
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CONTENTS
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6 8 9 Polaris gives new dimension to off-road vehicles Harman to grow presence in auto acoustics products Fourth NEI facility to be set up near Hero plant
10 12 6 8
10 Tenneco to consolidate its presence in India 11 Madhus paints new vistas with green paint booths 12 First APAC 16 organised by SAE 32
COVER STORY
22 TVS stands on Lean Manufacturingto flesh out success story
TV Sundram Iyengar & Sons has applied lean concepts at Ashok Leylands service centre in Nilambur
22
IN CONVERSATION
32 GM Singh, VC and MD, Hover Automotive elaborates on the way forward
INDIAS FIRST MAGAZINE FOR THE AUTOMOTIVE AFTERMARKET
36
38
Vol. 1 No. 4 October 2011 64 Pages `50
Polaris Industries
NEWS
CUTTING EDGE
Driving Simulators
INTERVIEW
Auto Monitor
REARVIEW
36 Demand for AC service spurs proliferation of specialised shops
CUTTING EDGE
38 Tecknotrove unveils driving simulator range for CVs
Cover Design
Mahesh Talkar
FOUNDER & EDITOR, NETWORK 18 Raghav Bahl PRESIDENT & EDITORIAL DIRECTOR, TV 18 Senthil Chengalvarayan EDITOR T. Murrali EDITORIAL ADVISORY BOARD Vishnu Mathur, Director General, SIAM Vinnie Mehta, Executive Director, ACMA SP Shah, Director General, FADA EDITORIAL TEAM Abhishek Parekh, Features Editor Nandita Rohit Kapadia, Senior Copy Editor SENIOR CORRESPONDENT Nabeel A Khan CORRESPONDENTS Shambhavi Anand, Bhargav TS, Akmal Rahman B ASSISTANT ART DIRECTOR Varuna Naik SENIOR DESIGNER Mahesh Talkar CHIEF PHOTOGRAPHER Mexy Xavier PHOTOGRAPHERS Neha Mithbawkar, Senior Photographer Joshua Navalkar BUSINESS CONTROLLERS Pukha Dhawan, Lovey Fernandes, Akshata Rane
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NEWS
SEVERAL government in itutions including defence is act ively looking at buying o-road vehicles manufact ured by the US based Polaris Indu ries Inc, to also support after sales service requirements of their eet operating in forward areas that cannot be reached through normal roads, according to Managing Director, Polaris India, Pankaj Dubey. Speaking to Aftermarket at the te track to showcase the capabilities of the vehicle in Chennai, he said the company has already received orders from defence for snowmobiles to be deployed in bad weather conditions. Couple of months ago, the US company announced its formal entry in the Indian market with the launch of its oroad vehicles. The product line introduced to the Indian market consis of All Terrain Vehicle (ATVs), Ranger RZR Side by Side vehicles and Snowmobilespriced between `2.84 lakh and `24 lakh.
Dubey said the company has already eablished nine dealerships and it will add one more before the end of this calendar. In Chennai, the vehicles will be available through MPL Adventure Sports Vehicles, a part of MPL group, which is in to vehicle dealerships for several OEMs including Ford, Mahindra and Ashok Leyland. The company has forayed in to Chennai, as it is one of the key markets for us in India. We foresee huge intere and business potential in the market and thus appointed MPL as our dealer to oer our innovative products. In the r phase, we are launching our agship product including ATVs. We are hopeful about oering a lot of adventure and utility experience on oroads in Chennai. The company is looking at cuomers in several segments including agriculture / farming, adventure, fun, lifeguard, beach patrol, con ruct ion, manufact uring, fore, mining, exploration, paramilitary, tourism and re ghting. Considering the specic
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requirements of the country, he said, We may sell more vehicles for utility purpose than for adventure and fun. The Dealer Principal and Director of MPL Adventure Sports Vehicles, S Ravindranathan, said the dedicated showroom for Polaris in Chennai will be operational within few days. In addition to the display area, the showroom will have a small service centre. However, mo of the service will be carried out at the cuomers premises, as these vehicles cannot be brought to the service centre. The National Service Manager of Polaris India, Vinod Jee Pandita told Aftermarket that the company would shortly be launching Polaris On-Site Service (POSS) to facilitate
servicing of the vehicles at cuomers premises. Each vehicle would be given a periodical maintenance chart with which, the cuomers will know the schedule. Based on the requirements POSS will facilitate after sales service at cuomers place. Unlike the onroad vehicle Polaris vehicles will not have free services. Asked about the time to address cuomer complaints, he said the company has not decided on any timeframe, however, priority will be given for cuomer service, he said. Since the spare parts including tyres, have to be imported, adequate inventory will be maintained, he added. While the Indian market is no ranger to ATVs, the look and feel
of these vehicles and adventure has been very limited so far. Polaris is a brand known worldwide for its innovative o-road vehicle and we associate with them right from the beginning and jointly develop the o-road vehicle market in the countrysomething that people desire for, but have been missing, Ravindranathan said. Dubey said, Since the market for such vehicles is ill in nascent age in the country, our principal aim is to sensitise the consumers, create a new market and to generate more intere in these act ivities. After the ten dealerships achieve breakeven, say in about three to ve years, the company will look at increasing the number of dealers to 25, he added.
(L-R) S Ravindranathan, Dealer Principal & Director of MPL Adventure Sports Vehicles & Pankaj Dubey, MD, Polaris India
Photograph: Bhargav TS
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M Lakshminarayan, MD, Harman International (India), AR Rahman, Dinesh Paliwal, Chairman, President & CEO, Harman, International (India) & Jeff Willard, CMO, Harman International Indu ries Inc
Abhishek Parekh
HARMAN International (India) is evaluating on introducing more products to target the growing automotive acou ics market. It is evaluating on introducing products across brands in India for the goring vehicle population in the aftermarket. It recently signed AR Rahman as its brand ambassador for JBL and kicked o its campaign Hear The Trutha multi-year campaign featuring an evolving roer of top international musicians who want their fans to lien to music as it was intended to be heard. Rahman will feature in the campaign highlighting How AR Rahman liens to AR Rahman. Harman International India (HII) is a wholly owned subsidiary of Harman International. It designs and manufact ures a wide range of premium audio and infotainment solutions for the automotive, consumer life yle and professional markets. Its prominent brand includes AKG, Harman/ Kardon, Innity, JBL, Lexicon and
Mark Levinson. HII is headquartered in Bangalore and was set up in 2009 with M Lakshminarayan as its Managing Director. The company has a workforce of over 450 people, including about 250 working for the oshore development centre, a hub for innovation and embedded engineering. The India Development Centre was set up in order to broaden Harman's engineering footprint into developing audio and infotainment solutions across the automotive, consumer life yle and professional markets. Sahil International is the authorised diributor in India for Harman consumer products. Harman will launch its advertising campaign, social media engagement and other initiatives intended to challenge lieners to Hear the truth, a campaign designed to resonate with JBLs long-time fans and music lovers, through the artis and songs they adore. Musicians across genres around the world will be inducted throughout this multi-year campaign. During the course of the cam-
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ONE of the leading manufact urers of NBC brand bearings for automotive and indu rial segments, National Engineering Indu ries, Jaipur (NEI), a CK Birla Group company, is mulling setting up its fourth plant in the country. By December 2011, we should be able to nalise the location. Currently, we are weighing the situation, keeping in mind our cuomers and their plans. Once the plant is set up, we will art by making ball bearings and then move to taper roller bearings, NEI chief executive ocer Rohit Saboo told Aftermarket. The two de inations under consideration are Gujarat and Karnataka. Since the plant will cater to the needs of Hero Moto Corp majorly, the nal location will depend upon the twowheeler manufact urers proposed plant to be put either in Gujarat or Karnataka. On one hand in Gujarat, NEI has major cuomers like Maruti Suzuki while on the other, Karnataka oers the advantage of proximity with Honda Motorcycles and Scooters India (HMSI). The winner of the pre igious Deming Award in 2010, NEI plans for the new plant to be spread across an area of 15 acres and will be highly automated to reduce dependence on manual assiance sharply. For inance, a usual line requires ve people, the new automated line will reduce this number to two. Around 98 percent of the highly product ive and automated machines will be imported from either Japan or Europe. NEI plans to inve `100 crore
in the machinery and support paraphernalia. The land and building may co somewhere between `10 to 15 crore. The company is also setting up another plant in Mahindra Special Economic Zone (SEZ) in Rajahan for its joint venture with local company, NTN. Th is plant will produce third generation wheel bearings for companies like Hyundai and Toyota. The con ruct ion which is already under progress will be completed by the r quarter of the next year. The company is hopeful that the plant will commence product ion by the fourth quarter of 2012. The JV which is known as NTN NEI Manufact uring India (NNMI) already has a plant in Bawal. NEI has also planned to increase its spend on research and development signicantly. It plans to spend around two and a half percent of its total revenue on R&D this year. Currently its R&D spend was 0.5 percent of the total revenue. We have realised that for a better future we mu rely on our own R&D rength. Hence, we will be deploying more funds for the same. While this year we have allocated `25 crore for research work from next year it will increase slightly and be over three percent of the revenue annually, Saboo informed. It plans to double the size of its R&D team and is also con ruct ing a building in Jaipur for the purpose. Talking about the recent slowdown triggered by the hike in intere
rate of vehicles Saboo said, While some segments have been aected by the slowdown, others are ill doing well. Two-wheelers and tractors are not aected but passenger vehicles and commercial vehicles have been slightly aected. Though some pockets in the CV segment like light commercial vehicles and one-tonners are ill doing well. The capacity utilisation of NEI has come down from 90 percent to 86 percent. The company has made no alterations in its invement plans due to the perceived slowdown, according to Saboo. About two years ago, we had planned that we will inve `150 to 200 crore every year and we will continue to inve that amount, he added. The company has crossed a turnover of `1000 crore and is bullish about the next year as well.
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presence in India
Shambhavi Anand
THE Indian subsidiary of the US-based manufact urer of ride control components and exhau syems, Tenneco Automotive India, is planning to consolidate its presence in the Indian aftermarket. The aftermarket space in India is unorganised and therefore to rengthen our presence we need to organise ourselves r, Managing Director, Tenneco Automotive India, Abhijit Mukherjee told Aftermarket. To achieve its vision, the company plans to educate the exi ing di ributors more about their products by the means of brochures and training sessions. Th is will yield better results rather than ju increasing the number of di ributors, Mukherjee added. Aftermarket contributes 15 percent to the revenue of Tenneco in the country. It intends to increase this share in the coming years. Tenneco is setting up a new plant in Chakan to cater to the needs of its global cuomer Volkswagen. The con ruct ion of the plant has already commenced towards the end of the la and will be fully operational by the r quarter of the next calendar year. The company already has plants in Husor, Pune, Bawal and Chennai which supply to its cuomers like Maruti Suzuki, Renault, Tata Motors, Mahindra, Ford, General Motors, Volkswagen, Nissan, Toyota, Daimler and the JV between Ashok Leyland and Nissan. It also has a small facility in Pondicherry for powdered metal component which are precision components required for ride control products.
The company which has inveed 20 million dollars in its Indian operations in the la three years plans to inve the same amount in the next three to ve years. It has sales revenue of six billion dollars. The manufact urer is also working on several innovative and futuri ic products on ride control as well as emission control side. These advance products are meant for the next generation of vehicles which will hit the roads after 2015. These products are intended for OEM business initially. The shocks will have hollow pion rods with the usage of dierent material like plaic. Th is will signicantly reduce the weight of the vehicle in which it is used. Though it is not being developed for a specic cuomer, the company is hopeful that once done it will nd numerous takers. It is also working on developing low co electronically controlled ruts. Electronically controlled shocks require electronic control units (ECU) which is an added co. We are trying to develop a product where the electronic chip
is inside an individual rut so that the control is within that eliminating the need for a separate unit. This will help in reducing complexity of the syem as well as co, Mukherjee explained. This technology is aimed at the vehicles of B and C segment and has internal valve technology which results in lower power usage while oering fa damping adjuments. The Indian car makers like Maruti have shown intere in these low co electronically controlled ruts which are being developed at the Indian engineering centers in collaboration with the centers in Belgium and America. On the emission control side also the company is working on advanced products keeping in mind the emission norms expected to be implemented in the country. While the main engineering centre for ride control products is in Husor, Tenneco is building a new engineering centre for emission control in its Chakan facility. The Indian centers are supported and funded through the main global centers in the US, Europe, China and Japan. While currently there are no customers yet for any of these technologies in India, when the demand comes, Tenneco is ready with these technologies and will be able to readily and rapidly respond to the OEMs requirements as they try to give more value for money by increasing the number of features that are on oer. The same thing happened with ABS where initially the technology was conned only to high end car segments but has now spread to all segments as a andard oering. In the OE business we not only work for the present but also for future, Mukherjee added.
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GARAGE equipment trading company, Madhus Garage Equipments, with a vision to scope new prospects, saw enormous opportunities in the eco-friendly paint booths in the aftermarket. Consecutively, the company that is based in Bangalore, has recently arted importing high performance and co competitive paint booths from a Chinese manufact urer Guangzhou Guangli. It is also planning to expand its network in order to cater to the rising demand in this segment. According to Managing Director, Madhus Garage Equipments, Ravi BM, the market in India is looking for reasonably priced and good quality equipment. The products that we bring from Guangli is about 40 percent cheaper when compared to the same product available in India. Moreover, the Chinese products are more ecient. Th is new paint booth is fabricated with rock wool internally and we use the two age burners and powerful fans to circulate the air evenly, he said. Currently, the company imports and sells a wide range of products that include wheel aligners, tyre changer, brake teer, gas analysers, body shop equipment and wheel balancers. Madhus Garage represents several multinational manufact urers including Hunter, Car-O-Liner, Ravaglioli, Telwin, Romess and Texa.
With this, we can say that the equipment used in our workshops in India is at par with international andards. So far, late technologies have been coming in every two to three years and we art bringing in new equipment as the late technology is released in the international market. The big challenge in the indu ry is availability of service and spare parts. To address these issues, the company has 65 trained service engineers across the country. And for immediate part requirements, it has a centralised spare parts di ribution centre, which reaches the cuomer within 24 hours. According to him, there is a huge potential in the truck market in India. Earlier there was no particular equipment used in the truck segment as it had always been dominated by the roadside garages using regular tools. However, today a lot of automation has come into the pict ure and the service is done easily by using pneumatic tools. Thus these kind of specialised tools and equipment have really made the truck segment move in a dierent direct ion. As a result, the
truck market will grow tremendously in another ve years, he said. In the garage equipment business, there are three main areasthe body shop equipment, workshop equipment and wheel service equipment. In the three areas, Madhus Garage plays a vital role and exploring more possibilities. For our new AC equipment, we have received many enquiries from major OEMs like Mercedes-Benz, BMW and Audi to supply to their service centres and we will be supplying the equipment next year. Thus we have to gear ourselves to meet these orders, which will be new generation vehicles, Ravi added. Apart from OEMs, the company sees individual garages as a major precursor to this growth. The smaller players like dealers and garages, which we call the entry level market holds immense potential in the paint and renishing segment, he said. While the premium OEM cuomers choose expensive paint booths, the smaller players in the aftermarket prefer more co eect ive products. These entry level players will be the companys main focus in the near future, he said.
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organised by SAE
THE Society of Automotive Engineers India (SAE India) is organising the 16th Asia Pacic Automotive Conference (APAC 16) for the r time in India. Scheduled to be held from 6 to 8 October, 2011 at Chennai Trade Centre, the focus of the conference is Suainable Technologies for Safe and Smart Mobility. According to the Chairman of the organising committee of APAC 16 and the CEO of Automotive Infotronics, Dr Aravind Bharadwaj, the event will see major national and international participation from the indu ry, government and the academia. The conference is expected to discuss the automotive road map and address the concerns raises by the indu ry members. Though the Indian automotive indu ry has notched a prominent position in the global automotive map, it ill has a long way to go to become a signicant player in the world. And this is primarily because the vehicles
that are being manufact ured in the country are not fully designed yet. While unveiling the conference theme and logo recently, the President SAE India and Co-Chairman APAC 16 and the Executive Ocer, PE, Maruti Suzuki, R Dayal was present along with former President ACMA and Managing Director, Wheels India, Srivats Ram. The Chairman, APAC 16 and the President, Automotive & Farm Equipment Sectors, Mahindra & Mahindra, Dr Pawan Goenka, said that though the Indian automotive indu ry is in riking diance of accomplishing the objectives laid by Vision 2020, the vehicle manufact urers have to go a long way in terms of completely designing the vehicles. Besides, the Indian OEMs fall short in terms of the late technical advancements. Conferences like this could play a vital role for India to become a leading player in the design and manufact ure of vehicles. He hoped that young engi-
neers in the country would leverage this advantage and propel the capabilities in design. According to Goenka, the world is keenly watching India as it rises to be a global economic powerhouse. In the India growth ory, the automotive indu ry and the Indian OEMs are playing a key role. With increasing globalisation, Indian OEMs are also expanding outside India independently, or through ambitious acquisition besides, moving up in their own world class R&D. Invement in OEM plants usually see a multiplier eect in terms of invement and employment generation in the associated supply chain. Thus, the signicance of this industry warrants creation of an eco-syem that can support the growth through suainable technologies and transportation infra ruct ure. APAC 16 brings together the Indian auto indu ry, international experts, key policy makers and academia under one roof to see this
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dream take shape in reality, he said. Bharadwaj ated that APAC 16 will witness congregation of a number of experts on suainable technologies for safe and smart mobility and present an ideal platform for exchange of ideas in several domains including green vehicles, CO2 reduct ion and ambient air quality, renewable resources, safety, infotronics and frugal engineering. The conference will be an ideal platform to exchange ideas in areas like engine technologies, green vehicles, collaborative innovations, IPR policy and regulations. The three-day conference will primarily focus on suainable technology options and creation of an enabling eco-syem to advance safe and smart mobility. It will see several technical and plenary sessions, panel discussions and top tech programmes addressed by eminent indu ry personalities. The conference will also provide an ideal platform for companies to
exhibit their products, technologies and services, he said. We expect the Indian auto component indury to achieve an annual turnover of $110 billion by 2020, a rong growth arm of Indian automotive indury. It is therefore imperative for us to adopt suainable processes, as ten
APAC 16 brings together the Indian auto industry, international experts on sustainable technologies for safe and smart mobility, key policy makers and academia under one roof to see this dream take shape in reality
years from now, the safety and environment considerations due to growth in the automotive sector shall increase manifold. ACMA has created a Suainable
Technology Committee that aims to promote innovations related to energy eciency and energy conservation, Ram added. APAC 16 will oer the Indian auto indury a platform to share and exchange ideas with global experts on suainable technologies for safe and smart mobility, he said. Dayal iterated that India is taking its position as an emerging deination of frugal engineering and global players are keen to collaborate with the country. However, Indias path to mass motorisation will be very dierent from that of developed countries. We mu r develop smart and safe technologies, business models, and government policies that can suain and pave the way to increased automobile penetration in the country. SAE India has made remarkable progress over the years and hopes to provide a framework for the indury to eablish a seamless transportation network in the country, he added.
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Optimism dominates
SUPERIOR products and innovation are necessary conditions, but will not be a sucient for brand dierentiation, said Vice President, Marketing, Sales and Aftersales, Daimler India Commercial Vehicles, VRV Sriprasad, at the 47th Annual Session of Federation of Automobile Dealers Associations (FADA), held at New Delhi recently. He continued, Consumer experience will play a bigger role as product dierentiation will cease. Earlier, welcoming the gues, Nikunj Sanghi, President, FADA, said passenger vehicles that had been growing at a rapid pace have largely been hit by internal and external factors. Commercial vehicle sales, while ill in positive territory, are growing. However, the current rate of growth pales again the heady 25 percent growth during the previous two years. The fact that twowheelers are holding eady inspires condence and guarded optimism. Talking about Daimler India Commercial Vehicles, Sriprasad added that Daimler, the inventor and pioneer of automobiles, is set to challenge conventional wisdom and bring about a paradigm shift in commercial vehicle space. He revealed that Daimler India would be introducing the next generation trucks designed by the Indian engineers for the Indian people at competitive prices within a year, to challenge the near duopoliic character of Indian commercial vehicle indury in India. Another dignitary present at the event, Director, NCAER-Centre for Macro Consumer Research, Dr Rajesh Shukla, in his presentation, highlighted the changing Indian consumption
Rakesh Jain, FADA committee member addressing the dignitaries; (L-R): Satyendra Garg, VRV Sriprasad, Nikunj Sanghi, Anil Dua, Dr Rajesh Shukla & Mohan Himatsingka
Passenger vehicles have largely been hit by internal and external factors. CV sales are growing. However, the current rate of growth pales against the heady 25 percent growth during the previous two years. And since two-wheelers are holding steady inspires condence and optimism
basket. He noted that while rural India is ill 13-14 years behind urban India in terms of non-food consumption, which has been rising eadily both in rural and urban areas and augurs well for the automotive market in India. With GDP growth likely to rise by nine percent through to the year 2015, and incomes of both urban and rural households rising, the auto market is
expected to record a healthy growth. While Sr Vice President, Marketing & Sales, Anil Dua, Hero MotoCorp, painted a bright pict ure of automotive scenario, he added that the huge untapped market would suain the growth. He exhorted automobile dealers to create their own service brand equity, as it is the cuomers experience and service, which would be the dierentiating factor in the highly competitive market. Expressing his cautious optimism, Sanghi hoped that the current slowdown was transitory and the Indian auto market would regain its buoyancy sooner than later. The underlying thread was that the Indian automotive market is poised for a big leap forward. The rising income levels, changing life yles, growing aspirations of rural India and increasing urbanisation are the drivers that will propel the indury ahead. The current fatigue seems temporary, felt the experts.
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expanding portfolio
Sunil Nair, COO, MFSI at the plant
Nabeel A Khan
MAHALE Filter Syems India (MFSI) is increasing its focus on the aftermarket with special attention to commercial vehicles. Hiorically, it has been observed that when the OE business is slowing down due to fall in the sales of vehicles, people art paying more heed to their exiting vehicles thus increase spending in the aftersales procedures. Buying this point of view, MFSI is expect ing an increase in this segment of business. If the slowdown goes on, we expect that our aftermarket will oset that. We have built a second factory la year in Parwanoo, Himachal Pradesh, to increase focus on the aftermarket, The other reason for setting up the plant here was that the Himachal Pradesh government gave us a benet of roughly
around 10 percent in terms of sops for operating within ate, COO, MFSI, Sunil Nair, told Aftermarket. Though, he did not elaborate on the kind benets oered by the ate government. Currently, the manufacturer is utilising 80 percent of its Parwanoo plant capacity, which is dedicated to the aftermarket business, and churning out around `25 crore a month in terms of revenue. The company has already eablished its presence well in the aftermarket through Purolator, (another brand of the company which exis for over 30 years), and gets around 26 percent of its total revenue from this segment. MFSI is inve ing around `two crore in marketing in the aftermarket. Of late, it has increased presence in the HCVs in the aftermarket. Earlier, Purolator was mainly into PVs but after a JV with Mahale, it has received a
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Mahale lters
NEWS
lot of support from Germany that has enabled it to develop and produce lter for the commercial vehicle. Currently, Mahales market share in the HCV and CV aftermarket is very small but hopes to get 15 percent of its total aftermarket sales in the coming two years. We have not lo focus on the PV; we are ill by far the leading manufacturer of lters in the PV aftermarket. We are only increasing the focus in the CVs because of the growth we have seen in the la few years following Indian governments increased invement in infra ruct ure development, Nair added. During this month, the company is launching a whole range of lters and other products for the commercial vehicles in the aftermarket. It has developed a green lter, which is metal free and has a good potential in the international market. Worldwide, PVs have shifted toward the metal-free fuel lter for its ability to be completely recycled. It also has a patent on this product, but is conte ing a case again a number one manufact urer over violation of the patent. The company was not very active in the two-wheeler segment because of low prot margin, however, after its split with Hero Honda, it hopes to get bigger business from Honda Motorcycles and Scooters India. It has also recently received an order from Suzuki Motorcycles. It is also developing a new nano lter, which is expected to have an improved du holding capacity and also better water separation technology. In India, diesel fuel contains a high percentage of water content, and this technology will help increase life of the engine and fuel eciency. As compared to la year, the company is performing quite well and hopes to close with a hike of around 24 percent in the total revenue which ood at `356 crore in 2010 to reach `420-450 crore in 2011.
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NEWS
adhesive industry
Bhargav TS
ADHESIVE manufact urer Nibon Indu ries, will be launching thread lock and cynoacrylate adhesives soon. Managing Director, Nibon Indu ries, Nithin Largus Konnully said, The adhesive indu ry is growing rapidly and we want to regier our footprint in the Indian market by bringing dierent kinds of adhesives. The new thread lock will help our indu rial end-users, new design and manufact uring opportunities, all in one formulation. In short, these two improved products permit the use of top quality anaerobic thread lockers in a much wider range of applications. Based in Kochi, Kerala, Nibon Adhesives is also present in Tamil Nadu, Andhra Pradesh, Pondicherry and Goa. Shortly, it will be entering in Mumbai and Delhi region. It has also arted supplying RTV (Room Temperature Viscosity) and PU sealants.
Cynoacrylate enables faer and greater depth of cure. Light curing adhesives are often referred to as adhesives that cure on-demand or on-command. Th is is due to the ability to adju or align components with the adhesive in place, and only curing when the assembly is correct ly positioned. There are several polymer types that cure via light cure technology and are appropriate as adhesives. Mo are based on free radical curing acrylate technologies. RTV is basically designed for automotive applications, such as sealing exhau manifolds, turbo housings, oxygen sensors, adhering auto and appliance trims, providing form in place of gaskets for gear boxes, compressors and pumps sealing trailer and truck cabs, and bonding or sealing appliance part. PU sealants are solvent free polyurethane with high adhesion rength and good ela icity, which allows multi-coat painting. It is basically used
in common joints for car body works such as wind shields, front and back panels, engine cabins, car doors and folded parts.
Looking Forward
The company also has plans to setup a manufact uring facility in Pollachi next year with an invement of `200 crores. We are planning to manufacture 20 metric tonnes of adhesives and after udying the indu ry, we will art exporting our products. Nibon designs machineries for product ion as per the requirements, therefore the initial invements is higher. The products are highly competitive for the Indian market and the pricing also done accordingly, Nithin added. Nibon Adhesives currently supplies to Popular Automobiles in Kerala and Tamil Nadu and to many other dealers. In the days to come, it will also evaluate the adhesives targeted at the OEMs, as part of its expansion mode.
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NEWS
well-equipped and eco-friendly. MyTVS, will do well in meeting the cuomer demands. The new service centre will also oer other facilities like emergency breakdown assiance, extended working hours, pick-up and drop facility, assiance with insurance claims, Flexi working schedules (seven days a week) and transparency in dealings.
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SPECIAL REPORT
Abhishek Parekh
NNG, which supplies navigation software under the brand iGo my way, is looking to forge partnership in India for eet management segment targeted at trucks and buses. It is in process of launching its iGo Primo in the Indian market through its exclusive and nonexclusive dealers. The company is also looking to tap two-wheelers and pede rian segment in India though its current focus is largely conned to the passenger vehicle segment mainly through the OEM route. It is also in the process of setting up its di ribution network in partnership with hardware or device manufact urer. The company was eablished in 2004 and has partnerships with various mapping and content service providers across the world to provide cuomer interface on navigation devices. Application service providers like NNG provide applications on content (maps) to the hardware suppliers (personal navigation device) to be sold to the OEMs and in the aftermarket. This three way partner-
ship is critical for optimum utilisation of capabilities with each partner and for enhanced user experience. The navigation software is also sold as an application for iPhones and android based smart phones and other personal devices. We can enter a market with a portfolio of applications or products when the basic mapping of mo of the geographical areas of key towns and cities is done. We do not aggregate maps. We partner with leading content aggregators who provide mapping service, ated Vice President, Eaern Europe & Emerging Markets, NNG Kft, Peter Bolesza. More importantly, he adds, the application has to be robu and updated as maps are conantly enhanced and updated at the content providers end. The navigation market is beginning to take o in recent months with pre inalled devices in several mid-sized passenger vehicles. But the attract ion of the market is primarily the low level of penetration of PNDs and other forms of navigation in automobiles. Currently navigation enabled passenger vehicles comprises ju around 1.5 to two
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SPECIAL REPORT
percent of the total number of passenger vehicles sold in India, according to Navteqs and other indu ry e imates. In Europe, around 50 percent of the new passenger vehicles sold are enabled with some form of navigation. The
screens and PND mode is predominant there, according to Bolesza. He added that NNG, in partnership with Navteq, is working on several features or applications suitable for the Indian market and usage pattern.
may have been or are popular in another comparable market like Brazil or China. The market for cuomer-centric products evolves in a very unique manner and India is unlikely to be dierent in this respect, elaborated Bolesza.
Our experience is that a user would act ually op using a device for navigation if it gets complex to use and he/ she has to tap several times for getting direct ions on a device. Moreover, complexity in usage is counter-productive as it could lead to more time being consumed for any task, said Director, Sales and Marketing, Navteq, Rajat Tandon. Though Indian market is evolving and bracing up to navigation service, what delivery mode will users eventually navigate towards is a bigger queion!
21
COVER STORY
T Murrali
P Nachimuthu
VP, (AL SBU) TVS & Sons
HOW about servicing your truck in a few hours rather than a day or two, which will increase your vehicle up time and prots subantially? Sounds futuri ic! Hold your breath. It is happening at one of the service centres of Ashok Leyland Strategic Business Unit (AL SBU) of TV Sundram Iyengar
& Sons (TVS) in Nilambur, about 15 km from the textile city Coimbatore in Tamil Nadu. Ask the Vice President of the company, P Nachimuthu, about the secretpat comes the replyLean Manufact uring Pract ice (LMP). Th is methodology is very much associated with manufact uring, but how it can be adopted into servicing a vehicle? He
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COVER STORY
answered that by making the service centre a factory. Once adopted, then the re is always be , he said. On inquiring about the impetus for introducing LMP at AL SBU, he replied that with service centres and the dealerships facing several challenges, mo of the companies involved in the business are looking at several options to not only overcome, but also to leverage the emerging trends. As part of the initiative to make AL SBU protable, we have drawn extensive plans to address several challenges, he said.
Challenges
According to Nachimuthu, the challenges that any service centre faces includes high real eate co, manpower availability, talent retention, increasing technology of vehicles and the entry of a ho of diagnoic tools. Though there
are several challenges, there is no competition as the market is growing and more and more vehicles need attention of organised service centres. The challenge faced by the vehicle owners include the increased price of vehicles due to technological upgradationfor improved performance and compatibility with emission norms. Th is eventually enhances the EMI paid by the vehicle buyers by up to 30 percent. In addition, the rise in fuel price increases the operational co thereby thinning the margins further. As the users do not have an option in reducing this expenditure, they are looking at containing the co of ownership that include aftersales service and consumables. Therefore, users comprising eet operators as well as individuals, expect high technology service at the lowe co possible, preferably on credit payments.
The vehicle users are unable to depend up on local garages, again on two countsnon-compatibility with technological demand and availability of skilled manpower. Therefore, the eet operators and individual owners began preferring authorised service centres. If we need to capitalise the trend, it is necessary to enhance productivity and eliminate wae and optimise exiing resources. And the only option we had was resorting to LMP, he said. The company has sought the services of a lean management consultant Takao Kasahara to improve productivity of its service centre. Implemented at one of the service centres situated in Nilambur, the company begun witnessing positive results. In order to improve productivity and eliminate wae, it developed many techniques including developing jigs and xtures that primarily reduce the fatigue
In accordance to LMS, the company has laid rails with turntables to facilitate easy moment at the engine overhaul and reconditioning shop
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COVER STORY
The workers have developed a tool rack specically for engine and clutch
of the workers. This helps the company on two countsemployee satisfaction and productivity improvement. Besides, it has identied non-value added process and done away with thatgiving additional 15 percent productivity. We have also identied the nonvalue added activities and eliminated those activities in the process. This has improved our productivity by up to 15 percent. Thats the reason why we have not increased our scheduled rates. For example, earlier we were working on clutch repair for four hours, but now we have increased our productivity and executing the same job in one and half hours and are charging the same amount, Nachimuthu added.
single piece ow process helps enhance product ivity, the company has adopted the same methodology for servicing the vehicle as well as overhauling the engine and clutch. Inead of manually pushing the trolley carrying the engine, it has laid rails with turntables to facilitate easy moment at the engine overhaul and reconditioning shop. In addition, it has developed a unique xture to hold the engine, which can turn either ways through a mechanically operated handle, for easy assembling. The unit can be rotated to the desired level of the person working on the engine. The engine assembly is sandwiched between the machining area and teing, to optimise product ivity. The sequence is planned arting from dismantling followed by degreasing, water washing, machining if necessary, engine assembly and te ing before delivering to the cuomer. Every engine is teed for close to an hour. It has introduced a similar process at its clutch overhaul ation. The service centre has built a unique bay for removing and reinalling the clutch from the vehicle. All these initiatives helped this facility to reduce the engine overhaul time from 61.6 hours in April 2007 to 36.14 hours at the beginning of this scal and is ill improving. Similarly, the predelivery inspect ion has been reduced to 1.12 hours from 3.35 hours and the 8,000 km service from 3.06 hours to 1.24 hours and 16,000 km service from 5.33 hours to 3.29 hours during the same period. The overhauling time for clutch is reduced to three hours from more than 16 hours.
oped a tool rack specically for engine and clutch. It has taken several initiatives to remove non-value added items. Also, it has worked on certain aspects that call for two or three workmen for even basic checks. For inance, at lea two people are required to check if the front and rear lights of the trucks are functioningone in the driver cabin to operate the switch and the other looking at the lamps around the vehicle. To address this issue, the workmen of this service centre had developed a unique method using hanging mirrors in the front and the rear of the vehicle. The place to position dierent models of truck has also been earmarked. Therefore, by positioning the vehicle that needs to be checked at the designated point, a single person can check lighting syem of the entire vehicle at one shot, using the reection of the mirrors, thereby saving half of the work force. We are planning to horizontally deploy these be practices we learned and implemented in Nilambur to all our outlets in Tamil Nadu and Kerala, Nachimuthu said. The company witnessed 30 percent growth in vehicle services in 2010-11 compared to previous year. However, the company has not yet made prots in services, but now we are condent
Wonders Of Workmen
The intereing aspect of this initiative is that mo of the tools including those meant for inalling rear-end oil seal and main bearing cap remover, have been developed in-house by the workmen. Besides, they have also devel-
Every year we are planning to add two outlets in Tamil Nadu. The purpose is to minimise the time for customers to reach our service centres. In addition to this, we have started 24x7 services in major outlets like Salem, Coimbatore, Madurai, Namakal and Sankagiri. In about a years time, all the outlets will function 24x7
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COVER STORY
available with them. We can eect ively utilise our available manpower in the regular service. We have also oered this service to Ashok Leyland in the other regions where we are not present, he said. The company is focusing more on employee satisfaction by reducing the rain while executing the job, thus the worker is able to do more jobs.
Reconditioning Business
Leveraging its capabilities, the company is also reconditioning engines for Ashok Leyland at its facilities in Salem, Coimbatore and Madurai. Presently, it overhauls about 300 engines for cuomers and reconditions close to 30 engines though the inalled capacity is 500 engines per month. The company oers six months guarantee for all these engines. AL SBU of TVS has 17 outlets in Tamil Nadu, 11 in Kerala, six in Madhya Pradesh, ve in Uttar Pradesh and one in Uttarkhand. We are also adding four more outlets in MP. Every year we are planning to add two outlets in Tamil Nadu. The purpose is to minimise the time for cuomers to reach our service centre. In addition to this, we have arted 24x7 services in major outlets like Salem, Coimbatore, Madurai, Namakal and Sankagiri. In the remaining places, we have implemented two shifts as Ashok Leyland has begun incentivising round-the-clock service, especially for attending warranty issues. In about a years time, all the outlets will function 24x7, he said. In addition, the company promotes Ashok Leyland annual maintenance contract, extended warranty package, extended service all cover insurance. For po warranty period it has introduced TVS annual maintenance contract and on-site maintenance. The company expects about 10 percent increase in market share with all these initiatives, he added.
Re-conditioned engine
of making prots in services due to diagno ics capabilities and equipment availability; we are also planning to charge a premium price for that service, he quipped. TVS has taken several initiatives to catch up with the trend. In managing the manpower, the company has introduced variable pay, which provides more incentives based on the work. Other
The LMS-led initiatives helped the facility to reduce the engine overhaul time from 61.6 hours in April 2007 to 36.14 hours by April 2011 and is still improving. Similarly, the pre-delivery inspection has been cut to 1.12 hours from 3.35 hours and 16,000 km service from 5.33 hours to 3.29 hours during the same period
than xed pay, it has introduced variable pay up to 35 percent. It introduced Outlet Performance Index for sales and service to assess individual performance. So far we have not segregated the performing and non-performing workforce; hereafter we will do it, he said. In order to upgrade their skills, the company sends its employees for a certicate technical training course. Due to the skyrocketing real eate prices, the company is looking at leased and rented premises to further expand its service centres. It currently holds 25 percent of the market share in terms of total vehicle parc. AL SBU plans to eablish a tie-up with one of its groups business divisionsMyTVSsoon to enhance the number of vehicle served by the company by another 15 to 20 percent. Currently, up to 20 percent of the service personnel at each of the companys outlets are deployed for roadside assiance. In order to optimise resources, we are tying up with MyTVS, which will provide roadside assiance facilities that are already
25
EXTRA MILE
Nabeel A Khan
FROM an engineer in a multinational company to spearheading a multimillion business empire, Managing Director, Topsel India, Ashok Manaktala has been moving ahead by embracing the mantra of hone y and good trade policy which according to him is maintaining common and transparent norms across his business network. Topsel India agged o its entre-
preneurial journey as a di ributor of Waxpol products in We Bengal and Bihar in January 1969 with an invement of around `60,000. With a turnover of `40 lakh in the r year itself, it earned a prot of around `30,000. I was working as an engineer in Philips, but felt that with a job, I could not earn enough. Eventually I quit in January 1969 to art new venture with an invement of `60,000. I had `6,000 in capital, borrowed `40,000 from my
uncle, and got the re from a nancer. Gradually, Topsel expanded its distributorship and now has a diribution chain of over 14 major auto spare part suppliers and three dealerships of Toyota Motors in Kolkata with joint turnover of around `400 crore. It is in the process of adding three more dealerships in the eaern part of the country. With the launch of small cars like Etios and Liva, it sees greater opportunity in dealership and has acquired land
26
EXTRA MILE
in jewellery, Manaktala entered in to the new business based on rong business ethics, running it successfully with continuous expansion. The jewellery business gave a turnover of `100 crore in FY11. Topsel has three Toyota dealershipstwo in Kolkata and one in Silliguri. It has arted a 3S dealership in Kolkata in 2010 with an invement of `30 crore, though, the dealership is currently not able to give much prot as compared to its other business verticals in the book, but looking at the land value and the market value of the assets, the company is satised with growth in terms of valuation. We never experienced any loss; we always made prot even during recession. We expanded our business in auto spare parts from `20 lakh in the r year to presently at `200 crore. Our spares parts venture has over 10 branches across India and over 3,000 di ributors.
Dual Satisfaction
Topsel believes in holding the customer satisfaction in the highe regard. For the new 3S facilityTopsels Toyota centre has been embellished with unparalleled facilities in the region. It was the r to have parking till top oor without a ramp. The vehicles are taken up through lifts till the la oor. Th is dealership has a showroom and workshop spread across 1.2 lakh sq ft. The showroom is on the ground oor retched to around 9,000 sq ft. The Toyota dealership is an around `200 crore business, but there is not much prot in the dealership business due to depreciation, high intere rates and huge invement involved. Thus we dont see much of prot in the dealership business at the moment, but in the future we are sure that we will be able to realise it, Manaktala said.
in Rajarghat (New Kolkata), Howrah and Malda (We Bengal) for new dealerships. It plans to r expand its showroom in Gangtok into a dealership with an invement of `ve crore. The expansion will be complete within two years. Topsel is the di ributor for auto spare part-makers like Solex carburetor, Talbros, Talwar Groups, Sriram Pions and Hinduan Composite. This business vertical is ill the ronge base for the company as it gives a turnover of around `200 crore with a subantial
prot margin. It is the sole di ributor for 14 auto spare part-makers in India for complete range of engine parts for almo all the vehicle makers. The prot margin in spare parts business, spread across eaern India and Delhi, is around 2.5 percent after meeting all kinds of expenses. It has grown eadily over the years and by 2000, it had eablished a new vertical with a jewellery showroom when Tanishq approached them. Though it did not have any experience
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EXTRA MILE
While going the extra mile, the company has a xed policy and doesnt sell anything on premium and uses bills for all the spare parts business transact ion. Manaktala attributes his success to its core policies and a little bit of luck. The dealership business clocked a turnover of `150 crore in FY11and hopes to close around `250 crore in FY12.
required for every models launched. It also keeps all the spare parts for the Prius. Toyota sold 10 units of the Prius in eaern India.
Staff Policies
You have to keep your a happy because that is very important. You dont run the business; rather they run the business for you. Basically you have to give them scope to grow and treat them well. Manaktala maintained. It has currently 300 people working across all three dealerships. Though the attrition rate at the mechanic and salesmen level is high, the admini rative a and senior management attrition rate is much lesser. Some people are with Tospsel since the day of its inceptionwhile the spare part-business does not have any attrition at all.
Customer Care
The company incorporates quality aftersales services like transparency and briefs its cuomers about what is going to be done to their vehicles. It also ensures that only genuine parts are used and provides comprehensive training to its mechanics and employees with respect to the late technology. The dealership is armed with all the repair equipment according to the global specication of Toyota Motors. Its workshop has all the spare parts
to resolve like the clarity on ate governments policy as to why they want to a charge of 13.5 percent sales tax on road tax and insurance. Two years ago, the government levied this charge, which the dealer community is conte ing. The case is currently under litigation. Another inconvenience is that the regi ration number takes a good 10 days and the number plate is tted only at RTO within ve days of regi ration.
Next Level
Topsels 3S facility also has a U-Tru centre, where it exchanges multi-brand used cars with Toyota cars and also deals with them. At its Toyota dealership, it has been able to sell over ten Toyota cars under this centre since it was arted two months ago. The company has been picking up business quite well and is optimiic about the future prospects following its growth experienced to date.
Challenges
However there are some bumps on the path of success, which it would like
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EXTRA MILE
Equity:
Shambhavi Anand
IN 2004, Equity Hyundai arted o as the r Hyundai dealership in Rajkot. In less than four years, it became a name synonymous with its prinicpal in the city and won the National Cuomer Satisfaction 2008 and Cuomer Care and Service Award 2010 from the Korean car maker a recognition for walking an Extramile in creating a space for Hyundai in the hearts of the cuomers. Today, it sells up to 180 cars in a month from three outlets two of which are in Rajkot and one in Morbi. It also has a warehouse where it can ack 400 cars at a time, a ock for two months in the city. At its two service centres, it services up to 60 vehicles in a day. We do not wait for the cuomers to come to us. We make an eort to go to them. Our dealership in Morbi and Kevalam Corner was a conscious eort to get closer to our cuomers, PL Talsania, Managing Director, Equity Motors. Talking further about the measures that help Equity leave an impression on the cuomers mind, Talsania said that the dealership tries to make the process of buying a car a ceremony in which, sweets and chocolates are an integral part. Even the children of the cuomers are attended to with immense care. Follow up is an integral part of the sales process at Equity. It is important to check that the cuomer does not feel forgotten after the sales has been nalised. They might encounter some diculties after taking the vehicle home. And a call to ensure that they are at ease with the vehicle will only make buying from Equity an
enriching experience. We ensure that they get a call in three months from the sales executive who has closed the deal. And after 15 days, it is the responsibility of the service department to ensure that all is well at the cuomers end, he added. Talsania, who is an engineer by qualication, arted the dealership after completing his education and working as an engineer for a while. It was then that the opportunity to art a dealership in region came across. Hyundai being an upcoming brand, he did not have to rethink. The reputation of Talsanias family helped him get the chance without much diculty. Finding employees with technical expertise is not easy in Rajkot. Though Equity selects people in government run Indu rial Training In itutes (ITIs) in Rajkot, every recruit requires extensive training. There are four levels of training that recruits from ITIs have to undergo r at Equity and the other three at Hyundai. It is only after the four eps of training,
retching for almo a year, that a person becomes a maer technician. There are around 25 technically trained people working at Equity currently. Apart from the cuomer satisfaction reward, the company has also won National Retail Be seller Award 2010, All India Number One Otake Retail Award, National Order Volume Be seller Award 2010 and Cuomer Care and Service Award 2010 to name a few. Till now, Rajkot gured in the C segment of cities in the country on Hyundais li. And these are the accolades that the company got while competing with other cities, which were comparatively smaller in size. Now Rajkot has graduated to the B segment competing again cities with larger population. The competition is tougher. And so is the challenge. However, to take good care of the customer is in Equities DNA, and the company relies on it to meet the challenges that lie ahead.
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SPECIAL REPORT
New Leaders
THERE is a dire need to focus on developing new technologies for not only vehicles but also in the manufact uring processes as it will help optimise the resources ated the Union Minier of Heavy Indu ries & Public Enterprises, Praful Patel, when he inaugurated the 51 annual convention of the Society of Indian Automobile Manufact urers (SIAM) recently. The theme for the event was Reinventing Mobility: Vision 2020, and the day-long event on the mobility indu ry saw acclamation and praise from miniers, bureaucrats and foreign delegates for its unprecedented growth ory in the pa decade. He continued that the automotive indu ry can have open dialogue with the government to address any issues that may seem to re rict growth.
Eicher Group Chairman S Sandilya has been elected as the President of the Society of Indian Automobile Manufact urers, while Toyota Kirloskar Motor Vice Chairman, Vikram Kirloskar, has been elected as new Vice President. Sandilya will replace President, Automotive & Farm Equipment, Mahindra & Mahindra, Pawan Geonka. be ensured if the government and the automobile indu ry come together. Raising the issue of transportation, he insied for the auto indu ry players to partner with the government to nd a suitable solution. Deputy Chairman, Planning Commission, Dr Montek Singh Ahluwalia addressed the serious issues related to infra ruct ure in the country. He asked the indu ry players to also focus on public vehicles to improve the public transport scenario in the country. Acknowledging that hardening intere rates have aected the automobile sector and are a cause for concern, Patel expressed hope that the
The vehicle manufacturers apex body also appointed Ford India, President and Managing Director, Michael Boneham as the new Treasurer. In a atement, the incoming president of SIAM, Sandilya said, Our goal is to be a cataly for the Indian automobile indury and to be the preferred global manufacturing and design base, which will contribute to Indias economic development. slowdown in dome ic sales will be a temporary phenomenon. President of SIAM and President, Automotive & Farm Equipment, M&M, Dr Pawan Goenka, spoke about the challenges ahead for the automobile indury. The growth gures that we are now working out for the 12th Five Year Plan indicate a rise in domeic vehicles sales to 5.6 million and exports to 1.3 million by the end of 2017. He also talked about the new technologies and improving the fuel eciency and capacity of manufacturing at a larger scale. While thanking the government for the initiatives, he assured that the indury will contribute 10 percent of GDP in the Indian economy by 2016.
Vision 2020
The convention witnessed a huge participation of foreign delegates, policy makers apart from the leaders of the Indian automobile indu ry. Acknowledging the indu rys success, Patel said, Its great to see that the automobile indu ry grew inspite of the government. As part of the event, panel discussions were organised to analyse, underand and create a road map to ght the impending challenges and technology for future. A number of vehicle manufact urers shared their future plans also. According to the Union Minier of Urban Development, Kamal Nath, high quality access to mobility can
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SPECIAL REPORT
OEMs seek
deeper engagement with suppliers
MORE than the conventional criteria of quality, co and delivery, OEMs across the world prefer to engage with suppliers with able lines of communication, good work culture, eect ive process orientation and end-cuomer knowledge, according to the pa President of Automotive Component Manufact urers Association (ACMA), Srivats Ram. Th is was his view on the udy by JD Power Asia Pacic presenting Insights into Supplier-OEM relationship: A Benchmarking Study. Union Minier for Mini ry of Heavy Indu ry & Public Enterprises, Praful Patel released the udy at the 51 Annual Convention of ACMA. The udy delineates several key parameters that suppliers need to focus on to di inguish their performance from others. It reveals ndings about the relationship between suppliers and OEMs in the Indian dome ic market benchmarked again pract ices in the developed markets of the US, Germany, France and the emerging market of China. The udy indicates that the OEMs prefer suppliers who can jointly work with them in developing products and technologies to be delivered with a global footprint. OEMs today are consolidating and looking to optimise their points of contact for ecient and eective supplier management and co savings. Consolidation of supplier base will call for Tier I suppliers to continuously upgrade Tier II suppliers. This will enhance business opportunities for suppliers in the future, but will pose signicant challenges, as Tier Is will have to inve in requisite skills and resources to manage an integrated supply chain, Srivats Ram said. Pa President of ACMA and MD and CEO, Shriram Pions and Rings, AK Taneja said, Keeping in view the common goal that the two share, the pliers in India, China, US and Europe reveals the need for multiple key enablers that are critical in dening a ronger business relationship. In China and India, OEMs help the supplier improve and grow, while in Europe the focus is on improving delivery. The udy also revealed that product liability will be an area of challenge in India and therefore suppliers need to focus on underanding the contract ual risks,
supplier-OEM relations should graduate from transaction relationship to rategic partnership. While the growth prospects of the Indian auto component indury are promisingit is evolving as a critical part of the global auto eco-system. For Indian suppliers, on one hand, there is the need to maintain competitiveness in an inationary environment and on the other, the need to compete with the be in an increasingly uncertain global market, he opined. The udy that is based on the responses from over 70 OEMs and sup-
devise ways to insulate themselves and contract ually manage Tier II and Tier III suppliers. In China, suppliers are challenged to meet the demand while in the US, the suppliers-OEM relationship is pivoted on innovation in products and processes. Suppliers will continue to face pressure as OEMs there are likely to increase thru on sourcing from low co countries. Akin to India, in international markets too, both suppliers and OEMs are ruggling with the shortage of skilled manpower, the report added.
31
Fast Forward
Nissan Motors tapped the services of Hover Automotive in order to get a headstart in sales and service in India. It has been mandated with establishing sales, service and relationship management for Nissan customers. In an interaction with Aftermarket, Vice Chairman and Managing Director, Hover Automotive India, GM Singh elaborates on the companys experience of setting up the distribution network for Nissan in India and the way forward for the automobile dealership business.
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IN CONVERSATION
Abhishek Parekh
What is your view on the dealership business? We have been in the process of setting up a dealership network for Nissan over the la two years. We have had an enriching experience with a mix of experienced dealers coming into our fold as well as young entrepreneurs who could bring some new innovative ideas on the table. It has been a mixed experience for us so far in terms of dealer franchisee that we have worked with. When are we likely to see any recovery in the passenger car market? The market has been witnessing a very inactive age of late, partly due to trouble at Marutis facility and uncertainty on intere rate front. The market sentiments have taken a beating and there is a double whammy for cuomers as home loan and car loan Equated Monthly Inalments (EMIs) have risen. I do not see the passenger vehicle business growing beyond ve percent on an optimiic note. Buying decisions are being poponed due to this uncertainty. Has the Nissan association beneted you as an organisation? Certainly. There are some unique ways of implementation or doing things in Nissan, especially on the backend syem and sales experience. A major reason for the partnership is also that it allows faer ramp up of dealership and service network for Nissan in India. It has been a challenging journey for us and we have gained immensely from partnering with Nissan in India. Our focus is on providing a world class servicing experience and we are gearing up for that challenge. We would be eablishing more service centres soon to provide eective and timely service to our growing cuomer base. We have set up the diribution network for Nissan in
the la twelve to eighteen months that would have otherwise taken them more than three to four years. That is the pace at which we have tried to execute the task. Moreover, there are several processes on the backend and mode of execution of Nissan that are new to us and we have learnt in that process. What are the major hurdles that you have been facing in eablishing your network? Every automobile brand is on an expansion mode and there is no doubt that we are aring at a shortage of qualied technical and sales people in the dealership business. Though we have been seeing a temporary slowdown of late, the issue (of quality manpower) will only intensify if we account for the growth in the passenger vehicle sales touching more than ve million over the next three to four years. A major problem is that working in an automobile dealership seems to be the la option for a talented engineer or technically qualied person or even a sales executive. We have to make the automobile diribution as a preferred career option for the next generation. One of the ways to achieve this object ive is to provide proper training and help chart a career path for the trainees. We (dealers or OEMs) need to eablish a college for automobile di ribution business to impart right training for the business. Such a college could comprise eminent technically qualied people from the indu ry like automobile, hospitality and retail indu ries. There has to be some dignity imparted into the profession. There are several training centres eablished by major dealers for their in-house and indu ry requirements, but this does not seem to be adequate. If there is no intere level among youngers to be in the dealership business then training can be of little or no help.
The enthusiasm and passion to sell cars or serve cuomers is crucial in this business and that is often overlooked. The mindset has to be changed and we need to make automobile diribution a preferred career option. Also, lady executives are more eective in any automobile dealership and we have been encouraging them to join the business. Going forward, what are your priorities? For Hover Automotive, the key priorities are to continue with pace of expansion and getting the right people to join the diribution business for Nissan. We are conantly looking for ways to enhance our service level and touch points to deliver to the cuomers. Digital marketing is an emerging area for reaching out to the cuomers and I feel it is very under-utilised currently. We are facing major challenges in terms of expansion due to high co of real eate. There is a limit to how many outlets we can have and hence we have to look for ways to reach out to cuomers through innovative channels. We have not yet reached a age were dealerships will need to operate on a 24/7 mode. However, given the rising co of real eate, it may not be long before dealers in the city area will need to evaluate that option. We have been able to retain employees so far and we are hoping to continue doing so in the future. We are evaluating on entering CV segment, but that is at a very preliminary age at the moment. The major focus is to maintain the pace of expansion to help Nissan achieve its growth object ives in India. We have already appointed around 45 dealers and we are looking to appoint another equal number of dealers by the end of current scal. We are looking to have around 300 dealerships over the next three years or so. This would imply generating direct and indirect employment of around 18,000 to 20,000 people.
33
SPECIAL REPORT
I see people as the bigge asset for Indian companies. People in the country are exible, willing to learn and hard working which the companies can capitalise on, the Chairman and MD, Bharat Forge, Baba Kalyani ated. Speaking at the recently concluded 51 annual convention of Automotive Component Manufact urers Association (ACMA), he said, people might not be process-oriented but that is where the role of leadership comes in. Leaders can make that happen. Also, the Indian suppliers are doing much better than in any developed nation. For inance, in Europe, 10 suppliers go bankrupt every year as compared to one every year in India, he said. Inaugurating the event, the Union Minier of Heavy Indu ries and Public Enterprises, Praful Patel said that he rmly believed that the moderation of growth in the pa few months is a transient phenomenon. The coming years shall continue to witness high levels of growth for the Indian automotive indury since the primary demand drivers like vehicle penetration levels, growth of the economy, the demographic pro le of the country, increasing wages and salaries coupled with the huge invements being made by the government in the infra ruct ure sector are all very favourable. The increasing ination, fuel price hikes and the hardening of intere rates that are aect ing the competitiveness and growth of the automotive indu ry were the primary concerns expressed at the event. Though the apex body is bullish about the medium and long-term prospects, it is concerned about deferral of inve ment in the view of recent slowdown. At the convention, the then President of ACMA, Srivats Ram insied on the government to continue with the
Praful Patel, Union Minier for Heavy Indu ries and Public Enterprises releasing the udy
34
SPECIAL REPORT
Talent Recognised
During the 51 annual convention, ACMA Awards 2010-11 were presented to companies that achieved excellence under four categories- exports, technology, quality & product ivity and manufact uring excellencein both SME and non-SME categories. There were 75 nominations for the awards, which was the highe till date. Besides, the winners of Quality Circle Competition 2010-11 were also honoured.
transact ion based relationship to rategic partnership. President, ACMA, Arvind Kapur said that globally, the intere rates for induries range between zero to ve percent, while in India it is nine percent upwards. Increasing intere rates is not the solution to contain ination as few countries including Brazil and Turkey having similar economies to India had reduced intere during high ination and seen the ination being contained. He asked the government to look at options to reduce the co of nance.
35
SPECIAL REPORT
THE growing passenger vehicle population in the country in recent years has led to an increasing demand for specialised auto care. In addition to tyres and batteries, auto air conditioning is a domain with an increasing number of players blooming in major metros and cities. Prominent ones are seeking to dierentiate themselves by providing service warranties and personalised care akin to authorised vehicle service centres. Apart from batteries and tyres, automobile air conditioning is an area with increasing demand for aftersales servicing. A cuomer need not keep his/her car to an air condition-
ing service centre for the entire day as repair job can be completed in two to four hours depending on the nature of the job. Moreover, there is a scope for oering premium or express service to cuomers willing to pay extra, said partner at Correa Car Care, a Mumbai based chain of auto airconditioning service centres, located in Malad, Mumbai. Though several specialised chains as well as andalone service ations have proliferated in the recent years, there are no reliable e imates of their numbers. Automobile air conditioning repair can be a tricky job as signicant proportion of vehicles taken for repairing or servicing need to be sent back to the service ation for a relook, according
36
REAR VIEW
to M Pious, a supervisor at a prominent Mumbai based Maruti authorised service ationPatel Auto. Mo auto air-conditioning servicing job pertain to annual gas changing or recharge, cleaning of pipes and condensers, syem overhaul and major repairs, which would include all of the above. The major issue with air conditioning repair pertains to identifying the trouble area. Any service technician would swear that it is dicult to exact ly locate a problem in a vehicle air conditioner and even experienced the need to have several trials in a vehicle to locate any problem like leakage in pipe, fan speed, gas recharge or any combination of these issues. Around 15 to 20 percent of the vehicles come
back to the service centre for recurring or additional problems after servicing. Hence after service warranties play a key dierentiator under these circumances. I can easily see a major scope for OEM air conditioning supplier play a key role in the after sales service through an organised presence in the servicing business or through partnership with authorised or third party service stations or garages, according to an official with Mahindra First Choice. Currently, city centric players and smaller players oering andalone AC servicing are playing a predominant role in addressing the market demand. The co of repairing could
range from around `1,200-1,800 for a basic gas recharge, which needs to be done once in a year in any car to as much as `3,700-4,800 for a complete AC overhaul with a three to six month service warranty. The service warranty normally entitles the car owner to have any servicing done free of co in the ipulated time without any coverage for additional parts. Though authorised service network of OEMs are continuing to play a major role in the business, there has been a clear reduct ion in the number of vehicles coming in for major AC overhaul work. It may be a while before organised players ep into the game in a major way, but signs of change are clearly palpable.
37
CUTTING EDGE
Tecknotrove unveils
driving simulator range for CVs
Goa, as well as military and governmental organisations worldwide. One of the unique oerings from the company is the airside driving simulator, which is designed to train airport personnel safely, on demand and at a signicantly lower co. It is aimed at training airside drivers/ operators on the act ual airport driving conditions, daily operations and handling emergency situations without the dangers and cos involved, which is not possible to do in real life. The eco-driving (fuel eciency) training and evaluation simulator is designed to train drivers on ecient driving techniques. It can help transport companies save up to 15 percent of their fuel cos annually. The simulator focuses on cutting fuel use, co and carbon dioxide emissions in everyday driving and helps save money. Based on a Tata 2515 truck, the simulator uses real vehicle controls like eering wheels, gears, ABC pedals and complete act ivated dash board controls. Mounted on a 3DOF electric motion platform, the simulator provides a reali ic motion feeling of driving a truck through muddy roads, slippery roads, hills, ghats and city trac. The visuals are displayed through three LCD display screens. The drivers cabin is connected to an in ructor ation that helps the trainers to set training scenarios and continuously monitor the drivers performance. Every miake of the driver is recorded and printed in the form of an evaluation report.
Our Bureau
TATA Motors unveiled an eco-driving simulator at a national dealers meet in Mumbai in September, 2011. The simulator will be inalled at Driving Simulator Centre in Pune soon. The eco-driving truck simulator trains drivers on driving safety and fuel eciency. It helps monitor how the drivers driving yle aects the amount of fuel he uses. The simulator enables trainees to use real life equipment in a virtual world and learn valuable lessons about safety. TecknoSim Simulators makes driver training possible in all types of weathers, terrains, emergency situations that are otherwise not possible to create in real life, thereby reducing training cos and improving the safety andards. Manufactured by Tecknotrove
Syems, a Mumbai-based company specialising in design and development of training simulators for surface vehicles, the simulator trains drivers on safe and skilled driving, while improving their fuel eciency skills thereby reducing CO2 emissions and fuel cos. Tecknotrove arted with designing and developing car driving simulators for OEMS like Maruti Suzuki, Carol and now sells a variety of speciality simulators for military, airports and mining companies. The company has inalled over 200 simulators worldwide to help train over 10,000 drivers till date. It supplies simulators for cars, motorbikes, buses, trucks, airports, mining equipments and emergency vehicles. Since its founding, the company has completed numerous training applications for OEMS like Carol, Maruti Suzuki, Hero Honda, mining companies like Fomento, Sesa
38
AUTO POINT
Commercial vehicle
nancing to witness drop in the growth levels in FY12
Revati Kasture Head, Industry Research, CARE Research Vishal Srivastav Analyst, CARE Research
BUOYANT economic conditions and rise in indu rial and agricultural act ivities kept the freight movement rong during la two scals (ie FY10 and FY11). Th is led to signicant improvement in the utilisation levels for transport operators and subsequently there protability and credit pro le. The commercial vehicle (CV) indu ry too beneted from
these favourable factors, as dome ic demand for CVs observed a growth of around 39 percent and 27 percent respect ively during FY10 and FY11 period. Th is growth was again the back drop of a sharp drop of 25 percent in FY09, due to concerns like slowdown in economic growth, liquidity pressure and rise in intere rates.
FY09
Source: CARE Research Eimates
FY10
FY11
FY12
39
AUTO POINT
CARE estimates the domestic CV sales to grow at a CAGR of 13 percent for FY11-FY16 period. CARE Research believes healthy long-term macro-economic outlook with increase in government focus towards development of infrastructure would taper off short term concerns over rising fuel prices and interest rates
believes, concerns over hike in intere rates and in ationary pressure would slow down the growth in the indu rial product ion by some extent. Th is is likely to aect the dome ic CV demand, which CARE Research e imates to grow at a much lower level of 10-11 percent during FY12 as compared to growth levels witnessed during la two scals. Th is slow down in the demand would aect
growth levels observed by CV nancing indu ry during la two scals. CARE Research eimates, CV nancing indu ry would grow by 15 percent during this period.
Market Growth
CARE Research eimates the dome ic CV sales to grow at a CAGR of around 13 percent for FY11-FY16 period. CARE Research believes healthy long-term macro-economic outlook coupled with increase in government focus towards development of transport infra ruct ure would taper o short term concerns over rising fuel prices and intere rates. The GC segment would continue to dominate the growth as it is expected to grow at a healthy CAGR of around 14 percent, while dome ic PC segment is expected to po a growth of around six percent in next ve year period. (The report is prepared by CARE Research, a division of Credit Analysis & Research. Views expressed are personal.)
40
EVENT
parts2clean gears up
with comprehensive offerings
THE nineth edition of the part2clean exhibition, scheduled to be held from 25-27 October, 2011 in Stuttgart, Germany, will oer solutions for requirements oriented cleanliness in production, maintenance and remanufact uring. Roughly 240 exhibitors from 16 countries in Europe, America and Asia will be represented when the event opens its doors at the Stuttgart Exhibition Centre that will present one of the worlds mo comprehensive range of products and services for requirements oriented, economical indurial parts and surface cleaning. Whats more, representative, multiindu ry information and procurement oerings covering the entire process sequence will be oered. Beyond this, valuable knowledge will be imparted by the integrated expert forum held in German at the leading international trade fair for indu rial parts and surface cleaning. Cleanliness requirements for components, products, machines and equipment have become much more rict in recent years, especially when it comes to degreasing, deburring, cleaning, residual contamination monitoring
or temporary corrosion protection. At the same time, co pressure is also on the rise. Thus manufact urers and maintenance service providers are faced with the queion of how the required levels of cleanliness can be achieved and maintained eciently and ecologically. Ju under 15 percent of the exhibitors at this years leading international trade fair for indurial parts and surface cleaning come from outside of Germany.
New Developments
Numerous companies will present new and further developed products targeted at optimising the cleaning process in various applications and in dierent indury sectors. Primary emphasis is being placed on increased energy eciency, process reliability and economy, said Managing Director, Event Promoters, fairXperts, Hartmut Herdin. And thus participating equipment manufacturers will showcase new syems for wet chemical cleaning which make use of aqueous media as well as solvents, and special processes such as cleaning with carbon dioxide and plasma. The range of innovations goes right on up to options for leasing the entire
cleaning process. There are lots of new cleaning media waiting to be discovered as well. These include, for example, a pH neutral water-based ru-removing agent which functions at room temperature, a cleaning agent developed especially for use prior to hardening processes, aqueous media for use in photovoltaic applications and high performance barrel nishing compounds. New developments in the areas of cleaning containers and workpiece carriers contribute to reduced processing times and minimised manual parts handling. The exhibitors also have a number of innovations up their sleeves with regard to bath monitoring and maintenance syems, as well as systems for monitoring lm-like and particulate contamination, among others reverse osmosis syems for the ecient reconditioning of process water and waewater, devices for measuring concentrations in liquids and particulate monitoring in manufact uring environments. parts2clean exhibitors will also oer innovative solutions for eect ive and economic corrosion protect ion, preservation and packaging of cleaned parts and surfaces.
41
EVENT
ICS to showcase
advanced composite technology
JEC Composites has announced its third Innovative Composites Summit (ICS) to be held in Singapore from 18 to 20 October, 2011, showcasing the late business intelligence and technical content to help promote the use of composites solutions around the world. As part of its global forums and conferences programme, ICS is the summit in the Asia-Pacic region covering a wide range of technical papers, composites experts and qualied industry delegates in a single event. Asia is currently driving the global composites indu ry both in terms of production and consumption volumes, and a wide range of composite materials are enjoying increased market penetration across various segments. The three-day programme, which will be
42
EVENT
held in conjunct ion with the annual JEC Asia Composites Show and JEC Asia Innovation Awards, is expected to feature more than 345 exhibiting companies and more than 7,000 trade visitors from 51 countries. As the Asian composites sector adapts to signicant indu rial and market changes, this years ICS programme will help expose Asian rms to the late technology trends and developments that are impact ing their business. JEC Asia 2011 Composites Show and Conferences, now in its fourth year running, is already well positioned as the leading composites indu ry platform in Asia-Pacic. Each year, we aim to deliver a range of indu ry-specic seminars and conferences, technical sales presentations and business meetings to complement the new composites applications and technologies that will be displayed on the main exhibition oor, said Frdrique Mutel, President and CEO of JEC Group. The programme comprises eight conferences and indu ry forums that will explore the late breakthrough innovations across dierent end-user applicationsprocess automation, aeronautics, infra ruct ure, automo-
tive and ground transportation, and wind energy sectorsas well as specialised conferences providing insights into the global carbon bre market, economic trends, growth drivers in the composites sector and composites design. To build on the success of the previous ICS sessions, a new Carbon Fibre Conference has been introduced to extend the scope of the conference programme, as well as an additional auditorium to accommodate the expected increase in the number of conference delegates. The key to the success of JEC Asia ICS program is in bringing together a diverse group of highly eeemed industry experts and technical specialis to share their views on how the Asian composites sector will evolve and keep in ep with global trends, particularly with regards to how environmental issues will increasingly impact the entire composites value chain, he added. Key automotive indu ry-specic highlights of JEC Asia 2011 ICS programme include weight reduct ion, which remains a key priority in the global automotive indu ry. It is projected that almo one out of every two cars will be produced in Asia by 2015, and Asian car manufact ur-
ers are increasingly exploring the use of competitively priced carbon bre composites to reduce weight. Th is forum will feature a presentation by Volkswagen that will provide the late insights into the suainable use of carbon bre materials in the automotive indu ry. New composites production techniques will be showcased through presentations by Huntsman Advanced Materials, Jacob Pla ics and Quickep Technologies, while Honam Petrochemical will share composites lightweighting trends in the automotive indu ry. The Technology Information, Foreca ing & Assessment Council (TIFAC) of India will also present on the use of composite materials in the rail transportation sector.
43
STUDY
Small CV Segment:
On a High Growth Trajectory
THE launch of Tata Ace, in 2005, has given a completely new dimension to the Commercial Vehicle (CV) market in India, which has nally begun tapping its growth potential. Tata Motors capitalised on the gap which exied between the three wheelers and the Light Commercial Vehicle (LCV) segment in the sub one-tonne category, by creating a new segment within the LCV domain, known as the Small Commercial Vehicles (SCV) segment. The success of Tata Ace has led to a urry of new models by other manufact urers. The paradigm shift for users/buyers, from three-wheelers to the SCV goods segment, has been due to the latters advantages such as comfort, convenience, safety, and capacity to carry higher load. Over and above this,
the segment has itself generated new demand with more and more LCV drivers turning entrepreneurs. Even though several cuomers aspire for an SCV, they often opt for a three-wheeler due to its low pricing and for want of surety documents required to get a loan for an SCV. Sales in the three-wheeler goods carrier market have been negatively aected with the introduct ion of SCVs. Majority of SCV sales have been due to the generation of new demand from three categories of customersmajority being market load operators around 75 percent; captive users and contract operators account for the remaining 25 percent. The load requirement for SCVs is lower than traditional LCVs. Hence, SCV owners cater to transporting a plethora of
44
STUDY
200.0
150.0
100.0 50.0
0.0 FY 06 FY 07 FY 07 FY 09 FY 10 FY 11
Goods Carrier
Passenger Carriers
product s across indu ries that require transportation to shorter diances. Th is is one of the main reasons for traders buying SCVs for captive usage, especially consumer durable dealers, cement dealers, contract ing companies, courier rms, and others. In the LCV segment, the sub-3.5 tonne category vehicles (SCV), sales more than trebled after the introduct ion of Tata Ace in 2005. Since then, the SCV market has grown from 89,367 units in FY 2005-06, to 288,264 units in FY 2010-11; growing at a CAGR of 26.4 percent in the pa ve years. The macro-economic parameters favouring the growth of the SCV segment include infra ruct ure development and urbanisation. However, uct uating fuel prices and increasing intere rates are likely to play dampeners of demand, albeit not as much as the impact these factors would have on medium and heavy commercial vehicles (M&HCVs). Buoyed by the growth in the SCV goods carrier segment, which is expected to grow between 15-17 percent CAGR in the next ve years
The paradigm shift for buyers, from three-wheelers to the SCV segment, has been due to advantages such as comfort, convenience and safety. Even though many aspire for an SCV, they often opt for a three-wheeler due to its low pricing and for want of surety documents required to get a loan
(base year 2010-11), CV manufacturers are in the process of exploring opportunities to introduce new product s and better variants. With road infra ruct ure improving across the country, the demand for high-power vehicles with better features is likely to increase. The SCV passenger segment is expect ed to grow at a CAGR of around 25 percent in the next ve years (base year 2010-11), partly due to the low base eect and due to higher penetration into the three-wheeler passenger segment market.
Future demand for these vehicles is likely to be driven by: Transportation in India moving towards hub and spoke model pushing demand Small entrepreneurs buy trucks for their own use (earlier this segment used to hire vehicles) and the give them on hire when not in use SCV passenger vehicles are being used as la-mile connect ivity in many rural areas where public transport is scarce. They are also fa replacing three-wheeler share autos in urban centres. Also, the vehicle performance is better in terms of driving in rough terrain, passenger comfort, and also the number of customers ferried SCV owners nd driving less tiring and also monthly earnings/savings are subantially higher than owning a three-wheeler The advantages for SCV owners vis-vis a traditional LCV owners are lower buying co, less operating expenses thereby higher protability, easy availability of nance, and attract ive resale values. An SCV owner typically makes multiple trips with lesser payload than an LCV owner, who gets maximum of two loads a day. With changing dynamics of the CV market in India due to infra ruct ure development, long-term GDP growth (which has direct correlation on CV market), and co-benet analysis of logi ic players, there is bound to be positive growth in the LCV and HCV goods carrier segments and negative impact on the MCV goods carrier. Within LCV, the SCV segment is gearing up for a relatively higher growth in both the goods and passenger carrier segment. (Courtesy: Automotive & Transportation Practice, South Asia, Middle Ea and North Africa, Fro & Sullivan )
45
ANALYSIS
For scal 2011-12, while ICRA expects moderation in automotive OEM tyre demand, the rong growth in OEM sales in the la two scals is expected to translate into higher replacement demand.
Declined Margins
The tyre indu ry continued its growth momentum in scal 2010-11 (April 1, 2010 to March 31, 2011) regiering a rong 27 percent growth in revenues backed by healthy demand from both the auto OEM and replacement segments and supported by capacity ramp-up by major players. The growth was driven by rong dome ic OEM demand from the Truck and Bus (T&B), Passenger Vehicle (PV) and Two-Wheeler (2W) segments which saw unprecedented volume growths of over 25 percent. Exports, which had
46
ANALYSIS
80%
60% % increase
inventory pipeline buying, coupled with healthy exports supported tyre demand during Q1, 2011-12. However, ICRA expects these macroeconomic dampeners to mute demand (volumes) for tyres during the scal 2011-12 to around seven-10 percent in the OEM segment and around 10-13 percent in the replacement segment. However, while near term automotive demand is expected to be tempered owing to the macroeconomic headwinds, the long term growth fundamentals of the indu ry remain rong.
Rs. per kg
declined by ve percent in the previous scal, saw a rong recovery regiering a volume growth of 22 percent during 2010-11. Unlike the PV and 2W segments, where the OEM segment accounts for a signicant portion of the volumes, the Medium and Heavy Commercial Vehicle (M&HCV) segment is largely driven by demand from the replacement market, which accounts for more than 80 percent of total demand. The M&HCV segment, accounting for the bulk of tyre indury revenues (~65percent), saw a mode increase of four percent in overall demand on account of weak demand from the replacement segment and despite a 32 percent growth in OEM demand. The price increases imposed by mo tyre manufact urers in response to the unprecedented increase in rubber prices led to a decline in demand from the price sensitive M&HCV replacement markets translating into increased re-treading and delayed replacements. However, rong OEM and export demand supported a 24 percent growth in overall domeic demand (volumes), as compared to 21 percent growth in the previous scal. Even as the indury beneted from the rong revenue growth during 201011, higher input cos, especially that
of natural rubber, led to a sharp 19 percent decline in operating prots and 37 percent decline in net prots. Players having a diversied product mix with presence in the relatively high margin radial passenger car segment (as compared to the M&HCV segment, which is largely commoditised in nature), higher presence in the replacement market segment which oers better pricing exibility, presence in niche high margin tyres (like O-The Road (OTR) and winter tyres) and superior brand image, have been able to po relatively healthier margins.
47
ANALYSIS
-18%
50
FY07
Indian tyre indu ry suered from an inverted duty ruct ure wherein the customs duty on import of the input, NR ood at 20 percent, as again the duty of only 10 percent on import of tyre. In April 2011, this inverted ruct ure was corrected partially with NR import duty attract ing the lower of 20 percent or `20 per kg (which at current prices is an eect ive eight-10 percent). In July 2011, through a notication, GoI also allowed the import of upto 40,000 tonnes of NR during scal 2011-12 at a concessional duty of 7.5 percent.
Domestic rubber prices increased from lows of `95 per kg in May 2009 to highs of `240 per kg in April 2011, while global NR prices rose from $164-483 per kg. Globally, NR consumption has increased by 14.4 percent during the scal 2010-11
years, the margins of tyre manufact urers are highly susceptible to movement in rubber prices. As witnessed during scal 2010-11, margins declined sharply owing to the signicant upsurge in rubber prices and the inability of tyre companies to fully pass on the rise to the consumers. While revenue growth remained rong across all quarters in 2010-11, revenues witnessed an accelerating trend with the fourth quarter regiering a rong growth (y-o-y growth of 32 percent) supported by higher sales of PV tyre, revival of demand in the truck and bus radial (TBR) replacement tyre segment and rong year-end buying. The growth momentum continued in Q1, 2011-12 with major players regiering
rong revenue growth nearing 30 percent (y-o-y). However with the softening of demand across all automotive segments and with the higher base eect coming into eect, ICRA expects demand to moderate from Q2, 2011-12 onwards. Although tyre OEMs have so far resied price reduct ions, i resiance to price increases from eet operators may limit such exibility in future. The margins of tyre companies, mainly players with large export revenues, are also expected to be under pressure with the withdrawal of Duty Entitlement Passbook (DEPB) scheme from October 1, 2011. The domeic tyre indury has been in an invement mode during the la few years with almo all participants adding signicant capacities. Supply additions were high between 2008 and 2010, with domeic capacities increasing by around 49 percent. While the capacities in scal 2010-11 are eimated to have increased by ~eight percent, the indury is poised for another ~25 percent addition during the next two years. Of this, bulk of the invements are expected in scal 2011-12 with ~19 tyre projects targeted for completion this year. The relatively lower co of imported TBRs, domeic capacity con raints (particularly in radials) and fa pace of radialisation in the T&B segment has led to a huge growth in imports of TBRs during the la couple of years. In order to protect the dome ic industry, the GoI in February 2010 imposed a denitive anti-dumping duty (ADD) seven on TBRs (tyres and tubes) imported from China and Thailand. Even factoring in the ADD, Chinese tyres continued to remain cheaper than dome ic tyres. Coupled with shortfall in dome ic capacities, the import of TBRs is e imated to have grown by 43 percent in 2010-11. (Courtesy: ICRA)
48
TECHNOLOGY
How It Works
The rotating dip-coating syem RoDip, with which, over 25 million vehicle bodies have already been painted worldwide, comes into play in the pretreatment and cataphoretic dip-coating. Through this, the rotation of the entire car body in the tank optimises the immersion, ooding and draining process. Before applying the base coat and clear coat, the exterior of the bodies are cleaned with sword brushes by two EcoRS 60 type robots. Thereafter, the line is separated due to capacity reasons and runs from the pre-treatment in two tracks. The 24 EcoRP L133 type painting robots in each of the two lines automatically take care of the interior and exterior painting. Even the opening of hoods and doors for interior painting, as well as the measuring of lm thickness in the topcoat, is fully automated with robots from Drr. The EcoLCC linear colour changer used in the basecoat minimises paint loss considerably when changing colours. The UBS lines are each equipped with four Drr robot ations which include a total of 28 EcoRS robots and the application technology for automatic seam sealing, underbody protect ion and rocker panel coating. One such robot also completes the inallation of roof reinforcement dampings in a gluing ation. In addition, an automatic cavity ood syem for the preservation of body cavities is included in the scope of delivery. In order to meet capacity, this equipment is con ructed in two tracks. The new paint shopdesigned for a primerless process and the use of waterbased painthas a capacity of 62 units per hour. This paint shop, issued by SVW in the r quarter of 2010 and dedicated to suainability will go into operation in the summer of 2012. Then vehicles from both Volkswagen and Skoda will be painted there.
EcoDryScrubber technology uses air recirculation, which is an innovative dry separation method that reduces energy consumption by up to 60 percent in comparison to conventional spray booths. The technology will be in use in 40 applications on four different continents
49
PRODUCTS
Automobile tyres
AvaniTV, Mumbai/Pune
Tel: 1800 102 8009 Email: info@avanitv.com Website: www.avanitv.com
Spacers
WAVE Current Precision Parts oers superior range of spacers that are made using be quality raw materials in compliance with indu ry andards. These spacers are available in various dimensions and widely used in automobile indu ries. The range is widely appreciated by clients for its durability, performance, easy inallation and dimensional accurate characteri ics.
SHUBHYA International manufact ures and oers a wide range of eel radial and bias tyres to all user segments. Tyres, tubes, aps and re-treading products are renowned for their superior quality and durability with a rong presence in international markets. The range covers categories, such as: oatation implement & trailer tyres; multi-purpose truck tyres; truck tyres; light commercial vehicle tyres; indu rial & OTR tyres; farm tyres; car & jeep tyres; 2- & 3-wheeler tyres; butyl tubes; and tyre retreading materials.
50
PRODUCTS
Automotive sprockets
MALKAR Indu ries oers a perfect range of automotive sprockets that are fabricated using highgrade raw materials and give long la ing performance. These sprockets are technically advanced and used in motorcycles, cars, bicycles, tanks, and other machinery to transmit rotary motion between two shafts or to impart linear motion to a track. The automotive sprockets are economical, reliable drive syem that oers maximum absorption of shock and minimum torque load. These automotive sprockets are available in dierent sizes and diameters. These sprockets can also be cuomised and are available at indury leading prices (claims the company).
Automobile fuses
SAHIL International oers automobile fuses (Maxi series) from Jeanfeng of Taiwan. These fuses are available in a higher range of amperage rating of 20 A to 80 A in 32 V AC/ DC. The fuses are physically larger in size as compared to other ATO and Mini series automobile fuses. Jeanfeng has provided colour code in each fuse for easy ampere identication. Larger fuses are widely used in automobile circuits for protect ion of wiring harness by replacing the fusible wire or fusible link, which is often a plain piece of small wire. The ATO series fuses are suitable for automobiles, trucks; whereas the Mini series fuses are suitable for buses, cars, etc.
52
PRODUCTS
Truck weighbridges
TULSI Trading Company oers truck weighbridges that are large scales to measure the entire weight of the vehicles and their content. These weighbridges are used in various indu ries that manufact ure or transport items in bulk items, such as in mines or quarries, garbage dumps/ recycling centres, and bulk liquid & powder movement, and even household goods. The weighbridges are available in two types. One is pit-mounted and the other is surface-mounted. All andards in designing and manufact uring are followed, which ensures performance and quality.
Tractor parts
TRACTORS (including also the earthmoving machines) components encounter low speedhigh torque loading for longer periods of time. These are subjected to intense variations in loading, poor engine cooling due to low travel speeds and frequent op-art conditions. This induces extreme thermal and mechanical resses in tractor engine parts, and only the proper foundry and machining pract ices can produce a tractor part that is robu enough to survive the elements and the harsh eld operating conditions. Garima Global does it with guaranteed precision.
Garima Global Pvt Ltd, Mumbai 400 053 Tulsi Trading Company, Kolkata 700 019
Tel: 033-4001 0701, Fax: 033-4001 0706, Mob: 09331152608 Email: ttcatlas@cal.vsnl.net.in Website: www.tulsiweigh.com Tel: 022-4037 8888, Fax: 022-6756 8999 Email: email@garimaglobal.com Website: www.garimaglobal.com Certication: An ISO 9001:2008 Certied Company
53
PRODUCTS
Vehicle washers
ESKAY Engineering Syems oers all kinds of vehicle washers, such as single plunger washers, triple plunger washers, etc. Bulk requirements of clients are also met. Some of the technical specications of model SKWSP-03 include: reciprocating type; single plunger; plunger diameter of 40 mm x roke length of 60 mm; speed of 360 RPM; output 12.5 LPM; working pressure 25 kg/cm maximum; crankcase oil capacity of minimum 300 ml & maximum 400 ml; 3 HP motor; and branded motor make.
Auto bearings
COSMO Teck oers bearings in all shapes and sizes. These include deep groove, self-aligning, thru, cylindrical roller, tapered roller, thru spherical roller, clutch, needle and roller bearings. Also oered is a comprehensive range of automotive engine parts, automotive elect rical parts, automotive clutches, trailer parts, fuel Inject ion parts, automotive brake linings, automotive brake shoes, lters, suspension parts, auto lights, mirrors, etc.
Automotive parts
AHUJASONS manufactures and oers highly funct ional automotive parts that enhance the eciency of automobiles. These automobile parts are precisely designed and engineered in order to ensure high durability and rength. The range comprises of gears, crack shafts, cross, shifter forks, and clutch collars. High durability, excellent performance and low maintenance of the range are some of their features for which the automobile parts are widely appreciated (claims the company).
Automotive relays
MEDIUM power automotive relays (models 3501/3531, 3521 & 3541) oered by O/E/N India are used for resiive/inductive loads, indicator lamp loads and head lamp loads. Salient features of these automotive relays include direct PCB mountable, coeective, suitable for various loads, miniature size, etc. Applications are in turn signal & hazard warning lights, ashers, wiper controls, head lamp control, arter motor, security syems, etc. Special contacts for higher contact rating, extra braided wire, high temperature winding wire, special coil resiance & pick-up, etc, are available on reque.
54
PRODUCTS
Automotive springs
SHALIMAR Precision Enterprises oers a wide range of auto elect rical parts that are made to serve the automobile indu ry. These elect rical parts are made employing premium quality raw materials. The auto elect rical parts are of international andards. They are appreciated by a large number of clients. The products are available in the market at mo economical rates (claims the company).
PUNJAB Ball Bearing & Machinery Corpn oers superior quality automotive springs that are manufact ured from good quality raw materials. Durability and high performance are the chief characteri ics of these springs that make them broadly demanded by cuomers.
Punjab Ball Bearing & Machinery Corporation New Delhi 110 005
Tel: 011-2875 0836 Fax: 011-2875 0836 Mob: 09810005773 Email: ykobearings@yahoo.co.in, Website: www.ykobearings.com
55
PRODUCTS
Automotive batteries
BHATIA Battery House oers a wide range of automotive batteries. The range of these automotive batteries consis of Tata green batteries, Exide green batteries and Amaron green batteries. These batteries are widely used in automobiles, such as cars, jeeps, tractors, two-wheelers, etc. The automotive batteries are available in dierent sizes and shapes as per diverse requirements of clients.
Brake uids
LEO Lubricants manufactures and oers DOT-3 high-grade and heavy-duty brake uids. High in performance, these brake uids are fully synthetic and contain anti-oxidants & corrosion inhibitor, which ensure long service life. The brake uids have a high boiling point, which eliminates any possibilities of vapor lock problem under severe working conditions. They have low pour point characteriics and can be easily used for vehicles running at low temperature. Some of the important properties of the brake uids are: density @ 15C: 1.050; viscosity CST @ 100C: 1.5; dry ERBP min 205C; wet ERBP 140C; and ash point PMCC 120C.
Engine oils
MAHATHOL 2T Super from Mahatha Petroleum is a two- roke engine oil developed with suitable base oil and select additives to minimise spark plug fouling and pre-ignition. These oils prevent ru ing, minimise deposit formation and provides protect ion again seizure, scung and wear. The oils also have advantage of lower oil consumption and contain diluents for easy mixing with petrol. These oils are recommended for all types of two roke engines of mopeds, scooters, motorcycles and three wheelers. The recommended dosage of Mahathol 2T Super is 20 ml per litre of petrol.
Tractor components
JAIN Indu rial Products manufact ures components for tractor indu ry in India, which includes lock nuts, ring nuts, special screws, screws, pin lever di control, sleeve shaft driving wheel, valve cover cap, washers, thru washers, retention plates, spacers, bushing front wheel spindles, pins, dowel pins, etc.
56
PRODUCTS
57
PRODUCTS
Painting booths
AMI Induries oers side draft, nonpressurised painting booths that are totally compact and suitable for small and medium size component painting. These painting booths are suitable for conventional or electroatic hand guns with no addition or modication. Adequate exhau results in eective removal of overspray paint particles and thus eliminates its setting on wet painted surface. They also provide clean air to the operator. Washing action minimises escape of paint along with exhau air and thus eliminates surrounding pollution and also the risk of re. The air ows have been so designed so as to oer total comfort to operator and in accordance with safety andards applicable. They nd applications in automobile parts, control panels, pumps, valves, cycle parts, caings, fans, non-ick cookware, ball pens, air pins, refrigerators, etc.
Tel: 022-2847 0806 Fax: 022-2847 0705 Email: response@abcfaeners.com Website: www.abcfaeners.com
58
PRODUCTS
Automotive cables
Q-FLX Wires & Cables (a div of Cybele Induries Ltd) oers a wide range of quality automotive cables to wiring harness manufacturers for their supplies to heavy-duty vehicles, like buses, trucks, tractors, earthmovers, etc; and all four-wheelers and two-wheelers for the purpose of lighting, igniting, wiping, battery charging, arter, eering column, horn, signaling, motor antenna, motorised outside rear view mirror, power windows, ereo syems, communication, etc. Automotive cables are manufactured to reference andards BS:6862, JIS:3406 and IS:2465 with bright annealed high conductive electrolytic copper conductor conforming to the requirements of IS:8130/BS:6360 and insulated with specially designed dielectric grade Q-Flx brand PVC compound as per IS:5831/BS:6746, which is impervious to water, oil, petrol, acid and greases. The automotive cables are also manufactured as per conventional sizes prevailing in the market where the copper and the PVC insulation meets the above andards requirements and impervious to water, oil, petrol, acid and greases.
Tyre inators
DIGITAL automatic tyre inators (model SetAir-201S) oered by Inrument Research Associates are fully automatic, safe, electronically controlled closed loop syems to inate tyres accurately to a preset pressure level by adjuing the lling rate automatically after sensing the size and type of the tyre. These equipments automatically decide to inate or deate a tyre depending on the under-/over-pressure of the tyre. A single equipment can inate and deate tyres of all types of vehicles including mopeds, scooters, mobikes, cars, vans, buses, trucks and tractors. The equipments oer utmo ease of operation to users who are not well versed in English. Features include: exhauive facility for fa ination of at tyres; convert function to show the desired and actual tyre pressure in kg/cm and PSI; conrm/backlight functions combined in one switch; LCD specially designed with icons to indicate the select units of pressure reading kg/cm, PSI, etc; and waterproof integrated keypad with positions of inc, dec, at tyre, convert and conrm/ backlight functions.
Tel: 022 2847 8806, Fax: 022-2856 0705Email: zenith@zipindia.com, Website: www.zip-india.com
Torque screwdrivers
SUMMIT Engineering oers torque screwdrivers with interchangeable tips to overcome such problems. The torque screwdrivers are available in two-piece con ruct ion, an ergonomically rened handle with exchangeable blades (insert) for greate exibility in all areas of use. Present ranges available are 0.6 to 1.5 Nm, 1.5 to 3.0 Nm, 3.0 to 5.4 Nm. Torque can be very easily adjued with the help of Allen key. Set torque achieved is indicated by acouic and mechanic signal. No over-torquing is possible as after achieving set torque it arts to slip. Various screwdriver blades suitable for slotted heads, PH, PZ, TORX and TORX Plus (IP) are available. These exchangeable blades are manufact ured from chromemolybdenum-vanadium eel with superior hardness, which exceeds DIN and ISO requirements by up to 100 per cent and have black tips for precise tment.
59
ADVERTISERS LIST
BIC ..... Lubrizol Advanced Materials India Pvt. Ltd. .+91-22-66027800 .........Estane-SA@lubrizol.com .............. www.lubrizol.com/engineeredpolymers
60
PRODUCT INDEX
A/C service equipment.......................................................... BC ADEA - Automotive Dealership Excellence Awards ............... 2 Alternatives........................................................................... 17 Auto bearings ....................................................................... 54 Auto car scan tools ............................................................... 52 Auto electrical parts ............................................................. 55 AutoExpo-2012 exhibition .................................................... 51 Automobile battery chargers ................................................ 57 Automobile fuses .................................................................. 52 Automobile gears ................................................................. 50 Automobile tyres .................................................................. 50 Automotive batteries ............................................................ 56 Automotive cables ................................................................ 59 Automotive engine oils ......................................................... 52 Automotive parts .................................................................. 54 Automotive products ............................................................ FIC Automotive relays ................................................................. 54 Automotive silicone hoses .................................................... 57 Automotive springs............................................................... 55 Automotive sprockets ........................................................... 52 Automotive wiring harnesses ............................................... 57 Batteries ............................................................................... 17 Bolts & set screws ................................................................. 58 Brake uids .......................................................................... 56 Brake pads ............................................................................ 17 Brake testing equipment ...................................................... BC Car seat covers ...................................................................... 56 Clutch plates & cover assemblies .......................................... 17 Collision repair systems ........................................................ BC Engine oils ............................................................................ 56 Engineering Expo exhibitions ............................................... 4 Epoxy oorings & coatings ................................................... 57 Exhibitions ............................................................................ 4, 51 Filters.................................................................................... 17
FIC : Front Inside Cover BIC : Back Inside Cover BC: Back cover
Four-wheel alignment machines .......................................... 53 Gas analysers ........................................................................ BC Gasoline systems .................................................................. 17 Gear pumps .......................................................................... 17 Horns .................................................................................... 17 Hydraulic car lifts ................................................................. 55 Hydraulic dock levellers ....................................................... 54 ... In-car entertainment systems............................................... 50 Lighting ................................................................................ 17 Lubricants............................................................................. 17 Mobile cellular transmission systems ................................... 53 Nuts & bolts.......................................................................... 58 Nuts/bolts & industrial fasteners.......................................... 59 Painting booths .................................................................... 58 Pneumatic impact wrenches ................................................ 58 Relays ................................................................................... 17 Rubber auto parts ................................................................ 56 Shock absorbers ................................................................... 13 Spacers ................................................................................. 50 Spark plugs ........................................................................... 17 Spot welding equipment ...................................................... BC Starter motors ...................................................................... 17 Thermoplastic polyurethanes............................................... BIC Torque screwdrivers ............................................................. 59 Tractor components ............................................................. 56 Tractor parts ......................................................................... 53 Truck weighbridges............................................................... 53 Tyre changers ....................................................................... BC Tyre ination equipment ...................................................... BC Tyre inators......................................................................... 59 Vehicle washers .................................................................... 54 Wheel aligners ...................................................................... BC Wheel balancers ................................................................... BC Wiper blades ......................................................................... 17
61
62
L.C.V. Front Trailer Tractor Rear Adv Otr Scooter (2 Wheeler/Moped) Scooter (3 Wheeler) Motor Cycle Industrial Total 617670 250369 174112 72943 22758 17671 1120921 693795 3982704 64915 10802256 465137 239904 150925 84266 19539 16861 1003751 581882 3718448 52290 9857553 33% 4% 15% (-)13% 16% 5% 12% 19% 7% 24% 10% 576319 253337 168925 85926 24186 16803 1122281 689173 3875431 54022 10607391 467054 235857 154302 80776 20827 14906 916985 535171 3454048 46450 9343112 23% 7% 9% 6% 16% 13% 22% 29% 12% 16% 14%
DATA
Category
Truck/Bus
Passenger Car
Jeep
JULY 2011
1360003
2295288
129107
JULY 2010
1237230
2157151
130169
% Change
July 11 over
10%
6%
(-)1%
July 10 (Prodn.)
1360935
2258337
121716
1249955
2039815
126966
2010-11 Apr.-July
% Change
Apr.-July (11-12)
9%
11%
(-)4%
Category
Truck/Bus
Passenger Car
Jeep
JULY 2011
176265
151390
7792
137730
1145
2183
307
12313
20853
69149
79252
10794
7588
676761
JULY 2010
135280
89808
10738
106752
954
3168
14226
100
49754
72470
7932
4870
496052
% Change
July 11 over
30%
69%
(-)27%
29%
20%
(-)31%
100%
(-)13%
20753%
39%
9%
36%
56%
36%
July 10 (Exports)
176708
126326
5408
131942
1311
2061
77
19519
9724
56792
76459
10127
8135
624589
ly
142482
77654
8522
110506
508
2550
212
12122
1091
42257
62166
7145
6136
473351
2010-11 Apr.-July
% Change
Apr.-July (11-12)
24%
63%
(-)37%
19%
158%
(-) 19%
(-) 64%
61%
791%
34%
23%
42%
33%
32%
DATA
63
POST SCRIPT
Why Aftermarket?
ndia has been scripting success stories in the auto industry for some time now. Vehicle production has doubled in the last six years and still growing strong. And this momentum is expected to continue for the next few years as the density of passenger cars in India is just 12 per 1,000 population, which is abysmally low even when compared with our Asean peers. Healthy economy, increasing disposable incomes, expanding urban centres, creation of new townships and growth in infrastructure will only catalyse the growth of automobiles further. The used car market, which is still in its nascent stage, is predominantly in the unorganised sector. However, the business is set to boom due to inow of vehicles on account of shrinking life cycle of passenger carsfrom about 15 years a decade ago to about ve years now, at least in the cities and towns. Today, the cream for dealers lies in the after sales service, which is why multi-brand third party service stations are mushrooming. Most of the players in this space offer quick repair service, which is a money-spinner. And this is the stimulant for more players to get in to the organised multi-brand service centres and used car retail outlets. It is a well known practice in the country that the owners of older vehicles migrate to independent service networks for various reasons including proximity, convenience, affordability and faster service. Besides, the trust that the neighbourhood garages offer outweighs the authorised service centres due to personal attention etc. Moreover, with the vehicle manufacturers focusing more on the warranty period, catering to service requirements of older cars are being taken up or shared by independent players. However, with the vehicles getting feature rich, the probabilities of the conventional garages offering repair services is getting reduced. To address the issue, some of the branded third-party multi-brand car service companies have conceptualised methods to help these garages move up in the value chain both in terms of technical capability and protability. These factors made the Indian automotive aftermarket grow at a steady pace. With the vehicle parc increasing, it is expected to expand rapidly over the next ve years. The total size of the Indian aftermarket is currently estimated at `33,000 crore, while the global market is worth `2,700,000 crore. These mind-boggling gures only reemphasise further the potential for growth. Automotive aftermarket offers tremendous opportunities for the players across the value chain and we at Infomedia 18 believe that these esteemed people should be informed of the developments periodically. And this is the impetus for launching a new magazineAftermarket. The monthly magazine will keep you posted of the developments in this segment in terms of news, views, trends, technology, analysis and features on best dealerships and review of service centres. Aftermarket will initially have eight sectionsNews, Rearview, Cover Story, Interview, Cutting Edge, Focus, Viewpoint and Extra Mile. Besides, it will have snippets on new products that come in to the aftermarket space. The News section will update you on the recent happenings while Rearview will look back some of the best service centres and their best practices. Each issue will have a cover story, which will be topical in nature. You will have the opportunity to listen to celebrity CEOs of companies operating in the aftermarket, in every issue under the Interview section. Cutting Edge will have stories on technology, Focus on some issues concerning the segment and Viewpoint, as it denotes, will have the viewpoint of industry representatives. The last section, Extra Mile, is all about the art of selling automobilesyou will have stories on the best dealerships and can be a stimulant for you to emulate best practices. - T Murrali
64
Applications
ABS Sensor Cable/Grommet Shift Lever Skin Fuel Bowl Paint Protection Film Dust C Cover/Driveshaft Boot Co-e Co-extruded Interior Parts Sealing Material Rail Pad
From boats to planes to passenger cars, Estane TPUs will offer you solutions to keep your business moving.
In the transportation industry, Estane Thermoplastic Polyurethanes are widely used for their excellent properties such as flexibility over a wide temperature range, optical clarity, flame retardancy, adhesion to various substrates, superior abrasion resistance and extreme durability. For more information email us at Estane-SA@lubrizol.com or visit our web site.
www.lubrizol.com/engineeredpolymers
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