Auto Monitor - 11 March 2013

Contd. on Pg 9

Auto Monitorwww.amonline.in11 March 2013Vol. 13 No. 07 24 Pages `50

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

Top 5 3W makers

Company Jan-12 Jan-13 Change

BAL 18,665 23,119 23.86%

Piaggio 14,941 14,191 -5.02%

M&M 6,126 5,811 -5.14%

Atul Auto 2,347 2,808 19.64%

TVS 1,800 1,101 -38.83%

Top 5 3W-Exporters

Company Jan-12 Jan-13 Change

BAL 24,771 23,144 -6.57%

TVS 602 3,317 451.00%

Piaggio 1,439 813 -43.50%

M&M 341 452 32.55%

Force Motors 84 168 100.00%

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

DATA MONITOR

Scan this code onyour smart phoneto visit www.amonline.in

Schaeffler AG is chang-ing its business strategy to benefit group brands. The company has three

brands under one umbrella: LuK, INA and FAG. LuK is known for its clutch systems, and INA and FAG are the leading manufacturers of rolling and linear bearings. Each manufacturer has been offering its products and services indi-vidually in the past, but now the Group will approach OEMs with

its entire portfolio of products. The company believes that

this will benefit each brand, but without as much marketing effort as before. Dharmesh Arora, President and CEO, Schaeffler India, said, “Now we are bring-ing the Schaeffler organization into the picture rather than indi-vidual brands. There will be just one point of contact who can explain our entire portfolio.” He added, “It is our way of becom-ing customer centric. The plan has changed to how the custom-er would like to do business with

us rather than how we would like to change.”

In terms of R&D Schaeffler recently showcased an afford-able automatic gearbox concept that is clutchless, but with a

manual shifting pattern. The technology uses an Electronic Clutch Management (ECM) system with sensors in the gear-box to engage the clutch when the gear is changed. The ECM is essentially a part of a DCT, but is required only for partial automation compared to total automation in DCTs. Asked if the company sees a trend of using existing technology to innovate new products like this new auto-matic transmission, Dr Juergen Geissinger, President and CEO, Schaeff ler AG, replied, “Yes, there is a trend forming and it will also come to Eastern Europe and South America. In that sense, India is a trendsetter.”

Ma h i n d r a & Mahindra is look-ing to enhance its portfolio of vehicles

in the small and light commercial vehicle segment. The company is in the process of developing a small commercial vehicle below the Maxximo range even as it is seeking to move customers to its latest offering Maxximo Plus priced at `3.4 lakh (BS3, Ex show-room Thane). The company has discontinued the existing model (Maxximo).

“One of the major challenges facing us is identifying segments in the market where we could offer products and play to our strength. It gets increasingly difficult for a new player to have a meaning-ful presence in any segment with a dominant player. This calls for developing product keeping customers and applications in mind,” said Rajan Wadhera, Chief Executive —Technology, Product Development and Sourcing, Automotive & Farm Equipment Sector. He added that the com-pany is looking to develop a new small commercial vehicle and introduce it by 2015.

The company recently launched the Maxximo Plus, a

0.85 tonne payload mini-truck with fuel smart technology that allows vehicle to be driven at high power (26 HP; 19.2 kW) or high mileage (21.9 kmpl) mode, switching modes as and when needed.

It is offered with a longer wheel base and a stronger seven-leaf rear suspension. “Critical to commercial vehicle ownership is the operating cost per tonne per kms. With the new Maxximo Plus the customer will potential-ly earn approximately 30 percent more, per year, over the compet-ing vehicle. This is on account of superior mileage which lowers fuel cost, a lower maintenance cost and the ability to carry more load with faster turn-around time,” said Pravin Shah, Chief Executive - Automotive Division,

Mahindra & Mahindra.The new Maxximo Plus also

comes with a class-leading two year / 60,000 km warran-ty. It will be manufactured at the company’s Chakan plant in Maharashtra. In the months leading up to the launch of Maxximo Plus, the company has identified and trained over 2,400 local mechanics to service the Maxximo Plus.

The company recently opened a new manufacturing facility in Zaheerabad, Andhra Pradesh. The plant has been set up at an investment of over Rs 300 crore and will have an installed capac-ity of 100,000 tractors per annum. The world class facility, equipped to meet international manufac-turing standards, is spread across 80 acres, making it the largest

tractor plant in India. “This is the largest trac-

tor plant in Asia and a major investment for Mahindra in the state of Andhra Pradesh. With this plant we are also set-ting up a supplier park which will help to bring more invest-ment and employment in the region,” said Dr Pawan Goenka, President, Automotive and Farm Equipment Sector, Mahindra & Mahindra. The company sells tractors under two brands, ‘Mahindra’ & ‘Swaraj’. Last year, the company sold 221,730 trac-tors in the domestic market. It

has tractor manufacturing plants in Mumbai, Nagpur, Rudrapur, Jaipur, Mohali and Rajkot. It also has plants overseas - in the US, China and Australia.

The new facility is equipped with advanced technology and processes including touch-less transfer of engines from assem-bly line to testing, and a clear interlock for restricting non-tested and rejected engines from entering the finished engine storing conveyor. The cycle of engine testing is completely controlled and monitored using computerized techniques. The plant provides direct control of each and every load in the system making them ideally suited to industrial applications that demand maximum ver-satility and efficiency through the power and free conveyor. Chassis painting is performed using mobile robots, which con-siderably improves quality on the paint application which will be applied evenly every time, thereby saving 20 percent of the paint quantity.

Synergising

Seeking Greater PlayLaunches Maxximo Plus; opens tractor plant in AP

Our Bureau Mumbai

Anand Mohan Mumbai

Pg 09 Pg 10

Smooth Rolling Customer service with ERPSKF launches tapered roller bearing for trucks ERP in the service industry

NEWS NEWS

One of the major challenges

facing us is identifying segments in the market where

we could offer products and

play to our strength.

The first tractor rollout at the Zaheerabad Plant, Andhra Pradesh. Pravin Shah Automotive Division Chief Executive at the Maxximo Plus launch in Mumbai.

Juergen Geissinger, President and CEO, Schaeffler AG

The superior level of innovation or creativity is directly related to the dismal level of circumstances. Or when else will you find jaw-dropping schemes from manu-facturers? Take for instance the two latest schemes

to come from Skoda and Tata Motors. Skoda has announced that on the purchase of a Skoda Rapid, you can avail of a Skoda Fabia (though after five years) for free. Tata Motors, on the other hand, is asking prospective customers to swipe their credit card and drive out with a Nano.

While these schemes suggest a desperate state of nature, it also signifies that car makers need to do more work in term of sales. Mere cosmetic changes and offering better interiors is just not alluring enough. Not to mention that the high interest rates on new cars are also a deterrent, what with the markets down.

Car makers and dealers are stuck with high inventory. Most manufacturers are also sending out signals to their compo-nent manufacturers to supply components for just-in-time manufacturing. All this will have a cascading effect on the automotive economy.

However, it is at times like this that OEMs need to huddle and find out the reason behind poor sales. Merely citing a slow

economy is not acceptable. The high interest rates though a deterrent is also not the only reason. Though they do put one off from buying a car.

And this brings to mind the Volkswagen’s bouquet of schemes that I read about recently. Trade in a Vento sedan by paying ̀ 1, don’t pay anything for the first year, and the balance in 36 EMIs. While I won’t comment on the Vento, the scheme should see plenty of takers.

Bouquet upon bouquet

QUOTESRobert DeCrick, (Head-SCM, APAC FIAT Chrysler)on Fiat’s new stockyard in Ranjangaon

Adrian Hallmark, Global Brand Director, Jaguar Land Rover, at the unveiling of the XFR-S during the Geneva Motor Show

The development of this stockyard is in alignment with the Group’s strategy to replicate its’ global operational standards.

This is the fastest and most powerful saloon Jaguar has ever produced, and today we’re delighted to share its European debut with you.

EDITORIAL

OVERSEAS CONTACT

Ringier Trade Media Ltd CHINA1001 Tower 3, Donghai Plaza, 1486 Nanjing Road, West, Shanghai 200040, China

Tel: +86-21 6289 – 5533 Ext. 368, Fax: +86-21 6247 – 4855 (Craig Shibinsky) Email: [email protected]

Ringier Trade Media Ltd HONG KONG9/F, Cheong Sun Tower, 118 Wing Lok Street, Sheung Wan, Hong Kong

Tel: +852 2369 – 8788 Ext. 21, Fax: +852 2869 – 5919 (Maggie) Email: [email protected]

Ringier Trade Media Ltd TAIWANRoom 3, Fl. 12, No. 303, Chung Ming S. Rd., Taichung, Taiwan

Tel: +886-4 2329 – 7318 Ext. 16, Fax: +886-4 2310 – 7167 (Sydney La) Email: [email protected]

USA Tel: (513) 527-8800 Fax: (513) 527-8801

Email: [email protected]

USA Alfredo Domador, 6505 Blue Lagoon Drive, Suite 430 Miami, FL. 33126, USA

Tel: (305)448-6875 Fax: (305)448-9942

NEWS STAND AND SUBSCRIPTIONS

DISTRIBUTION HEADSunil Nair

SR. MANAGER-SUBSCRIPTIONSSheetal Kotawdekar

CO-ORDINATORSRahul Mankar, Anant Shirke, Sarita Quartos’, Chaitali Parker, Kamlesh Madkar, Vaibhav Ghavwale

SERVICES

CIRCULATION SERVICES Write to [email protected]

SUBSCRIPTION SERVICES For subscription queries, write [email protected] or call +91 22 30034631-34 ortoll free 1800 200 1021

PERMISSIONS For subscription to copy or reuse material from AUTO MONITOR, Write to [email protected]

Weekly Issue Price: `50

`799

Views and opinions expressed in this magazine are not necessarily those of Network18 Media & Investments Ltd (Network18)*, its publisher and/or editors. We at Network18 do our best to verify the information published but do not take any responsibility for the absolute accuracy of the information. Network18 does not accept the responsibility for any investment or other decision taken by readers on the basis of information provided herein. Network18 does not take responsibility for returning unsolicited material sent without due postal stamps for return postage. No part of this magazine can be reproduced without the prior written permission of the publisher. Network18 reserves the right to use the information published herein in any manner whatsoever.

*Ownership of this magazine stands transferred from Infomedia18 Ltd (Infomedia18) to Network18 Media & Investments Ltd (Network18) in pursuance of the scheme of arrangement between Network18 and Infomedia18 and their respective shareholders and creditors, as approved by the Hon’ble High Court of Delhi and the necessary approval of Ministry of Information and Broadcasting is being obtained.

Printed by Mohan Gajria and published & edited by Lakshmi Narasimhan on behalf of Network18

Printed at Infomedia 18 Ltd, Plot no.3, Sector 7, off Sion-Panvel Road, Nerul, Navi Mumbai 400 706, and published at Network18, ‘A’ Wing, Ruby House, J. K. Sawant Marg, Dadar (W), Mumbai - 400 028. AUTO MONITOR is registered with the Registrar of Newspapers of India under No. 67827/98. Views and opinions expressed in this publication are not necessarily those of Network18. Network18 reserves the right to use the information published herein in any manner whatsoever. While every effort has been made to ensure accuracy of the information published in this edition, neither Network18 nor any of its employees accept any responsibility for any errors or omission. Further, Network18 does not take any responsibility for loss or damage incurred or suffered by any subscriber of this magazine as a result of his/her accepting any invitation/offer published in this edition. No part of this publication may be reproduced in any form without the written permission of the publisher. All rights reserved.

Auto MonitorFOUNDER & EDITOR, NETWORK 18 Raghav Bahl

PRESIDENT & EDITORIAL DIRECTOR, TV 18 Senthil Chengalvarayan

EXECUTIVE EDITOR Jayashree Kini-Mendes

EDITORIAL TEAM Abhishek Parekh, Features Editor

SENIOR CORRESPONDENTS Nabeel A Khan Anand Mohan

CORRESPONDENT

Jagdev Kalsi Pradeb Biswas

COPY DESK Geoffrey Mathews

ART DIRECTOR Varuna Naik

SENIOR DESIGNER Mahesh Talkar

CHIEF PHOTOGRAPHER Mexy Xavier

PHOTOGRAPHERS Varun Anchan, Senior Photographer

Joshua Navalkar

BUSINESS CONTROLLERS Akshata Rane, Lovey Fernandes, Deepak Bhatia, Ashish Kukreti,

Shwetha ME, Jayashree N, Shefali Mahant

PRINTING

EXECUTIVE VICE PRESIDENT Ananth R. Iyer

ASSISTANT GEN MANAGER-PPC Shekhar Khot

PRODUCTION TEAM

Surekha Karmarkar Sanjay Shelar, Ravikumar Potdar, Ravi Salian

GROUP CEO, NETWORK 18B. Sai Kumar

CEO-NETWORK 18 PUBLISHINGSandeep Khosla

EVP-HUMAN RESOURCESSanjeev Kumar Singh

ASSOCIATE VICE PRESIDENTSudhanva Jategaonkar

ADVERTISING SALESShashin Bhagat (Ahmedabad)[email protected]

Mahadev B (Bengaluru)[email protected]

Hari Hara Subramaniam (Chennai)[email protected]

Balakrishnan.s (Coimbatore)[email protected]

Surendra Kumar Agrawal (Delhi)[email protected]

Dominic Dsouza (Hyderabad)[email protected]

Ameya Gokhale (Indore)[email protected]

Sandeep Arora (Jaipur)[email protected]

Abhik Ghosal (Kolkata)[email protected]

Inder Dhingra (Ludhiana)[email protected]

Surajit Bhattacharjee (Ludhiana)[email protected]

Olwin Dsouza (Mumbai) [email protected]

Rohit Dass (Pune)[email protected]

Vipul Modha (Rajkot)[email protected]

Chirag Pathak (Vadodara)[email protected]

MARKETING TEAMGanesh Mahale, Akshaya Jadhav

@automonitor18facebook.com/AutoMonitor

Comments can be sent to [email protected]

JLR’s EMC gets massive boost 16JLR will reinforce its commitment to manufacturing in the UK by increasing the investment in its new Engine Manufacturing Centre to more than £500 million

CONTENTS

Continental, Fiat in partnership for navigation system 16Continental and Fiat Group Automobiles have integrated navigation by TomTom into their touchscreen infotainment system Uconnect.

Swaraj launches two tractor models 18The Swaraj Division of Mahindra & Mahindra, Ltd.’s Farm Equipment Sector launched two new tractor models Swaraj 855 XM and 744 XM in Maharashtra

Nissan brings Safety Driving Forum to Mumbai 18Nissan organized the Safety Driving Forum in the country to increase the awareness about road safety and highlight the benefit of modern safety technologies in cars.

Infotainment for more eco friendly driving 18The Fiat Group’s eco:Drive Live function analyzes driving parameters in real time and gives suggestions for more eco friendly driving.

Upping Customer Service with ERP 10Auto Monitor analyses the role ERP can play in the service industry, and the benefits and pitfalls to its wider adoption

CORPORATESmooth Rolling 09The new SKF E2 TRB bearings promises lower friction, emissions, and fuel consumption over previous models

10

18

16

09

18

Auto Monitor

N E W S 911 MARCH 2013

The new SKF E2 TRB bearing promises to lower friction, emissions, and fuel consumption over previous models.

SKF recently launched tapered roller bearing, especially designed for truck final drive applica-

tions that reduces friction, lowers fuel consumption, and reduces emissions in heavy trucks. Typical fuel savings achieved using this bearing in a truck final drive are approximately 0.15 l per 100 km, which for vehicles on long-haul routes add up to an estimated annual saving of 150 litres per year. This can give faster returns on investment over time for truck

and truck fleet owners, thus reducing total cost of ownership.

Compared to the company’s existing bearing range, the new SKF E2 TRB has been further improved with friction reduc-tion calculated at 30 percent. This can enable energy savings of approximately 500 watts when the bearing is used in the pinion position.

Unlike competing products, this friction reduction is valid over the complete rpm range. For a typical truck running 100,000

kilometres per year, equipped with four bearings of this type, the reduction is estimated at 398 kg CO2 saving per year.

Specific features of the new bearing include fewer rollers, improved roller topography, and modified raceway profiles. The improvement of rollers means that despite their reduced num-ber, the SKF E2 TRB offers the same nominal carrying capacity as standard TRBs.

“All our product engineer-ing efforts are focused towards

having solutions t hat a re energy effi-cient, long lasting, and reducing cost for the truck and f leet own-ers. They should also be easy to install and cost-efficient. It is all about saving money and time, but also reducing negative impact on the

environment,” says Christian Genheimer, Product and Business Development Manager for Trucks, SKF.

Smooth Rolling

A little known fact about Schaeffler’s business is that India is a cru-cial arm for the company’s R&D efforts, and it’s not restricted to the recent automatic transmission concept. The engineering team for the company’s motorcycle division globally (for motorcycles under 500cc) is based in India. “This team is completely responsible for all developments for small and midsize motorcycles,” Geissinger said.

Schaleffler is looking at the Indian motorcycle market very serious-ly. The company is working on clutches that are at an advanced stage of development. Arora says, “We are looking at the application force and life of the vehicle. Our focus is maintaining this force through the vehicle’s life. Usually, over a period of time when the clutch disc starts wearing off, this application force increases. We will be able to provide solutions that will work optimally throughout the life of the vehicle.”

In addition to LuK, INA and FAG, Schaeffler owns a 49.9 percent stake in component manufacturer Continental. The two companies are working on a lot of joint projects. “Continental and Schaeffler have complementary technologies,” according to Geissinger. In the turbocharger for example, the engineer-ing was done by Continental, and manufacturing engineering was done by Schaeffler. Schaeffler now produces these turbochargers. Other joint projects include stabilizer bars and start-stop systems.

The presence of Schaeffler’s global President and CEO in India and a display of the company’s new technologies, some of which were specifically developed for India, shows India’s growing importance to Schaeffler’s global plans.

Synergising...

a cru-o the

m for nder

ble for ger said.serious-

ced stage of force and life of the icle’s life. Usually, over a lication force increases. We

ughout the life of the vehicle.”

Contd. from Pg 1

Auto Monitor

N E W S1011 MARCH 2013

ERP stands for Enterprise Resource Planning and is used to auto-mate activities within

an organization with integrated computer software. Its purpose is to enhance the flow of infor-mation in an organization and manage connections with stake-holders. Thiru Vengadam, MD & CEO, IFS Solutions India Pvt Ltd, explains ERP as, “ERP cap-tures data on everything that is happening in a company like machineries’ data, infrastruc-ture, products, etc. ERP is also capable of automating supply chain for efficiency, improve-

ment in suppliers, improve own efficiency by improving time, cost, service and quality”.

W ho ca n use it? While ERP has found a lot of tak-ers in the manufacturing area, especially OEMs, it has wider applications. It was initially used only by large manufacturing organisations to automate their work flow and improve efficien-cies. However, with tier-1 and tier-2 suppliers responding to OEM expectations, OEMs are now planning or have already invested in closed loop ERP systems with their supply chain to keep the workflow momentum going.

However, it’s not just the man-ufacturing industry that can benefit from ERP. Since the ser-vice sector is a vital touch point

for the user, it remains under strict time constraints. Explains Thiru, “Based on our global sur-vey we feel the adoption of ERP systems would be more on service management side than on man-ufacturing side. Manufacturing, they are somehow already doing. Customers have got more to do with the turnover time, servicing timings, etc., than a Kanban sys-tem in manufacturing”.

While efforts have been made to apply ERP to various sectors, acceptance in small industries (both manufacturing and ser-vices) has remained low due to misconceptions about cost. With time however, ERP has grown and has become scalable enough for even small companies to ben-efit from it. “Our system (of ERP)

has various architectural fea-tures. It is architected in such a manner that it is now a single application. Suppose a company requires only 10-20 users on the ERP, he can use the same appli-cation as any other big firm. For all different types of applications we have the same system. The architecture is so scalable, it can efficiently operate irrespective of volume or number of connects or users”, explains Thiru Vengadam. Previously, it was necessary for companies to adopt a com-plete ERP suite at one go, which required a lot of investment. But

with time ERP has become more flexible. Says Thiru, “They (com-panies) need not necessarily buy our thing in one go. They may buy 7-8 modules from our range of 80 modules, and later buy more whenever required, since it’ll fit in perfectly, like a building block, you can add more. This is the most flexible approach”. Also clearing doubts about ERP’s cost burden, MD & CEO, B-Square Group of Companies, PKD Nambiar adds, “ERP isn’t as costly as it is perceived. We spend lakhs on improving our infrastructure and everything. A

Jagdev Kalsi New Delhi

Upping customer service with ERPERP has found wide acceptance in manufacturing. Though in its nascence in Indian auto manufacturing, it has been seen to improve performance and efficiencies. We now find out what role ERP can play in the services industry.

couple of lakhs spent on ERP can do wonders to the output of any organization”.

Appl icat ion a nd Cu r rent Use Talking about the output and positive impact of ERP software on any organization, Thiru adds, “Generally companies achieve anywhere between 15-20 percent cost saving at the comple-tion of implementation of ERP. The first project I took was for M&M (when I was with SAP), and they had tractors and farm equipments also. At the end of 3 years, they initiated an internal study to see the return on investment. They had a significant benefit and decided to implement it in all their units. On average 15-20 percent is the savings in the first iteration of an ERP system. ERP implementation is not a one-time activity, it is a continuous improvement”.

Currently ERP is in use in the service industry, though not in the automotive sector. Says Thiru, “We have implemented Dynamic Resource Scheduling. This is a first ever thing in India at this level. ERP is back-end manufacturing sys-tem, but what they are looking for is a complete integrated system with ERP, and a mobile appli-cation. It is for those who want to provide service at the customer location. It is still not very preva-lent in the auto industry”.

How can auto service sector benefit? In the recent past, we have seen a number of mul-ti-brand service centres opening up in India. In the past, we had a culture of roadside mechanics working on any car from any manufacturer. The scenario is very different these days, with more than 20 auto manufacturers, and each requir-ing a different set of tools and understanding of products to service them. Providing road-side assistance is no longer easy, since it would require carrying different equipment and tools for different makes and models.

This is where ERP can help. Explains Thiru, “In such a situation where you need to send in the right technician with right tools and spares and a vehicle to carry all this, ERP comes to the rescue. We have an engine that will do all the computations like time to reach and everything, it’ll do dynamic scheduling against multiple constraints. There’s even a manufacturing OEM from industrial equipments who have done this. They have 1000 service technicians, all current-ly being trained and they assure the customers that their system will be up and running almost 99.9 percent of time. Objective of all of this is to improve efficiency”. Citing the example of a multi-brand service centre such as Carnation, Thiru adds, “Multiple product service is an area where ERP can work very effectively. They [Carnation] might have entered into a back-end arrangement with all the OEMs, since they can’t keep all the spares of all cars. Every single activ-ity that such a firm is doing can be done by ERP. It would improve their efficiency, their produc-tivity, and for the same installed cost they’ll be able to do better”.

Auto Monitor

G L O B A L W A T C H1411 MARCH 2013

Mercedes-Benz is planning to increase sales of its high-performance

AMG models by 50 per cent based on the 2011 total of 20,000, to mark the sub-brand’s 50th anni-versary in 2017.

The UK is currently the fast-est-growing market in the world for AMG. Last year’s sales total of slightly over 2,200 was more than double that of the year before. And it does not include ‘AMG Sport’ and ‘Engineered by AMG’ trim versions.

Ola Kaellenius, the Mercedes-Benz board member responsible for AMG, revealed on the eve of the Geneva show that the per-formance division has plans to

launch 30 new models in the next four years to help achieve its ambitious sales targets.

There will be increasingly more powerful engines deliver-ing increasing levels of efficiency, and more and more all-wheel-drive models.

Two of them were on view at an invitation-only preview at the Geneva show. Kaellenius

revealed the A 45 AMG with the help of R&B superstar Usher, but lurking in a ‘box’ at the venue - and definitely not to be photo-graphed - was the AMG version of the new CLA coupe.

The A 45 is the entry to full-blown AMG ownership and the first transverse-engined car from the Affalterbach performance

specialists.It is powered by a 357bhp 2.0-

litre four-cylinder turbo engine and has an AMG-tuned seven-speed double-clutch transmission and 4MATIC all-wheel-drive system, and AMG suspension, steering brakes, body styling and interior trim. It will be on sale in the UK at the start of summer for

around £36,000.The CLA 45 will get its public

unveiling at the New York show at the end of March and go on sale in the UK in the autumn. It fea-tures the same drivetrain as the A 45 AMG and, if the price differ-ence between the mainstream A-Class and CLA is maintained, is likely to cost around £40,000.

The poorest ten per cent of car-owning house-holds in the UK are mired in transport pov-

erty and are spending at least 27% of their disposable income on buying and running a vehi-cle. This equates to roughly 800,000 homes.

By contrast, those in the wealthiest car-owning house-holds are spending around 12% of their disposable incomes on purchasing and operating a car.

Of a total weekly expenditure of £167, those in the poorest car-owning households see £44 go on vehicle-related purchasing and operating costs.

Of the £44, £16 is used to buy petrol and diesel and £8.30 is spent on insurance.

The high level of expenditure is revealed in analysis of previ-

ously unreleased data from the Office for National Statistics which has been seen by the RAC Foundation.

Professor Stephen Glaister, director of the RAC Foundation, said: “These figures should shock the Chancellor. We already knew transport was the single biggest area of household expenditure bar none. But this spending breakdown just for car-owning households is not normally available. It lays bare the truth about the extent of transport poverty in the UK.

“There is understandable con-cern about home owners having to spend more than 10% of their money on heating their hous-es. But to most of us transport is another essential item and our outgoings on getting about eclipse all other domestic bills.

“George Osborne will soon deliver his budget and is like-ly to tinker with the rate of fuel duty. For people already drowning under the weight of motoring costs, cutting a penny or two off the price of a litre of fuel will help but is like rearranging the deck chairs on the Titanic - ultimately futile. To make any meaningful dif-ference to those on the lowest incomes the rate will need to be cut much further.”

Jaguar Land Rover, already the UK’s leading automo-tive investor in research and development with a

£3billion spend in 2012, is dou-bling the number of jobs at is new Wolverhampton engine plant to 1,400.

Dr Ralf Speth, chief execu-tive officer, said that the 700 new jobs at the four-cylinder engine plant, due on stream by 2015, are on top of the 800 new jobs already announced for the com-pany’s Solihull assembly plant.

“We are attracting some of the best talents in the UK,” he said at a business briefing on the eve of the Geneva motor show.

The news came as JLR enjoyed its best year with global sales of 350,000 and year-on-year revenues up 20 per cent in the third quarter, said Dr Speth.

“We are a small British com-pany and not in the volume race,” he said. “But we have plans to expand our product range and global presence.”

The new all-aluminium Range Rover Sport will be revealed at the end of March, he said. This will be followed by die-sel-hybrid models later this year “and three more surprises which I will not tell you about just yet.”

Global sales director Phil Popham said that much of JLR’s sales growth will come from expanding Jaguar into new mar-kets. Land Rover sells in 177 countries but Jaguar is only pre-sent in 135. The plan is to take Jaguar into another 40 or so mar-kets alongside Land Rover with joint JLR dealerships.

“We’re opening 10 new deal-ers a month globally,” he said.

Every Vauxhall, Opel and European-spec Chevrolet will be pow-ered by one of three new

engine ranges being rolled out by General Motors over a five-year period.

The only exceptions will be a few specialist models like the Chevy Stingray and commercial vehicles.

GM has started to roll out three new engine families which will eventually amount to a total of 13 powertrains. It began with the introduction of a new 1.6-litre petrol unit last year, and the second phase which began

at Geneva sees the Zafira Tourer become the first recipient of a new 1.6-litre diesel. GM has made no secret of its intention to bring out a small-capacity engine to match Ford’s acclaimed three-cylinder Ecoboost.

The engines will also feature in an increasing number of GM products in other markets and have the potential to significant-ly reduce the group’s corporate carbon footprint.

“The 1.6 you are seeing today is the first of our new in-house-designed and -developed mid-size diesels. We are also in-sourcing all the controls. A key

element of this engine is that all the technology is ours to own and understand,” says GM Europe vice-president for pow-ertrains, Michael Bly.

“It will have sisters and brothers of different sizes, dis-placements and power outputs and with different turbochargers and control units. The Cascada will be first to get the new gas-oline engine, and there will be smaller gas engines of three or four cylinders and with a turbo or not. They will be introduced in Europe first, but are also for the US and China in future.”

Part of the plan will see GM

introduce its first diesel passen-ger car in America for 25 years when it launches the Chevy Cruze with a 2.0-litre compres-sion-ignition power unit. “There is still a reluctance towards die-sels in the US, but things are

starting to change,” said Bly.The new engine families have

been designed to fit in with GM’s alternative fuel strategies, includ-ing hybridisation and stop-start and compressed natural gas and liquified petroleum gas.

AMG plans a 50pc sales rise to celebrate 50 years

800,000 homes spend more than a quarter of their income on running a car

JLR to double engine plant workforce

GM reveals next step in all-new European powertrain strategy

Last year’s sales total of slightly over 2,200 was more

than double that of the year before.

To most of us transport is another

essential item and our outgoings on getting

about eclipse all other domestic bills.

Vauxhall Opel 1.6 CDTi Start Stop diesel engine

Auto Monitor

N E W S1611 MARCH 2013

Jaguar Land Rover, the UK’s largest premium automotive manufacturer, showcased its latest plans for fur-

ther investment in technology and innovation at the Geneva International Motor Show. JLR will reinforce its commitment to manufacturing in the UK by increasing the investment in its new Engine Manufacturing Centre to more than £500 mil-lion. In addition, Jaguar Land Rover will invest £2.75 billion in product creation during the year to support its ambitious growth plans that will see the business introduce eight new or refreshed products during the year.

The company’s new Engine Manufacturing Centre in the UK is essential to support the company’s long-term strategic growth plans and will be the home for a new generation of technologically advanced, light-weight 4-cylinder low emission diesel and petrol engines.

Reinforcing Jaguar Land Rover’s commitment to manu-facturing and innovation in the UK, the company will increase its investment in the facility to in excess of £500 million. This will almost double the number of highly skilled engineering and manufacturing jobs at the plant,

taking the total number of people who will be employed at the site to almost 1,400.

Speaking at the show, Jaguar Land Rover’s Chief Executive Officer, Dr Speth said: “Jaguar Land Rover’s new Engine Manufacturing Centre in the UK will not only bring our engine supply back to our production doorstep, but gives us significant new resource as we continue to innovate with new products and markets.”

The new family of engines is currently under development at Jaguar Land Rover’s advanced research and development facil-ity. It will strengthen and expand the company’s engine range supporting future product devel-opment plans. Jaguar Land Rover will deliver high performance engines with class-leading lev-els of refinement and significant reductions in vehicle emissions, allowing it to compete even more effectively and attract new cus-tomers globally.

The state-of-the-art facility is the first in the company’s his-tory to be entirely designed and specified by Jaguar Land Rover. At almost 100,000 sq m, the plant will include an engine testing centre alongside the manufac-turing and assembly halls. The

building will meet the highest standards of sustainable produc-tion and will feature a variety of energy efficiency technologies.

T he ne w E n g i ne Manufacturing Centre will open later this year with the first engines coming off the produc-tion line in 2015.

Simultaneously, JLR will invest £2.75 billion in product development which will support the launch of eight new innova-tive products to help achieve its business growth strategy. These include the Jaguar F-TYPE and the introduction of the world’s first nine-speed gearbox in its

Land Rover product line-up. Jaguar Land Rover is the

UK largest investor in automo-tive research and development. Exporting 80 percent of its vehi-cles, Jaguar Land Rover’s success has been worth almost £25 bil-lion in export revenues for the UK economy in the last two years.

Continental and Fiat Group Automobiles have integrated nav-igation by TomTom

into their touchscreen info-tainment system Uconnect. This new feature was presented at the Geneva Motor Show for the first time. It includes many of the same technologies as found in TomTom’s industry-leading portable navigation devices, including world-class maps, IQ Routes, voice control and Advanced Lane Guidance. The device also incorporates the acclaimed TomTom user interface. Customers can order it in the new Fiat 500L in the second quarter 2013.

Made for media“Infotainment becomes

more and more important for vehicles of all classes. The Uconnect system we have developed for Fiat features attractive functions for a dig-ital lifestyle and with the integration of navigation by TomTom, we support Fiat to offer even more appealing infotainment to its custom-ers,” comments Johann Hiebl, head of the Continental busi-ness unit Infotainment & Connectivity.

Thanks to Bluetooth and the USB-interface of the Uconnect system, drivers and passengers are able to stream music from digital devices or use the hands-free kit. The five-inch touchscreen, voice output and speech recogni-tion lets the driver operate the

system intuitively. For exam-ple, by having text messages read out loud, they can stay in touch without taking their eyes off the road.

Affordable systems“Based on Microsoft

W i n d o w s E m b e d d e d Automotive, we have designed the infotainment system as a platform to allow the easy integration of third party soft-ware. With the installation of Navigation by TomTom we can now offer the driver true added value in an updatable Infotainment System”, Hiebl explains. “Using an operat-ing system that has a proven track record in the market and is automotive ready helped us keep the research and develop-ment costs at a minimum level. This also makes the system more affordable for the driver,” Hiebl concludes.

After Club Class Features, Club Class Service, Tata Manza has launched yet

another industry first and has introduced the ‘Club Class Buyback Assurance’. With the Club Class Buyback Assurance, Tata Motors offers its custom-ers 60 percent of the purchase price after three years.

Designed for the discern-ing new-age customer, the Tata Manza Club Class is an enticing combination of first-in-class human-machine interface, best-in-class cabin space and contemporary styling. Taking forward its luxurious lineage, the new Tata Manza has been launched with a powerful positioning of ‘the Club Class Sedan’ since it has set a new benchmark for sedan buyers in the mid-sized car segment with its plush interiors and state-of-the-art technology features, making it the most premium sedan in its class.

In order to make the value proposition even more attrac-tive, Tata Motors has revised the Manza prices and is now offering the range at special reduced prices.

With the launch of SI M AT IC S7-1500, Siemens Industry Sector’s

Industry Automation division has announced the introduc-tion of a whole new family of next generation controllers for medium to high-end machine and plant automation. The Siemens Industry Sector’s Industry Automation division also announced the enhance-ment of its “Totally Integrated Automation Portal” (TIA Portal) engineering framework with numerous new func-tions. Version 12 enables all Siemens drives of the Sinamics G converter series to be param-eterized via the TIA Portal, and additional diagnostic func-tions have also been integrated. Among other things, the safe-ty functionalities have been extended for SIMATIC S7-1500 and the Profinet communi-cation performance has been expanded. The programming languages have been trimmed for even greater efficiency and new security functions provide improved protec-tion of know-how, and better security against copying and access. Within the framework of the new version of the TIA Portal there are also updates for engineering tools for the configuration, programming, commissioning and servic-ing of the Siemens automation devices and drive systems. These include, for example, the following engineering sys-tems: SIMATIC Step 7 V12 for

SIMATIC controllers, SIMATIC WinCC V12 for HMI systems (SIMATIC HMI) and Sinamics Startdrive V12 for the Sinamics G converter family.

Safety functionalityBhaskar Mandal, Executive

Vice-President, Indust r y Sector, South Asia, Siemens Ltd, said, “Integration of automation platforms in a man-ufacturing environment is vital to avoid automation islands. While our current version of TIA portal performs automa-tion and drive tasks quickly and intuitively, the new ver-sion provides seamless drive integration, integrated system diagnostics and safety func-tionality along with a powerful Profinet communication.”

The Siemens TIA Portal is designed for high efficiency and user-friendliness, and it is suitable for both first-time users and experienced users. It offers a standardized oper-ating concept for controllers, human machine interface (HMI) and drives, for shared data storage and automatic data consistency, for example during configuration, commu-nication and diagnosis. It also offers powerful libraries cover-ing all automation objects.

In its latest Version 12, Siemens has extended the TIA Portal to include numer-ous functions for drive integration, system diag-nosis, sa fet y, Prof inet communication, security and programming language.

JLR’s EMC gets massive boost

Conti, Fiat TomTom anew

Tata Manza Club Class diesel prices revised

TIA Portal from Siemens

Tata Motors has revised the

Manza prices and is now offering the range

at special reduced prices.

Thanks to Bluetooth and

the USB interface, drivers and

passengers can stream music from digital devices or use the

hands-free. The 5-inch touchscreen and

speech recognition lets the driver

operate the system intuitively.

Artist’s impression of the completed plant

Auto Monitor

N E W S1811 MARCH 2013

Mumbai got to par-ticipate in the Safety Driving Forum organized

by Nissan Motor India on the 16th and 17th of February in the parking area of the Inorbit mall in Malad. The idea behind organizing the Safety Driving Forum in the country is to increase the awareness about road safety and highlight the benefit of modern safety tech-nologies in cars.

The Nissan Safety Driving Forum was first organized in Delhi in the first week of February. The car manufacturer is planning to take its initiative to Chennai also. During the two day event, individuals were given an opportunity to learn about the importance of road safety through panel displays and simulator devices.

The mall visitors who took a detour to experience the Nissan set up, got to learn how airbags function during an accident and the importance of wearing seatbelts while driving or trav-elling in a car. The participants also got a chance to know more about importance of Anti-Lock Brake System on a simulator vehicle.

At the launch, Mr. Takayuki Ishida, Managing Director & CEO, Nissan Motor India Pvt.

Ltd, said, “The growing num-ber of cars on Indian roads has also resulted in increased number of accidents. Nissan as an automobile manufac-turer understands its social responsibility and strongly believes that “Safety begins with ME.” The Nissan Safety Driving Forum has been formed to educate drivers, co-passengers as well as other road users on safety practices with a focus on reducing road accidents.”

Nissan Motor India Private Ltd. (NMIPL) is a 100% subsidi-ary of Nissan Motor Co. Ltd. Japan and was incorporated in 2005. Nissan along with its global Alliance partner Renault has established a manufac-turing plant and a Research & Development Centre near Chennai. Nissan has appoint-ed Hover Automotive India Pvt. Ltd. as a sole distributor for India to handle sales and mar-keting, dealer development, customer relationship manage-ment and after sales.

Hover Automotive India Pvt. Ltd. functions as an independ-ent company with an exclusive distribution agreement with NMIPL to accelerate the sales and build customer touch points across India for the Nissan brand of cars.

Mahindra Reva has announced its plan to launch its next generation

electric vehicle, the e2o, on 18th March 2013 in New Delhi. The Mahindra e2o (powered by Reva) is the embodiment of the Mahindra Group’s vision of the Future of Mobility for a sustain-able tomorrow.

Dr Pawan Goenka, President, Automotive & Farm Equipment Sectors, Mahindra & Mahindra Ltd said, “We are delighted to announce the launch of the e2o, which will mark a signifi-cant milestone in Mahindra’s automotive journey. Electric vehicles today epitomize clean and green driving and Mahindra wants to take the lead in developing this segment and its surrounding eco system. We are humbled with the kind of feedback we have received so far on the e2o, which reaf-firms our conviction to remain committed and invested in this segment”.

He added, “We hope that such an initiative will find the desired support and incentives

from all governmental agencies that will support us in this jour-ney of providing clean mobility solutions.”

Future protectThe Mahindra e2o is the

next generation global electric vehicle built on the capability of using the futuristic ecosys-tem of Sun2Car to derive energy from the Sun for urban mobility, while protecting and preserving the environment. The car will use next generation Lithium Ion batteries and will have a range of 100 kms on a full charge, which is suitable for most urban commuters today. The e2o will enable users to carry out self fueling through any 15 amp plug point at home or at their workplace. This can be further augmented with the help of Sun2Car solar technology.

The e2o will be produced at Mahindra Reva’s recently inau-gurated production facility which is India’s first platinum certified automobile plant located at Bengaluru. It has a rated manufacturing capacity of 30,000 cars per annum.

Nissan brings Safety Driving Forum to Mumbai

Mahindra Reva to launch e2o EV on Mar 18

The Swaraj Division of Mahindra & Mahindra, Ltd.’s Farm Equipment Sector launched two

new tractor models Swaraj 855 XM and 744 XM in Maharashtra. The Swaraj 855 XM and 745XM are

powerful tractors in the 40-50 HP range, with an engine which has greater pulling and load carrying capacity. The branding XM stands for “Xtra Mileage” and denotes the new fuel efficient engine used in this product category.

Sanjeev Goyle, Senior Vice President, Marketing, Farm Equipment Sector, Mahindra &Mahindra Ltd. said, “Maharashtra being one of the key agricultural states, it is vital that we provide farmers with solutions to enhance farm pro-ductivity with comfort in a cost effective way. We have a strong focus on offering superior prod-ucts to ensure technological progress in the agriculture sec-tor. The Swaraj 744 and 855XM are extremely powerful and fuel efficient tractors and their advanced ergonomics give the farmer a comfortable driving experience.”

The tractors are technologi-cally advanced with constant mesh, side shift gear box and highly advanced “SENSILIFT” hydraulic, suited for all agricul-tural operations and haulage. Tractors like the Swaraj 855 XM and 744XM are a result of Swaraj’s continuous focus on

new product development and upgrading.

The Swaraj Division of M&M is known for producing tractors that are rugged, powerful and reliable. With over 600 dealers across India, Swaraj is a `3,000 crore company today with over 5,000 employees.

Swaraj launches two tractor modelsThe tractors are technologically advanced with

constant mesh, side shift gear box and highly advanced

“SENSILIFT” hydraulic, suited for all agricultural operations.

The system even helps drivers to drive more energy effi-ciently and reduce

CO2 emissions by up to 16%. The Fiat Group’s eco:Drive Live function analyzes driv-ing parameters in real time (acceleration, deceleration, gear shift change and cruise speed) and gives suggestions for more eco friendly driving. Drivers can also upload their data via mobile or USB to the eco:Drive portal and com-pare their progress to other eco:Drivers.

W it h pr e l i m i n a r y sales of €32.7 billion in 2012, Continental is among the leading automotive sup-pliers worldwide. As a supplier of brake systems, systems and components for powertrains and chassis, instrumentation, infotainment solutions, vehicle electronics, tires and technical elastomers, Continental con-tributes to enhanced driving safety and global climate pro-tection. Continental is also an expert partner in networked automobile communication. Continental currently has approximately 170,000 employ-ees in 46 countries.

Infotainment for more eco friendly driving

The Fiat Group’s eco:Drive Live

function analyzes driving parameters

in real time (acceleration, gear

shift change) and gives suggestions for eco

friendly driving.

Auto Monitor

N E W S2011 MARCH 2013

Worldwide shortage & spiraling prices of Natural Rubber except in the recent

time is a major concern for all tyre and rubber manufacturers. Natural Rubber is a highly valu-able biomaterial in contrast with other Bio-Polymer. It cannot be replaced by other synthetic materials for many applications e.g. heavy duty truck-bus, air planes tyres as well as many latex products or only at great cost. It is the first choice for heavy duty radial truck tyre manufacturers because of its physical, mechan-ical properties and excellent adhesion to steel cord.

The worldwide shortage of NR is mainly due to productions cut & shifting towards palm oil cul-tivation in Malaysia, growing usage of NR in commercial vehi-cle radial tyre and an increasing demand in China & India due to rapid economic development. As with all agricultural com-modities; the effects of climate change, population growth, economic developments, are unpredictable factors and induce major changes in the available yield and demand for NR. Tyre & rubber companies would expe-rience great difficulties, if large scale alternative is not devel-oped. The scientist/technologist all combined their efforts and talents in harnessing this crisis.

Guayule, a shrub growing in semi-arid regions in Mexico and Southern US, is one of the non tropical plants that have been used as a commercial alternative source of NR. Out of several other potential sources of NR, another promising one is Russian Dandelion. Production of Rubber from sunflower or Lettuce is being considered in the USA & Canada. For overcom-ing this crisis, the scientists are also considering the synthesis of synthetic poly- isoprene through bio-isoprene route.

This paper will cover all such possibilities; the scientists/tech-nologists are considering for overcoming this crisis in future.

As it is rightly said that the biggest drawbacks of own-ing something valuable is that someone else is always trying to

steal it. This was the case during World War I & II, when Britons and later on Japan controlled the most of rubber supplies. During and after that war, a lot of people in different countries started to feel uneasy that not only their military strength, but their industrial and econom-ic strength were dependent on foreign rubber.1 Now, when eve-rything is stable and rubber has become an essential part of the life, we see the vulnerability of rubber to the market conditions. This gives rise to the fluctuations in the market and leads to a steep increase in price. There are a lot of factors responsible for it & here we will discuss these factors & how to overcome those.

Shifting towards palm oil cultivation

About two decades ago, palm oil emerged as the cheapest source of edible oil and has been garnering a lot of attention since then. Currently, it is the largest produced, consumed and traded edible oil in the global markets. Not only is it competitively priced compared with other major oil-seeds, but it also has the highest yield.2 The palm oil tree yields an annual average of 3.7 ton of oil per hectare, which is much higher compared with the rape-seed (0.6 ton) and soybean (0.45 ton). Indonesia and Malaysia are the largest producers and export-ers of palm oil, and together have an overall 87% share in the global output and 90% share in exports. An analysis by Koh and Wilcove3 suggests that during the period 1990–2005, close to 60% of the palm oil expansion in Malaysia was at the expense of forest con-version and rest coming from rubber & cacao cropland. Similar developments are taking place in Thailand and Indonesia. As with all agricultural commodities the effects of climate change, pollu-tion, economic development, and population growth are unpre-dictable factors, which are also inducing major changes in avail-able acreage, yield, and demand for natural rubber.

Growing usage of NR in radial tyre

Despite an ever increasingly stringent consumer requirement, more NR is used in tyres than ever

before and the worldwide trend toward radial tyres will ensure continued demand. Natural rub-ber has some advantages over synthetic rubber. It has excel-lent dynamic properties, with a low hysteresis loss, and good low temperature properties, it can be bonded well to metal parts, has high resistance to tear & abrasion and it is relatively easy to process. Radialization has increased the percentage usage of natural rubber owing to bet-ter green strength and steel cord-rubber bonding. A high level of building tack between the various layers of liner/car-cass/tread/sidewall is essential for the modern day’s high speed tyre building machines. All-steel radial required a higher level of green tack and green strength than conventional tyres. In these respects natural rubber is superior compared to the other polymers used for making tyres.

Increasing demand in China and India

China & India are the larg-est consumer of natural rubber. China, the largest NR consum-er in the world, is encountering many problems in extending its limited rubber plantations. Rubber planting areas in China are located in remote moun-tain areas or undeveloped areas. Threat of extreme weather is more frequent than ever. Environment conditions in new expanded area are poor for rubber tree growth, where rubber trees take longer time to mature. The gap between local output and demand has to be met by imports. India is also gearing up and due to an increase in presence of international play-ers in India, there is a surge in the demand for NR & is reflected in the ranking of India at 3rd place in the world for consumption of NR.

Harnessing the challenges

Alternate CropsIt is rightly said that “neces-

sity is the mother of invention” or “crisis is the criteria for new developments”. China & India are estimated to be consuming nearly 40% of the global pro-duction followed by the USA & Japan. There is huge ups & downs in prices in last decade. Thus,

alternative crops for natural rubber production are required to secure supplies. There are 1,800 species identified that pro-duce natural rubber latex, but only a few of these are known to produce large amounts of high molecular weight rubber.4 Guayule5 & Russian Dandelion6 are two varieties of shrubs which contains considerable amount of latex. Guayule project was first started in 1988 and the Russian Dandelion project was started in 1942, for two years until 1944. Based on several studies, TKS (the most popular variety of the dandelion) was demonstrated to be a viable alternate source of natural rubber, compatible with associated rubber manufac-turing process, comparable to Hevea, and superior to Guayule.

Several other plants that are able to grow in temperate cli-mates were tested for rubber production, especially in times when price or accessibility of nat-ural rubber was an issue (1920s, WWII, 1970s).7-9 A recent study showed that lettuce contains small amounts of rubber with a molecular weight similar to that of the rubber tree and guayule. This provides a new opportuni-ty to study rubber biosynthesis in plants on a molecular level, however, its potential as an alter-nate source of natural rubber is unclear10. There are other plants known to produce rubber, like Cryptostegia 2-4%, Milkweed 4-5%, Pingue 1-2% & Rabbitbrush 1-2%.11.

Synthetic PolyisopreneEver since, synthetic cis-

1,4-polyisoprene, with the structure and properties of natural rubber, was prepared in 1954 with the then newly discovered Ziegler catalyst, synthetic polyisoprene has been an important elastomer.12 Although it still demonstrates lower green strength, slower cure rates, lower hot tear, and lower aged properties than its natural counterpart, synthet-ic polyisoprene exceeds the natural types in consistency of product, cure rate, process-ing, and purity. In addition, it is superior in mixing, extru-sion, molding, and calendering processes. Isoprene is found in products ranging from surgical

gloves to car tyres. Isoprene has a market value of $1-2 billion.12

Depletion of global petrole-um resources & environmental hazards has directed efforts to produce synthetic isoprene from bio-resources.13 The produc-tion of isoprene from renewable resources (BioIsoprene™) is the target of a joint venture between the Goodyear Tire and Rubber Company and the biotechnolo-gy company Genencor.14 Using BioIsoprene™ from Genencor, Goodyear have produced a syn-thetic rubber for incorporation in a concept tyre demonstrating the equivalence of BioIsoprene™ with petroleum derived iso-prene.15 Recently, Amyris has signed a deal with Michelin to collaborate in the develop-ment and commercialization of Amyris No Compromise® renew-able isoprene.16-17 Amyris is also collaborating with Kuraray & Kuraray will use Biofene to replace petroleum-derived feed-stock such as butadiene and isoprene in the production of specified classes of high-per-forming polymers.18.

ConclusionsIt was the Pearl Harbor

bombing in 1941 that saw the earlier face of the natural rubber crisis & it is still there irrespec-tive of development of synthetic alternates. Today, natural rub-ber industry is facing various unavoidable circumstances & efforts to tackle the crisis are increasing. Back during World War-II, rubber industry saw the research on the alternative rubber plants to decrease the dependability on the hevea tree. Then came the time when alter-native methods to synthesize synthetic rubber from bio-resources instead of petroleum based resources was extensively explored. Now days, it is being realised by various research organizations and efforts are on to commercialize it to overcome the crisis. Hope to see in near future that ultimately the joint effort of scientists & technolo-gists will result in harnessing this crisis commercially.

The author is employed with the R&D Centre of Apollo Tyres Ltd. He can be reached at [email protected].

Arup K. Chandra

Harnessing natural rubber crisis

References:

1. The Rubber Crisis, Polymer Science Learning Center, 2000 http://www.pslc.ws/macrog/exp/rubber/bepisode/crisis.htm

2. The Economic Times, Palm oil prices to stay in check, seasonal reversal may take place from December, Oct 22, 2012.

3. L.P. Koh, D.S. Wilcove, Conservation Letters 1, 60 (2008).

4. B.S. Bushman, A.A. Scholte, K. Cornish, D.J. Scott, J.L. Brichta, J.C. Vederas, O. Ochoa, R.W. Michelmore, D.K. Shintani, S.J. Knapp, Phytochemistry, 67, 2590 (2006).

5. K. Cornish, J. Williams, J.L. Hall, R.G. McCoy III, Production and Properties of Yulex® – the Natural Solution to Latex Allergy. 168th Technical Meeting of the Rubber Division, American Chemical Society, Pittsburg,

PN November 1-3, 2005, ISSN: 1547-1977.

6. Fraunhofer-Gesellschaft. “Dandelion Rubber? Researchers Make Russian Dandelion Suitable For Large-scale Rubber Production.” Science Daily 11 Sep. 2009. Web. 5 Nov. 2012.

7. J.B. van Beilen, Y. Poirier, TRENDS in Biotechnology, 25, 522 (2007).

8. L.G. Polhamus, Journal of Agricultural Research, 47, 149 (1933).

9. C.L. Swanson, R.A. Buchanan, F.H. Otey, Journal of Applied Polymer Science, 23, 743 (1979).

10. C.H. Pearson, K. Cornish, C.M. McMahan, M. Whalen, D.J. Rath, N. Dong, S. Wong, The Rationale for Transforming Sunflower into a Rubber-Producing Crop. Issues in new crops and new uses. J. Janick and A. Whipkey

(eds.). ASHS Press, Alexandria, VA, 2007.

11. I.C. Feustel, F.E. Clark, Opportunities to Grow Our Own Rubber, Yearbook of Agriculture: Crops in Peace and War Part#2: 367 (1950).

12. M. Senyek, “Polyisoprene” Kirk-Othmer Encyclopedia of Chemical Technology, John Wiley & Sons, Inc. 2000.

13. Bio-based Chemicals: Value Added Products from Biorefineries, IEA Bioenergy-Task42 Biorefinery, 2010-2012.

14. BioIsoprene™ product begins flowing from Genencor to Goodyear. March 9, 2009. (http://biosciences.dupont.com/media/news-archive/news/2009/ bioisoprenetm-product-begins-flowing-from-genencor-to-goodyear/)

15. G.M. Whited, F.J. Feher, D.A. Benko, M.A. Cervin, G.K. Chotani, J.C. McAuliffe, R.J. LaDuca, E.A. Ben-Shoshan, K.J. Sanford. Industrial Biotechnology, 6, 152 (2010)

16. R. Hart, Breakthrough in synthetic biology. December 21, 2008. (http://abclocal.go.com/kgo/story?section=news/drive_to_discover&id=6567729)

17. Amyris and Michelin Announce Collaboration to Develop and Commercialize Renewable Isoprene, September 28, 2011. (http://www.amyris.com/en/newsroom/214-amyris-and-michelin-announce-collaboration-to-

develop-and-commercialize-renewable-isoprene)

18. Amyris Partners with Kuraray to Develop Renewable Polymers, August 1, 2011. (http://www.amyris.com/en/newsroom/209-amyris-partners-with-kuraray-to-develop-renewable-polymers)

Auto Monitor

N E W S 2111 MARCH 2013

Car companies will increasingly apply an omni-channel strategy to market and sell their

cars to customers. About 4 per-cent of all new cars sold in future, equalling about 4.5 million units could be sold completely online by 2020. In 2011 approximately 5,000 new cars were sold solely online.

New cars will be sold via a number of channels, leverag-ing the existing dealer network and new f lagship stores, but also through online and mobile channels, with sales staff even travelling to customers to show-case the vehicles digitally.

In 2009, only 4 percent of all retail sales globally were online; a trend which accelerated to about 11 percent of all sales in 2011. In certain industries, like publishing and entertainment, the leading retailers have col-lected over 50 percent of their revenues online that has forced the shut down of major brick and mortar stores like Borders in the US, who have failed to follow the trend. In the UK, Best Buy opened 11 new mega stores which were selling from £10 kettles to $100k Tesla’s but had to shut them down within 18 months of its opening as it failed to read that one in four customers were buying electron-ic products online and used their mega stores only for browsing.

In the future could this trend be witnessed in the car deal-erships too? Yes it can, and dealerships need to therefore

innovate. The good news is that most OEMs are already experi-menting or planning to get into the online bandwagon.

Ford UK sells new cars through its website (http://www.fordretailonline.co.uk/) and sim-ilarly Dacia (http://www.dacia.co.uk/) has entered the UK mar-ket primarily pushing its online sales channels with dealerships for back up.

Upcoming Shop-Click-Drive website (http://shopclickdrive.com/) is General Motors’ new initiative to sell cars online in association with its participat-ing Chevrolet dealers. New car OEMs like Tesla (for Model S, X) and Fisker (for Model Atlantic) are already facilitating complete car buying process online with assistance to its customers in dif-ferent geographies. Short-term success of Subaru, Fiat, Smart and Volkswagen with online auto channels like eBay, Taobao, Jindong, Alibaba and Gilt.com is expected to pave the future of possibly also using other inde-pendents platforms for pushing their products.

Car companies are also planning to use Fashion Merchandising online in the future e.g. Fiat500byGucci and Fiat500byDiesel. This trend is also visible with premium OEMs like Jaguar which targets to sell its first 30 models of XJL Ultimate via online retail.

OEMs will choose either an evolutionary approach or a

completely revolut iona r y, omni-channel approach. In the evolutionary ‘Bricks and Clicks’ approach, car retailers are expected to operate both brick and mortar dealerships and online / mobile showrooms in independent silos. The key aim is to replace the salesman in the dealership store with an online system. The delivery of the vehi-cle is to happen at dealerships.

The revolutionary, omni-channel approach will operate one unified integrated channel of bricks and clicks where the entire new car buying process is carried out online (mobile and non-mobile) including finance and insurance deals, with minimal to possibly no need for brick and mortar dealerships in thefuture.

However, there are two impor-tant dimensions to the new car buying process - the emotion-al and the physical touch - that need to be mastered to create a winning click business. In the emotional dimension customers typically need to be able to have

empathy with the brand and the vehicle, and it needs to be able to infuse emotions. The physical part involves the touch and feel of the metal, the leather and the drivability, handling and steer-ing feel of the car.

Both these dimensions can be enhanced, and not diminished, by the online channel and OEMs are developing new creative ways of digitally enhancing the emo-tional feel of the vehicle through simulations, augmented reality and showing how the car is born and delivered through camer-as on the shop floor. For the test drive, OEMs like BMW are creat-ing new solutions like BMW on demand where one can rent the high end models by the hour at realistic prices. Car companies are also working with car sharing and rental companies to provide test drive experiences.

The future will see car com-panies pushing real estate price by opening flagship digital stores in expensive streets in major cit-ies of the world like Audi and its Audi city (http://audi-microsites.com/audi-city/en/).

BMW plans to use flagship stores like the one in London’s most expensive street - Park Lane, with dedicated staff providing information and marketing for its new iBrand.

ImplicationsOne of the key macro to micro

implications of this megatrend is that we will see shrinkage of

dealership space by about 20 percent and it will pave way for digitalisation of the dealership stores, with interactivity with the customer as a key focus. The role of the salesman will have to change to be more of a facilitator, and training the sales force will need to evolve. OEMs will have to also invest in an integrated channel strategy and IT platform that will need to be able to scale up their offering to country-wide solutions from day 1 as internet buyers can be sitting and order-ing anywhere in the country. Premium automotive OEMs are taking guidance from leaders in the consumer industry espe-cially in luxury (Burberry) and electronic retail (Apple) to under-stand the implications to their retail strategy.

By 2020 China and Europe will be the key markets to promote the growth of new car eRetail-ing followed by the US. The latter market currently faces large scale hurdles in implementing online car retailing due to state franchise laws and universal opposition by evolutionary new car dealers.

Do not be surprised to see your local dealership close in the near future.

Insights by: Automotive & Transportation Practice, Frost &

Sullivan

The Future of Retailing in the Car Industry: Frost & Sullivan Report

Car cos are planning to use

Fashion Merchandising online in the future.

Jaguar targets to sell its first 30 models of

XJL Ultimate via online retail.

Ferromatik Milacron India Pvt Ltd 21

T: +91-79-25890081

E: [email protected]

W: www.milacronindia.com

Fox Solutions 5

T: +91-253-6618100

E: [email protected]

W: www.foxindia.net

G W Precision Tools India Pvt Ltd 10

T: +91-80-40431252

E: [email protected]

W: www.gwindia.in

Hewlett Packard India Sales Pvt. Lt 7

T: +91-124-4932900

W: www.hp.com

Jyoti CNC Automation Pvt. Ltd. BIC

T: +91-2827-287081

E: [email protected]

W: www.jyoti.co.in

Larsen & Toubro Limited FIC

T: +91-09967800456

E: [email protected]

W: www.larsentoubro.com

Mahindra Navistar Automotives Ltd 12

T: +91-9930258832

W: www.mahindranavistar.com

Makino Auto Industries Pvt Ltd 15

T: +91-120 6519685

E: [email protected]

W: www.makino.in

Meiban Engineering Technologies Pvt 9

T: +91-80-26860600

E: [email protected]

W: www.meibanengg.com

National Engineering Industries Ltd 17

W: www.nbcbearings.com

Safexpress Private Limited 6

T: +1800-113-113

E: [email protected]

W: www.safexpress.com

ABC Bearings Limited 8

T: +91-2642-248222

E: [email protected]

W: www.abcbearings.com

ACE Micromatic Group 1, BC

T: +91-80-40200555

E: [email protected]

W: www.acemicromatic.net

Carl Zeiss India (Bangalore) Pvt Lt 3

T: +91-80-43438102

E: [email protected]

W: www.zeiss.co.in

Dhoot Transmission Pvt Ltd 11

E: [email protected]

W: www.dhoottransmission.com

Ecocat India Pvt Ltd 19

T: +91-129-4266500

E: [email protected]

W: www.ecocat.com

A D V E R T I S E R S ’ L I S TAdvertiser’s Name & Contact Details Pg No Advertiser’s Name & Contact Details Pg No Advertiser’s Name & Contact Details Pg No

Our consistent advertisersFIC : Front Inside Cover BIC : Back Inside Cover BC: Back cover Not Applicable

The leading source for automotive parts, components & accessories.

Auto Monitor

C L A S S I F I E D S2211 MARCH 2013

24

Regn. No. MH/MR/WEST/20/2012-2014. RNI No. MAHENG/2000/11414 Licenced to post at Mumbai patrika channel sorting office G.P.O. Mumbai 400 001.Date Of Mailing: 1st & 2nd Fortnightly Issue. Date Of Publication: 28th of Every Month