COMPONENTS - nextgenpublishing.innextgenpublishing.in/FREE_DIGITAL/ACI.pdf · Toolkit’ for organisations to accelerate an economic rebound to recover from the pandemic. Enabling

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Vol 7 Issue 05 July 2020

COMPONENTSINDIA

VOICE OF THE AUTOMOTIVE SUPPLIERS

JAI BSVI Spring Series

ZF WABCO Integration

Light Weight Braking Solution

JK Tyre Negotiates Headwinds

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July 2020

Cover Story

ContentCOMPONENTSINDIA

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06 Newscast Rohit Prakash takes guard at Varroc

Maheshwar Sahu is Independent Director at MSIL Vehicle sterilisation solutions by ATS ELGI Bosch India �nancial results Goodyear new appointments TATA AIG AutoSafe ‘Keys to Safety’ by Tata Motors DICV MoU to bene�t supplier base Volkswagen India WeltAuto 3.0 Magnetic Maharashtra 2.0 Maha Parwana by Maha Government Hyundai India export milestone

14 Mobilised Honda BSVI CD 110 Dream

BSVI-compliant and Future-ready Datsun

30 Business Filing ZF WABCO Integration

32 Trending Jumpstarting Indian Automotive Sector

38 International Light Weight Braking Solution

40 #Trendsmap

To Subscribe turn to page 42


Advik Hi-Tech Augments Product Portfolio


Jamna Auto Industries Ltd. is focusing on high value-accretive products like the BSVI compliant spring series.

Advik Hi-Tech Pvt. Ltd. has augmented its product portfolio in line with its BSVI and electrification strategy.

JK Tyre & Industries Ltd. negotiated headwinds faced by the tyre industry as a whole. It continues to tread carefully to attain sustainable growth and even higher profitability.


Advik Hi-Tech Augments


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Views and opinions expressed in the magazine are not necessarily those of Next Gen Publishing Pvt. Ltd. Next Gen Publishing Pvt. Ltd. does not take responsibility for returning unsolicited manuscripts, photographs or other material. All material published in Auto Components India is copyright and no part of the magazine may be reproduced in part or full without the express prior written permission of the publisher Printed by Marzban Jasoomani Next Gen Publishing Pvt. Ltd., 105-106, Trade World, B-Wing, 1st Floor, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel (W), Mumbai - 400013, India.. Published by Marzban Jasoomani on behalf of Next Gen Publishing Pvt. Ltd., 105-106, Trade World, B-Wing, 1st Floor, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel (W), Mumbai - 400013, India. Printed at Spring Graphics, 215 & 238, Shah & Nahar Industrial Estate, Sun Mill Compund, Lower Parel (West), Mumbai 400013, India. Published at Next Gen Publishing Pvt. Ltd., 105-106, Trade World, B-Wing, 1st Floor, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel (W), Mumbai - 400013, India.

All readers are recommended to make their own independent enquiries before sending money, incurring expenses or entering into commitments in relation to any advertisement appearing in the publication. Auto Components India does not vouch for any claims made by advertisers for their products and services. The editor, publisher, printer and employees of the publication shall not be held liable for any consequence in the events of such claims not being honoured by the advertisers. All disputes are subject to the exclusive jurisdiction of competent courts and forums in Mumbai only. Editor Ashish Bhatia

Servicing Debticro Small and Medium Enterprises MSME has come under the spotlight lately. Reclassi�ed as per the Government of India noti�cation with e�ect July 01, 2020, a micro-enterprise, where the investment in plant and

machinery or equipment does not exceed rupees one crore and turnover does not exceed rupees �ve crores; a small enterprise, where the investment in plant and machinery or equipment does not exceed Rs.10 crores and the turnover does not exceed Rs.50 crores; a medium enterprise where the investment in plant and machinery or equipment does not exceed Rs.50 crores and turnover does not exceed Rs.250 crores. To aid the fraternity to pass the litmus test of survival with the demand slump, SMEs having an outstanding loan of Rs.25 crores and up to Rs.100 crores turnover are deemed eligible to apply for the rupees three lakh crores collateral-free automatic loan. �e move is expected to bene�t 45 lakh MSME units. Among other measures grabbing the headlines is the Rs.20,000 crore equity support to subordinate debt and the Fund of Funds created to infuse equity worth Rs.50,000 crore in the MSME Sector.

On the ground, the churn has begun. Reports claim state-run banks disbursed 50 per cent of the Rs.32,050 crores loan, sanctioned to small businesses as of June 12. By June 18, 2020, loans worth Rs.40,416 crores were sanctioned. Of it, Rs.21,028.55 crores are said to have been already disbursed. Prime Minister Narendra Modi backed the liquidity infusion with a technology platform ‘Creation and Harmonious Application of Modern Processes’ (CHAMPIONS) to increase the output and national strength. At the onset, the moves to support MSME look promising. One, however, needs to gauge the actual transfer of bene�ts by focusing on demand generation potential over the long run. Questions surrounding the transient working capital challenges for micro and small enterprises, average interest service coverage ratio, cash coverage ratio and return on capital employed remain to be answered.

Ashish Bhatia Executive Editor | [email protected]

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/autocomponentsindia www.autocomponentsindia.com

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Questions surrounding the

transient working capital challenges

for micro and small enterprises,

average interest service coverage

ratio, cash coverage ratio and

return on capital employed remain to

be answered.

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Maheshwar Sahu is Independent Director at MSIL

Rohit Prakash takes guard at Varroc

Vehicle sterilisation solutions by ATS ELGI

Maruti Suzuki India Limited (MSIL) has appointed Maheshwar Sahu as an Independent Director of the company. He replaces Renu Sud Karnad who is known to have stepped down from the Board of Directors of the company recently. Taking up the new role for a period of �ve years beginning from May 14, 2020-25, he will look to leverage the 30-year experience had with the central and the state governments. Specialising in strategic planning, decision making, leadership, connect and in�uence, coaching, organisation and institution building, large scale project management, environment management, policymaking, and corporate social responsibility, he brings invaluable experience to the table.

Varroc Engineering Ltd. appointed Rohit Prakash as President - Metallic Business and Business Development for a major two-wheeler Original Equipment Manufacturer (OEM). He also takes guard as the additional Whole-time Director of the company. To report to Tarang Jain, Managing Director at Varroc, Prakash will leverage his extensive experience in the domain of planning and project execution pertaining

to new plant setups. He will also leverage the experience in developing new business opportunities. Prakash will be responsible for the transmission division known to supply forged, precision, and machined parts for engines and transmissions out of the four manufacturing plants, an engineering centre in India as well as the two manufacturing facilities based in Italy. He will also look at the engine valve

division supplies intake and the exhaust valves for both automotive and non-automotive applications, especially the titanium and sodium-�lled valves for high-performance engines. With two manufacturing facilities and a state-of-the-art engineering centre in India, exporting nearly 50 per cent of the domestic produce to the United States, Europe and Asia, he is expected to play a signi�cant role.

ATS Elgi Ltd. launched a new range of vehicle sterilisation solutions. �e Ozone Air Steriliser claimed to use ozone, a natural form of activated oxygen is said to eliminate bacteria, virus, moulds, allergens, odours and harmful pollutants like Volatile Organic Compounds (VOCs) with claims of ensuring a safe and clean in-vehicle environment. Said to be suited to hatchbacks, sedans, SUVs, and the entire universe of commercial vehicles, mentioned, Praveen Tiwari, Managing Director, ATS Elgi, “�e Ozone Air Steriliser demonstrates our commitment to innovation and ensures a smooth transition to the post-pandemic world.” “An easy-to-use machine, the Ozone Air Steriliser, is compact, portable and requires zero maintenance and consumables. It disinfects a mid-size car or a commercial vehicle cabin in approximately 10 minutes,” he added. Using a 12 Volt DC supply to transform natural air or normal O2 molecules into ozone or O3 molecules, the steriliser, claimed Tiwari, nulli�es the need for additional chemicals or disinfectants known to be harmful or residual in nature.

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Goodyear India Ltd. has appointed Sandeep Mahajan, former Vice-President, Goodyear India, as the Managing Director. Assuming the role and responsibility with e�ect from June 01, 2020 for a period of �ve years or up to the date of superannuation or retirement, Mahajan will be replacing Rajeev Anand, who will assume the role of Executive Chairman with

e�ect from June 01, 2020 to September 30, 2020. E�ective from June 01,2020, Mahajan has been also appointed as the Additional Director and will hold o�ce till the conclusion of the next Annual General Meeting (AGM). �e company also announced the resignation of Mitesh Mittal, Finance Director, Goodyear India e�ective from May 31, 2020. He served as Whole-time Director for the company.

Bosch India financial resultsAt the announcement of the annual �nancial result for FY2020, Bosch India con�rmed that it would restructure and transform projects, in line with its commitment to secure future pro�tability. Rea�rming its intent to attain sustainable growth through a technologically agnostic approach, averred Soumitra Bhattacharya, “�e commitment to secure future pro�tability and growth has fuelled our focus towards restructuring and transformation projects.” To get past the toughest phase ever for the automotive industry, the company according to Bhattacharya is adopting necessary measures and enhancing operational e�ciencies.

TATA AIG AutoSafeTATA AIG General Insurance Company Ltd. has launched ‘AutoSafe’, an innovative telematics-based next-gen application device. Provided with all policies including the personal accidental cover of Rs.15 lakhs for both the owner and the driver. Doubling up as an anti-the� device to track vehicle movement, live speed and other driving pattern parameters, the app. is claimed to promote safe driving habits by o�ering bonus kilometres rewarding good driving behaviour on renewal. �e device, GPS enabled, records and delivers a complete statistical health report of the vehicle. Fitted or linked to the car and made active during the policy period, the telematic device contains motion sensor support and guards against fuel slippage and dangerous driving habits.

Goodyear new appointments

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DICV MoU to benefit supplier baseDaimler India Commercial Vehicles (DICV) has signed a second Memorandum of Understanding (MoU) with the government of Tamil Nadu. Aimed at expanding the production capacity of the Oragadam plant, the MoU entails an investment of Rs.2277 crore. Suppliers expected to bene�t as a ripple e�ect of the investment include the likes of Apollo Tyres, Motherson Sumi Systems Ltd., Wabco India (now acquired by ZF Friedrichschafen AG), Jamna Auto Industries and Brakes India among others. Creating a pool of 400 jobs, the MoU is a testimony of the company’s long-term commitment to the Indian market. DICV is also known to have exported more than 30,000 vehicles and 125 million parts, setting a perfect example for the ‘Make in India’ concept. Since the launch of its ‘Made in India’ brand, BharatBenz in 2012, the company has sold more than one lakh trucks and buses in India as well as globally.

Volkswagen India WeltAuto 3.0Volkswagen India has digitised the used car business. Offering a professional purchase and selling ecosystem, the company has also introduced the Das WeltAuto Valuator, a mobile application to help the customers self-evaluate their current vehicle. Steffen Knapp, Director, Volkswagen Passenger Cars India said, “Volkswagen aims to shift the used car business segment from an unorganised to organised segment. We intend to offer a digitally enabled, professionally managed, value for money proposition to customers looking for individual mobility options.”

‘Keys to Safety’ by Tata MotorsTo provide safe and convenient personal mobility options with easy �nancing, Tata Motors Ltd. has rolled out a holistic package of o�ers called ‘Keys to Safety’. Easy �nancing, a�ordable EMIs with long tenure loans and special o�ers for frontline warriors are the hallmarks of this package. With the help of this package, customers can drive home a preferred variant of the four-star GNCAP safety rated Tiago car for instance for an EMI plan of Rs.5,000 per month for a six month period. Customers also have an option to pay their EMI in full (approximately Rs.90,000 on a loan of �ve lakhs) and take full ownership of the vehicle. �ere is the �exibility to lower the EMI amount by taking advantage of

the long tenure EMI schemes (valid up to eight years). Customers can also consider returning the vehicle to �nancing partner Tata Motors Finance in case of any �nancial di�culty faced or simply choose to re�nance the �nal

EMI. On o�er is also 100 per cent on road funding. Among other special bene�ts of up to Rs.45,000 have been announced for Covid frontline heroes on cars and SUVs of Tata Motors (except on the Altroz).

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To recover from the economic slump, Maharashtra government is looking to attract Foreign Direct Investment (FDI) by unveiling ‘Maha Parwana’, a mega permission for new industrial units. To be active within 48 hours of application, this mega permission will help the industries to fast track their operations. An investor had to acquire at least 22 permissions to start operations in the state previously and with this mega permission the industries will now attract more investors. Maha Parwana will also facilitate investors to get all the permissions through a single-window clearance system. Talking about obtaining the permissions, Subhash Desai, Minister for Industries, Government of Maharashtra, said, “Once the industrial unit has started, the rest of the permissions can be obtained in the next two years.” �e Uddhav �ackeray-led government has appointed Bhushan Gagrani, Senior IAS o�cer as a ‘Sherpa’ for bringing in foreign investment to the state particularly from countries like Japan, US, Korea and Germany. A special task force has also been formed to formulate plans and suggestions to attract FDI in the state.

Hyundai India export milestoneCommitted to the Government’s ‘Make in India’ vision, Hyundai Motor India Ltd. (HMIL) attained an export milestone. Exporting 5000 vehicles in May 2020, the company commenced production on May 08, 2020. Speaking about Hyundai’s export strategy, S S Kim, MD & CEO, Hyundai Motor India said, “In line with our global strategy, we have now exported more than three million vehicles to 88 countries which rea�rms our commitment to the country.” “�e export of more than 5000 vehicles is a testimony of Hyundai’s resilient e�orts towards localisation and to accentuating economic recovery,” he added.

Maha Parwana by Maha Government

Magnetic Maharashtra 2.0With the purpose of facilitating its ‘Magnetic Maharashtra 2.0’ initiative, the Government of Maharashtra has signed 12 MoUs worth Rs.16,100 crore with foreign and Indian �rms. Launched with the purpose of reviving the economy post Covid-19, this initiative kickstarted in the presence of Uddhav �ackeray, Chief Minister, Maharashtra, Subhash Desai, Minister for Industries, Government of Maharashtra, and senior bureaucrats of the government with global business leaders and representatives of bilateral investment agencies. Providing the required assistance to the companies to set up their plants in various parts of Maharashtra, the MoUs include two key bilateral investment agreements which will help the state to set up dedicated country desks for closer handholding of new potential investments. Some of the foreign

companies that signed the MoUs include Ascendas from Singapore of Rs.560 crore for logistics in Pune

and �ane and ExxonMobil from the United States of America of Rs.760 crore for oil and gas in Raigad.

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Honda BSVI CD 110 Dream

Honda Motorcycle and Scooter India Pvt. Ltd. has strengthened its BSVI product portfolio with the launch of the new Honda CD 110 Dream.

Story by: Deven Lad

n the first half of June, Honda Motorcycle and Scooter India Pvt. Ltd. (HMSI) timed the launch of the new BSVI CD 110 Dream with Unlock 1.0. In line with the company’s ‘A Quiet Revolution’ initiative, the Original Equipment Manufacturer (OEM), the new CD 110 Dream is claimed to be a significant contributor to the company’s green ambitions. With it, the OEM also claimed to have attained a new performance benchmark. Averred Yadvinder Singh Guleria, Honda Motorcycle & Scooter India Director of Sales and Marketing, “Since 1966, the Honda CD brand has remained customer’s choice globally. The new BSVI Honda CD 110 Dream will offer the best performance, comfort and mileage.” Made available in a standard and deluxe variant, the company is offering the motorcycle with

a special, limited

period, six-year warranty package as a value proposition to the customers. New performance benchmark Powered by a new 110 cc Programmed Fuel Injection (PGM-FI) four-stroke engine with a four-speed transmission, the CD 110 Dream offers a peak rated power of 08 hp at 7500 rpm and a torque of 09 Nm at 5500 rpm. The

Programmed Fuel Injection (PGM-FI), a new inbuilt system is claimed to make use of sensors to ensure optimum fuel delivery to the engine. Adapting

to the ride conditions, it is claimed to facilitate

efficient combustion and lower emission

levels. The new enhanced Smart Power (eSP) technology is

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said to maximise both performance and fuel efficiency owing to the claimed frictional reduction. The Alternating Current Generator (ACG) starter motor is claimed to eliminate the gear meshing noise and

Honda BSVI CD 110 Dream Dimension (mm) Specifications

Length 2044 mm

Width 736 mm

Height 1076 mm

Wheel Base 1285 mm

Ground Clearance 162 mm

Kerb Weight 112 kg

Seat Length 735 mm

Seat Height 790 mm

Fuel Tank Capacity 9.1L

Engine 4 stroke, SI, BS-VI Engine

Displacement 109.51 cc

Max Engine Output 6.47 kW @ 7500 rpm

Max Torque 9.30 N-m @ 5500 rpm

Fuel System PGM - FI

Bore x Stroke 47 X 63.121 mm

Compression Ratio 10.1:1

Starting Method Self/Kick

Transmission

Clutch Type Multiplate Wet Clutch

No. of Gears 4

Frame and Suspension

Frame Type Diamond Type

Front Suspension Telescopic

Rear Suspension Hydraulic Type

Electricals

Battery 12V, 5Ah

Headlamp Halogen Bulb, DC

Tyres and Brakes

Tyre Size & Type (Front) 80/100-18 M/C 47P, Tubeless

Tyre Size & Type (Rear) 80/100-18 M/C 54P, Tubeless

Brake Type & Size (Front) Drum - 130 mm

Brake Type & Size (Rear) Drum - 130 mm

in turn aid the engine start sans a jolt. The company claims that the two mechanical features are significant contributors to an easy engine start operation. It is credited with the efficient utilisation of decompression

coupled with the slightly opened exhaust valves (at the beginning of compression stroke). The ‘Swing Back’ feature is said to rotate the engine in a slightly opposite direction. This, in turn, allows the

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piston to take a ‘running start’, said to reduce the power utilisation in starting the engine.

The piston cooling jet in the bike offers lower friction, improved cooling efficiency at an optimum engine temperature level. The offset cylinder and rocker roller arm fitted with needle bearing are claimed to further reduce thethe frictional losses in the engine. Drum brakes with Combined Braking System (CBS) and equaliser enhance rider safety. CBS equaliser, the equaliser technology in the combined braking

system is said to distribute optimal braking force between front and rear wheels to ensure shorter braking distance. The suspension is made up of telescopic shocks at the front and hydraulic assist type at the rear. Tyres utilise the Honda Eco Technology (HET). 80/100-18 M/C 47P, and are fitted at the front and 80/100-18 M/C 54P, tubeless at the rear. The low rolling resistance tyres courtesy a new tyre compound promise higher fuel efficiency and mileage over the outgoing BSIV model.

Value addition�e BS6 Honda CD 110 Dream attracts with the improved tank design, subtle use of chrome for instance on the mu�er and side cowl graphics. A 15 mm longer seat than its predecessor provides ample space to the rider and pillion for long-distance travel with improved ground touching. �e two-way functioning engine start-stop switch, an integrated headlamp beam and passing switch up the game for the CD 100 Dream. �e BSVI CD 110 Dream is mobilised at Rs.62,729 (Ex-showroom Ahmedabad, Gujarat). ACI

HMSI May 2020 Retail salesHonda Motorcycle & Scooter India Pvt.Ltd. (HMSI) sold 54,820 two-wheelers including 54,000 domestic dispatches and 820 two-wheeler exports in the month of May 2020. Two-wheeler retail sales crossed the 1.15 lakh unit-mark. BSVI two-wheeler cumulative sales crossed a new high of six lakh units in the same month. �e OEM is claimed to have serviced 10.5 lakh two-wheelers at Honda workshops across India according to Yadvinder Singh Guleria, Director – Sales & Marketing, Honda Motorcycle & Scooter India Pvt. Ltd. Averred Guleria, “A�er the zero dispatches in the month of April, the company saw the wheels of business start turning slowly. By now, a sizable 70 per cent of Honda dealerships have resumed their operations. With su�cient availability of six BSVI products at our network (three scooter and three motorcycle models), our network was able to build on the initial sales momentum crossing over 1.15 lakh retail in the month of May.” With 100 per cent of Honda’s 308 supplier plants getting approvals to restart operations, Honda planned to restart operations in a staggered manner at its Narsapura plant (Karnataka) and the Manesar (Haryana), Tapukara (Rajasthan) and Vithalapur (Gujarat) plants from early June.

Yadvinder Singh Guleria, Director – Sales & Marketing, Honda Motorcycle & Scooter India Pvt. Ltd.

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BSVI-compliant and Future-ready Datsun

Datsun India comes one step closer to enabling progressive mobility with the launch of the BSVI compliant and future-ready

Datsun GO and GO+.

Story by: Deepti Thore

issan Motor Co. Ltd. brand Datsun India comes one step closer to enabling progressive mobility with the launch of the BSVI compliant Datsun GO and GO+. In line with its vision to offer ‘mobility for all’, the company according to Rakesh Srivastava, Managing Director, Nissan Motor India is confident of offering customers a strong value proposition with the future-ready cars. Averred Srivastava, “With the new Datsun GO and GO+, we have introduced high-quality products that not only have a

strong value proposition but are also future-ready.” “Built with Japanese technology, both cars are BSVI compliant and offer the most affordable Continuously Variable Transmission (CVT) options in India,” he stated.

Under the hoodThe three-cylinder 1.2-litre Dual Overhead Camshafts (DOHC) HR12 DE petrol engine on the Datsun GO and GO+, is rated for a peak power of 75 hp at 5000 rpm and a

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Three-cylinder 1.2-litre DOHC HR12 DE petrol engine

Dimension (mm) GO

Length 3788

Width 1636

Height 1507

Wheelbase 2450

Ground Clearance 180

Luggage Space (L) 265

Kerb Weight (kgs) D:859/A:875/A(O):878/T&T(O):886/T&T(O) CVT:913

Engine HR12 DE Engine

No. of Cylinders 3

Displacement (cc) 1198

Power (Ps) 50kW (68Ps) @ 5000 rpm (MT)

57kW (77Ps) @ 6000 rpm (CVT) 109.51 cc

Torque (Nm) 104 @ 4000 rpm (MT)/104 @ 4400 rpm (CVT)

Engine Type Naturally Aspirated 12V DOHC EFI

ARAI Mileage (kmpl) 19.02 (MT)/19.59 (CVT)

Suspension

Front McPherson Strut with Lower Transverse Link

Rear Twist Beam Suspension with Coil Spring

Front & Rear Multiplate Wet Clutch

Shock Absorbers Twin Tube Telescopic Shock Absorbers

Brakes

Front Disc

Rear Drum

Transmission 5 Speed Manual/CVT

Wheel 14X5.5J Alloy/Steel

Tyre 165/70 R14

torque of 104 Nm at 4000 rpm. The naturally aspirated 12V DOHC EFI engine is mated to a manual five-speed transmission. Nissan is known to have developed a three-cylinder engine built with fewer parts than a four-cylinder engine. Reducing the number of parts is claimed to have helped reduce friction and as a result achieving lower fuel consumption levels. The improved combustion efficiency is said to have helped in achieving better mileage (19.02 kmpl validated by ARAI). For instance, the knocking is known to have been curbed by the lengthy retention of tumble flow in the centre of the combustion chamber. This is said

to have been achieved by re-adjusting the combustion chamber shape and with the use of a deep piston. The vibration associated with a three-cylinder engine was curbed by an outer balancer.

Suspension on the Datsun GO and GO+ is made up of McPherson Strut with a lower transverse link at the front, twist-beam suspension with coil spring at the rear. The ride quality is claimed to have been enhanced with twin-tube telescopic shock absorbers. Disc and drum brakes are deployed at the front and rear respectively. Datsun CVT comes with shift locker that prevents accidental gear shifting

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Dimension (mm) GO+

Length 3995

Width 1636

Height 1507

Wheelbase 2450

Ground Clearance 180

Luggage Space (L) 347 (3rd Row Folded)

Kerb Weight (kgs) D:904/A:912/A(O):913/T&T(O):921/T&T(O) CVT:950

Engine HR12 DE Engine

No. of Cylinders 3

Displacement (cc) 1198

Power (Ps) 50kW (68Ps) @ 5000 rpm (MT)

57kW (77Ps) @ 6000 rpm (CVT) 104 @ 4000 rpm (MT)/104 @ 4400 rpm (CVT)

Torque (Nm) 104 @ 4000 rpm (MT)/104 @ 4400 rpm (CVT)

Engine Type Naturally Aspirated 12V DOHC EFI

ARAI Mileage (kmpl) 19.02 (MT)/18.57 (CVT)Suspension

Front McPherson Strut with Lower Transverse Link

Rear Twist Beam Suspension with Coil Spring

Front & Rear

Shock Absorbers Twin Tube Telescopic Shock Absorbers

Brakes

Front Disc

Rear Drum

Transmission 5 Speed Manual/CVT

Wheel 14X5.5J Alloy/Steel

Tyre 165/70 R14

without using the brake for greater safety. The Datsun GO and GO+ ride on the 14X5.5J steel wheel and 165/70 R14 tyres.

Value AdditionThe front fascia with a dynamic front hexagon silver grille and modern hawk-eye headlamps attract. Measuring 3788 mm in length, 1636 mm in width and 1507 mm in height with roof rail, the cars have a wheelbase of 2450 mm and a ground clearance of 180 mm. A boot space of 265-litres is provided on the hatchbacks. Among value additions on the GO

and GO+ are standard features like an immobiliser, central locking, rear parking assist sensors, airbag (driver + co-driver), seatbelt reminder (driver + co-driver), ABS, EBS, brake assist and side crash and pedestrian protection regulation compliance. Among other key inclusions are keyless entry, electric power steering, power windows, electrically adjustable mirrors, gear shift indicator, and the engine running time display to name a few. Datsun has also made the cars available in a sports model. Both the cars come with a standard warranty of two years, extendable

up to five years with a free roadside assistance subscription for two years.

Datsun advantageOffering flexibility to its customers, the cars are made available with special financial schemes including the ‘Buy Now and Pay in 2021’ scheme which allows customers to choose the start of EMIs (seven month EMI holiday). Other attractions include a 100 per cent finance option, low EMI benefit and EMI Assurance benefit offered exclusively through Datsun Finance. ACI

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Story by: Ashish Bhatia

amna Auto Industries Ltd. (JAI) commands a majority share in automotive suspension solutions. �e regulatory-driven move towards Bharat Stage VI (BSVI) emissions norms has had the company leverage the mammoth 70 per cent market share (66 per cent for Q42020) it commands of the Original Equipment Manufacturer (OEM) business. JAI is the largest supplier to OEM clients like Tata Motors, Ashok Leyland and Daimler India Commercial Vehicles. Other major OEM clients include VE Commercial Vehicles, Mahindra & Mahindra, Force Motors, Isuzu Motors, SML Isuzu, Toyota and UD Trucks. �e company with a well planned portfolio expansion strategy is focusing on high value-

accretive products expected to bring in gradual or incremental growth in value.

Adding to the existing product mix, new products, the company according to Randeep Singh Jauhar, Vice Chairman & Executive Director, Jamna Auto Industries is con�dent of signi�cantly adding to the perceived USPs of BSVI vehicles over their BSIV counterparts. �ese include claims of a ride quality akin to passenger cars, redesigned cabins for greater driver comfort, computerised engine and better mileage to name a few. Besides contributing to the all important estimate of up to 5x reduction in emissions that will drastically curb vehicular pollution. Of the product additions to its BSVI portfolio that

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include a li�-axle, stabiliser bar, pneumatic suspension, trailer suspension and allied products like U bolts, z springs, opined Jauhar, the company is con�dent of the modern BSVI compliant springs accounting for strong growth. Notably, leaf springs in the recent past accounted for approximately 91 per cent of the sales with the rest from li� axles and pneumatic suspensions.

BSVI spring rangeJAI manufactures multi-leaf springs from three kilograms to 200 kg to cover a wide product range suited to commercial vehicles and special application vehicles. �e DNA of the JAI BSVI compliant spring range is made using the 51CrV4 material used as the raw input for manufacturing the springs. Known to be high strength quench and tempered steel, it can withstand the �eld severity associated with springs deployed in the heavy-duty commercial vehicles. As per the European patent o�ce study, a number of leaf spring and spring steels are classi�ed in accordance with international standards with a tensile strength ranging between 1300 MPa and 2000 MPa. �e values are said to depend considerably on the thickness of the part. �e highest values as per the study are limited to springs that are not very thick. For instance, in general, coil springs manufactured from cold and hot-formed wire rod. In case of the very thick suspension elements like the leaf springs used in heavy commercial-industrial vehicles, very high-quench hardenability steels like the 51CrV4 make for an ideal choice.

�e main leaf of the JAI spring series is known to be a hybrid of the conventional and parabolic spring. It is claimed to be lightweight and said to have a capacity to carry higher payloads striking a perfect balance for the heavy-duty performance expected of it. Light-weighting is claimed to in turn lead to higher fuel-e�ciency and mileage in line with the company’s commitment to contribute to a greener environment with its next generation of products according to Jauhar. �e new series is claimed to lead to less tyre wear and tear besides eliminating the need for an overhaul with grease. Grease overhauling is typically associated with the older generation of squeaky springs.

Corporate declarations and �nancial snapshotIn a SEBI disclosure, the company declared that the Promoter Group company - MAP Auto Ltd acquired 1,00,000 shares (0.02 per cent of the total share/voting

capital wherever applicable) carrying voting rights. As per the statement of the company’s audited consolidated �nancial statement for the quarter and the year ended March 31, 2020, the company recorded a total operating income of Rs. 23,749.43 lakhs compared to Rs.22,858.99 lakhs for the previous quarter (Q32020) exclusive of the other income. A sharp decline from the Rs.54,283.50 lakhs recorded in Q32019. On an annual basis, the company recorded an operating income of Rs.112,895.15 lakhs against Rs.213,481.23 for the year ended March 31, 2019. Total Comprehensive Income for the period stood at Rs.1124.57 lakhs for Q42020 against Rs.1014.22 for the previous quarter (Q32020). A sharp decline from Rs.3190.36 lakhs in the quarter ended March 31, 2019. On an annual basis, the total comprehensive income stood at Rs.4,797.02 lakhs against Rs.13,607.86 lakhs the previous year (March 31, 2019). In FY2020, the company attained 32 per cent revenue from its new products and 24 per cent revenue from new markets. Return On Capital Employed (ROCE) for FY2020 stood at 16 per cent. �e company sustained a dividend payout for the ninth consecutive year at 40 per cent.

Renewed outlook�e homegrown top leaf spring brand ranks second in the world with a

Randeep Singh Jauhar,Vice Chairman & Executive Director, JAI

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manufacturing capacity of 2,40,000 metric tonne per annum. A complete suspension solution provider for commercial vehicles, the company has nine state-of-the-art plants strategically located in close proximity to OEMs at Yamuna Nagar, Malanpur, Jamshedpur, Pune, Chennai (leaf springs and suspension), Pilliapakkam, Hosure and Pant Nagar (assembly plant), Lucknow ( both under subsidiary entity). �e company has additionally built capabilities at two new locations in Indore and Adityapur. �e company is known to have 5000+ part numbers of leaf springs in the a�ermarket space. �e Company’s re�ection on Quality Standards is its recognition of the highest Quality Management System standards for the Automotive Sector - ISO/TS16949:2009 and ISO 9001:2008. All major operations are known to have been set up with Poka-Yoke systems to ensure the highest quality standards with highly reliable mistake-proo�ng or inadvertent error prevention.

�e agreement with Tinsley Bridge Ltd., the UK for transfer of extra lite spring technology and special steel technology is believed to give it a technical edge over its competitors. With an indigenous Research and Development centre capable of catering to design of all automotive applications, explained Jauhar, GM Sales, Jamna Auto Industries there is a facility of in-house validation and testing of products using Servo Actuator to simulate actual vehicle conditions. Using CNC automatic parabolic rolling machines imported from Japan and Germany, the company

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Trailer Air Suspension

ICRA outlookAs per the consolidated view by ICRA of Jamna Auto Industries Limited (JAI) and its subsidiaries, the revision in outlook factors for long-term/short-term: Fund based and non-fund based to AA-/A1+ rea�rmed; outlook revised to negative from stable is stated to be in course with an expected continuation of weak demand trends in the Commercial Vehicle (CV) industry over the near term. It is also an outcome of the weak macroeconomic environment coupled with the price hikes on account of transition to BSVI emission norms e�ective April 2020. �e M&HCV (truck) volumes contraction by 42.3 per cent (11M FY2020) and other dampening factors like the revision in axle load norms (from July 2018), weak economic activity and infrastructure spending together with the weak �nancing availability as a result of the liquidity constraints faced by NBFCs. ICRA cites the implementation of GST and E-way bills leading to the faster turnaround time of trucks resulting in surplus capacity in the trucking system. �e surplus capacity has hurt the demand for new vehicles. �is weakness in the M&HCV demand according to ICRA resulted in moderation in sales of JAI Group to CV original equipment manufacturers. �e decline in its a�ermarket sales in 9M FY2020, as transport operators deferred replacement cycle, marked a sharp 44.2 per cent decrease in overall sales. JAI on its part is known to have negotiated the headwinds through several cost control initiatives. �e rating rea�rmation has taken timely measures by the management into consideration. Going forward, ICRA expects the Group to bene�t from its increased focus on replacement and export market as well as new product development. It is expected to present the company with medium-term growth opportunities with content per vehicle rising. While the strong business position with CV OEMs, a favourable shi� in sales mix towards higher-value accretive products and comfortable credit pro�le hold the company in good stead, the credit challenges, the company needs to address on priority include high segment dependency exposing it cyclicity, high client and product concentration and elongation of receivable days leading to a higher working capital requirement.

Hardeep Singh Suri, Assistant Manager, Sales, Jamna Auto Industries Ltd. (middle) and Satish Sharma, Zonal Sales Manager-West, Jamna Auto Industries Ltd. (first from right) receiving the Award for Technological

Excellence from Ashish Bhatia, Executive Editor, Auto Components India (first from left) at ACI Awards 2020.

according to Jauhar has ensured high levels of consistency for instance in the sti�ness in the springs.

As the company resumes operations at plants and o�ces basis customer orders and as per permissions received

from authorities and in adherence with the social distancing norm and Governments guidelines, the company is banking on its strong a�ermarket network for growth in the BSVI era. �rough its subsidiary JAI Suspension

Systems LLP (JSS LLP), the company �nds itself in a good state to cater to the domestic a�ermarket demand. With 3000+ distributors, 6000+ retailers and 15000+ mechanics across 465 cities in India, at more than 16,000 touchpoints the company has a valid reason to believe so. In the immediate near term, demand for the company’s product is however directly dependent on production levels of OEM’s and the commercial vehicle utilisation scale in the domestic and export markets signed-o� Jauhar. �e Group maintains capex plans of Rs.80-85 crore per annum going forward. ACI

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Advik Hi-Tech New Range

Advik Hi-Tech Pvt. Ltd. has augmented its product portfolio in line with its Bharat Stage VI and electrification strategy.

Story by: Deven Lad

une based Advik Hi-Tech Pvt. Ltd. has long been pursuing its Bharat Stage VI (BSVI) and electrification strategy. At the Auto Expo 2020, the company showcased a slew of BSVI and EV products as a testimony to the company having augmented its product portfolio. Among crucial developments hinting at the strategy paying off according to Maneesh Satarkar, Vice President-Marketing and Business, Advik Hi-Tech Pvt. Ltd. was the company winning an order of three million units of a new BSVI engine complying with its throttle body to be built in a span of just one year. The company has also set its sight on Battery Management Systems (BMS). Averred Satarkar, “We have 75 per cent local business and 25 per cent international export so our focus is the local business, for that, we are prepared with BSVI products like throttle

body which is in demand and in case of EVs the BMS.”

BSVI rangeIn the company’s BSVI product portfolio, the company is banking on the throttle body, electric purge valve, electric secondary air injection, oxygen sensor, electric fuel pump and fuel delivery module. Aligning the group strategy in line with the government’s ‘Make in India’ vision especially given the recent emphasis by Prime Minister Narendra Modi, on turning vocal for local, Satarkar expects continual demand over the medium to long term. “We believe in localisation. All our products are manufactured in India so all stakeholders are bene�ted with the surrounding ecosystem. While we source foreign technologies, they are tweaked for Indian conditions and local regulations like BSVI,” he

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Advik Hi-Tech Pvt. Ltd. showcased BSVI and EV product range at the Auto Expo 2020.

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stated. Adding that in case of the BSVI norms mandating the use of Electronic Fuel Injection (EFI) systems in two-wheelers, for instance, to replace carburettors, Starkar drew attention to the in-house built, complete throttle body assembly. Attention was also drawn to the secondary air injection valve claimed to aid in the injection of fresh air into the exhaust stream and in turn, facilitate fuller combustion of exhaust gases.

With BSVI norms, Satarkar cited the �rst-ever Evaporative Emission Control System (EVAP) standards for two- and three-wheelers. Known to prevent gasoline vapours from escaping into the

atmosphere from the fuel tank and the fuel system, these systems are claimed to be low on maintenance. In case of a malfunction, however, it could translate to a vehicle failing the On-board Diagnostics (OBD) II plug-in emissions test. �e purge valve, placed in the EVAP, for instance, controls the �ow of fuel fumes from the canister to the engine. In case of a failure, the resultant vacuum leak can adversely a�ect the engine making it a critical component. It is known to change the car’s air to fuel ratio, causing rough idling, in turn, making it di�cult to start the vehicle. Located between the carburettor and the engine crankcase, the reed valve is

critical to the engine’s performance. In case of a failure, it can lead to engines �nding it heard to accelerate. �e engine stands to back�re on excess fuel being poured in.

The company is also banking on the market pull for its variable displacement oil pumps built-in technical collaboration with German R&D company FMO Technologies (Trochocentric) GmbH. Entailing design, development and production of oil pump for passenger cars, commercial vehicles, stationary engines and transmission systems, the latter is crucial to control the oil pressure and volume in relation to

Motor and Motor Controller with brake systemManeesh Satarkar, Vice President-Marketing &

Business, Advik Hi-Tech Pvt. Ltd.

Battery Management System (BMS)

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the engine’s operating conditions. Claimed to offer a higher fuel efficiency by a margin of three to six per cent, the pump is also said to optimise heat transfer in the head and the pistons. The resultant power is said to reduce the formation of carbon deposits on turbocharged motors.

EV rangeIn the case of EVs, the company is banking on the BMS, motor and motor controller along with the brake system. The manufacturer offers electric water pumps claimed to reduce the engine load as a result of the master cooling circuit powered by motors. To bolster its EV product suite including the BMS and the battery pack, the company has also invested in ‘Ion Energy’,

a startup to progress on in-house battery manufacturing. Among other key products in the EV suite are the axial flux motor and a motor controller claimed to be compact, robust and reliable. The company according to Satarkar is claimed to have built a unique architecture wherein the motor features a scalable and modular in design. Stacks of motors can further be used to scale up for multiple higher outputs as desired.

Future roadmapIn 2021, the European Union is expected to introduce new emissions regulations to limit the auto manufacturer’s fleet-wide average CO2 emissions by around 27 per cent, from 130 g CO2/km to 95g CO2/km. Advik is looking forward to

it being introduced in India with the Corporate Average Fuel Economy (CAFE) norms in 2023. “The electric vacuum pump will help in the reduction of CO2,” said Satarkar. With clients in Bajaj Auto Limited, Honda Motorcycle & Scooters India Ltd., Suzuki Motorcycle India Ltd., Hero Honda Motors Ltd., Yamaha Motors India Ltd, Kawasaki Motors Corp and Lombardini India Pvt. Ltd., the company has set its sights on other segments like the four-wheeler segment. By 2025, Advik aims to attain a valuation of an estimated USD 300 million. If it succeeds, it will be on the back of expansion with existing customers, expansion to new customers with existing products and on the back of expanding to future relevant product categories proactively. ACI

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Electric water pumps.

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Negotiating Headwinds Faced by

the Tyre IndustryJK Tyre & Industries Ltd. negotiated headwinds faced by the tyre industry as a whole. It continues to tread carefully to attain sustainable growth and even higher profitability.

Story by: Ashish Bhatia and Deven Lad

K Tyre & Industries Ltd. continues to take measured steps to attain sustainable growth and improved pro�tability. �e company is claimed to have well-negotiated the headwinds faced by the tyre industry as a whole in the quarter and the year ended March 31, 2020, and will continue to tread carefully. Averred Dr Raghupati

Singhania Chairman and Managing Director, JK Tyre & Industries Ltd., “�e tyre industry have faced a downturn prior to the current pandemic, which further aggravated the situation posing unprecedented challenges. As a consequence, both the commercial vehicle and the passenger vehicle segments have been severely impacted. Despite

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JK Tyres rolled out its 20 millionth Truck/Bus Radial (TBR) tyre recently deemed as the �rst and the only Indian company to achieve the milestone. Commenting on the milestone, Dr Raghupati Singhania, Chairman & Managing Director said, “�is is a landmark achievement, not only for JK Tyre but for all its stakeholders, especially the customers who have shown their unwavering trust in our engineering prowess and technological capabilities.” “As a pioneer and market leader, we remain committed to driving innovation and bringing products for our �eet customers that are high on e�ciency, safety and cost-e�ectiveness,” he mentioned. �e company according to Dr Singhania will continue to work towards strengthening its position through technology and revolutionary sustainable mobility solutions. JK Tyres achieved the distinction of rolling out 10 million TBRs in August 2016.

TBR milestone

Dr. Raghupati Singhania, Chairman & Managing Director, JK Tyre & Industries Ltd.

this, the company has posted higher sales in the passenger car and two and three-wheeler segments.” Added Dr Singhania that the company with a renewed focus was also able to register a 37 per cent growth on the exports front.

Financial snapshot FY2020�e company has evaluated and factored in, to the extent possible, the likely impact that may result from the Covid-19 pandemic known to have caused serious disruptions on the global economic and business environment. As per the consolidated results for the quarter and the year ending March 31, 2020, the net operating revenue of the company stood at Rs.1803.09 crores in Q42020 and Rs.8,753 crores in FY2020 compared to Rs.2715.95 crores in the same quarter the previous year (March 31, 2019) and the annual revenue of Rs.10367.76 crores (FY2019). �is included segment revenue from India at Rs.1634.75 crores for Q42020 and Rs.Rs.7649.11 crores for FY2020. Mexico contributed Rs.199.50 crores for Q42020 and 1191.07 crores for FY2020. Notably, inventories of furnished goods, work-in-progress and stock-in-trade for Q42020 was a negative (156.06) compared to 3262, the quarter a year ago. For the entire year, the unsold inventory was proportionately lower at negative (14.46). �is was also signi�cantly lower than the negative (294.90) levels for FY2019.

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In a boost to its global expansion strategy, JK Tyre & Industries Ltd. has commenced operations in the United States. �e company has set up a new entity - ‘Western Tires INC’ based at Houston, in Texas. As part of the expansion plans, Western Tires INC will act as a marketing arm for the U.S market and will focus on sales, service and network expansion. “With our own sales and marketing channel, we are furthering our commitment towards the US market to provide an enhanced delivery and service experience to our customers backed by a team of technical experts from India and Mexico,” stated Dr. Raghupati Singhania, Chairman & Managing Director, JK Tyre & Industries Ltd. With an over two decades exports exposure to the United States through a network of local partners, the company

in a brand acquisition exercise had acquired Mexican brand Tornel in 2008, now JK Tornel. �e capacity enhancement at JK Tyre is said to have played a major role, contributing to the steady growth of the company in the global markets including the US. “�e United States has been an important export market for us. �e fact that we are now setting-up our operations here goes to show the signi�cance of this country in our larger global expansion plans,” mentioned Dr Singhania. �e focus at the company continues to be on further driving the sales in Truck and Bus Radials, passenger car segment besides on the light commercial vehicles segment

through the introduction of new products and further enhancement of the sales channels.

JK Tyre furthers commitment to the United States

�e company registered a pro�t/loss a�er tax of negative Rs.46.95 crores in Q42020 compared to the Rs.35.88 crores registered in the Q42019. For FY2020, the company registered a pro�t of Rs.149.01 crores compared to Rs.176.29 crores recorded in FY2019. Dr Singhania also drew attention to the headwinds encountered on the currency front with the Indian rupee weakening signi�cantly towards the end of the FY2020. “�e US Dollar liability of the company along with its subsidiaries Cavendish and JK Tornel, Mexico had to be recorded at the exchange rates prevailing on the last day of the Financial Year, which though exceptional and notional in nature, impacted the Pro�t Before Tax,” he explained. As per the audited �nancial results, under the head ‘Items to be reclassi�ed as pro�t or loss,’ exchange di�erences on translating the �nancial statements of its foreign operations stood at (50.67) compared to (3.11) in Q42019. For the year, it stood at (47.51)

compared to 0.89 for FY2019. �e total equity and liabilities of the company are pegged at Rs.11290.17 crores compared to Rs.11316.41 crores as in FY2019.

Banking on goodwill�e company according to Dr Singhania is banking on the long-standing

relationships and the goodwill with customers, suppliers and the stakeholders including its employees. Going forward, the company is con�dent of sustaining business operations, cash �ows, future revenue,

assets and liabilities with measures like reduction of �xed costs

across all activities as it restarts plants

and continues to streamline operations and sales. ACI

JK Tyre Steel Wheels Centre in Muzaffarpur, Bihar

Dr Raghupati Singhania honoured with Mexico’s highest civilian award for non-nationals in 2018 for his efforts to

strengthen bilateral ties between India and Mexico

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ZF Friedrichshafen AG has commenced the integration of WABCO on receiving the last of the regulatory clearances.

Story by: Ashish Bhatia

F Friedrichshafen AG has commenced the integration of WABCO Holdings Inc. on receiving regulatory clearances from all authorities. �e �nal clearance for the previously announced merger of WABCO and ZF came from the Chinese State Administration for Market Regulation. Aimed at constituting a global integrated systems provider for commercial vehicle technology, ZF WABCO will be integrated into the former as a separate Commercial Vehicle Control Systems Division. With it, ZF will strengthen its focus on expanding its commercial vehicle service portfolio and on operating customer business according to Wolf-Henning Scheider, Chief Executive O�cer

at ZF Friedrichshafen AG. “�e combination of these two successful enterprises will bring a new dimension of innovation and capability for commercial vehicle systems technology,” averred Scheider. “�anks to our perfectly complementary portfolios and competencies, we are able to o�er unprecedented solutions and services for manufacturers and �eets globally. In this way, we are actively shaping the future of the changing transportation industry,” he stated.

New Commercial Vehicle Control Systems DivisionExpected to to be a value-addition for customers for

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customers, employees and shareholders, the acquisition of WABCO marks a major milestone for the company. Testimony to the consistent transformation in the realm of powertrain and digitisation, its the start of a new era. WABCO will operate as an independent division - Commercial Vehicle Control Systems to become the tenth division within ZF. It will be headed by Fredrik Staedtler following the retirement of Jacques Esculier, Chairman and CEO of WABCO. By combining forces with the ZF Group, WABCO according to Esculier will be elevated to the three largest premium automotive suppliers with full access to the unique capabilities, resources and stability. “WABCO Board of Directors together with the shareholders are convinced that the strategic transaction with ZF represents the best future pass for our company, for us customers and for its employees, ” he stated. “By continuously

worldwide locations. �ese employees, in turn, are expected to work closely with ZF’s existing Commercial Vehicle Technology division.

Providing CV systemsMobilising commercial vehicle integration, ZF is aiming to offer a unique range of products and services. The extensive range of products will span conventional and electric drive and chassis components. It will also consist of a comprehensive suite of sensors as well as fully integrated, advanced braking, steering and driver assistance systems. Especially aimed at Original Equipment Manufacturers (OEMs) actively seeking technological differentiation for their new vehicle platforms. The company will also offer an extensive global aftermarket service network for commercial vehicles. ACI

driving our strategy for technology leadership, globalisation and excellence in execution we close this tremendously successful chapter,” he expressed.

�e di�erentiated technologies and customer intimacy developed over the years will be leveraged going forward to sustain the company identity as the global leader for the next generation of autonomous, electric and connected commercial vehicles. Acknowledging the development to have come at an unprecedented time, Scheider, referring to the global pandemic and its impact said, “We are currently focussing our e�orts on protecting our employees, ramping up our production, and securing the company’s liquidity.” Expressing con�dence in the acquisition, in the long term, having the potential to make the company stronger, ZF according to Scheider will employ an estimated 12,000 people across 45

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Jumpstarting Indian Automotive SectorOrganised by Grant Thornton, the webinar on jumpstarting the Indian automotive sector

had experts deliberate on challenges and opportunities coming the industry’s way.Story by: Deepti Thore

rant �ornton recently organised a webinar on ‘Jumpstarting the Indian Automotive Sector’. With industry experts in attendance, the moderator set the tone by giving a backdrop of the slump in the sector recorded in 2019. According to the moderator Saket Mehra, Partner & Automotive sector leader, Grant �ornton India, the pandemic, set aside any growth prospects that the industry was looking forward to in 2020, in turn, said to have dashed all hopes of a recovery. “Nothing is more expensive than a missed opportunity hence the auto industry needs to remain optimistic and look forward to opportunities across all the domains within the industry,” he

averred. To help the industry emerge stronger out of the crisis and get back on its feet, the distinguished panel on the webinar spoke of priority focus areas if the industry were to overcome converging pressures. From demand slowdown, unutilised capacity and regulatory challenges. Key highlights of the session centred on establishing a good base, setting digitisation in motion, looking at automation and upskilling. Used car market segment, a�ermarket and scrappage policy also found a mention. �e session also deliberated upon means to deliver money, manage risks and ways to strengthen communication across all verticals.

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Growth projectionsLooking at the trend over the last 10-12 years, the session drew attention to the Indian automotive industry moving in tandem with the GDP growth, barring an exception of a few years in between. Contributing an estimated seven per cent to the Indian GDP, if the industry, for example, recorded production of 26.3 million vehicles in FY20. �e volumes projected it was feared, could roll back the industry prospects back to the 2013-14 levels. A factor of how soon India riggles out of the degrowth phase. As per a statistical study cited in the session, passenger vehicles sales nosedived by 51.72 per cent in March 2020. Commercial vehicle sales dipped by 88.05 per cent in the same period. In comparison, exports recorded a degrowth of 24.51 per cent. Drawing attention to the Indian economy’s expected growth rate at 1.9 per cent in 2020 as per the recent IMF ‘World Economic Outlook’, the session compared it to the global contraction of three per cent. It was unanimously agreed upon that India’s automotive sector could take until Q3FY2021 to recover. Citing an over 12 per cent growth in value of India’s GDP in line with the automotive mission plan 2016-26 the panellists cautioned the estimates of being far-fetched.

If GDP growth falls marginally to four per cent, the automotive sector could witness degrowth of (-) 13 per cent. “To overcome these challenges, the companies need to focus on managing shop �oors, managing excellence practices, ensure e�ective risk management for business continuity, redesign the supply chain and vendor risk assessment,” stated Siddhartha Nigam, National Managing Partner - Growth Advisory, Grant �ornton India. “�ey need to balance liquidity and cost of capital and of course tap into new markets,” he added. Projecting a second scenario, for instance, if the GDP settles at one per cent, the sector could witness degrowth of (-) 20 per cent in sales, he opined. Drawing attention to the sector, by the end of the year, facing two consecutive years of double-digit decline in sales, Nigam was quick to point it as a phenomenon not witnessed in the last two decades. Talking of the silver lining, the panel of experts were of the �rm belief that with China’s monopoly being challenged globally, India stood a strong chance to get back in the reckoning. “OEMs and auto component manufacturers should embrace the opportunity to double its exports in the next �ve years,” quipped Nigam.

Amit GuptaPresident – Business

Excellence, Minda Industries

“We need to preserve the present and secure

the future.”

Siddhartha NigamNational Managing Partner

- Growth Advisory, Grant Thornton India

“OEMs and auto component

manufacturers should embrace the opportunity to double exports in the

next five years.”

Tiding over supply chain bottlenecks�e automotive industry sources 80 per cent of the auto components locally. Currently, almost 60 per cent of the auto suppliers are located in the red zone. It in e�ect implies, if the OEMs were looking at the resumption of operations they were staring at a huge supply chain risk impacting their operations as their suppliers, in turn, remained to be functional fully. Many, yet to start their operations. Even if production were to resume it would eventually be hampered. From

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a global supply chain perspective, India currently imports 15 per cent of its auto component requirements from di�erent countries. 30 per cent from China, 30 per cent from European nations, and 40 per cent from the rest. Increasing the localisation e�orts, it was agreed, could help reduce the reliance. India is not one of the top exporters when it comes to auto-components and it could be a time to turn around the standings among top export nations. Opined Mehra, “We majorly export to the US and Europe but not to other countries. �is is a great opportunity for India to be looked at as a bankable export hub in the times to come.” Citing the need to manage the cost of operations with rising automation levels in manufacturing, Mehra spoke of the industry looking at adopting Industry 4.0, IoT, arti�cial intelligence besides introducing other aspects of machine learning onto the shop �oor. Julianne McGarry, Head, Controls and Compliance Tower, Tata Motors Group added, “�ere has to be enough economic gain in the proposition to warrant incurring design, ruling expenses all over again. Most of our customers are struggling for cash right now. �ere have been good enough reasons to prioritise spending on production parts. However, this does not stop the shi�. It will delay it.”

Averred Ramashankar Pandey, Managing Director, Hella India Lighting Ltd., “�e interdependence on the suppliers, not only on tier-1 but also tier -2 and 3 and the OEM will be high going forward.” “�e need of the hour is for fragmented industry associations like ACMA, SIAM, Electric

Saket MehraPartner & Automotive sector leader, Grant Thornton India

“Nothing is more expensive than a missed

opportunity.”

Vehicle Association, tyre battery association among others to collaborate and together steer ahead in the right direction,” he said. He advocated the need to have a collective cluster of OEMs with suppliers getting access to the collective infrastructure to in turn accelerate the development of the entire ecosystem. Talking of skilled labour availability, he urged for the ecosystem to facilitate the migration compatibility of labour so that they were free to move from one supplier to the other. Estimating a high investment to build such an ecosystem, Pandey said there was a need to determine funding sources given that the cost of capital in the country was high.

Capitalise missed opportunitiesIndia has never missed an opportunity to miss an opportunity, quipped Vivek Vikram Singh, Managing Director & Group, CEO, Sona Comstar. “�e opportunity to become the factory of the world has always been there for India. Time a�er time we keep missing opportunities be it because of land or labour reform or other taxation norms and general bureaucratic ine�ciencies.” he said. Singh added that the trend of shi�ing away from China started around 2015-16 because of economic reasons. “�e labour cost in China increased and people started looking for alternatives. US-China trade wars

Ramashankar PandeyManaging Director, Hella India

Lighting Ltd.

“With the introduction of scrappage policy,

employment will rise manifold in the

aftermarket space.”

Social distancing norms followed at Sona Comstar

Smart Factory

Smart Product

Employees Strategy and Organisation

Smart Operations

Data-driven Services

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began a�er Trump got elected which added more urgency to the shi�ing and this crisis has further accelerated the move away in favour of India,” he opined. Speaking of India’s export growth over the last �ve years, Singh opined the growth has been under par. Lauding the government initiatives over the past year including the move to lower the corporate taxes, the incentivising of building manufacturing units at 17 per cent, both lowest in the region and the developing world, he urged the government to also look at reforming policies like energy security or energy supply, labour reforms, infrastructure adequacy and increased cooperation in the industry in general. “�ere is no reason that the exports will not increase especially with four countries the US, Korea, Japan and France,” he beamed.

Expressing con�dence in India getting back to 7.4 per cent GDP by 2021 from the projected 1.9 per cent for 2020, Dr Tim Klatte, Partner and Auto industry Expert, Grant �ornton China said, “�ere is light at the end of the tunnel and we will get through this phase.” Citing an estimated 150 auto factories in 26 countries believed to be in a shutdown state, Klatte urged Indian companies to seek solace in the data published by the China automobile association of manufacturers as of April 2020. As per the data published, the

Julianne McGarryHead, Controls and Compliance

Tower, Tata Motors Group

“There needs to be great focus on risk

management.”

Vivek Vikram SinghManaging Director & Group,

CEO, Sona Comstar

“If there is a good asset, it produces the power and assembly

that is required by the industry.”

resumption rate of China’s automobile enterprises and parts enterprises have exceeded 90 per cent.

Merger and AcquisitionCalling for the need for quality Mergers & Acquisitions (M&A), Singh cautioned against M&A initiatives for the sake of raking in more revenue. He urged the industry to look at four kinds of assets: Good assets with good �nancing will remain to exist for a long time; Bad assets with good �nancing will struggle to survive; Bad assets with bad �nancing would have already su�ered and closed; Good assets with bad �nancing will just see a change of ownership and they will survive. “If there is a good asset, it produces the power and assembly that is required by the industry and they will �nd a new home. �ere will be no consolidation by elimination,” he opined. On the prospect of OEMs taking over some of the suppliers, he added that the Japanese and Koreans might see it happening as it is how they have traditionally done business and could lead to them taking up more ownership.

Cash is King With the Covid-19 crisis, the auto sector has gone back to the old mantra: Cash is King. Companies will have to �nd ways to work around Covid-19 and move forward. While the sector is confronted by liquidity issues, it is not just limited

to the OEMs or the suppliers it was unanimously agreed. �e impact according to the panel had extended to tier-1 and tier-2, dealers, a�ermarket space and the end consumers. Highly leveraged companies were concluded to be at a disadvantage compared to the more �nancially stable ones. Citing the extension of impact to global companies operating in India, it was pointed out that limited �nancial support from their parent companies posed a risk for the latter. “Ensuring solvency and scenario planning is important in the current situation,”

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mentioned N.K Taneja, Financial Consultant and Auto industry expert, while providing his view on the �nancial and liquidity perspective. Companies need to plan their cash �ow as per V, U or L curve, he opined. “It is crucial to roll out daily, weekly or monthly plans and have a commander in chief to carry the plans forward. Risk chart or risk mitigation chart should also be prepared,” he suggested. “Cash out�ow will now be called as cash burning. Multi-layer decision making should happen even before a single penny is burnt. All cash operations should be centralised and the commander in chief should give the �nal approval for any any �nancial transcation,” he added. Calling for the need to align the KPIs and KRAs of the team with liquidity, cash in�ow and deductions or deferment of cash out�ow, he urged the industry to relook at liquidity associations with �xed and variable costs to entirely rede�ne the cost structure, keeping a zero-based structure or zero base formulation model.

Shi�ing customer preferencesTalking about customer behaviour expected to change post-Covid-19, Siddharth Vinayak Patankar, Editor-In-Chief, Car and Bike opined, “As

Siddharth Vinayak PatankarEditor-In-Chief, Car and Bike

“Smaller segment vehicles will gain

popularity especially in passenger vehicle space.”

seen in China, smaller segment vehicles will gain popularity especially in passenger vehicle space. We will see a shi� back to two-wheelers, especially scooters. Added Patankar that there is a need for the automotive sector to incentivise recycling plans and therefore the need for a scrappage policy for vehicles. “If it gets the green light it will be a good move. �e need of the hour is for something radical to happen,” he signed o�. ACI

N.K TanejaFinancial Consultant and

Auto industry expert

“Ensuring solvency and scenario planning is

important in the current situation.”

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Lanxess AG in partnership with BOGE Elastmetall GmbH has developed the first all-plastic brake pedal.

Story by: Deepti Thore

ight-weighting has moved beyond lighter body panels and reinforcements to looking at every nut and bolt that goes into making a high-performance vehicle. Brake assemblies are no exception. Addressing this growing demand for lightweight braking solutions, Lanxess AG through its High-Performance Materials (HPM) business unit in partnership with BOGE Elastmetall GmbH (BOGE) is claimed to have developed a first-of-its-kind all-plastic brake pedal made using thermoplastics. The all-plastic brake pedal finds application in motorsports, the testbed for anything automotive. An outcome of Lanxess leveraging its expertise in the development and manufacturing of modern plastics and BOGE putting to good use its exposure to vibration technology and plastic applications in the automotive industry. The brake pedal is said to have been specially designed in keeping with the high load

requirements of motorsports. In this case, a battery-electric sports car.

The DNAClaimed to shave off 50 per cent weight of a steel brake pedal, the plastic brake pedal offers higher mechanical strength courtesy a thermoplastic composite design. The company credits the multi-axial fibre layer construction of the Tepex Dynalite besides the additional tape reinforcement. The brake pedal for the battery-electric sports car uses a composite structure with a polyamide 6 matrix. A precise combination of layers is arranged in various orientations. Made up of continuous glass-fibre fabric with fibres arranged at 45-degree angles on the two covering layers lend to the high torsional strength of the pedal. Multiple tapes with glass-fibre rovings are used in the brake pedal to reinforce the bottom side of the

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component. Owing to the mutually compatible plastic matrices of the tape and Tepex, the tapes can simply be welded onto the Tepex insert using a laser. It is claimed to result in a tailor-made laminate with fibre layers known to follow load paths precisely and in a manner that meet precise load requirements.

Ready for mass-productionThe automated manufacturing process, hybrid moulding and short cycle times are said to particularly suit large-scale production to, Averred Dr Klaus Vonberg, Project and Business Development Manager, Tepex Automotive, Lanxess, “Extensive automation allows the geometrically complex safety-critical component to be manufactured efficiently and in a manner suited to large-scale production.” The automated process of manufacturing brake pedals integrates draping of the Tepex insert and the tapes in the subsequent injection moulding process.

The production starts with the accurate alignment of tapes using optical measuring systems and then positioning them on the Tepex insert so that they can be welded to it. This assembly is then thermoformed and back-moulded with polyamide 66 using an injection moulding process. The aim is to achieve a level of process, structural and functional integration that goes far beyond classic design methods in order to achieve significant weight reductions in vehicle structures. According to Dr Daniel Häffelin from the Innovation Center at BOGE Elastmetall, four different brake pedal designs are in the mass production stage based on the all-plastic version. For all component versions, the load paths are also optimised to suit the various torsion directions.

The future potential of thermoplasticsLanxess sees great potential for thermoplastics in the future. For instance, thermoplastic composite structures

with tailored fibre orientation could make inroads sooner than later with the proliferation of EVs across vehicular segments. Explained Vonberg, “Examples of applications for Tepex inserts include front-end systems and bumper beams, brackets for electrical and electronic modules, trunks and spare wheel wells, battery housings and covers, structural components in the vehicle’s ‘greenhouse’ section and structural trims in the underbody area to protect the battery.” Compared to metal structures, thermoplastic composites are also said to be suited for integration of guides, holders and fasteners eliminating the need for manufacturing processes like deburring or post-process tapping. ACI

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