V E Commercial Vehicles Limited (VECV) is plan- ning to export trucks to new Asian markets such as Malaysia, Indonesia and Russia. The company is revamp- ing its product portfolio with a new range of engines. The move is a step to take the JV to the next level after successfully complet- ing five years. Going forward, Volvo Group is keen to take its Indian subsidiary among the top 10 for CVs. Currently India is ranked 13 or 14 for Volvo Group in terms of M&HCV sales, according to Bertil Thoren, President Volvo Group Alliance Office. In terms of sales, VECV is looking at acquiring 15 percent market share in India by 2015 from the current five percent after upgrading its entire prod- uct portfolio with the new range of engines produced at its new plant at Pithampur in Indore. In another move, VECV will invest further Rs 1,200 crore over the next 2-3 years taking its total investment to Rs 2,500 crore. VECV’s recently inaugu- rated engine plant at Pithampur, Madhya Pradesh, has an ini- tial capacity of 25,000 units per annum and has been set up at an investment of Rs 375 crore. This is expected to increase to 100,000 units as per market requirements and could involve an addition- al investment of around Rs 125 crore. Supporting its frugal engi- neering, the company has an assembly section called smart cell that can assemble 166 com- ponents in two minutes without human intervention. VECV’s engine facility will act as a global hub for meeting the requirements of medium-duty trucks. The company will ship five- and eight-litre diesel Euro VI engines to Volvo Group plants in Venissieux, France. The engine is based on the Japanese platform of the Swedish vehicle manufactur- er and would be further exported across Europe from France. Thoren, who represents Volvo Group on VECV Board of Directors, added, “The glob- al manufacturing hub at VECV is truly a win-win situation for both Volvo Group and VECV. On one hand it will help Volvo Group reduce costs by sourcing engines from this plant, while helping VECV source best-in-class Euro III and IV engines based on latest Euro VI Volvo Group technology. Talking about the advantage of producing the engines in India, a Volvo Group representative said the move will offer 25 percent cost benefit when compared to man- ufacturing in Europe. The same engine platform will be adapted to Euro III and IV engine technol- ogies to meet VECV’s and other Volvo Group requirements for this type of engines in India and other markets of Asia. Currently, VECV exports to Bangladesh, Sri Lanka and going forward will take it South Africa also. In terms of market share, VECV has realized a growth of one percent every year since the JV was signed in 2008. Tata Motors and Ashok Leyland command a majority (over 80 percent) market share. Price plays a crucial role in truck buying in India and the two players have been offering a bet- ter proposition. However, VECV claims that it has been working at increasing productivity, reduc- ing costs and also lifecycle costs thus increasing fuel efficiency. “Our frugal engineering and automation at this plant will help us in being cost competitive,” said Rajesh Mittal, Sr. VP & Head –Operations, VECV. The com- pany will continue to focus on offering lifecycle cost benefits in terms of better fuel efficiency and low maintenance cost. At the new plant, the company has automat- ed about 30 percent of operations. VECV will also produce a 4-cyl- inder engine at this plant which will churn out 180 hp to 240 hp of power, which is probably be a first in India. “Over 15 years, we see 4-5 play- ers capturing equal market share. Products will change and the mass segment CVs that have no cabin and only chassis may not exist. The market will move to better quality vehicles that are now seg- mented ‘premium mass segment’ vehicles,” said Siddhartha Lal, MD and CEO, Eicher Motors. Auto Monitor www.amonline.in 5 August 2013 Vol. 13 No. 28 26 Pages `50 INDIA’S NO. 1 MAGAZINE FOR AUTOMOTIVE NEWS, VIEWS & ANALYSIS Scan this code on your smart phone to visit www.amonline.in W hen you adjust the shutter speed and exposure of a camera to its right values during night photography, a moving spot of light appears like a line. It’s a common trick in a photographer’s repertoire used to create compositions of light that don’t exist. Many such intersecting lines will blur it to an extent where each line can’t be traced back from its origin essen- tially blurring the picture. The car industry in India is transitioning into such a phase. Till a few years ago, the auto mar- ket was a well defined one. The number of car models available on sale was a fraction of those avail- able in Europe. The market was not spoilt for choice. But over the last few years, things have changed. When Maruti launched the Dzire, it threatened the hatch- backs. For about Rs 40,000 more, you could buy a compact three- box sedan instead of a hatchback. This success soon saw a volley of new cars coming onto the market; the Honda Amaze being the latest. In the first two months of its launch, Honda has rolled out about 11,000 units of the Amaze, without hurting sales of the Dzire. In fact, sales of Dzire grew from 46,958 units in Q12012 to 49,259 units in Q1 this fiscal. The success of these models creamed sales of the large hatchback that fell over 9 percent in Q1. India used to be an entry-hatchback market that quickly made way for the large- hatchback and slowly but steadily, it’s the compact sedan that’s gain- ing importance. Let’s move a segment high- er. The executive segment that includes cars like the Elantra, Corolla Altis, Laura, etc has seen an increase in the number of mod- els. But sales are far from buoyant. Sales in this segment have sub- marined from 9,974 units in Q1 2011-12 to 6,432 units in Q1 2012-13 and now even further to 4,930 units this quarter. The loss felt by the executive segment coincided with growth in the midsize sedan seg- ment. The last few years have seen a slew of launches. These include the Verna, Sunny, Vento and Rapid. The segment was bound to grow and it did by 40 percent between 2011-12 and 2012-13. The Verna was particular- ly successful and the Sunny was doing well too. Everything seemed fine till Maruti Suzuki launched the Ertiga. Auto pundits predicted that the Innova would feel the heat from this potentially success- ful model from Maruti when it was launched in April 2012. But Toyota continued its run. Instead, it was the turn of the midsize sedans to feel the brunt. There was in-house competition at Maruti with the SX4 with the car clearly losing to the MPV. The same year Renault launched the Duster in July. The catapulting success of the Duster has turned the tide for this seg- ment. The first three months of this year, the Duster is averaging 5,000 units per month. That’s better than the Ertiga too. And who’s taking a hit? Again, midsize sedans. Vehicle sales went up 2.15 per- cent last year of which car sales slipped 6.7 percent and UVs grew 52 percent. In Q1 this year, sales of PVs have fallen over 7 percent and car sales have dropped over 10 percent. The UV segment has overtaken the midsize sedans. What most OEMs did was get the pricing right. The UVs were priced on par with midsize sedans. Although not as luxurious, they have won over customers with their practicality and space and (in case of the Duster and the newly launched EcoSport) rugged char- acter. As a result, giving more bang for your buck. It’s the only factor recently successful cars have had in common, be it the Ertiga, the Duster, or the EcoSport. A simple answer to what a blockbuster vehicle needs to be in India. Engine ingenuity Pg 08 Pg 12 Frugal India invades hi-tech Europe Building momentum Bertil Thoren, Board Member VECV, is gung-ho about making India as a global hub for engines. INTERVIEW INTERVIEW Nabeel A Khan Indore Prasan Firodia, MD, Force Motors, has big plans that are under execution. Blurring the line VECV will export trucks to Malaysia, Russia, and Indonesia; makes India global hub for Euro VI engines. The onslaught of MPVs and UVs in the market is playing havoc with passenger vehicles in other segments. Anand Mohan analyses the shadowy evolution.
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
VE Commercial Vehicles Limited (VECV) is plan-ning to export trucks to new Asian markets
such as Malaysia, Indonesia and Russia. The company is revamp-ing its product portfolio with a new range of engines. The move is a step to take the JV to the next level after successfully complet-ing five years. Going forward, Volvo Group is keen to take its Indian subsidiary among the top 10 for CVs. Currently India is ranked 13 or 14 for Volvo Group in terms of M&HCV sales, according to Bertil Thoren, President Volvo Group Alliance Office.
In terms of sales, VECV is looking at acquiring 15 percent market share in India by 2015 from the current five percent after upgrading its entire prod-uct portfolio with the new range of engines produced at its new plant at Pithampur in Indore.
In another move, VECV will invest further Rs 1,200 crore over the next 2-3 years taking its total investment to Rs 2,500 crore. VECV’s recently inaugu-rated engine plant at Pithampur, Madhya Pradesh, has an ini-tial capacity of 25,000 units per annum and has been set up at an investment of Rs 375 crore. This is expected to increase to 100,000 units as per market requirements and could involve an addition-
al investment of around Rs 125 crore. Supporting its frugal engi-neering, the company has an assembly section called smart cell that can assemble 166 com-ponents in two minutes without human intervention.
VECV’s engine facility will act as a global hub for meeting the requirements of medium-duty trucks. The company will ship five- and eight-litre diesel Euro VI engines to Volvo Group plants in Venissieux, France. The engine is based on the Japanese platform of the Swedish vehicle manufactur-er and would be further exported across Europe from France.
Thoren, who represents Volvo Group on VECV Board of Directors, added, “The glob-
al manufacturing hub at VECV is truly a win-win situation for both Volvo Group and VECV. On one hand it will help Volvo Group reduce costs by sourcing engines from this plant, while helping VECV source best-in-class Euro III and IV engines based on latest Euro VI Volvo Group technology.
Talking about the advantage of producing the engines in India, a Volvo Group representative said the move will offer 25 percent cost benefit when compared to man-ufacturing in Europe. The same engine platform will be adapted to Euro III and IV engine technol-ogies to meet VECV’s and other Volvo Group requirements for this type of engines in India and other markets of Asia. Currently, VECV exports to Bangladesh, Sri Lanka and going forward will take it South Africa also.
In terms of market share, VECV has realized a growth of one percent every year since the JV was signed in 2008. Tata Motors and Ashok Leyland command a majority (over 80 percent) market share. Price plays a crucial role in truck buying in India and the two
players have been offering a bet-ter proposition. However, VECV claims that it has been working at increasing productivity, reduc-ing costs and also lifecycle costs thus increasing fuel efficiency.
“Our frugal engineering and automation at this plant will help us in being cost competitive,” said Rajesh Mittal, Sr. VP & Head –Operations, VECV. The com-pany will continue to focus on offering lifecycle cost benefits in terms of better fuel efficiency and low maintenance cost. At the new plant, the company has automat-ed about 30 percent of operations. VECV will also produce a 4-cyl-inder engine at this plant which will churn out 180 hp to 240 hp of power, which is probably be a first in India.
“Over 15 years, we see 4-5 play-ers capturing equal market share. Products will change and the mass segment CVs that have no cabin and only chassis may not exist. The market will move to better quality vehicles that are now seg-mented ‘premium mass segment’ vehicles,” said Siddhartha Lal, MD and CEO, Eicher Motors.
Auto Monitorwww.amonline.in5 August 2013Vol. 13 No. 28 26 Pages `50
I N D I A ’ S N O . 1 M A G A Z I N E F O R A U T O M O T I V E N E W S , V I E W S & A N A LY S I S
Scan this code onyour smart phoneto visit www.amonline.in
When you adjust the shutter speed and exposure of a camera to its right
values during night photography, a moving spot of light appears like a line. It’s a common trick in a photographer’s repertoire used to create compositions of light that don’t exist. Many such intersecting lines will blur it to an extent where each line can’t be traced back from its origin essen-tially blurring the picture.
The car industry in India is
transitioning into such a phase. Till a few years ago, the auto mar-ket was a well defined one. The number of car models available on sale was a fraction of those avail-able in Europe. The market was not spoilt for choice. But over the last few years, things have changed.
When Maruti launched the Dzire, it threatened the hatch-backs. For about Rs 40,000 more, you could buy a compact three-box sedan instead of a hatchback. This success soon saw a volley of new cars coming onto the market;
the Honda Amaze being the latest.
In the first two months of its launch, Honda has rolled out about 11,000 units of the Amaze, without hurting sales of the Dzire. In fact, sales of Dzire grew from
46,958 units in Q12012 to 49,259 units in Q1 this fiscal. The success of these models creamed sales of the large hatchback that fell over 9 percent in Q1. India used to be an entry-hatchback market that quickly made way for the large-hatchback and slowly but steadily, it’s the compact sedan that’s gain-ing importance.
Let’s move a segment high-er. The executive segment that includes cars like the Elantra, Corolla Altis, Laura, etc has seen an increase in the number of mod-els. But sales are far from buoyant. Sales in this segment have sub-marined from 9,974 units in Q1 2011-12 to 6,432 units in Q1 2012-13 and now even further to 4,930 units this quarter. The loss felt by the executive segment coincided with growth in the midsize sedan seg-ment. The last few years have seen a slew of launches. These include the Verna, Sunny, Vento and Rapid.
The segment was bound to grow and it did by 40 percent between 2011-12 and 2012-13.
The Verna was particular-ly successful and the Sunny was doing well too. Everything seemed fine till Maruti Suzuki launched the Ertiga.
Auto pundits predicted that the Innova would feel the heat from this potentially success-ful model from Maruti when it was launched in April 2012. But Toyota continued its run. Instead, it was the turn of the midsize sedans to feel the brunt. There was in-house competition at Maruti with the SX4 with the car clearly losing to the MPV.
The same year Renault launched the Duster in July. The catapulting success of the Duster has turned the tide for this seg-ment. The first three months of this year, the Duster is averaging 5,000 units per month. That’s better than
the Ertiga too. And who’s taking a hit? Again, midsize sedans.
Vehicle sales went up 2.15 per-cent last year of which car sales slipped 6.7 percent and UVs grew 52 percent. In Q1 this year, sales of PVs have fallen over 7 percent and car sales have dropped over 10 percent. The UV segment has overtaken the midsize sedans.
What most OEMs did was get the pricing right. The UVs were priced on par with midsize sedans. Although not as luxurious, they have won over customers with their practicality and space and (in case of the Duster and the newly launched EcoSport) rugged char-acter. As a result, giving more bang for your buck. It’s the only factor recently successful cars have had in common, be it the Ertiga, the Duster, or the EcoSport.
A simple answer to what a blockbuster vehicle needs to be in India.
Engine ingenuity
Pg 08 Pg 12
Frugal India invades hi-tech Europe Building momentumBertil Thoren, Board Member VECV, is gung-ho about making India as a global hub for engines.
INTERVIEW INTERVIEW
Nabeel A Khan Indore
Prasan Firodia, MD, Force Motors, has big plans that are under execution.
Blurring the line
VECV will export trucks to Malaysia, Russia, and Indonesia; makes India global hub for Euro VI engines.
The onslaught of MPVs and UVs in the market is playing havoc with passenger vehicles in other segments. Anand Mohan analyses the shadowy evolution.
OEMs are buoyant. And they have every right to be. Consider the sales figures across all segments for the month of July. Looks like the agony of the past few months that led to a determined move to push
sales has paid off. While some companies have surpassed expectations compared to Q1 of last fiscal, others have barely met expectations.
What is surprising in all this is that automotive soothsayers continue to say nay. One market analyst continued to insist that these figures are push sales. According to him, a recovery in the market can only happen when pull sales work successfully. Most sales are institutional and this leads to bloated figures.
Companies, on their part, have been dogged in pursuing sales elsewhere. Realising that the Indian market might not respond to innovative products and marketing skills, they have looked offshore. And it has paid off. Especially the two-wheeler manufacturers are eyeing opportunities in South African and Latin American markets and setting up assembly units where they expect to see results in the long run. If the home market is tepid, let them stay.
The fact that the economy is in doldrums is not the only
reason for people to stay away from making purchases. Nor is it the falling rupee. There seems to be a general aversion and some insecurity among people to invest in a purchase that could have long-term repercussions. Companies on their part are only now investing in capacities because it would work out economical for them. They say they’re preparing for the long run.
Probably they too were waiting when they could avail of something extra at a lower price.
Too little, too late?
QUOTABLE QUOTESPhilippe Varin, Chief Executive Officer, PSA/Peugeot-Citroen
Lowell Paddock, President and Managing Director, GM India on the impact of controversy surrounding the Tavera recall to the Economic Times
We see the first signs of the group’s recovery. We have to pursue our efforts to consolidate the industrial and commercial rebound.
I dont think it is a blot. I think it shows that the company moves very quickly to respond to an internal issue and addresses it as quickly as possible.
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 Print House India Pvt. Ltd. R – 847/2. T.T.C. MIDC, Rabale, Navi Mumbai – 400 701., 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
EDITOR-IN-CHIEF, WEB & PUBLISHING R.Jagannathan
EXECUTIVE EDITOR Jayashree Kini-Mendes
EDITORIAL TEAM Abhishek Parekh, Features Editor
SENIOR CORRESPONDENTS Nabeel A Khan Anand Mohan
CORRESPONDENT
Pradeb Biswas
COPY DESK Geoffrey N
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,
Jayashree N, Shefali Mahant, Varsha Nawathe
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]
Sunil Dakur (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]
EDITORIAL
THE OTHER SIDE
Frugal India invades hi-tech Europe 08Bertil Thoren, board member VECV, admits that initially the company was worried about producing Euro VI engines in India but is now looking forward.
Better late than never? 12Though late in the day, Force Motors has launched three new variants of Force One to reach out to a wider audience.
Building momentum 12With an offering of seven variants under its Personal Vehicles Division, Force Motors intends to increase its dealerships to 50 by end of 2013, according to the company’s MD, Prasan Firodia.
Generating a buzz 16The executive segment is likely to be a brighter spot in an otherwise lacklustre two-wheeler segment this fiscal.
Has the Tavera recall opened a can of worms? 17The recall of GM’s Tavera MPV has the potential to overhaul the testing and certification process undertaken for passenger vehicles in the country.
Continental’s One-Channel ABS Increases Driving Safety 18To improve the active safety of motorcycles, Continental is expanding its range of electronic brake systems by introducing a one-channel ABS for smaller motorcycles and scooters.
Dassault Systèmes Acquires SFE 18Dassault Systèmes has acquired SFE GmbH to expand its CATIA and SIMULIA applications, bringing to the market an innovative technology for seamless transitions.
MESSRING bags contract for Daimler’s crash test systems 22Designed to accommodate the latest developments and regulations in standard vehicle safety, the new center will be built next to Daimler AG’s existing development center in Stuttgart-Sindelfingen.
Continental ensures seating comfort in all classes 22Continental is using intelligent electronics to transform car seats into multifunctional component features.
CONTENTS08
12
18
22
Praveen Agarwal, Chairman and Managing Director, Vikas Group Agarwal leads a work force of 4,000 employees and aims to make Vikas Group a billion dollar entity by 2018.
WHAT’S INSIDE
24
Auto Monitor
FA C E-T O - FA C E8
5 AUGUST 2013
ates assisting the local engineers.
As volumes go up, do you plan to export the engines to markets other than France?
We are not truly using it in France. We will directly exporting to France and from there we will use it across Europe for Volvo and Renault trucks. The engine will mainly be used for medi-um duty trucks and Volvo also manufactures heavy duty vehicles in Europe.
After deducting logistics cost, what are the cost advantages you see when compared with man-ufacturing in Europe?
I don’t have the exact figures now, but I am sure it would be in the vicinity of 20 to 25 percent over manufacturing in Europe.
Apart from engines, do you plan to source other aggregates from India?
We are seriously considering sourcing more products but we are yet to take a decision on that.
What are the other products that will offer value proposition to export from India?
I cannot answer that. The global team will take the final decision. We need to study this a little more. However, there could be prospects in transmission, axle or any other component. So far we have not taken a decision.
Going forward, how does the Volvo Group views its Indian JV helping them?
We are a shareholder in VECV. Everything we do here benefits the global company. Of course, we talked about frugal engineering and low-cost manufacturing and since it’s a interesting sub-ject, we may utilize it for other facilities. That way we could soon be sourcing components from here. If you consider India from the Volvo Group’s global prospective, it is ranked 13 or 14, and going forward we want to bring her into the top 10 in the future.
We have a target to reach 15 percent market share in heavy duty trucks in India from the cur-rent five percent. We are optimistic that we will grow.
What are Volvo’s plans to sustain the No 1 position?
We have introduced engines in India. We have the heavy duty engines in France, Japan and North America. I think we are ready to maintain it. The Euro 6 engines produced in India are see-ing a good response.
In the current global scenario Europe is down, US are slightly better off, China is flat, and India is not doing great. What is your strategy?
I think the expectation is that Indian might not grow for another couple of months but will certainly revive in the long term.
When do you expect to take the new Indian engine plant to one lakh unit production?
It will depend on market conditions. If it does well, we will achieve it in the next five months and if the market continues to act obstinate then it could take as long as seven years.
Volvo Group is producing engines in India that is still far behind in terms of emission norms.
Yes, we thought of two points here. We needed new engines for VECV and the Volvo Group needs engines for its buses and trucks globally. We had some expatri-
Frugal India invades high-tech EuropeBertil Thoren, board member VECV, admitted to Nabeel A Khan that initially the company was worried about producing Euro VI engines in India but is now looking forward.
Volvo Group became the world’s largest heavy-duty truck manufacturer after signing a JV with China’s biggest CV producer Donfeng and launching its sixth brand globally. The company has been re-aligning strategies to steer ahead, especially when it has been seeing lower sales in its main market, namely Europe. Working ahead in this direction it is utilizing its facility at Pithampur in Madhya Pradesh as a global hub for engine production so avail of cost advantages incurred with frugal engineering and low-cost manpower. The made-in-Pithampur Euro VI engines will be used in Renault and Volvo branded medium duty trucks and industrial equipments across Europe. The engine will also be tuned to other emission norms and exported to Asian markets such as Thailand, Malaysia, Indonesia and Russia. The new engines will be tuned to Euro III and Euro IV to be used to upgrade the entire range of products available in India under VECV brand.
Auto Monitor
L A U N C H12
5 AUGUST 2013
Force Motors has an 84 percent mar-ket share in the UV category. What is your strategy for the Personal Vehicles Division to gain market share?
We now have three variants in the SUV segment and we will be launching a fourth variant. We will also be starting retail of three different variants of the Gurkha. This means we will be having a total of seven different variants in our Personal Vehicles Division which will be ready for retail by the end of August. The dealer network is being expanded from 23 dealers currently to around 50 by end of 2013. We are looking at increasing our market share in both the urban and rural markets. When we start-ed our operations we had only one variant to offer. Now we have multiple variants which will suit the urban requirements in terms of ABS, EBD and four-wheel drive features. Similarly for the rural markets we will be able to offer vehicles which are more suited to their needs. Thus we will be able to cater to both markets. With brand-ing gaining importance in both markets we are carrying out activities for brand building in both markets.
Are there different product strategies for the rural and urban markets?
No, it is not that our offerings are dif-ferent for the urban and rural markets. If the rural market has the demand for a fully-loaded four-by-four variant then we will offer out LX variant. We think there is a big opportunity for these vehicles at these price points with the features that they are offered with. Our vehicles can not only be utilised for personal use in urban markets but also as tourist taxi applica-tions (EX variant) in substantial quantities in the rural markets. Now when a custom-er walks into our dealership, be it one in
Chennai or in rural India, there will be dif-ferent options at different price points. The customer after consulting the dealer can opt for the Force One fully-loaded four-wheel drive variant or the base variant or a Gurkha variant depending on what the requirements are.
What is the change in your marketing strategy considering that all OEMs have a strong presence in digital media?
Yes, especially in urban India peoples’ attachment with the digital medium is very high. Therefore we are carrying out a lot of work in the digital medium. Plus we are working on few things for the televi-sion medium, to build the brand at large which is also helping to build the corpo-rate brand. A lot of focus is being put on below-the-line activities in terms of road shows, demonstrations, test drives, etc. We are utilising every platform to build up the brand. We are a recent entrant in this market segment so we will have to use eve-rything that is available.
Force Motors has a strong aftersales net-work for the UV segment. What is the service setup that you have currently for the Personal Vehicles Division and how do you intend to increase it?
There are multiple things taking shape on this front. First once our dealer net-work expands to 50 by end of this year, our service reach will also increase. Second, we are providing roadside assistance and mobile service vehicles at all our dealer-ships. Third, we are increasing the number of authorised service centres. All our deal-ers in the Personal Vehicles Division will go ahead and appoint authorised service centres. For example, if we have a dealer in Pune then he may build an authorised ser-
vice centre in Ranjangaon or on the outskirts of Pune so that his service cen-tre can cater to that area. This is how we are slowly but steadily increasing our network. We have different criteria for dealer selection depending on the location. For example, our require-ment for a dealer in Delhi will be completely differ-ent from, say, a dealer in Nashik. We have been more successful in the North which is primarily because we had a larger network in that region when we first started off. The Northern region has appreciated this vehicle more in terms of its size. We have so far been strong in the NCR and Punjab belt.
How much are exports contributing to the revenue?
We are now exporting our Traveller and Trax range of vehicles which go in LHD configuration. In some countries there is a mandatory requirement of ABS, while in some countries an emergency exit is required on the Traveller type of vehi-cles. In this manner we have identified a few specific countries and we are making ‘country specific models’ to cater to such markets. Accordingly we are fine-tuning our products for specific export markets and offering them there. We are not going across the globe. We are particularly look-ing at emerging markets in the African belt and neighbouring countries like Bangladesh, Nepal and Sri Lanka. Right now exports contribute to around 10 per-
cent of our revenue and we would like to increase it to about 30 percent.
What are your thoughts on the govern-ment’s proposal to make ABS compulsory for commercial vehicles? Also, are there any new vehicles that you intend to launch in the near future?
It is wonderful and should be imple-mented as it is in the interests of public safety. It is something that the government must push faster. It is the right step and will improve road safety to a great extent. Our Traveller platform is already certified for ABS and we will be launching our ABS vehicles tested and certified by Bosch. We are ready for it. We will introduce two new tractor models and a completely new van which is slated for a 2015 launch. It will have a seating capacity of nine and will be powered by a Mercedes engine.
There is a reason why ice-cream is available in different flavors, offered in cone or cup and in sin-gle or double scoop. The seasoned
MBA bloke occupying the corner office in the ice-cream factory knows it will be easier to sell more ice-cream at different price points. The kid dependent on pocket money can opt for the least expensive sin-
gle scoop vanilla. The freelancing college kid can opt for single scoop choco fudge with extra chocolate shavings. While the blokes earning five figure pay cheques can go in for double scoop ice-cream with two flavors. Probably somebody at Force Motors might have met this bloke from the ice-cream factory.
Having sold around 2,500 units of the
Force One SUV since its launch in 2011, Force Motors has launched two more vari-ants in order to appeal to a wider audience. The strategy of launching the Force One Executive (EX), Superior (SX) and Luxury (LX) variants is to have a product offering at different price points. The EX will be the bread-and-butter model of the Force One range. While the features loaded LX is expected to increase the SUV’s appeal in urban markets. The EX variant retails for Rs 8.99 lakh while the SX is priced at Rs 11.99 lakh (ex-showroom Pune). The LX variant is scheduled for launch in mid-August, according to company officials.
The Force One Executive (EX) is pow-ered by a 2650cc 4-Cylinder, direct injection, turbo charged intercooler diesel engine which develops a maximum power and torque of 82PS@3200 rpm and 230Nm between 1800 and 2000 rpm. This engine also powers the Gurkha and complies with BS III emission regulations. This is primar-ily targeted at the tourist taxi market and fleet operators in rural areas. The idea is to gain market share in Tier II and III markets. It relies on interior space and a manufactur-er claimed fuel efficiency of 11kpl.
The Force One Superior (SX) variant is powered by the regular 2200cc FMTech, 4 cylinder, DOHC, turbo charged intercooled engine which develops a maximum power of 141PS@3800rpm and maximum torque of 321Nm from 1600rpm to 2400rpm. The Force One was initially launched in 2011 in only one variant powered by this engine which complies with BS IV norms. This spacious SUV was unable to gain atten-tion in urban markets as it lacked features
that were considered a necessity among buyers in the top cities. The EX and SX will come with a three-year or one lakh kilo-metre warranty.
The Force One Superior (SX), on the other hand, comes equipped with ABS and EBD. Both the EX and SX variants get disc brakes at the front and drum brakes at the rear.
The Luxury (LX) variant scheduled for mid August will come equipped with an electronic shift on fly four wheel drive, lim-ited slip differential, along with ABS, EBD and cruise control. According to company officials braking needs will be taken care of by ventilated discs at the front and rear. The engines and gearbox for all the three SX, EX and LX variants are being manu-factured under license from Daimler AG, Germany.
Force Motors is expanding its dealer network to 50 by the end of this year from the current 23. It aims to achieve sales of 5,000 units in 2013-14. Force Motors is also carrying out brand building activities to create awareness about their products in the urban and rural markets.
Force Motors has a considerable mar-ket share in UVs, but is a relatively new entrant in the popular and highly contest-ed SUV market. Even if potential buyers are attracted to Force One, its established rivals like Mahindra Xylo, Tata Safari Dicor and Chevrolet Tavera are likely to act as a deterrent. It would have been ideal for Force Motors to launch all variants back in August 2011. A late adaptation to market feedback might not be able to turn the tide for Force Motors as per its internal predictions.
Building momentum
Better late than never?
With an offering of seven variants under its Personal Vehicles Division, Force Motors intends to increase its dealerships to 50 by end of 2013. By offering their vehicles at different price points Force Motors aims to increase their share in the rural and urban markets. Pradeb Biswas has a chat with Prasan Firodia, Managing Director, Force Motors, to find out more about their business strategy.
Though late in the day, Force Motors has launched three new variants of Force One to reach out to a wider audience.
Prasan Firodia, MD, Force Motors, at the launch of the EX and SX.
Auto Monitor
N E W S16
5 AUGUST 2013
Two-wheeler manufacturers are counting on higher sales vol-ume from executive motorcycle and scooters segment as well
as from below the executive segment to outperform the overall two wheeler market this fiscal.
In keeping with this, OEMs have launched a slew of two-wheelers over the last 12 to 16 months in this segment. Hero MotoCorp launched the 125 CC motorcy-cle ‘Ignitor’ in July 2012 and followed it up with 110 CC PassionXPro in October. It is looking to launch 3-4 additional bikes in the executive segment this fiscal that are likely to be variants of existing bikes and new ones to maintain its customer base and lead in the domestic market.
Bajaj Auto launched 125 CC and 110 CC versions of its Discover last year and is gearing up for additional variants in
its Pulsar and Discover range this fis-cal. Honda Motorcycles & Scooter India, which recently launched Dream Yuga for the northern market and followed it up with a nationwide launch, had ear-lier launched 110 CC upgrade of its Dio and the Activa i scooters. The company
is gearing up for additional launches this fiscal.
Similarly, India Yamaha Motors launched a unisex version of Ray scoot-er christened ‘Ray Z’ recently after stepping into the automatic scooter seg-ment in India last year with the launch of
Two-wheelers:
Generating a buzzRay. While TVS Motors and Suzuki too launched their respective executive segment bike Phoenix 125 and Hayate last year.
The segment is expected to grow at a double digit growth rate, even for volume manufacturers like Hero MotoCorp, Bajaj Auto and HMSI, as per industry estimates.
“We want a deeper penetration in the com-muter bike segment as this segment reflects good potential. Customers in this segment are demand-ing a trouble-free ownership experience and ideal combination of fuel efficiency and power and that is what we are looking to provide,” said Yadvinder Singh Guleria, Operating Head- Sales & Marketing, Vice President, HMSI, on the sidelines of the 110 CC Dream Neo launch in Mumbai for the Western India market. He added that a key priority for Honda is to maintain existing customer base. The objective has been met by helping customers upgrade to a higher segment motorcycle or scooter or to the latest ver-sion of the currently owned Honda model.
“We have succeeded in maintaining customer loyalty for the Activa over the last decade through upgradation,” he added. He pointed out that this trend is likely to get accentuated and it is critical for the company to offer latest technology through regular upgradation and new launches.
“I think this has been a tough year for the indus-try. The growth of two wheelers last fiscal has been only two percent. It looks like we are going to see single-digit growth but probably a higher single-digit growth than what we saw last year,” said Anil Dua, Senior Vice President, Marketing & Sales, Hero MotoCorp in a recent conference call with analysts and reporters.
He added that the industry grew by around 15 percent in the previous fiscal. Two consecutive years before that it had been around 25 percent indicating a major slowdown for two wheelers last fiscal.
“We are expecting traction in the executive seg-ment, where the growth is likely to be higher than in other segments. But overall it would be a chal-lenge to touch double-digit growth this fiscal,” said a senior official from Bajaj Auto.
Two-wheeler dispatches grew by around 2.9 percent for the year ending March 2013 to touch 13,797,748 units as compared to 13,409,150 units dispatched in the previous fiscal, according to the Society of Indian Automobile Manufacturers (SIAM). Cumulative scooter sales grew by 14.24 percent last fiscal to touch 2,923,401 units as compared to 2,558,981 units in the previous fiscal. Motorcycles segment remained flat at 10,085,586 units compared to 10,073,303 units in the previous fiscal.
HMSI’s cumulative sales grew by around 30.58 percent last fiscal to touch 2,606,841 units making it the second largest two wheeler manufacturer and seller in the domestic market after Hero MotoCorp (5,912,538 units). Eicher’s Royal Enfield registered highest growth rate in the last fiscal at 53 percent to touch dispatches of 120,694 units.
The executive segment is likely to be a brighter spot in an otherwise lacklustre two-wheeler segment this fiscal.
Abhishek Parekh Mumbai
Mahindra & Mahindra Ltd. (M&M Ltd.) has put out its auto sales num-bers for July 2013 which stood at 37,096 units as against 47,059 units
during July 2012. The Passenger Vehicles segment (which
includes the UVs and Verito) sold 15,530 units in July 2013, as against 22,011 units during July 2012. The company’s domestic sales stood at 34,490 units during July 2013, as against 42,799 units during July 2012. The 4-wheeler commer-cial segment which includes passenger and load vehicles sold 13,740 units, while the 3-wheeler segment clocked 4,490 units in July 2013. Exports for the month of July 2013 stood at 2,606 units.
Pravin Shah, Chief Executive, Automotive Division, Mahindra & Mahindra Ltd. said, “Over the last few months, the auto industry has been going through one of its worst phases of the last decade with planned shutdowns being taken by companies to correct demand-supply mis-match. The industry is in desperate need for an immediate stimulus from the government. With interest rates remaining unchanged and the rupee plunging to new lows, lowering of excise duty is the need of the hour which will rev up demand for auto products, leading up to the fes-tive season”.
Mahindra seeks stimulus after July results
UPBEAT: JULY SALES
Auto Monitor
C O L U M N 17
5 AUGUST 2013
An eerie silence has gripped the automo-bile industry post the GM recall episode that
is playing out over the last fort-night. What started as a recall by the American automobile manu-facturer is threatening to engulf entire vehicle certification and testing procedures followed for passenger vehicles sold in the country.
Two weeks ago, General Motors India recalled around 1.14 lakh units of Tavera for ‘engine related issues’. The company subsequently admitted to the government that it had internally discovered manipulations in the processes and systems with the aim of clearing emission tests for the Tavera. Apparently, company officials sent an already approved engine to government approved testing agencies for certification and validation.
Though the issue did not affect vehicle safety, it did raise ques-tions about the processes and system followed for vehicle certi-fication. The government sprung into action and instituted a com-mittee under Nitin Gokarn to probe into the matter as well as relook at the entire process.
GM India, on its part, dis-missed 25-odd employees though company officials refused to comment on any dismissals or other personnel related matters. It is possible that more heads may roll. The company is probing the role of some of its Indian staffers from critical areas such as engi-
neering, quality, compliance and production in terms of quality issues.
But does the issue end with one recall and admission of wrongdoing by a single com-pany? A number of GM India executives at middle and senior levels have left the company and joined other automobile compa-nies over the last two years or so. It may be too early to point fin-gers but should there be scrutiny of various recalls that the Indian automobile sector has witnessed over the last one year? Could ex-officials have continued with their earlier ways in their newer organisations?
Some industry observers point out that far from being ‘world class’ and independent , testing and certification agencies are vulnerable to manufacturers’ whims and fancies. Most of these certification agencies are expect-ed to be self reliant in terms of revenues and thus are likely to take up lucrative projects from the very customers whose vehi-cles are being certified. It is easy to give in to temptations. Though not an indictment, the latest GM recall episode has just served to highlight this ‘seemingly’ straight relationship that could have gone awry.
The industry association SIAM appears to have main-tained a stoic silence, at least officially. But SIAM officials privately side with vehicle man-ufacturers and even praise their transparency. They also indi-
cate that it is important to clearly term a vehicle recall as it should be termed (without disguising it as anything other than that due to attached stigma!) and that was the purpose of issuing a vehicle recall policy last year. Instances of manipulations or wrong doing at any vehicle manufacturer can-not be constituted as an industry wide phenomenon.
Some of these observers also point out that the current audit system is seemingly open to manipulation and could do with some improvements. Regular or at least once in a year road worthi-ness testing by multiple agencies including an agency appointed by
road transport ministry, environ-ment ministry as well as existing quasi governmental agencies like ARAI could be one of the solutions. Sufficiently larger pen-alty for recalls, especially safety related ones, could also act as a deterrent. Collaboration among testing and certification agencies locally and internationally may also lead to overall improvement in the certification process and could act as a counter checking mechanism, if multi party audit is made mandatory or desirable.
Vehicle certification process is due for reforms and the customer would be well served if there is no further delay.
Has the Tavera recall opened a can of worms?
Abhishek Parekh
Auto Monitor
N E W S18
5 AUGUST 2013
Continental’s One-Channel ABS Increases SafetyABS for motorcycles prevents the front wheels locking up when braking, thus reducing the driver’s risk of having an accident
Motorcyclists love the feeling of free-dom and adventure. But the open road conceals many hazards and motorcy-clists are particularly at risk. A locked-up front wheel almost always leads to a fall.
With 1.43 lakh deaths in 2011, India tops the list of nations in total number of road deaths, according to a World Health Organization (WHO) report. A signifi-cant part of these accidents involve motorcycles. According to an accident research of the German automobile club (ADAC), around a fifth of all motorcycle accidents could have been prevented, if the motorbike had been fitted with an anti-lock brake system (ABS). Just like cars, it is also important for motorcycles to remain stable and steerable during a panic brake situation.
To improve the active safety of motor-cycles, international automotive supplier Continental is expanding its range of elec-tronic brake systems by introducing a one-channel ABS for smaller motorcy-cles and scooters. Based on its proven ABS technology for passenger cars it was developed especially for cost-sensitive
markets such as Asia, whereas the two-wheelers must be equipped only with a hydraulic brake on the front wheel.
Production launch of the one-chan-nel ABS is planned for the beginning of 2014. With a box volume of signifi-cantly less than 300 cubic centimeters and weighing roughly 420 grams the motorcycle ABS is very light and can be easily applied to suit the widest range of motorcycle and motor scooter mod-els. ABS control of the front wheel stops it from locking up even during a panic brake by the driver and prevents a fall. A wheel speed sensor constantly moni-tors the front wheel’s turning speed and from this the algorithms in the control unit calculate whether braking could potentially cause the front wheel to lock up. If so, the system will reduce the brake pressure, thus preventing loss of
directional stability and road holding.The one-channel ABS is the newest
addition to Continental’s portfolio of motorcycle systems currently in series production: Motorcycle Integral Brake Systems and Motorcycle Anti-Lock Brake Systems (2-Channel ABS).
“In line with our Motto, ‘Safety for Everyone’, we want to make the one-channel ABS available to all road users and offer motorcyclists a significant safety gain”, said Murali Srinivasan, Managing Director of Continental Automotive Brake Systems India.
Just how great the requirement is, throughout Asia for example, is dem-onstrated by a study into global traffic safety carried out by the World Health Organization (WHO) in 2009. It found that roughly 28 percent of traffic fatali-ties in India and China were suffered by drivers of two and three-wheeled vehi-cles. In countries such as Indonesia and Thailand, the figure rose to 61 and 70 percent respectively.
The 2010 DEKRA Traffic Safety Report in Germany showed that ABS could either prevent many accidents or reduce the severity of their impact. It even concluded that 25 to 35 percent of the serious accidents analyzed in the report could have been prevented, had the motorcycles been fitted with ABS. “The widespread use of ABS for motorcycles and scooters would contribute to reduc-ing serious injuries”, said Srinivasan.
Dassault Systèmes Acquires SFEDassault Systèmes has acquired SFE GmbH, a leader in body conceptual engineering and perfor-mance evaluation and optimization. The addition of SFE’s technology to the 3DEXPERIENCE plat-form enhances Dassault Systèmes’ transportation & mobility industry solution experiences, such as “Target Zero Defect”. This acquisition expands its CATIA and SIMULIA applications, bringing to the market an innovative technology for seamless transitions, from early conceptual engineering and performance optimization to detailed body design. The amount of the transaction was not disclosed.
“The combined SFE and Dassault Systèmes 3DEXPERIENCE platform capabilities will lead to complete coverage of the entire value chain for the transportation & mobility industry. From quick modeling to post processing analysis, to product performance simulation and shape optimiza-tion, the full design process is integrated. I see numerous places where this capability can bring value to other industries, not just transportation & mobility,” said Bernard Charlès, President & CEO, Dassault Systèmes. “It reinforces Dassault Systèmes’ already strong position in the Body-in-White domain, as well as the automotive market, in general. It will bring immediate benefits to SFE’s long list of customers, including General Motors, Porsche, Fiat, Chrysler, Daimler, FORD, BMW, Volkswagen and others.”
“The acquisition of SFE, one of BMW’s part-ners, by Dassault Systèmes, another major BMW partner, is good news. I can see the value it will bring,” said Detlef Helm, BMW Group. “The SFE CONCEPT solution has been used for many years at BMW within the full vehicle development field for functional assessment, validation and the gen-eration of models for pre-concept development.”
The announcement of an integrated conceptu-al engineering solution is unique in the industry. The concept phase is critical as it requires the combination of multiple disciplines and skills. Customers are facing challenges to shorten their innovation cycle time. Conceptual engineering, such as 3DEXPERIENCE and SFE bring, addresses these critical challenges.
Bosch Auto Elec. appoints new MDPanduranga Prabhu has been appointed as the new Managing Director of Bosch Automotive Electronics India, with effect from August 1st, 2013. Prabhu, will take over from Dr. Hildenbrand, who was the first Managing Director of Bosch Automotive Electronics India Pvt. Ltd. India since its inception in 2008 and will now be returning to Germany post the completion of his tenure.
Prabhu will focus on realizing the vision of the organization of being closer to the customers by providing compelling value proposition and cus-tomized solutions for the India market.
Streparava acquires JV partner’s 51 pc stake Streparava Holding SPA has taken over 100 percent of the equity of Sansera + Streparava Engineering Private Limited (company). Streparava earlier held 49 percent equity in the company and the remain-ing 51 percent was held by Sansera Engineering Private Limited.
Streparava is an Italian manufacturer of auto components and makes rocker arms, chassis com-ponents, bearing cups, valve bridges and other powertrain components for the commercial vehi-cle industry. Streparava was founded in 1951 and has been operating in Italy for over 60 years. Apart from Italy, Streparava has presence in Brazil, Spain and China.
The company is located in Bangalore and will now be Streparava’s wholly owned Indian venture. Sansera Engineering’s commercial production started in 1987 and it supplies products to more than 20 customers in India and globally. Its report-ed consolidated revenue was about Rs 5.5 billion for the year ended March 31.
A spokesperson of Streparava said that “Streparava is committed to strengthen its pres-ence in India beyond the current range of products being produced in the Bangalore facility to other areas such as driveline and chassis components, in which Streparava is a market leader”.
Tecnova India, a consulting company based in Delhi specialising in India Entry Consulting were advisors to the deal.
Auto Monitor
R E S U LT S 19
5 AUGUST 2013
Ford India sold 12,338 vehicles
Ford India sold 12,338 domestic wholesales and export units in July, the highest-ever month-ly sales in its history. This is a surge of 48 percent year-on-year. Ford India sold 7,867 wholesale units domestically, a 26 percent increase compared to July 2012.
The all-new Ford EcoSport received 30,000 book-ings in the first 17 days after its launch, in contrast to the overall macroeconomic challenges facing the subcontinent.
This July, Ford India exported 4,471 units, an increase of 114 percent YoY from 2,087 units.
“Despite the near-term difficulty in the econo-my, our customers have put their trust in the urban SUV EcoSport, and with the Figo ranking as the best premium compact car in the prestigious J.D. Power India vehicle dependability study 2013,” said Vinay Piparsania, executive director, Marketing, Sales and Service.
Honda Cars sells 11,223 units
Honda Cars India Ltd. (HCIL) reported a sales growth of 156 percent during July 2013 by selling 11,223 units as against 4,386 units sold during the corresponding month in 2012.
The company sold 40,350 units and posted a cumulative growth of 65 percent during April – July 2013 as against 24,462 units sold during the same period last year.
JnaneswarSen, Sr. Vice President – Marketing &Sales, Honda Cars India Ltd. said, “Honda Amaze has clocked its highest monthly sales of 6,515 units during July 2013 and is maintaining very good growth momentum having sold more than 24,000 units sold since its launch. As a strategic deci-sion, the company plans to start a third shift from November 2013 to reduce the waiting period.”
Hero Motocorp at 4,87,545 units Bucking the trend of an overall slowdown, Hero MotoCorp Ltd, has reported robust sales for July, thereby kicking-off the second quarter of this fis-cal (FY 2013-14) with positive numbers.
HMCL sold 4,87,545 units of two-wheelers in July this year, compared to 4,84,217 units sold in the cor-responding month last year.
This growth has come in an action-packed month when Hero MotoCorp announced its acqui-sition of 49.2 percent stake in its American partner Erik Buell Racing (EBR) and launched its opera-
tions in new international markets such as Kenya, Burkina Faso and Ivory Coast in Africa.
Anil Dua, Sr. VP (Marketing & Sales), HMCL, said, “We have registered a retail growth of seven percent in July which is usually a lean period due to monsoons. Our growth has come in the wake of demand for our motorcycles such as Glamour and Ignitor and our scooter models Pleasure and Maestro. This has helped us strengthen our leadership in the 125cc segment even as we gain mar-ket share in scooters,” he added.
Tata Motors at 51,468 nosTata Motors’ total sales (including exports) of Tata commercial and pas-senger vehicles in July 2013 were 51,468 vehicles. The company’s domestic sales of Tata commercial and passenger vehi-cles for July 2013 were 47,191 nos.
Cumulative sales (including exports) for the company for the fiscal were 204,659 nos. The company’s sales of CVs in the domestic market were 36,367 nos., LCVs were 26,609 nos., while M&HCV sales stood at 9,758 nos. Cumulative sales
of CVs in the domestic market for the fis-cal were 143,615 nos. Cumulative LCV sales were 102,583 nos., while M&HCV sales stood at 41,032 nos.
Sales of PVs were at 10,824 nos. Sales of the Nano/ Indica/ Indigo range in July 2013 were 8,546 nos. The Sumo/Safari/ Aria/Venture range sales were 2,278 nos.
Cumulative sales of passenger vehi-cles were 45,332 nos. Cumulative sales of the Nano/ Indica/ Indigo range were at 36,019 nos. Cumulative sales of the Sumo/Safari/ Aria/ Venture range were 9,313 nos.
HMSI records highest ever Honda Motorcycle & Scooter India Pvt Ltd (HMSI) recorded its highest ever sales in its 13 years of Indian operations. In July 2013, Honda recorded overall two wheeler sales of 287,177 units with growth of 20 percent in July 13 (YoY). In
July 2013, the company sold 287,177 units as against 239,094 units in July 2012. The company recorded motorcycle sales of 147,635 units and scooter sales of 139,542 units in July 2013.
HMSI domestic market share now stands at 24 percent.
Renault India sells 3,763 units Despite challenging conditions in the automotive market, Renault India achieved sales of 3,763 units in July 2013, growing over two fold year on year. The company sold 1,776 units in July 2012.
The company sold over 35,000 units in 2012, further adding around 40,000 units in the first half of 2013. The company expanded its dealerships from 14 outlets in May 2011 to 100 locations at the end of 2012, and ensured capacity in prepara-tion for the vehicle.
“Duster has played a crucial part not just in Renault’s success in India, but also in spearheading the changing landscape of the Indian auto-motive industry,” said Sumit Sawhney, Executive Director, Marketing & Sales, Renault India Pvt. Ltd. Renault India sold a total of 3,763 units, with the Duster accounting for 3,089 units, the Scala 371 units, Pulse 292 units, Fluence 10 units and Koleos 1 unit.
UPBEAT: JULY SALES
Auto Monitor
R E P O R T20
5 AUGUST 2013
— these consumers can be known as “connected car enthusiasts”). As a rule, consumers in devel-oping markets are keener about technology; this hold true for “connected car” enthusiasts. In developing markets, 64 percent of consumers want connected services; in India that number jumps to 70 percent. In bold contrast, a sig-nificant number of German consumers (49%) haven’t even heard of the “connected car” con-cept. Only 17 percent of the survey respondents said they’re “not interested” in connected car services. One possible suggestion: OEMs should consider launching select services to consum-ers in the more receptive regions (developing countries including India) of the world.
Which types of connected car features are most important to buyers? Among interested consumers, greater safety is the #1 category (78%), an enhanced driving experience is #2 (71%); real-time vehicle diagnostics/customer care is #3 (66%); and infotainment is #4 (55%) (Figure 2).
Although the vehicle diagnostics/customer care is ranked #3, the specific features within that category generated a lot of interest. For example, 75 percent of consumers said they want a “service reminder,” while 81 percent want the connected car to “monitor condition of parts and give automated warnings.” These types of offers “bend the curve” toward empow-ering owners to be proactive in fixing problems (hence the old truism: “An ounce of preven-tion is worth a pound of cure.”) This is in direct contrast to the original approach to telematics, which was to use the technology to sell fea-tures to customers. Of course, these diagnostic functions direct the driver to the dealer; in the end, that increases loyalty and the likelihood of future purchases.
While infotainment grabs media attention, it’s not particularly sought by car shoppers. One possible explanation is that current options, like satellite radio or the option of connect-ing a smartphone to play a personal playlist, already provide a great in-car entertainment environment. Thus, owners are already satis-fied in this area and look to the connected car to satisfy still unmet needs. (Also, perhaps they can’t imagine how the entertainment systems in the connected car would be significantly bet-ter). In fact, the lowest rated connected service is “social media apps” (e.g. Facebook, Twitter), averaging only 44 percent (24 percent in mature markets; 62 percent in developing markets). The reason? Since smartphone alternatives deliver social media, consumers could perceive that service as redundant (similar to the infotain-ment category).
How to use, how to pay?A large majority of consumers want core car
functionality (safety, driving experience, and diagnostics/care) to be easily accessible on dashboard screens, preferably controlled by voice commands. For infotainment services, consumers are almost evenly divided between smartphone “docking” and the dashboard (Figure 2). In many ways, the connected car’s dashboard is itself “just another device” in a cus-tomer’s collection of desktops, laptops, tablets, and smartphones. Of course, for the OEM and dealers, a connected car offers unprecedented opportunities for direct, customer-specific, tar-geted marketing.
When asked how they want to pay for con-nected car services, consumers’ answers differed by market. Among those in mature markets, the most popular payment type, by a wide margin, is “included in the price of the vehicle.” In developing markets, no single option stands out: transaction based payment is the most popular, followed by a monthly fee. The good news for OEMs? Only 15 percent of consumers in all markets said they expect the
“Connected cars” link the driver and vehicle to the environment through the Internet and wireless networks. The term “connected
car” refers to a wide range of internet based applications and services for the driver. A connected car requires at
least one touch point with the internet. Examples of connected technologies include dynamic navigation systems, remote vehicle diagnostics, automatic notification of emergency resources, an apps store, and on-demand, real-time access to music and news. The wide
range of connected services is shown in Figure 1.
Fifty-one percent of consumers in all markets anticipate that their next cars will be connected (this total combines 13 percent who already have a connect-ed car and 38 percent who want one
Connected cars:
Customer insightsA majority of consumers
want core car functionality (safety, driving experience, and diagnostics/care) to be accessible on dashboard
screens, preferably controlled by voice. For infotainment,
consumers are evenly divided between smartphone “docking”
and the dashboard.
Auto Monitor
R E P O R T 21
5 AUGUST 2013
technology to be free.Connected cars require data sharing:
in fact, one without the other is impos-sible. But are consumers willing to share personal and vehicle information with OEMS and dealers? Yes, if they under-stand why it’s necessary. Consumers in developing markets are more willing to share data (86%) than are consumers in mature markets (62%). Only 20 percent of respondents supported unrestricted
sharing. At the country level, the data gets more interesting.
Forty-seven percent of consumers in Germany are “most reluctant” to share personal data (one of six data types explored in the survey - see sidebar on page 10), while 31 percent of consumers in India are willing to share that data with-out any restrictions. (Overall, consumers in developing markets are less concerned about data privacy). Of course, 28 percent of the survey respondents are willing to share information anonymously; 27 per-cent are inclined to share when there’s an incentive (Figure 4). Nonetheless, 45 per-cent of the survey participants said they would not want their data shared with third parties, such as insurance firms, travel agencies, or advertising companies.
Clearly, the case has to be made to buyers: what kind of data needs to be shared and why? Overall, car owners are more willing to divulge informa-tion that’s related to their driving habits and/or necessary for vehicle diagnostics.
And they are more willing to share data under practical arrangements; that is, when giving means getting (when shar-ing data with OEMs and dealers results in direct benefit to them). For example, with data on an owner’s driving habits, an OEM could provide tips to increase fuel efficiency.
Is there an app for that? Smartphone applications for cars are,
not surprisingly, a very recent innova-tion in industry. But consumers already love them! Seventy-seven percent of con-nected car enthusiasts (that is, owners or potential owners) said they consider apps to be “very important” or “extreme-ly important”.
Driving support is the most preferred at 71 percent, followed closely by care information, and remote support. Across all categories, consumers in developing markets express much more interest in smartphone features.
Some OEMs are further ahead in pro-
viding these capabilities to customers, but the sky is still the limit in finding ways to use smartphone apps to enhance the car ownership experience. In these early days, smartphone/connected car capabilities may overlap; this should not be interpreted as convergence (that is, consumers wanting one or the other) but rather as enrichment (that is, certain cus-tomers will want both).
Smartphone applications provide a unique opportunity for OEMs/dealers to have one-to-one connections to owners — connections that haven’t been possible (but have been desirable) before now. In the past, post-purchase communication with owners was typically limited and negative (or neutral, at best): for example, to resolve a product or customer service dispute/ issue or to respond to a request for information about a vehicle or part. But a smartphone app opens up the door for the OEM/dealer to establish a direct, personal relationship with the customer. The OEM could provide vehicle-specific benefits relevant to the owner; the dealer could make sure that service delivery is easy and convenient. The right commu-nication, at the right time, would increase customer loyalty to the brand and the OEM/dealer franchise.
The FutureIt’s only a matter of time before
‘Connected Car’ technologies become a standard feature. They will generate a lot of “big data” for OEMs and dealers, which could be used to develop real, mutually advantageous relationships with cus-tomers, perhaps by reaching out with value-added (but free) information, by addressing a car owner’s needs proac-tively, or by tailoring post-sale messaging to reflect each customer’s expressed inter-ests. Major planning is needed to make possible the collection, analysis, use, and sharing of the data. OEMs and dealers need to work together to ensure that cus-tomer value is at the center of this effort. Customer loyalty to brands and deal-ers is up: it’s a good time to build on that momentum.
Driving support is most preferred at 71 percent, followed closely by care information, and remote
support. Consumers in developing markets
express more interest in smartphone features.
Auto Monitor
G L O B A L WAT C H22
5 AUGUST 2013
certainly one worthy of the honour. We take pride in the fact that Daimler AG has cho-sen us, and look forward to working with this renowned, long-standing German brand.”
Continental ensures seating comfort in all classesContinental is using intelligent electronics to trans-form car seats into multifunctional component features. The company provides the controls for diverse electric adjustments, sees to the integration of air conditioning, and realizes memory, massage, and numerous safety functions. “We make a range of seat functions possible and use innovative elec-tronic controls to ensure that all passengers can enjoy a comfortable, relaxed, and safe journey,” explains Andreas Wolf, head of Continental’s Body & Security business unit. Continental has only recently begun supplying the massage function for the new Mercedes S-Class. At the same time, Continental is working to develop a link between smartphones and the seat system for further per-sonalization of seating functions. A demonstrator of this technology will be shown by Continental at the Frankfurt Motor Show (IAA) 2013.
Electronic controls for perfect seatingModern seat systems offer up to ten different
adjustment axes in the seat’s backrest, cushions, and headrests. They cover everything from the length of the thigh rests and the height of the shoulder pads through to the width of lumbar support. To accommodate these, some seats have eleven integrated electric motors, controlled by Continental electronics. A simple “On” or “Off” doesn’t do the trick here. The electric entry assist system of the kind found in coupés and cabri-os, on the other hand, must not become a test of patience for driver and passengers.
The electronics also control the memory func-tion with integrated anti-pinch protection. At the press of a button, the seat moves into a position conforming exactly to the driver’s own saved set-tings. If this function is linked up with the car key, the driver’s seat moves into the individually preset position before the driver even gets into the car. For this to work, the system has to be able to accurately determine the seat’s position before activating the adjustment motors. That’s because the electronics have to know the present positioning of the seat before they can move it into any of the other saved positions. To ensure this, Continental has developed an intelligent, self-adjusting algorithm that gets by without additional sensors. This allows for seat comfort functions in vehicles in the lower and medium price segment as well.
Another comfort feature in modern car seats are pneumatic systems that can reduce strain by providing special support for individual parts of the body. More than a dozen of these are integrat-ed into some vehicles to provide -- in addition to static systems that can be set manually by driv-ers and passengers -- dynamic solutions as well. These promptly alter the seat contour and adjust the support or the lateral hold in response to the road -- when cornering at high speed, for example. In addition to air cushions and airlines, more pow-erful yet ultra-quiet compressors are needed here.
Great climate in and on the seatA modern car seat incorporates ever more
heating, ventilation, and air conditioning tech-nologies. Here as well, the controls must be capable of doing more than just switching com-ponents on and off. For example, there is also the option of separately regulating the tempera-ture of the seat’s surface and backrest, above all gradually in several steps. In luxury-class vehi-cles, for example, the temperature of the seats can be adjusted in up to four separate zones to suit the passengers’ individual needs. Active seat ventilation ensures pleasant summer journeys for both the driver and front passenger, even in cars experiencing a major heat buildup. Small ventilators in the seat cushions suck in the air beneath the seats and evenly distribute cooler air across the entire seat surface. An innovative head-level heating system ensures optimum cli-mate-controlled comfort in a cabrio and makes open-top driving comfortable – even at low exter-nal temperatures. Just like the active seat cooling system, ventilators on the back of the headrests suck in air. The air is heated and flows out again from air vents in the front of the seat to act as an invisible scarf, warming the front passengers neck and shoulders.
MESSRING bags contract for Daimler’s crash test systems DAIMLER AG has awarded its large-scale contract for constructing the new, forward-looking vehicle safety technol-ogy center to market leader MESSRING. Based in Munich, MESSRING Systembau GmbH can look back on extensive experience with numerous globally planned and implemented crash test facilities and is well known for its innovative solutions and sys-tems. Designed to accommodate the latest developments and regulations in standard vehicle safety, the vehicle safety technology center will be built next to Daimler AG’s existing develop-ment center in Stuttgart-Sindelfingen. MESSRING will be responsible for a whole host of system solutions during the project, including testing systems for passenger cars, trucks, buses and the option to test at various angles, as well as a sled test system for simulating full-vehicle crashes. The vehicle safety technology center is also designed to carry out testings with alternative drive systems and PRE-SAFE functions.
Following its scheduled completion in mid-2016, the vehicle safety technol-
ogy center will be one of the most cutting-edge vehicle testing centers in the world, measuring 273 meters in length, 172 meters in width, and up to 23 meters in height. The vehicle safety tech-nology center will feature a total floor space of 55,000 square meters as well as a testing facility meas-uring 8,100 square meters, thus allowing the Stuttgart-based company to carry out a comprehensive range of vehicle and sled tests. The dimensions of the modern testing area will also make it possible to conduct any test scenar-io imaginable. This forward-looking facility will incorporate LED spotlight system solutions that, from the initial construction concept to final accept-ance, are planned, produced, and supplied by MESSRING. This light-ing technology will gradually replace metal halide lamps in the market. In its project in Sindelfingen, Daimler AG is placing its full trust in this innovative LED technology to ensure the precision and safety of its vehicle and sled tests.
In addition to passive safety, the vehicle safety technology center will
also place particular attention on the requirements of new, alternative drive and vehicle concepts. The potential of PRE-SAFE and assistance systems will continue to be researched and developed in the pre-crash and crash phase. Thanks to cutting-edge crash test components such as those in the pipeline at Daimler AG, conditions are being established to deal with both current and future challenges.
“In terms of total volume, this project is one of the largest in MESSRING’s history,” says Dierk Arp, MESSRING CEO. “At the same time, it also represents a huge mile-stone, as it’s the 100th complete crash test facility we’ve planned and built ourselves since 1970 – and
Auto Monitor
C L A S S I F I E D S 23
5 AUGUST 2013
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.
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 Advertiser’s Name & Contact Details Pg No
ACE Micromatic Group 1, BC
T: +91-80-40200555
W: www.acemicromatic.net
All India Plastics Mfrs Association 22
T: +91-22-28217324
W: www.plastivision.org
Axalta Coating Systems India Private Limited 8
T: +91-9871944542
W: www.axaltacoatingsystems.com/en_US.html
Carl Zeiss India (Bangalore) Pvt Ltd 10
T: +91-80-43438102
W: www.zeiss.co.in
Chanan Engineers 23
T: +91-161-2534530
Fox Solutions 5
T: +91-253-6618100
W: www.foxindia.net
G W Precision Tools India Pvt Ltd 16
T: +91-80-40431252
W: www.gwindia.in
Haas Automation India Pvt Ltd 11
T: +91-22-66098830
W: www.haascnc.com
Harkaram Enterprises 23
T: +91-161-5027178
W: www.hetrace.com
Igus India Pvt Ltd 18
T: +91-80-39127800
W: www.igus.in
Jyoti CNC Automation Pvt. Ltd. BIC
T: +91-2827-287081
W: www.jyoti.co.in
Kdm Enterprises 23
T: +91-09872012333
W: www.hydraulicssolutions.in
Mahindra Navistar Automotives Ltd 14
T: +91-9930258832
W: www.mahindranavistar.com
Mahr Metrology India (P) Ltd. 21
T: +91-44-42170531
W: www.mahr.com
Meiban Engineering Technologies Pvt Ltd. 17
T: +91-80-26860600
W: www.meibanengg.com
Metro Tyres Ltd 13
T: +91-120-4147414
Mitsibishi Electric India Pvt. Ltd. 9
T: +91-20-27102000
W: www.MitsubishiElectric.in
Padmini VNA Mechatronics Pvt. Ltd. 3
T: +91-124-3207398
W: www.padminivna.com
Power Engineers & Consultants 23
T: +91-161-3294989
W: www.powerengineers-india.com
Tata Motors Ltd. FIC
T: +91-22-66586195
W: www.tatamotors.com
Techaids 19
T: +91-172 -4379999
W: www.techaids. in
Universal Corporation 23
T: +91-22-23422238
W: www.samson-grp.com
VE Commercial Vehicles Ltd 7
T: +91-7292-402633
W: www.eicher.in/etb
Auto Monitor
O T H E R S I D E24
5 AUGUST 2013
Illustration: Sachin PanditCompiled by: Nabeel A Khan
Getting Personalwith Praveen Agarwal, CMD, Vikas Group
In Real LifePraveen Agarwal is a graduate
in Economics graduate from Delhi University. His entrepreneurial skills and affiliations in the international market helped him pioneer the manufacture of automotive air-conditioning systems in India by a Joint Venture with Sanden Corporation, Japan in 1982. In 1992, the company was first to manufacture brazed aluminium heat exchangers.
With his pursuit for excellence, he set a goal for his flagship company Sanden Vikas to bag the prestigious Deming Award. Only twelve companies in India enjoy
the privilege of being a Deming company. Today he leads a strong team of dedicated work force of 4,000 people.
His target is to make Vikas Group a billion dollar company by 2018.
If not in Auto Industry, where would you be? As far as I can remember, my family has been in the auto business for a long time. However, if given a choice, I would probably have attempted a career in Environment.
What car do you drive? What do you dream of driving? I drive a Jaguar XJL.
Your most recent indulgence….. A Mount Blanc writing instrument.
Which book are you currently reading? A management book by Devdutt Pattanaik.
What are you doing when not talking auto? Spending time with my daughters and grandchildren.
An outdoor activity you would miss office for? A musical concert.
Where did you go on your last holiday? New Zealand.
What is the one thing that makes you angry? My inability to overcome my anger.
What’s the one thing you’d like to change in yourself? My health awareness.
What’s the best thing to have happened to you? My family.
One experience you’d never forget? Getting Married
26
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
Related Documents
