auto monitor - 1-15 november 2010

52
Auto Monitor www.automonitor.co.in 1-15 November 2010 Vol. 10 No. 20 52 Pages ` 50/- INDIA’S NO. 1 MAGAZINE FOR AUTOMOTIVE NEWS, VIEWS & ANALYSIS I ndia has signed a Memorandum of Understanding with the United Kingdom on coopera- tion in the road transport and highways sector, wherein both countries would engage in con- sultations and will exchange information and best practices in the areas of motor vehi- cle testing, driver training and delivering and maintaining of highway networks. The MoU was signed by Minister of Road Transport and Highways, Kamal Nath and his British counterpart, Secretary of State, Department of Transport, UK, Philip Hammond in London recently. India, UK in transport MoU NEWS IN BRIEF Volvo Buses launches 8400 city bus Volvo Buses recently launched the new Euro IV ready, Volvo 8400. The first batch of the face- lifted city bus was delivered to the Bangalore Metropolitan Transport Corporation in Bangalore and the Kerala State Road Transport Corporation in Kerala. The product is equipped with advanced diesel engine tech- nology allied to exhaust gas after-treatment with Selective Catalytic Reduction, which converts nitrogen oxides into nitrogen gas and water vapour. A company release stated that the emission of nitrogen oxides (NOx) are typically cut from 5 to 3.5 g/kWh, a reduction of 30 per- cent, which is quite remarkable for a city bus. VISIT, EXPERIENCE, GROW BUSINESS PUNE-19-22 NOV 2010 Venue: Auto Cluster Exhibition Centre, Pimpri - Chinchwad Industrial Area THE WAY WE DO AT 9920401226 | www.engg-expo.com ‘WE ARE CONSTRAINED, NOT BY TECHNOLOGY, BUT BY POLICY REGIMES IN MARKETS WHERE WE OPERATE’ INTERVIEW Pg 08 Lennart Jonsson, CTO and Director R&D, Eaton Pg 14 TRANSFER PRICING ISSUES IN AUTOMOTIVE INDUSTRY DATA MONITOR Domestic Top 5 PV-makers Sector Sep-09 Sep-10 Change MSIL 71,594 95,148 32.90% HMIL 27,803 31,751 14.20% TML 22,420 27,987 24.83% M&M^ 15,296 16,537 8.11% GMI 7,614 8,591 12.83% Domestic Top 5 2W-maker Sector Sep-09 Sep-10 Change HHML 391,225 423,553 8.26% BAL 183,304 230,945 25.99% TVS 132,614 165,418 24.74% HMSI 81,516 118,215 45.02% IYM 26,394 24,133 -8.57% Domestic Top 5 CV-makers Sector Sep-09 Sep-10 Change TML 27,719 31,624 14.09% ALL 4,809 9,513 97.82% M&M 7,363 9,255 25.70% VECV Eicher 2,316 3,665 58.25% FML 1,120 1,342 19.82% * Source: SIAM/ ** Excluding exports/ *** all sub segments considered/ ^ excluding MRPL Abhishek Parekh Mumbai P recision Camshafts, a leading camshafts man- ufacturer catering to passenger cars and utility vehi- cle segments, is looking for a local partner in order to establish a presence in China and grow its business in the largest automo- bile market in the world. The Solapur-based company is in talks with local JVs of its exist- ing customers including Ford, General Motors and Hyundai to supply locally at the insistence of the potential customers. ‘The potential customers in Precision Camshafts looking to establish JV in China Contd. on P37 Shobha Mathur Chennai V arious public-private-part- nership (PPP) initiatives are currently underway in the country to develop technolo- gies and a knowledge base about lightweighting, which is fast becoming a norm among vehicle and auto part makers. Hyderabad-based Internat- ional Advanced Research Centre for Powder Metallurgy & New Materials (ARCI) is coordinat- ing such an exercise. It involves R&D consortium projects for lightweighting, estab- lished under the auspices of the Core Group on Automotive R&D (CAR), now known as Collaborative Automotive R&D. ARCI is an autonomous R&D Centre under the Government of India’s Department of Science and Technology. The initial phase of the first pre-competitive lightweight- ing consortium project that was completed this year over a four- year period, has harnessed tailor welded blanks and hydroforming technologies. It created a knowl- edge base that is now awaiting deployment in terms of design and fabrication of the dies for components and can be deployed in a variety of vehicles spanning two-wheelers to four-wheelers, according to ARCI officials. ‘Automobile manufacturers around the world have increased use of lightweight materials like aluminium and plastics in con- junction with steel. Typical parts include doors, hood, roof and floor. Presently, Indian OEMs do not use these dissimilar materi- als in joining combinations, as the process know-how and basic performance data of such joints is not available,’ said Director, ARCI and Chairman, CAR Panel on Materials and Manufacturing, G Sundararajan. Joining Technologies A second consortium tech- nology project that is currently in the evaluation stage has also been formulated under the CAR programme to develop and apply joining technologies for dis- similar material combinations (aluminium-steel, alumini- um-plastic and steel-plastic) in body-in-white parts. It would be coordinated by the ARCI. The project is being planned along with the development of suitable non-destructive testing methods that do not break down the component while testing it for defects. Instead, the production line would contain a device that would identify the part defect while in the production stage and help correct aberrations. The project would be car- ried out over a two-year period and would be supported by the Technology Development Board of the Department of Science and Technology, who would also pro- vide the `12 crore funding for the project. The project would evolve an optimal technology and qual- ity management concept for the automotive industry. The two projects received a funding of `5 crore from CAR. The consortium for the second project includes four Indian R&D institutions (ARCI, Hyderabad; IISc Bangalore; IIT Madras and ARAI, Pune) along with two auto- motive companies (Tata Motors ARCI leading public-private partnership initiatives on automotive lightweighting Contd. on P27 Laser Welding System at the Advanced Research Centre for Powder Metallurgy & New Materials AUTOPINION Precision Camshafts shopfloor in Solapur; (Inset) passenger car camshafts

Upload: infomedia18

Post on 06-Mar-2016

295 views

Category:

Documents


25 download

DESCRIPTION

‘AUTO MONITOR’, India’s leading fortnightly automotive news magazine, focusses on offering a broad platform to the automotive industry. It strives to facilitate effective interaction among several fraternities of the automotive, auto component and auto allied industries by enabling them in reaching out to their prospective buyers and sellers. It facilitates domestic business exchange and acts as a gateway to international business opportunities for Indian automotive manufacturers. It is recognised by leading associations like CII, SIAM, ACMA, and SIAT.

TRANSCRIPT

Page 1: Auto Monitor - 1-15 November 2010

Auto Monitorwww.automonitor.co.in1-15 November 2010Vol. 10 No. 20 52 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

India has signed a Memorandum of Understanding with the

United Kingdom on coopera-tion in the road transport and highways sector, wherein both countries would engage in con-sultations and will exchange information and best practices in the areas of motor vehi-cle testing, driver training and delivering and maintaining of highway networks.

The MoU was signed by Minister of Road Transport and Highways, Kamal Nath and his British counterpart, Secretary of State, Department of Transport, UK, Philip Hammond in London recently.

India, UK in transport MoU

NEWS IN BRIEF

Volvo Buses launches 8400 city bus

Volvo Buses recently launched the new Euro IV ready, Volvo 8400. The fi rst batch of the face-lifted city bus was delivered to the Bangalore Metropolitan Transport Corporation in Bangalore and the Kerala State Road Transport Corporation in Kerala.

The product is equipped with advanced diesel engine tech-nology allied to exhaust gas after-treatment with Selective Catalytic Reduction, which converts nitrogen oxides into nitrogen gas and water vapour.

A company release stated that the emission of nitrogen oxides (NOx) are typically cut from 5 to 3.5 g/kWh, a reduction of 30 per-cent, which is quite remarkable for a city bus.

VISIT, EXPERIENCE, GROW BUSINESS

PUNE-19-22 NOV 2010Venue: Auto Cluster Exhibition Centre, Pimpri - Chinchwad Industrial Area

THE WAY WE DO AT

9920401226 | www.engg-expo.com

‘WE ARE CONSTRAINED, NOT BY TECHNOLOGY, BUT BY POLICY REGIMES IN MARKETS WHERE WE OPERATE’

INTERVIEW

Pg 08Lennart Jonsson, CTO and Director R&D, Eaton Pg 14

TRANSFER PRICING ISSUES IN AUTOMOTIVE INDUSTRY

DATA MONITORDomestic Top 5 PV-makers

Sector Sep-09 Sep-10 Change

MSIL 71,594 95,148 32.90%

HMIL 27,803 31,751 14.20%

TML 22,420 27,987 24.83%

M&M^ 15,296 16,537 8.11%

GMI 7,614 8,591 12.83%

Domestic Top 5 2W-maker

Sector Sep-09 Sep-10 Change

HHML 391,225 423,553 8.26%

BAL 183,304 230,945 25.99%

TVS 132,614 165,418 24.74%

HMSI 81,516 118,215 45.02%

IYM 26,394 24,133 -8.57%

Domestic Top 5 CV-makers

Sector Sep-09 Sep-10 Change

TML 27,719 31,624 14.09%

ALL 4,809 9,513 97.82%

M&M 7,363 9,255 25.70%

VECV Eicher

2,316 3,665 58.25%

FML 1,120 1,342 19.82%

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

Abhishek Parekh Mumbai

Precision Camshafts, a leading camshafts man-ufacturer catering to

passenger cars and utility vehi-cle segments, is looking for a local partner in order to establish a presence in China and grow its business in the largest automo-bile market in the world.

The Solapur-based company is in talks with local JVs of its exist-ing customers including Ford, General Motors and Hyundai to supply locally at the insistence of the potential customers.

‘The potential customers in

Precision Camshafts looking to establish JV in China

Contd. on P37

Shobha Mathur Chennai

Various public-private-part-nership (PPP) initiatives are currently underway in

the country to develop technolo-gies and a knowledge base about lightweighting, which is fast becoming a norm among vehicle and auto part makers.

Hyderabad-based Internat-ional Advanced Research Centre for Powder Metallurgy & New Materials (ARCI) is coordinat-ing such an exercise. It involves R&D consortium projects for l ightweighting, estab-lished under the auspices of the Core Group on Automotive R&D (CAR), now known as Collaborative Automotive R&D. ARCI is an autonomous R&D Centre under the Government of India’s Department of Science and Technology.

The initial phase of the fi rst pre-competitive lightweight-ing consortium project that was completed this year over a four-year period, has harnessed tailor welded blanks and hydroforming technologies. It created a knowl-edge base that is now awaiting deployment in terms of design

and fabrication of the dies for components and can be deployed in a variety of vehicles spanning two-wheelers to four-wheelers, according to ARCI offi cials.

‘Automobile manufacturers around the world have increased use of lightweight materials like aluminium and plastics in con-junction with steel. Typical parts include doors, hood, roof and fl oor. Presently, Indian OEMs do not use these dissimilar materi-als in joining combinations, as the process know-how and basic performance data of such joints is not available,’ said Director, ARCI and Chairman, CAR Panel on Materials and Manufacturing, G Sundararajan.

Joining TechnologiesA second consortium tech-

nology project that is currently in the evaluation stage has also been formulated under the CAR programme to develop and apply joining technologies for dis-similar material combinations (aluminium-steel, alumini-um-plastic and steel-plastic) in body-in-white parts. It would be coordinated by the ARCI.

The project is being planned along with the development of

suitable non-destructive testing methods that do not break down the component while testing it for defects. Instead, the production line would contain a device that would identify the part defect while in the production stage and help correct aberrations.

The project would be car-ried out over a two-year period and would be supported by the Technology Development Board of the Department of Science and Technology, who would also pro-

vide the `12 crore funding for the project. The project would evolve an optimal technology and qual-ity management concept for the automotive industry. The two projects received a funding of `5 crore from CAR.

The consortium for the second project includes four Indian R&D institutions (ARCI, Hyderabad; IISc Bangalore; IIT Madras and ARAI, Pune) along with two auto-motive companies (Tata Motors

ARCI leading public-private partnership initiatives on automotive lightweighting

Contd. on P27

Laser Welding System at the Advanced Research Centre for Powder Metallurgy & New Materials

AUTOPINION

Precision Camshafts shopfloor in Solapur; (Inset) passenger car camshafts

Page 2: Auto Monitor - 1-15 November 2010
Page 3: Auto Monitor - 1-15 November 2010
Page 4: Auto Monitor - 1-15 November 2010

Marketing & SalesAssociate Vice President:Sudhanva JategaonkarSales Co-Ordinator: Akshata Rane

Response TeamAhmedabad : ShashinT: 079-39826432 | F: 079-39826464 | [email protected] : Mahadev BT: 080-30010900 | F: 080-30010999 | [email protected] : HariT: 044-39864200 | Fax: 044-28295060 | [email protected] : RobinT: 0484-4054380/390 | F: 0484-4054370 | [email protected] : PrakashT: 0422-3092600 | F: 0422-3092666 | [email protected] : Jhuma / MukeshT: 011-66303278 | F: 011-23327884 | [email protected] : Kalyan CT: 040-30647600 | F: 040-30647676 | [email protected]

Indore : AmeyaT: 0731-3074876 | F: 0731-3074882 | [email protected] : DurgeshT: 0141-3007411/414 | F: 0141-2213728 | [email protected] Kolkata : Deb RanjanT: 033-22658637/38 | F: 033-22652964 | [email protected] : JasmeetT: 0161-3026198/199 | F: 0161-3026198 | [email protected] : RahulT: 022-30034640 | F: 022-30034499 | [email protected] Pune: Rohit DassTel: 020-33223309 | Fax: 020-33223322 | [email protected] : SunilTel: 0261-2630181 | Fax: 0261-2630974 | [email protected] : SamarthTel: 0265-3926500/01 | Fax: 0265-2356013 | [email protected]

SubscriptionCirculation Sales: S Thiyagarajan – GMSubscriptions: Sheetal Kotawdekar, Sarita Quadros [email protected] | http://eshop.infomedia18.in

Editorial & Business OfficeAUTO MONITORInfomedia 18 Limited, Ruby House, “A” Wing, JK Sawant Marg, Dadar West, Mumbai 400 028, INDIATel: +91 22 30034630 / 4633, Fax: +91 22 [email protected]

Overseas ContactChina: Tel: +86 21 6289 5533, Fax: +86 21 6247 4855, [email protected] Kong: Tel: +852 2369 8788 Ext. 19, Fax: +852 2869 5919, [email protected]: Tel: 886-4-23297318, Fax: 886-4-23107167, [email protected]: Tel: (513) 527-8800, Fax: (513) 527-8801, [email protected]

Auto

Monito

r

Views and opinions expressed in this magazine are not necessarily those of Infomedia 18 Limited. Infomedia 18 Limited does not take the 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. Infomedia 18 Limited reserves the right to use the information published herein in any manner whatsoever. © 2006 AUTO MONITOR For all international subscription enquiries, contact The Subscription Department, Auto Monitor. Printed by Mohan Gajria and published by Lakshmi Narasimhan on behalf of Infomedia 18 Limited and printed at Infomedia 18 Limited, Plot No 3, Sector No 7 Off Sion Panvel Road, Nerul, Navi Mumbai 400 706 and published at Infomedia 18 Limited, Ruby House, “A” Wing, J. K. Sawant Marg, Dadar (West), Mumbai – 400 028 Lakshmi Narasimhan

CONTENTS

THE OTHER SIDE 50

GLOBAL WATCHOvercapacity concerns as Chinese OEMs plan higher production 39Booming auto sales in China have spurred manufacturers to step up production, leading to concerns over ‘blind investment’ and overcapacity in the sector

Continental creates ‘Simplify Your Drive’ technology 40Continental of Germany has developed a system that offers, with a push of a button, a sports car, eco-friendly car and more conventional car – all in one

Volvo Trucks initiates field testing with methane diesel gas 45Volvo Trucks will initiate public field testing with methane diesel trucks that can give up to four times longer driving range compared to most traditional gas trucks

Fiat Group to invest $6 billion in Brazil by 2015 45Fiat Group will invest 10 billion reais ($6 billion) in Brazil by 2015 in operations to enhance production of cars, auto parts and agricultural machinery

Sanjay Soni, Managing Director, Logix Microsystems Managing Director, Logix Microsystems, Sanjay Soni loves his daily game of golf and is a striving photographer

CORPORATETata Aria shifts multi utility vehicle paradigm 06The Aria heralds a new beginning for customers seeking people movers with limited off-roading potential and comfort & convenience features that are segment firsts in several regards

Delphi-TVS to commence production of rotary products in November 12Delphi-TVS Diesel Systems is gearing up to kick start production of its rotary fuel injection system, meeting Trem 3 and Trem 3A emission norms for JCB India

Australian companies enter into contracts with Indian counterparts 16After Australian Auto Mission’s India tour early this year, four Australian suppliers have achieved business success with two bagging initial contracts for exports from Australia

Talbros Automotive to shift capacity for aftermarket to Sitarganj facility 17Talbros Automotive is in the process of shifting manufacturing for the aftermarket segment to the newly set up facility at Sitarganj in Uttarakhand

SkodaAuto India to get Suzuki assistance on sub-Fabia small car 19SkodaAuto India is planning to showcase an all-new small car line based on a platform jointly developed by VW and Suzuki in the Auto Expo 2012

NEI to spend `1,000 crore on expansion, eye acquisition 20National Engineering Industries and the manufacturer of NBC bearing for automotive and industrial segments is scouting for acquisition in a turnover range between `50-100 crore

Bosch lines up aggressive portfolio for two-wheeler segment 26Bosch India is looking to make a major entry in the two-wheeler segment with the launch of Antilock Braking Systems (ABS) and Electronic Stability Program (ESP) for two-wheelers

INTERVIEW0824

‘EVs, hybrids to remain niche products over next decade in India’ 18Senior Director, Deloitte Touche Tohmatsu India, Kumar Kandaswami talks to Auto Monitor on the future of electric and hybrid vehicles in India and in other developed markets

‘In-house engine assemblies to be cost competitive’ 24Chief Executive Officer, AIPL, Aravind Bharadwaj says that the company has conceptualised the building blocks for the driver integration system for CVs

VISIT, EXPERIENCE, GROW BUSINESS

PUNE-19-22 NOV 2010Venue: Auto Cluster Exhibition Centre, Pimpri - Chinchwad Industrial Area

THE WAY WE DO AT

9920401226 | www.engg-expo.com

Page 5: Auto Monitor - 1-15 November 2010
Page 6: Auto Monitor - 1-15 November 2010

Auto Monitor6 1 - 15 November 2010

CORPORATECORPORATE

Archit Revandkar Mumbai

Tata Motors’ Aria marks a paradigm shift in the peo-ple carrier segment of multi

utility vehicles sold in the domes-tic market. Typically, the six to eight seaters’ territory had little to offer, in terms of choice. Toyota’s Innova retained its segment lead-ership despite the aggressive Xylo push by Mahindra & Mahindra. General Motors’ Tavera on the other hand appeared to have lost the battle, raised by emission norms and new entrants like the Sonalika’s Rhino.

The Aria in that context, heralds a new beginning for cus-tomers seeking people movers with limited off-roading poten-tial, a capable safety detail, comfort and convenience fea-tures that are segment and market fi rsts in several regards.

Looking closely at the brand tally, the SIAM data offers a combined count, on the basis of seating capacity and M&M clearly has the largest selling portfolio by those standards. In the fi rst six months of FY11, M&M sold 46,077 units of Scorpio, Bolero, soft and hard tops on those platforms and the Xylo in the six-seven seaters M1-B1 category. That’s a near nine percent increase in sales over the same period last year, when it sold 41,881 units. Also in the eight-nine seaters M1-B2 segment, the same portfolio scored 32,800 units in the half year to September 2010, which is a robust 31 percent over the same

period last year, when it sold 25,013 units of the portfolio.

Auto Monitor could not independently verify an individ-ual model-wise tally, as OEMs are not obliged to share it. However, several M&M dealers confi rmed that there is a fair bit of disparity in the Scorpio, Xylo and Bolero volumes.

Dealers however also con-fi rm that on a standalone basis, the Innova has absolutely under-mined the Xylo as the fi rst option for customers seeking a long and fuss-free ownership experi-ence with lower lifecycle costs. That has in turn cemented the Innova’s leadership position.

Toyota sold over 18,000 units of the fl agship MUV in the half year to September 2010, a stag-gering 63 percent over 11,000 sold in the same period last year. That is just the six- and seven-seater category, where the second row of seating comes with captain seats arrangement. Take that to the eight-seater territory and the volumes for the half-year to September 2010 were 13,567 units as against 11,862 units. In H1FY11, Innova clocked a total of 31,567 units single-handed, while the entire M&M portfolio clocked over 75,000 units.

General Motors lost out on nearly 30 percent of its pet urban markets, the 13 cities that moved to the BS IV regime effective April 2010. On the face of it, the loss seems like a con-sequence of skewed product planning. However, the manage-ment is confi dent of positioning the Tavera as an offering for the

rural market, while its LCVs with SAIC would take on the urban mettle shortly.

It sold 5,272 units of the Isuzu Panther-based people carrier and the Captiva SUV in the half year to September 2010, which is a marginal increase over 4,898 vehicles sold in the same period last year. Dealers have confi rmed that a BS IV offering is on cards and is powered by the Rhino’s 123 ps Rover-designed engine. Dealers also confi rmed that the pricing action could land it in the `7-8 lakh segment, pitching it against the Xylo.

That brings us to the fringe players, like Sonalika with its Rhino and Force Motors, with its poorly engineered applications of the Trax platform. Rhino competes only in the eight-seater space, while the Trax is available in several confi g-urations. In H1FY11, both players posted a combined volume of less than 500 units. It must be noted that both players were the most affected both by emission norms, and a 2010 ARAI circular highlighting a new automotive stand-ard that completely bans

side-facing seats in the domes-tic market.

The combined domestic sales volume of the B1 segments, which also lists SUVs in the six- to eight-seater space however, is 138,714 units, which is a stark contrast to the dismal export fi gures of 1,690 units. This is an indicator of how and why India-based OEMs are not looked up to world-class peo-ple carriers, analysts told Auto Monitor. That however, is likely to change with the introduction of the Tata Aria.

Powered by a 140 ps, 320 Nm Dicor engine, the Aria is Tata Motors’ tryst with internationali-sation of its portfolio. It is also the auto maker’s fi rst all new MUV launch in over a decade, the last one being Safari in 1999. Loaded with features like ABS, EBD, ESP, Adepterra torque on demand driving all four wheels and an air-bag detail to vouch for, the Aria is priced at ̀ 15.84 lakh, ex-Mumbai for the top-end variant.

Volume guidance is a tricky proposition but dealers have confi rmed that the footfall and queries seem to defy the notion that the informed Indian cus-tomer would never warm up to a premium priced car carrying the Tata badge. At least two Mumbai

region dealers informed that they have over 20 bookings each, within a span of less than two weeks, converted from over 100 advanced level queries.

Overall Sales UpAs far as the more encompass-

ing sales barometer is concerned, the Indian market grew by 27.32 percent from 5,784,411 units in the half year to September 2009 to 7,364,760 units in the same period this year. Passenger cars grew by over a third from 690,434 units in April-September 2009 to 922,281 units for the same period this year, while overall passenger vehicles grew close to 33 percent, reaching 1,176,518 units this year from the previ-ous year’s 885,221 units. In the PV segment, multi purpose vehi-cles (MPVs) grew the highest at 49.32 percent.

Among all vehicle segments, MHCVs grew the highest at 61.6 percent – up from the 93,566 units it clocked in H1FY10 to 151,197 units in the fi rst six months this year. LCVs scored a 26.9 percent jump over the previous year’s 127,379 units, reaching 161,644 units this year. Overall CV seg-ment grew 41.59 percent.

The two-wheeler segment grew 25.86 percent, lead by the scooters and scooterettes sub-segment, which increased 44.95 percent from the previous year’s numbers. Motorcycles grew 22.52 percent, while mopeds saw a jump of 23.13 percent in H1FY11 over H1FY10.

Passenger carriers in the three-wheeler segment grew 24.18 percent to lead the seg-ment growth of 19.87 percent. Good carriers grew marginally at 2.54 percent.

Overall exports grew 43.61 per-cent from 808,262 last half year to 1,160,758 units in the half year to September 2010. Every segment, including commercial vehicles, two-wheelers and three-wheel-ers witnessed handsome growth of 84.01 percent, 52.33 percent and 99.99 percent respectively.

But the cause of worry for the industry was the passenger vehi-cle segment that grew a meagre 1.48 percent. While UVs jumped 105.84 percent, passenger car exports in the fi rst six months this year was near fl at over the same period last fi scal, growing just 0.92 percent.

Overall half-year sales: reason to cheer

Tata Aria shifts multi utility vehicle paradigm

Pawan Goenka, President, SIAM and President - Auto and Farm Equipment Sector, M&M with Vishnu Mathur, Director General, SIAM at the H1FY11 sales update meet, where the industry body revised sales projections for the fiscal (See table below)

Page 7: Auto Monitor - 1-15 November 2010
Page 8: Auto Monitor - 1-15 November 2010

Auto Monitor8 1 - 15 November 2010

INTERVIEWINTERVIEW

What are your key priorities as technology head?

We believe in the presence we have in terms of power boost-ing technology. Transmissions, where we have a major pres-ence, play a critical role in power management and distribution in combustion or hybrid technology. We will continue to invest

in technologies and solutions to grow our presence in this area.

Additionally, we are optimistic on superchargers, which will play a very prominent role in emis-sion control and performance enhancement compared to turbo charging technologies, which

are predominant now. There are other emerging

areas we are look-

ing at for deeper engagement. We are also looking for inorgan-ic growth through technology acquisitions to aid our growth in newer areas.

We will continue to focus on technologies serving the com-mercial vehicle segment as opposed to personal transporta-tion. There are lot of variations in usage of commercial vehicles, opening up areas where we could contribute and gain advan-tage over the competition. We perceive a migration from com-bustion to plug-in hybrids to all electric vehicles. We are prepar-ing ourselves for this migration to play out in vehicle technolo-gies of the future. Combustion engine or hybrids backed by combustion engines are likely to play key role in vehicles for some time to come. We are estab-lished in terms of capabilities for electric hybrid technolo-gies and need to build up on our

existing strengths. We are less constrained by technologies and

more constrained by Government poli-cies, which is likely to drive the future devel-opment of hybrid or electric technologies. The policy push is not only playing out in our industrial business but also very much in solar photovoltaic and elec-trical businesses. This policy push could be in terms of fuel pric-ing policies, tax reliefs or subsidies on R&D, local development and

procurement policies or on any other direct or indirect efforts.

What are the plans for research & development centre in India?

The Indian tech centre was started to mainly support the hydraulics business for Eaton. Our technical centre in Pune is a success story with Eaton and we have to build up on it. We are planning another technical centre in addition to the one we have in Pune. The current engi-neering and research centre is a part of a special economic zone. The arrangement (location) con-fers tax advantages to us but also requires the facility to meet export obligations.

The second technical centre that we are planning to set up in India would mainly focus on our local developmental activities in India, in addition to assist-ing Eaton’s global requirements.

The existing technical centre has been mainly assisting Eaton in industrial business. This was mainly because of legacy rea-sons, as the Indian centre had been traditionally engaged in activities supporting industrial business. Moreover, our activi-ties in the R&D for electrical business were supported by the technical centres in China and Europe. The second engineering centre would gradually expand research & developmental activ-ities in industrial and electrical markets.

What is the scope of activ-ities in the Indian technical centre and how will it assist the

global and local requirements of Eaton?

One of the major trends gath-ering pace is the electrifi cation of systems and we are seeing increasing electrifi cation of our hydraulics systems. We are wit-nessing signifi cant changes in power and energy management across products for various appli-cations. Therefore, the activities in the electrical side of our busi-ness not only have to be closely aligned with our overall R&D activities, but also closely cooper-ate with our industrial hydraulics business. We are gearing up to play a major role in many of the emerging technological areas.

What are these emerging areas, where Eaton perceives a major role in the future?

We are seeing an increas-ing trend towards hybrid technologies as opposed to pure-ly electrical or purely mechanical systems. We are hoping to play a major role in the infrastructure for hybrid or electrical technolo-gies. This implies we will provide equipments and technologies for charging stations for electric vehicles, battery management systems for electric and hybrid vehicles among other areas.

We are gearing up to increase our presence in the transportation segment as well as helping elec-tric utility companies in power management and energy solu-tions. For instance, in many of the special purpose vehicles for garbage treatments or servic-ing power or telecom towers, the engine has to be kept running to operate the lifts on the vehicles. A system, which can provide elec-trical power to operate the lifts when the diesel engine is shut off, can lead to enormous savings in terms of fuel cost and operational economics of the vehicle.

There are couple of critical success factors that can contrib-ute to larger adoption of hybrid technologies. Hybrid technolo-gies have been tested and proven on many personal transporta-tions and this provides a comfort factor to the manufacturers and technology solutions provider.

Conventional hybrid technol-ogy in transportation typically has light reliance on batteries and continues to draw power from combustion engines. Plug-in hybrids go a step further and draw more power from batteries and as of now, the effect of this larger reli-ance is not clearly known under actual or real-life conditions. The other major factor that would contribute to wider adoption of hybrids is cost equation. I am not too concerned about the cost fac-tor. There are three levels of power management in any hybrid or electric vehicles. The fi rst level is where the vehicle is charged with 120 vaults requiring around 1500 watts of recharge power. On the second level, a vehicle requires around 240 vaults and a recharge power requirements going upto 3,500 watts. And the most impor-tant, from our point of view, is the third level where the recharge requirements goes even higher in case of commercial vehicles and compels power to be drawn from external infrastructure. We are planning to play a major role at the third level in the recharg-ing ecosystem.

We perceive a migration from combustion to plug-in hybrids to all electric vehicles. We are preparing ourselves for this migration to play out in vehicle technologies of the future.

Combustion engine or hybrids backed by combustion engines are likely to play key role

in vehicles for some time to come

Abhishek Parekh

‘We are constrained, not by technology, but by policy regimes in markets where we operate’In a recent interaction with Auto Monitor, Executive Vice President and Chief Technology Officer, Eaton, Lennart Jonsson, who recently took over this new role of directing the R&D efforts at the $11.9 billion global supplier, outlines his priorities for Eaton and the role it would play in the emerging automotive and electrical landscape. Excerpts:

Lennart Jonsson, Chief Technology Officer and Director R&D, Eaton

Page 9: Auto Monitor - 1-15 November 2010
Page 10: Auto Monitor - 1-15 November 2010

EDITORIALEDITORIAL

Cracking the export code

Notwithstanding its share in global automobile exports or its position among automobile exporters, the

Indian industry is expected to achieve the target of $12 billion by 2014, two years before the target year laid out in the Government’s Automotive Mission Plan 2006-16.

A recent study by the Federation of Indian Chambers of Commerce and Industry (FICCI) states that India’s share in the global auto exports market is restricted to just one per-cent, ranking 22nd in the world and putting the country way beyond other developing markets like Thailand, Mexico, Argentina, Brazil, Turkey and China.

For a nation that is considered a manufac-turing and exports hub for small, compact cars, these aren’t happy numbers. However, on a positive note, in case of automobiles, exports have more than doubled in the last fi ve years. The Indian industry exported automobiles worth $1.8 billion during FY06, which increased to $4.5 billion in FY10, FICCI stated. By FY16, FICCI estimates, exports by the Indian automobile industry would reach a level of $17.7 billion.

Major portion of the total automo-bile exports from India, read 76 percent, is accounted for by passenger vehicles, fol-lowed by two-wheelers. FICCI calculates the CAGR of passenger vehicles and two-wheel-er exports by India for the last fi ve years at 31

percent and 24 percent respectively. Signifi cantly though, passenger car exports

have been on a downslide for the last few months. In the fi rst six months of the current fi scal, passenger car exports have grown a meagre 0.92 percent, while in the April-August FY11 period, it had grown 4.51 percent. In the fi rst four months of FY11, exports of passenger cars had scored an 8.18 percent growth.

For an industry that has been deliberat-ing on not just managing future growth, but sustaining it over a long term, this is a gentle reminder to pull up its shocks.

Earlier in August this year, consulting major, Ernst & Young, had released the ‘Vision 2020’ document for the Indian auto compo-nent industry. The fi rm is hopeful that exports could grow seven-fold over the next decade, driven by an increase in marketshare of dis-tant low cost countries (LCCs) in key export markets and scale advantages.

Readers would recall that in an earlier edi-torial, I did write that one key concern the industry collectively needs to address is the growing disparity in imports and exports of auto components. From a near equal status about four years back, the industry is importing far more than are exported. Latest numbers put our imports valued at $8.2 billion, while our exports are valued at $3.8 billion only. In fact, imports from China have almost increased four times in the last

one year.E&Y believes by 2020, the Indian industry

has the potential to grow exports to the level of $26-29 billion from the current $3.8 billion levels. Western Europe is likely to become a larger market for Indian exporters by that time, with share signifi cantly increasing in the North American market as well. There is an opportunity to tap a potential of `5.4 lakh crore by 2020, with exports contributing `1.3 lakh crore – about a quarter of the total market potential.

The Vision 2020 document gives the auto component manufacturers, and the industry as a whole, credible time to redraw strategies for domestic and export business. Experts believe, the new targets are achievable, if opportunities are approached well.

Deepangshu Dev [email protected]

IMAGE of the fortnight

Editorial TeamEditor: Deepangshu Dev SarmahFeatures Editor: Shobha MathurPrincipal Correspondents: Abhishek ParekhArchit Revandkar Contributing Editors: Sirish ChandranBertrand D’Souza

Design & PhotographyGroup Photo Editor & Creative Head: Shiresh R KarraleAsst. Art Director: Varuna NaikSenior Designer: Ganesh PatereScanning & Colour Correction: Ravikumar Potdar, Ravi Salian, Sanjay ShelarProduction Team: Dnyaneshwar Goythale, Vikas Bobhate, Pravin KoyandePhotographer:Mohd Nasir (New Delhi)

Auto Monitor

Send in your feedback and comments to: The Editor AUTO MONITOR, Infomedia 18 Ltd, 4th Floor, Prakashdeep building, 7 Tolstoy Marg, New Delhi – 110001. Ph: +91 11 6630 3282, Email: [email protected]

FORTNIGHT’S QUOTES

Alan Mulally, CEO, Ford

‘Overall, we are moving from fixing the fundamentals of our business and weathering the downturn to growing the business profitably around the world’

Carlos Ghosn, Chief Executive, Renault and Nissan

‘Two years of government support are needed to jump-start these markets and then the products will grow on their own and take off’

Ratan Tata, Chairman, Tata Group

‘There are four or five cases of the Nano catching fire. We are going through a detailed investigation of each of them’

Martin Winterkorn, Chief Executive Officer, Volkswagen

‘We’re still facing a tax-related hurdle and several legal obstacles on the merger with Porsche’

Dheeraj G Hinduja, Chairman, Ashok Leyland

‘I have very ambitious expansion plans for ALL, and my priority is to fast-track the company’s global thrust through both organic and inorganic modes,’

Nearly three years after it fi rst showed-off its fl agship 7-seater SUV at Auto Expo 2008, India’s second largest passenger carmaker Hyundai Motor India (HMIL) launched the Santa Fe at an ex-Delhi tag of `20.95 lakh for the 4X2 variant and `22.95 lakh for the top-of-the-line 4X4 variant.

Powered by a 2.2 litre DOHC CRDi that makes 197 bhp at 4000 rpm and 420 Nm between 1800 and 2500 rpm, it comes complete with a six-speed manual gear box. The drive line is programmed to be all-wheel till about 40 kmph, beyond which it is predominantly driven by the front wheels, in the 4X4 variant. Both variants come with ESP, cruise control and airbags.

Presently, HMIL would import the Santa Fe as a completely built unit. It must be noted that the largest exporter of passenger cars from India, has had little or no success with the domestic sales of the Tuscon, its fl agship 5-seater in the global markets. However, in an earlier interaction with Auto Monitor, MD, HMIL, HW Park had suggested that the manufacturer was confi dent of riding the SUV wave with the Santa Fe as the Indian preference for full sized 7-seater SUVs was commendable.

Hyundai launches Santa Fe

Page 11: Auto Monitor - 1-15 November 2010
Page 12: Auto Monitor - 1-15 November 2010

Auto Monitor12 1 - 15 November 2010

CORPORATECORPORATE

Shobha Mathur Chennai

Starting November, Chennai-based Delphi-TVS Diesel Systems is gearing up to

commence production of its rota-ry fuel injection system, meeting Trem 3 and Trem 3A emission norms for JCB India.

A leading manufacturer of off-highway equipments, JCB India would be rolling out the fi rst tranche of its backhoe load-ers fi tted with Delphi-TVS rotary products starting January 2011. Delphi-TVS had bagged the order from JCB India a year ago worth an annual `75 crore, including supplies of products for about 36,000 off-highway equipments per annum.

It is believed that January 2011 onwards, JCB India would be replacing the old engines in about 80 percent of its machines

with engines manufactured in-house, and rotary products by Delphi-TVS would be fi tted along with them.

Normally, rotary products comprise pumps, injectors and fi lters compared to the common rail system that spans a high-pressure pump, injector, rail and electronic control unit or brain of the system along with the fi l-ter. Rotary products are more economical than the common rail system and hence their pref-erence in off-highway vehicles by OEMs.

Delphi-TVS would manu-facture the said products at its Mannur plant, located 40 km from Chennai, which also manu-factures mechanical unit pumps. Expansion is currently underway at both the Mannur plant and the company’s second plant at Pant Nagar, Uttarakhand, which produces rotary pumps. The

Pantnagar plant meets the com-plete requirements of the Tata Ace, the market leader in small commercial vehicles.

Together, the capacities at the two plants would be expanded from 540,000 systems to 660,000 systems due to spiked demand for rotary products from customers.

Product InnovationPresident, Delphi-TVS, JS

Chopra told Auto Monitor that the company has developed a robust, rugged and fuel-effi cient rotary fuel injection pump, called DPT (Distributor Pump for Tractors). It was equipped to meet the Trem 3A emission norms for tractors.

The Trem 3A emission norms for below 50 hp tractors came into force from 1 October this year. For above 50 hp tractors, emission norms are expect-ed to be enforced from April 2011. Chopra said, ‘Delphi-TVS has the products to meet the requirements of the new emis-sion norms for the above 50 hp tractors as well.’

Production capacity of DPT is now being ramped up to meet major OE demand from custom-ers like Simpson-TAFE, Mahindra & Mahindra’s farm equipment sector and Swaraj Division, Escorts and Indo Farm.

Delphi-TVS commenced sup-plies for Simpson-TAFE four months ago. It also started sup-plying a few units to M&M’s farm

equipment sector from August this year, but business with M&M is expected to pick up steam next month onwards.

Development work on DPT products is also underway for other clients with supplies expected to start by year-end. The entire order for DPTs from tractor makers is likely to run into `25 crore annually in the domestic market.

In addition to DPT, the com-pany has also developed a new common rail product family – UPCR (Unit Pump Common Rail system), which offers the benefi t of a common rail system at a low

cost, benefi ting the spread of this technology to different market segments, said Chopra.

‘An Electronic Control Unit (ECU) for different vehicle appli-cations has also been developed at a competitive price. Delphi-TVS will be introducing these control-lers in Unit Pump Common Rail (UPCR) systems and Common Rail Direct Injection (CRDI) systems soon,’ he added. These would service one- to four-cyl-inder applications in vehicles, besides gensets.

The new UPCR system, which has been developed for BS IV applications, would be later upgraded to meet BS V emission norms. This new product line is expected to be in full-fl edged production by December 2010.

Expansions On StreamFurther, Delphi-TVS is also

expanding the capability of its technical centre located at its main plant in Mannur, adding the Transient Dynamometer and Cold Chamber facilities. This will increase the centre’s validation and testing capabilities, enabling it to undertake more advanced and sophisticated work from FY11-end.

The technical centre was set up with an investment of `50 crore for undertaking development work for light and medium-du-ty diesel common rail direct injection systems. An additional `10 crore is now being invest-ed on the new machines and funded primarily through internal accruals.

The company currently has three plants. Its common rail products are manufactured at its third plant in Oragadam, near Chennai, which was set up at an investment of `350 crore in 2007.

The capacity of the common rail systems plant is also being shored up from 150,000 units to 225,000 units per annum, with expansion likely to be completed by FY11-end.

A joint venture between Delphi, USA and the TVS Group, Delphi-TVS supplies fuel injec-tion systems for a wide range of applications including passenger cars, utility vehicles, commercial vehicles, tractors as well as on and off-highway vehicles.

With all these new orders and products in its kitty, Delphi-TVS expects to touch a top line of ̀ 850 crore by FY11-end from its exist-ing turnover of `750 crore.

Delphi-TVS to commence production of rotary products for JCB in November

JS Chopra, President, Delphi-TVS

Page 13: Auto Monitor - 1-15 November 2010
Page 14: Auto Monitor - 1-15 November 2010

Auto Monitor14 1 - 15 November 2010

The Indian automobile industry has been on the growth curve again after having witnessed the severe

recession, which impacted the auto indus-try globally. The sales numbers have been increasing month on month and the future outlook for the industry seems very pos-itive. The strong growth is on account of increasing wealth in the hands of Indian consumers backed by liquidity and avail-ability of easy fi nance schemes to the Indian consumer. The growth trend is evi-dent from the graph (Ref: Exhibit 1).

However, it is not just the consumers but also the Indian Government, who wants to become wealthier by earning their share of revenue. Transfer Pricing (TP) is one such measure to increase the tax base. The TP provisions were introduced in India in the Finance Act of 2001 with a view to avoid the erosion of Indian tax base by ensuring that the transactions of Indian companies with their overseas group companies are

at arm’s length i.e. transacted at a price at which third parties would have transacted with each other.

As transfer pricing is not an exact sci-ence, the TP provisions have been subject to controversy since their inception. The Indian automotive (auto) industry has been no exception to this. Most of the auto companies in India, being multinationals (‘MNCs’), have been subject to detailed transfer pricing scrutiny by the Indian rev-enue authorities. This subject has gained lot of importance for the MNCs operating in India and managing transfer pricing risks is one of the key topics on the agenda of every MNC.

Transfer Pricing is fact-specifi c and entails application of economic principles among other things while arriving at an arm’s length transfer price. Thus, before dwelling into the transfer pricing issues in the auto sector, it may be worthwhile to understand some of the economic nuances of the auto sector so as to appreciate the transfer pricing issues better.

The Indian auto sector is very competi-tive with presence of many players. Some of them are quite established players, being present in India for decades, while some are new entrants to the Indian market. Thus, the Indian auto sector represents a mix of both established Indian-originated companies as well as newly set-up MNCs. The gestation period in this industry is

quite long and precisely this could be the reason that the new entrants in this sec-tor are incurring huge losses, while the established players are earning operating profi ts.

Further, the business model varies depending on the stage of set-up. In the ini-tial years of set-up, it is seen that the Indian subsidiary imports signifi cant amount of raw material and inputs from group enti-ties for manufacturing/ assembly of cars. In fact, the import content could be as high as 80-90 percent in the initial years. In subsequent years of life cycle, the empha-sis is more on localisation of inputs which considerably reduced the import content. Thus, there is a gradual shift of sourcing the inputs from abroad to localising them over a period of time, which will consider-ably impact profi tability. Considering the above, the profi tability of one auto com-pany may not always be comparable with that of another.

Typically, it is observed that most of the auto companies in India demonstrate the arm’s length nature of international transaction by using the Transactional Net Margin Method (‘TNMM’) i.e. by contend-ing that the profi tability of the company is comparable with the average profi tability of comparable companies in auto industry and thereby, the international transac-tions with Group companies being at an arm’s length price. Where the operating margins are lower than the industry mar-gins, the differences have been attributed

to certain economic reasons such as idle capacity, high import content etc.

However, while the revenue authori-ties have been by and large fi ne with the basic methodology i.e. TNMM, they have contested the arm’s length nature of prices in a number of instances. In this article, we have sought to examine the key issues which auto companies are facing in the process of demonstrating the arm’s length nature of transfer prices. The issues exam-ined are primarily for OEMs i.e. vehicle manufacturers and not auto ancillaries.

1. Acceptability of start-up losses in the auto industry

As the Indian economy is growing, more and more global auto companies are setting up their shops in India to tap the Indian market. Typically, in the initial stages, the quantum of transactions with overseas Group entities is signifi cant on account of high capital expenditure for setting-up the manufacturing/ assembly facility and low level of localisation. Most of the companies invest in India with a long-term horizon. This may lead to high underutilisation of capacity.

Further, every auto company goes through a business lifecycle. Every prod-uct does not become profi table from its inception. Typically, in order to gain marketshare, the auto companies are price-aggressive in the earlier years of

operations. On gaining a signifi cant mar-ketshare and after having established a set of loyal customers, the companies may want to increase its prices to set-off the aggressive pricing strategy adopted in set-up years. Every company will have various business strategies and consid-erations that affect the profi tability of the company. All the above factors invariably lead to operating losses in the initial years of operations.

The Indian revenue authorities have tendency to link these losses as being attributable to the transfer price for inter-company transactions. Under the TNMM, profi tability is the key to demonstrate the arm’s length nature of transaction. The Indian revenue authorities seek to make transfer pricing adjustment merely on the basis of company incurring operating losses without appreciating the economic reasons for incurring losses viz. underu-tilisation of capacity, market penetration strategy followed in the initial years of operation, etc.

This is one of the burning issues, which is being encountered by most of the new entrants in this sector. It is thus impor-tant for the company to demonstrate with robust documentation that the losses are not attributable to the transfer prices but are attributable to the other commer-cial and economic factors. Further, it is imperative for such companies to select the appropriate benchmarking approach with detailed analysis so as to mitigate the transfer pricing risk on account of start-up losses. Here, selection of the right compa-rables is the most important aspect that needs to be looked into and which has been examined in the following paragraphs.

2. Selection of comparablesIdentifi cation of right comparables for

benchmarking, as mentioned earlier, is the key to determining a right transfer pricing approach for OEMs and which can also potentially have a bearing in managing transfer pricing risks. As mentioned earli-er, the companies in the auto sector would be in the different stages of lifecycle. Some of them would be quite well-established, while the others are new entrants in this sector.

Further, the brand strength of each company would vary. In view of such eco-nomic disparity being existent, it would not always be prudent to take Indian car manufacturers as comparable to the Indian operating arm of MNCs car compa-nies. Some of the OEMs, especially those having very high import content would primarily carry out functions in respect of: a) Assembly, and b) Market development.

The functional and risk profile of these entities would be different from a full-fl edged car manufacturer, who have a signifi cant amount of localisa-tion, and who may therefore not be the right comparables.

In this context, a relevant observa-tion was made by the Hon’ble Income-tax Appellate Tribunal (Tribunal) in the case of Skoda Auto India (122 TTJ 699), where-in the Hon’ble Tribunal observed that the level of localisation of Skoda Auto India and the comparable companies differed signifi cantly, while determining the appro-priateness of the comparables selected.

The other issue relates to inappropriate approach of internal comparability. Quite often auto companies supply fi nished goods to Indian companies in domes-tic market as well as to its overseas group companies. There could be signifi cant functional and transactional differences with respect to sales in domestic segment and export segment. Lack of compara-ble data in public domain often leads to a situation, wherein the tax authorities tend to look for internal comparables. The tax authorities often compare the profi tability from export sales with prof-

itability from domestic sales and thereby ignoring the geographical differences and other functional differences between the two transactions.

A possible remedy for lack of appropri-ate comparable in India could be by testing the results of the overseas group compa-nies, especially in case of full-fl edged car manufacturers, having a relatively lower import content, and who are exposed to market risks. In simpler terms, this means that instead of identifying the Indian com-parables, one could look at identifying the foreign comparables and test the margin/ price in the hands of the overseas group companies’ vis-à-vis foreign comparables. While getting such data is not practical-ly easy, it could nevertheless provide a superior alternative to using functionally incomparable domestic car manufactur-ers, especially in cases where the potential exposure to transfer pricing adjustments could be large.

3. Payment for intellectual property

Two of the most important aspects of an auto company are ‘Technology’ and ‘Brand’. These drive the sales of a company and the group. In the auto industry, where technology is very important, rarely one fi nds companies sharing their technology with third parties. Mostly, technology and brand are only shared with group compa-nies. Therefore, it is very diffi cult to fi nd comparable data at transactional level.

Even the public databases do not pro-vide an exhaustive list of uncontrolled transactions. Even if one is able to fi nd an uncontrolled transaction, the question to be answered is that whether two brands or technology that is independent can be comparable to each other. Is the technol-ogy of say ‘Honda’ comparable to that of ‘Toyota’? Probably not, and this makes fi nding uncontrolled comparables in auto companies all the more diffi cult.

The emphasis of Indian revenue author-ities on transactional level analysis and the diffi culty in identifying a comparable uncontrolled transaction to benchmark the payment for intellectual property at a transaction level is a double whammy for most of the tax payers. In the absence of a comparable uncontrolled transaction for benchmarking the said transaction, it is imperative to evaluate other approach of benchmarking these transactions.

One example could be adoption of prof-it split approach to determine the arm’s length price for such transaction.

AUTOPINIONAUTOPINION

Transfer Pricing issues in automotive industry

The Indian revenue authorities seek to

make transfer pricing adjustment merely on the basis of company incurring operating

losses without appreciating the

economic reasons for incurring losses

Dinesh SupekarPartner – Price Waterhouse & Co

Powered by:

Contd. on P29

6000000

5000000

4000000

3000000

2000000

1000000

0Apr-Aug

2009

Export 13629 10292 51721 111129 172653 181415 417237 653851

Domestic Sales 175056 120744 166680 200258 717706 960886 3632282 4621144

3 WheelersPassenger Vehicles

(PVs)2 Wheelers

Apr-Aug2009

Apr-Aug2009

Apr-Aug2009

Apr-Aug2010

Apr-Aug2010

Apr-Aug2010

Apr-Aug2010

Auto Sales Trend

Exhibit 1

Page 15: Auto Monitor - 1-15 November 2010
Page 16: Auto Monitor - 1-15 November 2010

Auto Monitor16 1 - 15 November 2010

CORPORATECORPORATE

Shobha Mathur Chennai

In February this year, an Australian Auto Mission vis-ited India on a whirlwind

10-day tour seeking partnerships with Indian vehicle manufac-turers and Tier I suppliers. The Mission had on board, seven auto component suppliers and was led by Australian Automotive Envoy for Asia, John Conomos.

A few months later, four of the Australian suppliers have achieved business success with a couple bagging initial con-tracts for exports from Australia. Others have established repre-sentative offi ces in the country in the expectation of big orders from customers, according to Adil Mohamed, Senior Business Development Manager – Automotive (India), Australian Trade Commission.

Of the four successful compa-nies, Davis Craig has signed an initial order for prototype parts supplies to OEMs in India. The company has appointed a local representative for marketing their products to various OEMs in the country. The company is a designer-manufacturer of elec-tric fans and electric water pumps for use in petrol, diesel, hybrids, fuel-cell and electric vehicles.

T-Mag, another Australian company, has entered into a technical collaboration with a leading Tier I business group for joint development of auto components for vehicle appli-cations in India. T-Mag is a new cost-effective, fully-integrated

casting technology for magne-sium alloys that is particularly suited for light weighting auto-mobiles and components.

The third Australian supplier, Diemould, established a repre-sentative offi ce in Pune in June this year and is in the process of fi nalising development and sup-ply contracts with OEMs. The company produces high qual-ity cavity tooling, including lens lighting with two-shot moulding for global customers with dis-tinctive needs.

Egged on by a focus on research and joint collabora-tions in advanced material study, Deakin University of Australia has established its footprints in India with a representative offi ce in New Delhi. One of Australia’s largest Universities, it is currently engaged with various OEMs and Tier I groups in building interna-tional partnerships in research.

The remaining three suppliers – aiAutomotive, Air International Thermal Systems and Futuris Automotive Interiors (Australia) – are in discussion with potential joint venture partners in India.

Of these, aiAutomotive is a supplier of metal stamped components, sub-assemblies and e-coating facilities to the OEMs and aftermarket, and Air International Thermal Systems is a specialist in design, devel-opment and supply of heating, ventilation, air conditioning and powertrain cooling systems. Futuris, on the other hand, is a supplier of seating, fl oor carpets, door trims, acoustic insulators, trunk trims, steering columns and pedal boxes.

Sustainable TargetsAn initiative under the

Australian Government’s A$6.2 billion new Car Plan for a green-

er future that is spread across 13 years, its long-term vision is to make the Australian auto industry economically and envi-ronmentally sustainable.

‘We are looking at an increas-ing level of engagement between Australian suppliers in India by coming and doing business in India either through exports or through physical presence,’ Mohamed told Auto Monitor.

To facilitate these companies, the Car Plan is knocked down into the Green Car Innovation Fund comprising A$1.3 billion kitty spread over a period of 10 years. Under this programme, the Government sanctions a grant of $1 for every $3 dollars to the com-pany seeking the grant.

For a foreign entity to avail the grant, it should have a presence in Australia in the form of a sub-sidiary, a joint venture or through the acquisition route. The decid-ing factor for the funding would be future technologies it inno-vates on Australian territory that help cut down conventional fuel consumption and greenhouse gas emissions.

For instance, Samvardhana Motherson Ref lectec Group company, SMR Automotive Australia, recently received a grant of A$2.4 million from the federal Government’s Green Car Innovation Fund to help develop fuel-saving mirrors in co-operation with the University of South Australia.

Already a major supplier of rear-vision mirrors and other components for the Australian and international motor indus-

tries, the company is planning to establish a greenfi eld plant in South Australia to make the new mirrors, which it says would cut car fuel consumption.

Similarly, the Market Access Programme, the second con-stituent of the Australian Car Plan targets representa-tives in key markets like India, China, Thailand and Korea with the aim of entering into technical collaborations, tech-nical licensing agreements, joint ventures or contract manufac-turing partnerships.

‘We want to partner in the progress of the Indian auto industry as we see rapid growth in the sector and production fi g-ures are just mind-blogging. It is here that we see opportunities of applying Australian technologies for commercialisation of produc-tion,’ remarked Mohamed.

In July this year, Australian supplier MtM had commenced supplies of automatic gear box shifters to Mahindra & Mahindra for installation in its Scorpio SUV planned for the export market of USA. It may be noted that M&M is planning to export Scorpios to USA with automatic transmis-sions controlled by automatic gear-box shifters.

Top PlayerIndependently, the Australian

automotive industry does not possess major capabilities in this stream though its technological prowess in concept prototyping, design, engineering and delivery is advanced, he said. ‘It is among

Australian companies enter into contracts with Indian counterparts

Adil Mohamed, Senior BDM, Automotive (India) for the ATC

Contd. on P35

Page 17: Auto Monitor - 1-15 November 2010

Auto Monitor 171 - 15 November 2010

CORPORATECORPORATE

Abhishek Parekh New Delhi

Talbros Automotive, the fl agship company of the Talbros Group, is hop-

ing to increase its share in the aftermarket segment in India. The company is in the process of shifting manufacturing for the aftermarket segment to the newly setup facility at Sitarganj, near Udham Singh Nagar in Uttarakhand from the existing Faridabad facility, which would serve National Capital Region (NCR) based customers and international markets.

‘GST implementation is like-ly to lead companies to do away with the need for warehousing their stocks. Post GST imple-mentation, tax benefi ts or pricing rationalisation will not be the primary driver for need to have warehouses at various locations,’ said President, Gasket, Stamping & Rubber, Talbros Automotive Components, Sujat Vora.

The aftermarket segment is already beginning to see signif-icant organisation in terms of service delivery and parts sourc-ing with the advent of multi-car service stations like Carnation Auto and Mahindra FirstChoice. This trend will benefi t suppliers to enhance their reach and net-work beyond their distributors and dealers.

The major change that Vora is anticipating is the shift in attitude of OEMs towards the aftermar-ket supplies. Currently, many OEM restrict their suppliers from servicing the aftermarket demand in addition to restrict-ing aftermarket supplies through supplier’s own or third party dis-tribution network.

‘Such a policy could actually lead to sub-standard or incon-sistent quality parts reaching the aftermarket to the detriment of OEM’s image. Customers are denied the choice of appropri-ate spares due to such restrictive aftermarket policies,’ said Vora. He expects quality service station network outside the author-ised service station network of the OEMs to grow and cater to burgeoning demand for quality servicing.

Austerity MeasuresThe company is on schedule

to expand gasket capacities by around 20 percent in the cur-rent fiscal, with minimal capital expenditures, Vora said. He added that the downturn has taught lessons in austerity meas-ures and belt tightening for auto component players across the board. Most auto component makers have adopted measures like improving productivity, strengthening their vendor base, debottlenecking and other such measures requiring minimal additional investments in plant and equipments.

Ta l b r o s A u t o m ot i v e Components derives around 65 percent of its business from the OEMs, 20 percent of the turnover comes from the aftermarket busi-ness while the remaining share is derived from exports mainly to Europe and the US.

Its gasket products portfolio include cylinder head gaskets, engine overhaul kits, conversion

kits, multi-layer steel gaskets, steel elastomer gaskets, edge moulded gaskets, exhaust man-ifolds gaskets, rubber moulded gaskets, heat shields, secondary gaskets, shims & washers and tyre sealants.

A leading supplier of auto-motive and industrial gaskets, Talbros Automotive was initially established in collaboration with UK’s Coopers Payen (now Federal Mogul Sealing Systems). Its par-ent, the Talbros Group, has strong partnerships formed with global corporations including Federal Mogul, US; Nippon Leakless Corporation, Japan; Affinia Group, US and Presswerk Krefeld, Germany. The company has 12 manufacturing facilities across

six product lines or businesses with four dedicated gaskets sys-tem facilities.

Talbros Automotive’s key cus-tomers include Ashok Leyland, Bajaj Auto, Cummins Group, Eicher, Escorts, Force Motors, GM, Hero Honda, Honda, Hyundai, John Deere, M&M, Maruti Suzuki, Suzuki, TAFE, Tata Motors, Tata Cummins, Simpsons and Affi nia Automotive, among others.

The company closed FY10, ending 31 March, with consoli-dated revenues of `246.51 crore, while the net profi t for the pre-vious fi scal stood at `8.76 crore. The net sales for the June quarter this fi scal stood at `73.92 crore and the net profi t for the quarter stood at `2.24 crore.

Talbros Automotive to shift capacity for aftermarket to Sitarganj facility

Sujat Vora, President, Gasket, Stamping & Rubber, Talbros

Page 18: Auto Monitor - 1-15 November 2010

Auto Monitor18 1 - 15 November 2010

CORPORATECORPORATE

How will India fare as a glo-bal carmaker and as a supplier in the next decade?

Last year, we conducted a study of the global auto industry and came up with the conclusion that by 2020 there are likely to be six major regions globally – Western Europe, United States, Japan, Korea, India and China – with signifi cant OEM pres-ence. These markets would become the centres of design and manufactur-ing for OEMs and their suppliers,

with the OEMs becoming main-stream large volume players.

By 2020, about 10 OEMs based in these six major markets would globally account for about 90 percent of global sales. To that extent, India would be an impor-tant market for passenger cars. It could be Maruti Suzuki India or it could be Tata Motors, but mar-ket forces indicate that one major OEM would be out of India. Given the market size, it would be fun-damentally someone who will design, develop and manufac-ture cars here.

How do you see the car mar-ket in the next decade in India?

Clearly, as opposed to the other countries, we foresee a contin-ued trend for conventional cars driving demand in the emerging markets. The alternate fuel cars and electric cars will probably not be major players during the coming decade. In more devel-oped markets, the alternate fuel cars are likely to get out of the

niche spots they are playing in and are likely to become more mainstream. One big charac-teristic that we visualise are conventional cars. And we are likely to see a 12-13 percent

growth in the next fi ve to six years in them.

What about commercial vehicles?

In terms of commercial vehicles, they have a direct cor-relation to the GDP growth. To a large extent, the road network and retail growth impact the way light commercial vehicles (LCVs) grow, while mid-sized trucks (MCVs) grow directly propor-tional to industry GDP growth, and heavy trucks (HCVs) grow directly proportional to the qual-ity of road networks.

Interestingly, while MCVs would grow around 12-13 percent,

LCVs would continue to grow at a much faster rate because global-ly the share of LCVs to others is 70:30, while in India it is 55:45.

There is still a certain head-room for LCV growth in India not due to the shrinkage of other seg-ments but because it would grow faster than other segments. And with the quality of roads improv-ing, the tractor-trailer segment that is currently at about three percent of the CV segment, can potentially hit around fi ve to six percent during the decade.

The penetration of CVs in India is about 500 per million population, while that in the US and Canada, it is in the region of 18,000 per million population. Even South Africa is in the region of 1,600 per million population. This presents an opportunity for the sector.

We believe, LCVs will move at a reasonably good pace and MCVs will continue to grow in terms of volumes but lose marketshare to LCVs and larger trucks. The growth of larger trucks of course, will depend on the quality of trucks and the promise of devel-oping 18,000 km of highways by the Indian Government.

Does the two-wheeler seg ment present similar growth potential in India?

There is opportunity to grow further as two-wheelers will never grow out of fashion. And demographically, if you are going to have a lot of young people over the next 20 years, one would assume a natural growth would happen in the two-wheeler segment. It will continue to grow on top

of per capita consumption that is around 10 million or so.

What should suppliers do to ensure their growth is commen-surate with that of the OEMs?

Two factors have to be con-sidered: if we have signifi cant OEMs active in India, the quality of the supplier base is bound to undergo some changes in terms of system integrators; technolo-gy owners; and people who work on long-term projects in India as opposed to a large portion of the segment being converters – like

working on designs given by joint venture partners.

There will be far more integrat-ed activities with the OEMs. The size of suppliers is also likely to go up, at least in some segments. There will be more large suppli-ers in the `500-600 crore range and technology players will also increase. Large companies like Tata AutoComp Systems (TACO) have begun investing and have also expressed their ambitions in this regard. They will start creating technology for India with cars designed specifi cally for India and taken to the rest of the world.

What about technolo-gy partnerships with overseas counterparts?

Certain technologies, for instance the CRDi technology, are not available with OEMs, but are with the suppliers. To that extent, there will be some areas where technology will get gen-erated in India. Safety related technology is still not mature in India.

Do you visualize any major inroads in the research and development sphere?

In manufacturing, India spends half as much as the rest of world in research and devel-opment. Two to three years ago, we were investing 2.5 percent in R&D, while the rest of the world was investing 4.5 percent of sales turnover. Auto suppliers are no different and that is the big-gest weakness of the component community because they end up competing only on costs. With 55 to 60 percent of your turnover sit-ting as material, the elbowroom is very small. And when you have low profi ts, you are not able to invest in R&D. If the sector has to get out of this rut, the median spend is in the range of 4 to 4.5 percent in R&D.

What is your take on Indian supplier profi t margins?

During the 2000-2005 peri-od, there was very little capacity addition in the component sec-tor. This was followed by capacity additions of 20-25 percent 2006 onwards. The slowdown that followed meant demand was nominal and auto component manufacturers were stuck with excess capacity.

In the absence of signifi cant intellectual property that can drive profi table growth, com-panies always operate on the knife-edge. The inability of com-panies to make costs elastic is an issue they will think about, when they plan their strategies. The ability to manage operations with optimised levels of inven-tory would determine profits and fl exibility.

What are the current trends in the Indian automotive industry?

One of the aspects to be con-sidered is the product mix in the passenger car market. Some of the OEMs that we spoke to say that the luxury car market has still not matured because of the very low penetration levels and they expect that to change signifi cantly over the next decade. Local sourcing and manufacturing of luxury cars can potentially bring down the sticker price by about `10-12 lakh. That could make this a fast growing market. India will never get out of the hatchback market but high-end sedans will over a period of time become reason-ably popular.

How do you view the skilled manpower shortage in the auto-motive sector?

The biggest worry is of recruit-ing manpower in specifi c areas of R&D. India has never had a background of research and development; so that is a big weakness area.

Shortage of workforce is a huge issue globally. In the US, it was bad treatment that led to workers quitting automo-tive companies. In India, we are competing with the services sector and are not able to hire good people. This is more a gen-erational issue and not so much infrastructure-related. This will lead to more automation in companies in the absence of skilled labour.

The other major concern is of understanding product liabili-ty. We have no understanding of customer relationship manage-ment, whereas maturity levels are very different in other parts of the world. We need to under-stand these areas, especially if we have aspirations in the export market.

‘EVs, hybrids to remain niche products over next decade in India’Electric and hybrid vehicles will not become mass products and are slated to remain niche products in emerging markets like India, whereas in developed economies, they are likely to be well accepted in the near future, Senior Director, Deloitte Touche Tohmatsu India, Kumar Kandaswami told Auto Monitor recently. Moreover, India would continue to face shortage of skilled workers, leading to a move towards further automation. Excerpts:

Shobha Mathur

Kumar Kandaswami, Senior Director, Deloitte Touche Tohmatsu India

Our bureau Mumbai

Earlier in October, Tata Autocomp, the f lagship automotive component

outfi t of the TACO Group, cel-ebrated 15 years of operations, even as it launched an all-new bus seating range and announced two tech centres for its companies.

The primary objective of the new technology centres, one each for Taco GY and Tata Yazaki making batteries and wiring harnesses, is to minimise

the expensive logistics of prod-uct validation, which currently requires the fi rms to send proto-types to external locations. The overall investment is less than `20 crore.

The move also reiterates the fi rm’s aggressive stance on tech-absorption, which Chief Operating Officer, TACO, RS Thakur said, ‘we missed out on as we witnessed over 35 percent CAGR through the last decade.’

In other developments, the component manufacturer showed off its fl agship seating

range for ultra luxury inter-city coaches. The prototypes exam-ined by Auto Monitor came complete with USB drive sockets, reading lamps, aisle illumina-tion, adjustable headrests and several other features.

‘We are already in talks with several players, including Volvo buses, for the seating range,’ said Thakur, adding that the develop-ment costs for the projects are too small to mention. ‘It was a challenge accepted by the seat systems team to develop a world class luxury seating range,’ he

said. TACO already has over 50 percent market share in TML’s low fl oor city buses, delivered to the Delhi Transport Corporation (DTC) and several other State Transport Undertakings (STUs).

Talking about new customers, sources within TACO informed that it has already bagged the contract to manufacture full services seating systems for the Land Rover Freelander, sched-uled to be assembled in India by early 2011. The source elaborated, upon conditions of anonymity, that ‘this would comprehensive-

ly enlist TACO in the elite JLR suppliers’ detail. Also, he added that TACO is now a single source supplier to the Indian Defence Forces for hard cased batter-ies aiding their communication equipment. Chairman, TACO, R Gopalakrishnan said the fi rm is targeting $4 billion in revenue over the next 10 years, through a host of its joint ventures, which are all profi table at this stage. Chief Operating Offi cer, TACO, RS Thakur was more modest in his plan to peg revenue targets at $2 billion by FY15.

TACO announces two new tech centres, targets $2 billion in revenues by FY15

Page 19: Auto Monitor - 1-15 November 2010

Auto Monitor 191 - 15 November 2010

CORPORATECORPORATE

Our Bureau Mumbai

SkodaAuto India, Volkswagen Group’s entry level brand is confi dent of showcasing an

all-new small car line based on a platform jointly developed by VW and Suzuki as early as Auto Expo 2012. ‘The new small car would be more affordable than our exist-ing offering in the super-mini segment,’ said Member of Board for Sales and Marketing, Skoda Auto India, Thomas Kuehl.

The new small car, Kuehl added, is a joint effort and engi-neering and development is undergoing at the Skoda head-quarters, while marketing perspective is being looked at from India. ‘This involves vol-umes, pricing concept, line-up and feedback from the develop-ment team,’ he clarifi ed.

VW owns nearly a fi fth of the Japanese K-car specialist, which in turn owns a major-ity stake in Maruti Suzuki India (MSIL). Experts and sources on condition of anonymity, have confirmed that the WagonR and A-Star platforms could be as much as ‘adopted and rede-signed’ for Skoda to meet those deadlines as the India unit of the Czech carmaker hasn’t been proactive on localisation in the domestic market.

Take for instance the Fabia range that was re-launched in early October, with a mere 40 percent localisation, which is up from 15 percent on the previous edition, a dismal fi gure for a mass market manufacturer by emerg-ing markets standards. And that, even as it rolled out the 25,000th Fabia off its Chakan lines later the same month.

India by all means, is the only market where Skoda is high up on the aspiration radar, perhaps higher than a Volkswagen. It is also the only market where the Passat and Jetta are offered with a mere manual transmission option, while Skoda’s Laura and Superb makes the most of the DSG box, which is clearly a VW effort. This comes on the back of a substandard ownership experi-ence at Skoda, which is no more a secret. To make matters worse, the Fabia is rolled-off the same Chakan lines, which also makes the Polo, and is marred in vol-umes thanks to the long waiting periods. The waiting periods also trickle down to the Vento, if ini-tial customers and dealers who spoke to Auto Monitor are to be believed.

Overcoming Hurdles‘We have a lot of loose ends to

be tied up. And in the run up to the subsequent launches, we’ll over-come the hurdles,’ said Kuehl. But even as the group gears up to unleash the potential of its new found alliance with the Japanese carmaker, it is pulling all stops to minimise brand confl ict and pricing oriented cannibalisa-tion that has come to haunt the German giant. That perhaps explains why the new face-lifted Fabia was launched at `4.35 lakh for the base variant, powered by the 1.2 litre petrol.

There are signs that the sen-ior management of the VW

group is becoming increasingly focused on preventing sales canni-balisation between its brands. It appears that there is a move within the organisation to more clearly defi ne the posi-tioning of the various volume brands within the group, with special emphasis being placed on the relationship between the V W brand itself and Skoda.

As the parent brand and by far the largest vol-ume brand in the overall group, VW will always take precedence, both

in terms of debuting new technology and in terms of positioning and market-ing over the other volume brands within the group. When Skoda was acquired in 1991, it was always seen as the clear entry-level brand within the group. However, the leaps in qual-ity and design that Skoda has made under VW’s ownership, with the brand basing models on VW’s platform and powertrain technology, means that in terms of its product offer-ing Skoda has transformed itself over the past two

VW still unsure on the details of cooperation with the Japanese major

SkodaAuto India to get Suzuki assistance on sub-Fabia small car

Contd. on P29

Page 20: Auto Monitor - 1-15 November 2010

Auto Monitor20 1 - 15 November 2010

CORPORATECORPORATE

Shambhavi Anand New Delhi

After winning the prestig-ious Deming Application Prize for distinctive per-

formance improvement through application of Total Quality Management (TQM), National Engineering Industries (NEI) and the manufacturer of NBC bearing for automotive and industrial seg-ment is scouting for acquisition.

NEI is looking at companies with a turnover range between `50-100 crore as its acquisition target, both in India and abroad. While talking about the compa-ny’s aggressive investment plans, Chief Executive Officer, NEI,

Rohit Saboo said, ‘We don’t want to do unnecessarily big acqui-sitions but acquire companies where we can add value.’

The company plans to spend around `1,000 crore over the next four years on expansion, which will essentially include investments in greenfi eld and brownfield facilities, apart from acquisitions.

Part of the CK Birla Group, NEI is looking for locations in Rajasthan for setting up new plants and by the end of this year, Saboo expects to fi nalise those. Expansion of existing plants in Jaipur, Newai and Manesar is also on the company’s agenda. In its current capacity, NEI is able to

produce eight crore ball bearings, one crore taper-roller bearings and large diameter bearings for industrial use.

Responding to a question, Saboo said the company has no immediate plans to launch new products, but is working on developing and introducing ‘third-generation’ bearings at its R&D unit in Jaipur, Rajasthan. Globally available, these bear-ings are used for various industrial, automotive and rail-way applications.

Quality LeaderThe Jaipur-based compa-

ny recently became the 20th Indian company to win the

Deming Application Prize by the Union of Japanese Scientists and Engineers (JUSE).

‘The Prize is the recognition of the journey we had undertaken fi ve years ago to change the tradi-tional methods of working in order to become customer-friendly and system-oriented. It is not only a quality award, rather a cultural award,’ Saboo said of the award that is considered to be one of the highest awards on TQM (Total Quality Management) globally.

While efforts to ramp up domestic business continue, NEI is also negotiating with inter-national players to increase its exports share. ‘We are talking to auto companies in several coun-

tries like the US, Italy, Brazil, and South Africa. We would like our export earnings to improve from the current fi ve percent to 15 percent of the turnover,’ Saboo said. Currently, the company exports bearings to more than 20 countries.

The company does 60 percent of its business with automo-tive manufacturers, while about 32-35 percent business is with the Indian Railways. The remaining is accounted for by industrial appli-cations. In the automotive space, NEI supplies bearings to almost all auto manufacturers in India and talks with several other man-ufacturers are in various stages of approval, Saboo said. NEI, which contributes 15 percent to the group’s overall revenues, expects to register revenues of `950-1000 crore in FY11, up from the current `750 crore.

NEI to spend `1,000 crore on expansion, eye acquisition

Rohit Saboo, CEO, NEI

Our Bureau Mumbai

Leading worldwide automo-tive supplier for driveline and

chassis technology, ZF, recently kicked off an assembly plant in Pune, planning to manufacture heavy truck transmissions.

In the medium-term, the Commercial Vehicle and Special Driveline Technology division of ZF plans to produce around 25,000 ZF-Ecomid nine-speed transmissions annually for heavy trucks up to more than 40 tonnes weight, informed Head, ZF Commercial Vehicle Business, Mandeep Bhalla.

Group Executive of the Commercial Vehicle and Special Driveline Technology division, Rolf Lutz said the company can offer the entire product range for CV transmissions, including manual, automated and auto-matic transmissions.

ZF employs roughly 80 employees in the truck trans-mission assembly plant, which will increase to around 150 in the next fi ve years. The compa-ny manufactures transmission housings, gears, and shafts and it is targeting a localisation level of 80 to 85 percent.

The ZF Group has a roughly 29 percent stake in Sona Somic Lemförder; a 26 percent stake in ZF Steering Gear; and a 50 percent share in ZF Electronics TVS (India).

ZF kicks off transmission facility

Page 21: Auto Monitor - 1-15 November 2010
Page 22: Auto Monitor - 1-15 November 2010
Page 23: Auto Monitor - 1-15 November 2010
Page 24: Auto Monitor - 1-15 November 2010

At what stage is the Driver Workplace programme and how does it work?

AIPL is embarking on the Driver Workplace system that will be a fi rst in India and is very

important for management of human factors in the bus. We have already built the building blocks for the cluster, body con-trol unit and switch mugs. We are now in the process of iden-

tifying partners for supplying various components, including Continental partners in Europe besides ALL’s supplier base in India for parts like plastics, steer-ing systems and seats. By putting

all this together, we can move from a component view to a sys-tems view.

From an OE point of view, the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) fl eet programme was a learning expe-rience. Since there were so many suppliers, it increased the elec-trical and electronic complexity of the buses multi-fold. Besides the information cluster, we had to tackle the hardware, software, connectors, wiring harness, and the system integrator together with the bus, engine and power-train variants.

Then came the body build-er and chassis – the reason why Ashok Leyland (ALL) started building the full bus body in Alwar, Rajasthan as the vehicle had become very complex.

The question is: how does one manage all this without a driver

workplace system?Typically, a European driver

workplace for intra-city appli-cations is a single package up to the steering system with instru-ment cluster, master and slave multiplexing systems, switches and the plastic panel. The entire workplace surrounds the driv-er and Continental is a leader in developing it. They have done tremendous amount of research in terms of its guidelines and the entire system adjusts to each driver, who comes in with each shift change.

This necessitates an entire sys-tems view of it whereas, today, in India a component view is main-tained. You buy a cluster from one supplier, switches from someone else, plastics, steering systems, seats are supplied by some other supplier, then there is a body builder and then everything is put together by someone else. So all these end up as independent functions and the driver has to adjust to them and that raises his fatigue level.

It is quite a diffi cult work-place and if you integrate all the functions together in a single system, it results in the vehicle being treated much better by the driver.

Moreover, the price band for these systems is extremely wide between Europe and India and we see great opportunity in developing such a product at a lower price point along with ALL and Continental in terms of the Indian context.

What is the impact of the Driver Workplace system on var-ious stakeholders?

In many cases, when the sys-tem fails, you have multiple suppliers to look at to identify the fault. The OEM’s effort goes up exponentially.

We come in with the system at the body builder stage and plug it in and programme it for various variants for full system integra-tion. This leads to peace of mind for the OEM and is much more benefi cial to the end user, who is the driver.

To the fl eet owner it will have a direct impact in terms of how his vehicle is going to be utilised and how effi ciently it will perform. For instance, with a gear shift advisory coming through the USB drive, the fl eet owner will get a full report in terms of driv-er rating. This will facilitate him to cut down on driver-to-driver variation in vehicle performance, improving driver behaviour and enhancing fuel economies.

One study has put fuel econo-my variance at 30 percent, where a vehicle has a manual trans-mission, so that is money in the pocket of the fl eet owner.

Further, with all these elec-tronics, you are enabled with information about revving up of an engine, idling or very harsh braking by the driver. So, you are going to the next level of data maturity – conversion of data into information and analytics to give an action plan to the fl eet owner of how to improve fl eet produc-tivity. AIPL provides the guidance and action on it will be taken by the fl eet owner.

What kind of guidance is AIPL offering?

By incorporating this feature with the USB tool offl ine, we are looking at driver behaviour

Auto Monitor24 1 - 15 November 2010

INTERVIEWINTERVIEW

Automotive Infotronics developing ‘Driver WAfter developing an information cluster – FLEX CAN (Controlled Area Network) Cluster – for Continental’s overseas applications, as well as multiplexing units for commercial vehicles, Chennai-based Automotive Infotronics (AIPL) is now moving a step further. It is developing a ‘Driver Workplace’ system by integrating different components into a single system around the bus driver to reduce fatigue while driving. The system would simultaneously benefit both OEMs and fleet owners by improving vehicle and driver performance. The fully indigenised ‘Driver Workplace’ system would primarily target Ashok Leyland’s (ALL) global bus programme and is likely to be tested in ALL’s Optare buses. The CV maker had acquired 26 percent stake in Optare, a UK-headquartered bus manufacturer for `28 crore.Chief Executive Officer, AIPL, Aravind S Bharadwaj told Auto Monitor that the company has conceptualised the building blocks for the system and would be meeting its parents – ALL and Continental – soon to work out the modalities for the integration system. AIPL is an equal joint venture between ALL and Continental that started operations in April 2008. Excerpts:

Shobha Mathur

Page 25: Auto Monitor - 1-15 November 2010

Auto Monitor 251 - 15 November 2010

improvement that is already pro-vided for in the USB. By providing him the right type of environ-ment like driver workplace, the driver will be facilitated – from a real point of view, when he is sitting in the vehicle and from an analytical point of view, he will be enabled to improve his driving habits. From an OE per-spective, he will not have to talk to multiple suppliers, and there will be a very clear traceabil-ity in terms of each function. The entire component system becomes an aggregate that is then placed in the vehicle.

Today, the scaling up of electronics in CVs is very rapid in India. For instance, in the JNNURM applications, the requirements of the State Transport Corporations (STCs) were as high as that are required in global buses. In that case, the movement is towards a master-master multiplexing system, which is very complex.

With ITeS enabled displays, customers are talking of cam-era integration, where the use of a rear view camera helps you see while reversing the vehicle. So when you are looking at that scale of electronics in CVs, AIPL comes in with its building blocks and works as a consortium with the suppliers and takes on full responsibility for the bus man-ufacturer. It is a huge benefi t to the OEM because it’s a migration from a component supplier driv-en system to a systems supplier approach and that’s the track we are taking. AIPL is tapping both ALL’s and Continental’s parent-age for knowledge and markets to innovate the right product.

Who manufactures the product?

A lot of engineering is involved in devising the most optimal architecture for the product, both from the electron-ic and mechanical point of view. Continental trains us as they are playing the role of systems sup-plier overseas and we also get market knowledge from ALL that enables us to provide a systems solution to the OEM.

ALL is also on a globalisation spree with its global bus pro-gramme and acquisition of a 26 percent stake in Optare. There is need for an Indian price per-formance point, and hence AIPL is aligning with ALL’s roadmap to provide the right type of solu-tion at the right price point for both the global and domestic market. That makes the Indian product attractive for the customer.

We are already develop-ing clusters for Continental’s customers outside India in agriculture, off-highway, and snowmobile vehicles. These clusters are manu-factured in Switzerland by Continental and developed by us.

When is the Driver Workplace system likely to be rolled out in ALL buses?

It will be launched by the third-fourth quarter of CY 2011. Continental, who is a leader in driver workplace solutions in mature markets globally, is very keen to see it implemented in emerging markets as well and they see AIPL as a key partner for them.

What about the multiplexing system that you are developing for Ashok Leyland’s U-Truck?

Our f lagship products are

being introduced in the U-Truck in the fi rst quarter of CY 2011. This fully developed Indian innovative cluster body control and multiplexing system, which is 100 percent developed by us, will be manufactured in India by Continental at Bangalore and designed at Chennai. It is cur-rently undergoing fi eld trials.

The U-Truck platform will comprise a series of vehicles with the latest electronic clus-ters, including features like USB drive monitoring that can store 25 days of driver data, offl ine diagnostics monitoring and on-board full-fl edged diagnostics on the cluster.

We are generating these plat-form products and our body

control unit is completely model-based to portray the cus-tomer requirement with features of functionality, realisation and the software code that is com-pletely auto-generated.

We don’t write manual codes any more. Essentially, for any user requirement there is full traceability in your software development cycle for a prod-uct realisation. So, if some other customer comes in, it is easy to adapt the code for him. This is a MathWorks tool and for the fi rst time is being used on a body control unit.

Powertrain controls use it because they perform a lot more

complex functions. But now body control is also getting more complex in CVs as their degree of complexity and customisation increases. We have adopted this model-based development and it has truly benefi ted us in terms of how we are able to short-en the product development cycle time and also increase

the traceability. We already have enquiries from China and Brazil on adapting it there.

We create knowledge – essen-tially market knowledge through ALL and technology knowledge through Continental, and with this we are moving up the value chain in engineering, creating our innovation and Intellectual Property.

So, once the entire engineering – from requirement to realisa-tion – of a product is opened up, it becomes easier for a collabora-tive development of product.

What is the current state of CV electronics in India?

The current state of electron-ics in CVs is less than fi ve percent, but Euro IV emission require-ments will require a higher level of electronics with the entire vehicle becoming net-worked. Electronics were initially introduced to sync with the onset of Euro III emission norms with engine electronic diesel controls acting as self-controlled units.

The buses manufactured under the JNNURM scheme con-tained tremendous Intelligent Transport Systems (ITS) and elec t ron ic requ i rement s with a key system being the master-master multiplexing system for improving vehi-cle performance through networking. In the initial phase of the programme, these systems were imported and were high on cost. Later, AIPL talked to the Ministr y of Urban Development and developed their requirements on the Continental platform at a frac-tion of the cost.

r Workplace’ for buses to cut driver fatigue

AIPL is aligning with ALL’s roadmap to provide the right type of solution at the right

price point for both the global and domestic market

Aravind S Bharadwaj, Chief Executive Officer, AIPL

INTERVIEWINTERVIEW

Page 26: Auto Monitor - 1-15 November 2010

Auto Monitor26 1 - 15 November 2010

CORPORATECORPORATE

Abhishek Parekh Bangalore

The largest automotive sup-plier in the country, Bosch India, is looking to make

a major entry in the two-wheel-er segment with the launch of Antilock Braking Systems (ABS) and Electronic Stability Program (ESP) for two-wheelers.

The German automotive giant, which has a major presence in passenger and commercial vehi-cle segment in India, is planning to gain a major entry into the two-wheeler segment with the launch of products developed specifi cally suitable for Indian usage, habits and conditions.

The ninth generation ABS, which is 50 percent lighter com-pared to the previous generation ABS, is targeted at the mass mar-ket motorcycle segment in India. As the volumes build-up, the company is planning to com-mence local manufacturing of the product at its existing ABS facility in Chakan, near Pune.

The company has also cho-sen India as the development centre for two-wheeler start/stop system. In fact, the Indian market could well be the fi rst to get the product, when it is ready for launch. The system allows automatic engine shutdown after a set time, ranging from few seconds to few minutes, and restart of the engine with simple pressing of clutch. The system has demonstrated fuel reduc-tion through more effi cient and dynamic usage of up to 6-11 per-cent under test conditions in and around Bangalore.

‘We will be testing the system nationwide under different driv-ing patterns before we introduce the system,’ said Head of Product Manufacturing, Marketing & New Business Projects, Starter Motors & Generators, Bosch India, Alexander Boehmler. The company’s start/stop system for compact cars and motorcycle was demonstrated at a recent visit to the company’s Aduguddi facility in Bangalore.

‘It has taken us much time and effort to convince the top man-agement on the need to enter and provide quality safety systems to address the Indian two-wheeler segment. The main apprehension has been that the two-wheeler segment is too competitive for any supplier to have a decent margin, as well as offer value preposi-tion to the customers (OEMs). But we feel we are approach-ing the market at the right time as vehicle safety is beginning to be accorded a priority (for end customers) and regulatory changes are turning favourable for safety features,’ said Joint Managing Director, Bosch India, Manfred Duernholz.

He added that local manu-facturing and consistent quality is the key to gaining large mar-ketshare in the price sensitive two-wheeler segment.

Lightweight MeasuresBosch has made efforts to

reduce the average weight of the latest generation ABS and ESP series for different vehicle appli-cations. The effort is the result of cost pressures and weight reduc-tion targets for the vehicle set by OEMs.

Compared to the second gen-eration ABS weighing as much as 6.9 kg, the ninth generation ABS weighs around 1.1 kg and has controller memory of 256 kb. The ESP, on the other hand, weighs around 1.6 kg and has controller memory of 2 mb. The ABS allows a motorcycle to cut down the dis-tance to standstill by close to nine metres in case of brakes applied on a motorcycle travelling at 100 kmph under standard testing conditions, when compared to a motorcycle without ABS. This is especially useful when applying emergency braking and helps

For Stall Booking:Contact Nitin +91 9920401226 T 91-22-30034649 / 51 E [email protected] W www.engg-expo.com SMS EXPO to 51818

YOUR COMPETITION IS LEVERAGING

THEIR BUSINESS POTENTIAL

Hurry! Limited Stalls LeftPUNENov 19-22, 2010

AHMEDABADDec 10 -13, 2010

INDOREJan 7-10, 2011

CHENNAIMar 11-13, 2011

Adsar Hydraulics | Amcats Pvt Ltd | Atlas Copco | Atlas Radios | Autotech Machine Tools |

Aventura Components | Berlin Machine Corporation | Boge Compressed Air System |

CTR Manufacturing Industries Ltd | Dewas Techno Products Pvt Ltd | Durr Ecoclean |

Dynaflex Pvt Ltd | East India Bearing Co (P) Ltd | Economy Refrigeration Ltd |

Emtex Marketing Pvt Ltd | Energy Mission Engineers | Engineering Hindustan |

Esskay Lathe & Machine Tools | Gandhi Automations Pvt Ltd | Hi Tech Thermal Insulations |

Hi-Tech Robotic Systemz Ltd | Igus India | Jamnagar Machine Tools | Janak Enterprises |

Jay Equipment & Systems | K Engg Products |

LMT | Mactrol Automation | Mahavir Engimach |

Misumi India (P)Ltd | Nilkamal Ltd |

| Neutron Power Tools | Omron Automation |

Pilot Pneumatics Pvt.Ltd | PFERD-Swit |

Power Tech Marine | RD Weld Products (P)Ltd

| S&T Engineers | Quick Heal Technologies

| Rexello Castors Pvt Ltd | Samson Extrusion India |

Shalin Material Handling | Sreelakshmi Traders |

Shamam Engineering Industries | Shuter Enterprises India | Technosys Instruments & Equipments

| Welding Technologies India | Masibus Automation And Instrumentation |

Modern Power Semiconductor | Moselle Developpment Council | Production Aids & Consultant |

and many more...

Are You There?

ISO:9001:2008

Bosch lines up aggressive portfolio for two-wheeler segment

Manfred Duernholz,Joint Managing Director, Bosch India

Contd. on P35

The Generation 9 Antilock Braking System

Page 27: Auto Monitor - 1-15 November 2010

Auto Monitor 271 - 15 November 2010

CORPORATECORPORATE

and Mahindra and Mahindra) and four Fraunhofer institutes in Germany. ‘The project was formu-lated through several workshops and interactions with guidance from the CAR Expert Panel on Materials and Manufacturing. Its main challenge is to devel-op joining technologies for metallurgically incompatible materials. Accordingly, some of the recently developed low heat input processes (cold metal transfer welding and laser brazing), mechanical joining (hemming, self-pierce riv-eting) and adhesive joining have been chosen for investigation,’ elaborated Associate Director, ARCI, G Padmanabham.

CAR ProjectWhile the Tailor Welded Blank

(TWB) technology and hydrofor-ming techniques are popularly pursued globally, with most of the foreign OEMs deploying the techniques for achieving weight reduction and related benefi ts, in India, it has been a late starter making its presence felt only in the early part of this decade.

‘This is due to the lack of appropriate know-how and infra-structure available with auto manufacturers in India. This has lead to the inception of the project under CAR,’ Sundararajan told Auto Monitor.

The lightweighting project aims at developing competence groups within the country along the entire value chain to assist Indian auto manufacturers in adopting the TWB and hydroforming techniques. Lower cost, greater fl exibility and more possibilities of inno-vation are some of the benefi ts that would accrue to the auto

industry from this R&D project, Padmanabham informed.

To profile the techniques, hydroforming utilises fl uid pres-sure (in place of punch that is a mechanical tool used in a con-ventional tool set) to form the part from sheet or tube mate-rial. Complex parts with higher drawing ratios and large cross-sectional differences can also be formed. Parts also get work hard-ened, thereby increasing dent or crash resistance and rigidity as well as allowing thinner, lower grade materials to be used.

Increase in strength-to-weight ratio, uniform strain or elongation distribution and minimised spring back, lead-ing to greater dimensional stability and accuracy, are the additional benefi ts that result from adoption of the hydrofor-ming technique. The technique is very useful in producing whole components that would oth-erwise be made from multiple stampings joined together.

‘For example, a typical chassis component that would normally be made by pressing up to six channel sections and joining by spot welding can be hydroformed as a single part. Considerable savings are possible through

eliminating the fl anges (fl ange generally refer to the actual raised rim or lip of a fi tting) required for welding and using thinner steel. Yet, stiffness is maintained owing to the elimination of the dis-continuous spot-welded joints,’ remarked Sundararajan.

Integration of a number of parts into one also directly results in signifi cant reduction in the process stage and substantial savings in tooling costs.

On the other hand, TWBs are composed of two or more sheets of similar or dissimilar thickness, materials, and coatings that are welded together to produce a sin-gle sheet blank so that the best properties of steel are located exactly where they are needed within the part. This leads to weight reduction as fewer parts are used.

Moreover, in terms of per-formance, it leads to improved structural integrity with fewer dies, enhanced safety with fewer spot welds, reduced noise and vibration, greater corro-sion protection and improved dimensional accuracy. In terms of economic benefi ts to the OE, it accrues in reduced design and development time, lower manufacturing costs, optimal utilisation of material and less scrap. This makes the TWB tech-nology extremely attractive for automobile manufacturers.

Project ImplementationDuring implementation of the

project at ARCI, a specifi c compo-nent like the long member of an SUV that extends from the front-wheel to the back-wheel base of the vehicle was selected for hydroforming studies, while the inner door component of an SUV was selected for the TWB studies

to enable validation.In the TWB project, the tar-

get was to achieve a 4.2 kg weight reduction and elimination of one reinforcement element, keeping all the performance capabilities intact. Material combinations for the TWB were identifi ed based on the design requirements and verifi cation of process and tool by Finite Element Methods simulation. A laser welding sys-tem was commissioned at ARCI by procuring a 3.5 kW CO2 slab laser and integrating it with an existing four-axis CNC worksta-tion and a seam tracking system. Extensive welding studies were carried out and defect free welds were made.

During modelling, the meth-odology to handle variable thickness in TWB was evolved and forming limit strains of TWB were predicted. Simultaneously, simulation work was carried out to understand the weld line placement and movement, metal fl ow behaviour during forming and optimisation of die design by considering issues like die entry radius, and binder loads. Overall, the knowledge base required at various stages in TWB technolo-gy, like laser welding, modelling, simulation methodology and formability data was generated.

In the hydroforming project, a chassis long member component of an SUV was considered and dual phase steel that contains both – ductility to be shaped according to requirement, as well as strength was chosen for the component. The objective was to reduce 15 percent weight of the existing component.

Extensive modelling and sim-ulation work was carried out with a methodology for forming limit strains during hydroforming.

Tube hydroforming for various tube sizes was also simulated. After undertaking simulation studies, almost 4 kg weight sav-ings were estimated. However, as the component size was too large requiring a press of very high capacity, a three-piece component was taken and simu-lations repeated on it. The project drew inputs from existing laser welding expertise at ARCI, capa-bilities in the area of formability at IIT Bombay and full-scale sim-ulation competence by ProSIM, a company based in Bangalore.

Tata Motors and M&M under-took the design and practical aspects of the components. Tata Steel, who also supplied the steel sheets and tubes, provid-ed the materials know-how. The project relied on a combination of laboratory scale experiments, analysis for optimisation pur-poses, modelling studies and full-scale simulation using FEM techniques.

‘Actual component trials now need to be taken up based on the knowledge base generated. We are waiting for vehicle man-ufacturers to approach us for design and fabrication of dies for actual components,’ conclud-ed Padmanabham.

ARCI leading public-private-partnership... Contd. from P1

G Sundarrajan, Director, ARCI and Chairman, CAR Panel on Materials

G Padmanabhanam, Associate Director, ARCI

Page 28: Auto Monitor - 1-15 November 2010

Pankaj Tewari

‘Frugal Engineering’, now famously asso-ciated to Indian engineering capabil-

ity, thanks to the Tata Nano and Carlos Ghosn’s vocal admira-tion of the approach, has its deep roots in the unique ‘frugal’ mind-

set of Indians.It comes to Indians easily

on account of being habitual to a perpetual lack of adequate resources with respect to the population. In addition to being an Indian engineer, I had the good fortune of starting my career in a well-equipped design centre of a very progressive Indian com-pany. It was years later, while discussing product develop-ment programs with global customers that I realised the enormous value and uniqueness of the experience we had gained in our early years.

The grooming of an engineer to be ‘able to do more with less’ builds a strong foundation of a

frugal mindset. It forces uncon-ventional thinking – because most conventional product devel-opment leads to ‘doing less with

more’ (no risk approach). It also compels questioning all existing practices, products and systems.

A complete generation of young Indian design engineers, including myself, were used to

working as ‘super designers’, and many still do.

As a super designer – a design-er who is also expected to do

analysis, proto develop-ment, testing and ensure successful introduction of the part/product – one has the advantage of look-ing at the big picture all the time and allows for making adjustments on the prod-uct as a whole rather than in parts.

It is this ‘frugal mindset’ that enables effective ‘frugal engi-neering’. There are three main features of frugal engineering:

A) Products tailored to customer needs:

Clean sheet development of products that are very closely confi gured to meet the needs of the customer – and very lit-tle else. The emphasis here is on NOT having features that do not address the stated or unstated needs of the customer. Hence, a sound understanding of the cus-tomer’s stated and unstated needs is primary for frugal engineer-ing. The use of approaches like Ethnography, Quality Function Deployment, and Kano Analysis are some of the tools that aid in understanding customer needs.

B) Developing products cheaper:

This is the most popularly known aspect of frugal engineer-ing. Frugal engineering is defi ned as the science of breaking-up complex engineering processes into its basic components and then re-building each component in the most economical manner – it extends to use of most eco-nomical resources for product development. Off-shore product development in India and China attempts to leverage this aspect with partial success.

The key here is appropri-ate splitting of work. In our experience of off-shoring and multi-shoring between the US, India and China, we found that success of the model depends entirely on two things – com-munication (the more the better) and work breakdown (effective line-ups). There are methods of effective work breakdown that do not compromise on effi ciency and provide far higher benefi ts than originally envisaged. A 30 percent savings in product devel-opment costs and faster product development has been experi-enced by us.

C) Value Engineering: Value engineering is at the

heart of frugal engineering – a frugal product is one that is able to achieve the same function with bare minimum. We have experienced the value of using an evolved Value Engineering process (VEP). It is based on look-ing at a part/product from nine different aspects and generat-ing high impact ideas for quick implementation. Cost cutting to the extent of 20 percent, with-out compromising the value of the product has been achieved. For some clients this has resulted in multi-million-dollar savings due to the large annual volumes the product. This also involves a redesign-to-build approach, which also leverages low cost country manufacturing into the design.

Given the mindset and grooming of a section of Indian engineers, frugal engineering is a very high value and unique offer-ing that India has to offer to the global manufacturing compa-nies of the world.

[The author is Head, Eicher Engineering Solutions, Gurgaon. He heads the Indian Operations of the company and can be reached at [email protected]. EES is the engineering services business unit of VE Commercial Vehicles (A Volvo Group and Eicher Motors Joint Venture). Frugal engineering is one of the offerings of EES]

Auto Monitor28 1 - 15 November 2010

VIEWPOINTVIEWPOINT

Frugal Engineering has deep roots in Indian mindset

The use of approaches like Ethnography, Quality

Function Deployment, and Kano Analysis are of the tools to analyse customer needs.

Page 29: Auto Monitor - 1-15 November 2010

Auto Monitor 291 - 15 November 2010

CORPORATECORPORATE

Whereas, a detailed discussion on such an approach is beyond the scope of this article, in sum-mary, a profi t split approach aims at sharing the profi t in the over-all value chain in the relative contribution factor of each par-ticipating entity. This approach aims at fi rst remunerating the entity for routine functions and thereafter, the supernor-mal profi t which is attributable to the intellectual property is shared between the participat-ing entities in the relative ratio of their contribution. The tax pay-ers struggling with identifi cation of appropriate comparables for such transaction could consid-er the profi t split approach to benchmark this transaction.

4. Issues relating to marketing intangible

This is the recent controver-sy added on to the stable by the Indian revenue authorities. In recently concluded TP audits in India, the TP authorities have examined the marketing activ-ities and spending by Indian subsidiaries of multinational OEMs from the view point of developing local market intan-gibles that are legally owned by overseas parents or other affi li-ates. For instance, where the Indian entity undertakes sig-nifi cant marketing expenditure above the industry average or comparable levels, the Indian revenue authorities have sought to attribute the excess marketing spend towards development of marketing intangibles for which Indian entity should be ade-quately compensated.

In certain cases, the author-ities have imputed a cost reimbursement to be received by the Indian entity, and in other cases, they have simply disallowed the ‘excessive’ mar-

keting expenditure incurred by the Indian entity. In all such cases, the intention has been to compensate the Indian subsidi-ary for its contribution towards development of marketing intan-gibles locally.

Though the issue of creating marketing intangible is not spe-cifi c to any particular industry, this issue has also affected auto companies in India. Considering the industry dynamics which necessitate huge advertising and marketing spend, a number of auto companies have been subject to detailed scrutiny on this issue.

The Indian Revenue authorities are just adopting a single-minded approach on this issue without appreciating the nuances of the marketing philosophy, the differ-ences in the marketing needs of the company at different stages

of the lifecycle, etc. For exam-ple, a new entrant in the market may incur huge marketing spend so as to create awareness among the potential customers vis-à-vis an established player whose brand and products are known to potential customers.

Thus, in summary the issue of marketing intangi-bles is an emerging issue in the Indian scenario, which mer-its closer attention by the tax payers. The tax payers should clearly document the inter-com-pany arrangement especially with respect to advertising and marketing expenditure and the benefi ts derived there from. The tax payers also expect from the Indian revenue authorities to view this issue from a business and commercial perspective and not with the single-mind-ed approach of proposing a

transfer pricing adjustment by merely comparing the levels of marketing spend.

ConclusionThere are host of transfer pric-

ing issues, which the companies in the auto sector are grappling with. These issues need a rational approach on the part of revenue authorities so as to come to an amicable resolution. India, as a jurisdiction, is quite aggressive in transfer pricing litigation. The aggressive approach of rev-enue authorities resulting in prolonged transfer pricing liti-gation creates an uncertainty in the minds of foreign inves-tors, which could impact foreign investments in India. The tax payers thus, expect that the Indian revenue authorities eval-uate the transfer pricing issues with a broad mind set giving

due recognition to the econom-ic principles, while adjudicating on the arm’s length nature of the inter-company transactions.

At the same time, the tax payers should also adopt best practices to manage the transfer pricing risks. As a matter of best practices, the tax payers should document at the beginning itself as to how the transfer prices are set. They should establish a proc-ess that periodically reviews as to how pricing is actually done. Last, but not the least, the tax payers should maintain robust documentation with appropriate functional analysis and selection of comparables so as to mitigate the transfer pricing risk.

(Supported by Navneet Kothari, Senior Manager – PwC.

The author can be reached at [email protected])

Transfer Pricing issues in automotive industry Contd. from P14

decades. As a result the company now offers VW brand technology and build quali-ty at a signifi cantly lower price point than the VW brand in European markets.

‘One of the strategies appears to be to take equipment that was previously standard on the company’s Skoda models and put it on the options list. There appears to be some anxiety within the wider VW group that Skoda is competing too closely with the VW brand model in key markets, with Skoda having the advantage of signifi cantly lower price points for equivalent mod-els,’ said an IHS Global Insight’s Same Day Analysis report dated 13 October, 2010. But in India the strategy of de-contenting has never worked, except for BMW’s Corporate Edition.

Clearly the group and its Czech brand have some homework to do. The baffl ing uniqueness of the India paradigm has seen sev-eral OEMs in this position before. So as Skoda gears up to launch its new small car, the group must call its shots and identify if the sub-Fabia space is for VW at all. In the interim, both brands could do with a bit of tweaking of their ownership experience.

SkodaAuto India...

Contd. from P19

Page 30: Auto Monitor - 1-15 November 2010
Page 31: Auto Monitor - 1-15 November 2010
Page 32: Auto Monitor - 1-15 November 2010

C O R P O R AT E Auto Monitor 43

First in Business Wordwide

17-19 Feb, 2011 | NSE Ground, Goregaon, Mumbai

Concurrent Shows

Contact: Prachi +91 9820373804 or [email protected] or SMS HITECH to 51818

EnvisioningThe Future Of Manufacturing

360O

BR

EA

KTH

RO

UG

HIN

NO

VATI

ON

S

1

INNOVATIONSE iE i

SINGLELARGEST

CONVERGENCEE

Factories of Tech Future | Future Design | Business Strategies

PE

RS

PE

CTI

VE

For the first time in India, there an event that promises to deliver future solutions for the complete manufacturing & engineering industry. HiTech Manufacturing Show is a first of its kind event bringing the entire industry under one roof. With HiTech Manufacturing as a backdrop for the entire value chain, the show also has HiTech Material Handling and HiTech Automation as concurrent shows to complement

the growth process and future of the industry.

Page 33: Auto Monitor - 1-15 November 2010
Page 34: Auto Monitor - 1-15 November 2010

Auto Monitor34 1 - 15 November 2010

ANALYSISANALYSIS

Passenger Vehicles

Passenger Cars

OEMs 2009-10 2010-11

BMW 1,426 2,484

Fiat 12,893 11,863

Ford 13,346 46,377

GM 25,457 41,971

HM 3,711 4,234

HSCI 27,413 29,864

HMIL 144,151 172,181

MR 2,901 3,869

MSIL 359,910 441,899

Merc 1,492 2,654

Nissan 102 3,421

Skoda 7,713 8,504

Tata 82,866 130,075

TKM 4,592 5,232

Audi 956 1,545

VW 1,505 16,108

Total 690,434 922,281

74.19%

-7.99%

-2.91%

247.50%

64.87%

14.09%

8.94%

19.44%

33.37%

22.78%

77.88%

3253.92%

970.30%

10.26%

56.97%

13.94%

61.61%

35.39%

76.71%

36.51%

75.82%

184.26%

9.32%

76.66%

0.00%

69.06%

10.13%

49.32%

344.00%

276.47%

20.13%

41.71%

20.69%

33.58%

Cumulative passenger car sales grew by 33.58 percent in the April-September period of FY11 to touch 922,281 units as compared with 690,434 units in the previous fi scal. Utility Vehicle (UV) sales grew by 20.69 percent in FY11 to touch 154,372 units compared with 127,909 units notched up in the previous fi scal. Multi Purpose Vehicle (MPV) sales increased by 49.32 percent in FY11 to touch 99,865 units compared with 66,878 units in the previous fi scal.

Nissan registered highest growth rate in the passen-ger vehicle segment with 3253.92 percent to 3,421 units as compared with 102 units in the same period in the previous fi scal.

Cumulative Light Commercial Vehicle (LCV) sales grew by 26.9 percent in the April-September period of FY11 to touch 161,644 units as compared with 127,379 units sold in the same period in the previous fi scal.

Medium & Heavy Commercial Vehicle (M&HCV) sales grew by 61.59 percent in FY11 to touch 151,197 units compared with 93,566 units notched up in the previous fi scal. Three-wheeler sales increased by 19.87 percent in FY11 to touch 249,095 units as compared with 207,811 units in the previous fi scal.

Hindustan Motors notched up the highest growth rate in the LCV with 76.03 percent gain to touch 213 units this fi scal as compared with 121 units in the previous fi scal. Asia Motor Works notched up highest gain in M&HCV segment with 136.21 per-cent growth to touch 2,877 units as compared to 1,218 units in the corresponding part of the previous fi scal.

In the April-September period of FY11 cumulative Scooter/Scooterette sales grew to 974,494 units, from FY10 fi gure of 672,297 units, a growth of around 44.95 percent.

Motorcycles/StepThrough sales increased from 3,521,010 units in FY10 to touch 4,313,930 units in FY11, a growth of around 22.52 percent.

Moped/Electric Scooter sales increased from 277,127 units registered in FY10 to 337,882 units in FY11, a growth of around 21.92 percent.

Mahindra & Mahindra 2W notched up the highest growth rate in scooters segment this fi scal with more than 344.02 percent increase in volumes from 15,954 units in FY10 to 70,839 units in FY11. It was followed by Suzuki Motorcycles with 80.51 percent growth to touch 101,746 units as compared with 56,367 units in the previous fi scal.

Bajaj Auto notched up highest growth rate in motorcycles segment with 61.15 percent increase from 743,901 units in FY10 to 1,198,771 units this fi scal. It was closely followed by HMSI with a growth of 56.49 percent this fi scal from 212,640 units to touch 332,764 units. TVS Motors registered the high-est growth rate in mopeds/electric scooters segment with around 23.02 percent increase in volumes from 274,645 units in FY10 to 337,882 units in FY11.

MPV

OEMs 2009-10 2010-11

Force 0 30

Maruti 44,433 75,117

Tata 22,445 24,718

Total 66,878 99,865

Commercial Vehicles Two-Wheelers

LCVs (PC+GC)

OEMs 2009-10 2010-11

ALL 320 365

Force 4,658 7,713

HM 121 213

M&M 35,440 47,028

MNAL - 5,875

Piaggio 5,163 5,013

Swaraj 1,732 1,989

Tata 77,395 89,750

VECV - Eicher

2,550 3,698

Total 127,379 161,644

3 Wheelers (PC+GC)

OEMs 2009-10 2010-11

Atul 4,720 8,581

Bajaj 84,950 98,855

Force 814 135

M&M 20,751 28,665

Piaggio 86,099 94,197

Scooters 5,273 6,329

TVS 5,204 12,333

Total 207,811 249,095

M&HCVs (PC+GC)

OEMs 2009-10 2010-11

ALL 19,072 41,335

AMW 1,218 2,877

JCBL - 14

Daimler* - 49

MNAL - 51

Merc Benz

83 83

Swaraj 2,450 3,662

Tata 61,422 88,899

VECV - Eicher

8,606 13,539

VECV - Volvo

432 470

Volvo Buses

283 218

Total 93,566 151,197

Scooter/Scooterettee

OEMs 2009-10 2010-11

BAL 2,909 27

HHML 99,519 149,865

HMSI 348,883 440,794

M&M 2W

15,954 70,839

SMIL 56,367 101,746

TVS 148,665 211,223

Total 672,297 974,494

Mopeds/Electric

OEMs 2009-10 2010-11

TVS 274,645 337,882

Electr-otherm*

2,482 NA

Total 277,127 337,882

Motorcycles/StepThrough

OEMs 2009-10 2010-11

BAL 743,901 1,198,771

HHML 2,154,783 2,305,198

HMSI 212,640 332,764

IYM 113,168 125,336

RE 25,455 23,964

SMIL 22,996 18,467

TVS 248,067 309,430

Total 3,521,010 4,313,930

* Data not available since August 2008 onwards

UV

OEMs 2009-10 2010-11

BMW 320 190

Force 2,826 3,826

Ford 863 1,525

GM 7,203 9,833

HM 765 1,345

HSCI 108 307

HMIL 12 -

ICML 595 380

M&M 73,430 80,274

MSIL 2,155 3,807

Merc 50 222

Nissan 68 256

Tata 16,629 19,976

TKM 22,885 32,431

Total 127,909 154,372

-40.63%

-22.97%-100.00%

-36.13%

-83.42%

116.73%

136.21%

0.00%

0.00%

0.00%

0.00%

49.47%

44.73%

57.32%

8.80%

61.59%

14.06%

65.59%

76.03%

32.70%

0.00%

14.84%

15.96%

45.02%50.59%

26.90%

81.80%

16.37%

38.14%

9.41%

20.03%136.99%

19.87%

26.34%

344.02%

80.51%

61.15%

6.98%

56.49%

10.75%

-5.86%

-19.69%

24.74%

23.02%

0.00%

21.92%

22.52%

42.08%

44.95%

-99.07%

Page 35: Auto Monitor - 1-15 November 2010

Auto Monitor 351 - 15 November 2010

CORPORATECORPORATE

the top 15 countries globally in the concept prototyping to deliv-ery stage,’ elaborated Mohamed.

The Australian automo-tive market accounts for about one million vehicles per annum, of which local production is limited to 320,000 vehicles annu-ally. The rest is imported. Of this, 50 percent are export-ed to the Middle East and New Zealand. General Motors, Ford and Toyota are the major play-ers with manufacturing bases in Australia. A handful of Mahindra Bolero SUVs are also import-ed into Australia, but under a different name.

M&M plans to commence exports of its Scorpio SUV fi tted with the automatic transmis-sion to Australia by early next

year. Nissan Micra cars are also expected to fi nd their way into Australia from India, in addi-tion to the Hyundai i20, which is being shipped from India to the Australian market.

‘The import duty has become only fi ve percent for passen-ger cars from January this year compared to 10 percent earlier,’ explained Mohamed. This has made Australia an attractive export destination for several carmakers located in the South East Asian countries like China, India, and Thailand.

The Australian market mean-while has traditionally been a market for large cars but now with concerns for the carbon footprint and conventional fuels rising, consumer preferences have been morphing in favour

of a smaller car. India’s devel-oping status as a small car hub has further tilted the Australian scales in preference for India, boosted by individual relation-ships shared by carmakers with the Australian Government.

In the component manufac-turing space, there are about 200 Australian suppliers includ-ing domestic and international manufacturers. Of these, some 70-75 local companies are at various stages of the busi-ness cycle in their engagement with the Indian market. These span suppliers of OE fi tments, performance parts for the after-market and suppliers of motor sports components like engine tuning and suspension systems, besides high performance lights for the aftermarket.

Australian companies enter... Contd. from P16

the rider maintain the stability of the motorcy-cle in different weather conditions.

Bosch fi rst introduced the ABS technology for motor-cycles in 1994 – ‘ABS 2L1’ (SECU) weighing around 4.5 kg, which came down to around 2.6 kg by the time the next generation ABS 5M (AECU) was introduced by Bosch in 1999. The weight of the third generation ABS for motorcycle application – ‘ABS 8M’ (AECU) was fur-ther reduced to 1.4 kg, when it was introduced in 2005. The latest ninth generation ABS has been launched with two versions including a high end eCBS (elec-tro-hydraulic Combined Brake System) enabled ABS 9ME weigh-ing around 1.7 kg and a base version weighing around 0.7 kg.

Lower Mass AcceptanceLatest estimates by the compa-

ny suggest that ABS installation in motorcycle with less than

250 cc displacement capacity is less than one percent for a total annual production of 52.5 mil-lion in 2010. The ABS installation base is at a much higher level of 16 percent in 1.7 million motorcy-cles with displacement capacity higher than 250 cc manufactured in 2010.

The ABS installation base in motorcycle is highest in Europe with close to 36 percent in 250 cc & above displacement capac-

ity segment and around three per-cent in the below 250 cc segment. North America and Japan also have a size-able installation of ABS in motorcycles at close to 24 and 21 percent respec-tively in 250 cc and above displacement capacity.

‘We are very optimistic on the acceptability of ABS by OEMs in India as it is an essential

safety feature in high powered low displacement bikes available in India,’ said Regional President – India, Bosch Chassis Systems India, Andreas Berg.

He added that the low penetra-tion and increasing sophistication of motorcycles sold in India as compared to China, the largest motorcycle market in the world, gives immense scope for devel-opment and local manufacturing of ABS for motorcycles.

Bosch lines up aggressive... Contd. from P26

Anti-Skid Braking module, designed, developed and manufac-tured by Bosch

Our Bureau Mumbai

Piaggio Vehicles (PVPL) recently infused much needed competition in

the small commercial vehicle segment with the launch of a four-wheeled goods carrier ‘apé mini’ priced at `1.73 lakh (ex show-room, Pune) pitching it directly against M&M’s Gio.

The apé mini is powered by a 441 cc engine with payload of around 500 kg, making it suit-able for a range of applications. The company’s current range of three-wheelers is powered by 0.4 litre diesel engines. A passenger carrier version and a CNG vari-ant of the apé mini are likely to follow from Piaggio’s stable in the coming months.

‘The apé mini is a timely addi-tion to our portfolio and will provide us with a crucial miss-ing link in the offering for small traders as well as captive goods

transportation segment,’ said Managing Director, Piaggio Vehicles, Ravi Chopra.

He added that there was a major gap in the market with no goods carrier available below `2 lakh until M&M’s Gio launch but there is still ample space in the segment for more players to offer products in the ̀ 1.5-2.5 lakh range. He added that alternative fuel options and wider availa-bility of three and four wheeled goods carriers will further aid in growing economic momen-tum across the Tier II and Tier III towns and cities.

Strong SCV Growth The average monthly volume

of ‘small commercial vehicle’ is around 14,000 units per month and growing at around 20-22 percent month on month. ‘We have been facing manufactur-ing constraints in terms of being able to meet the market demand even with limited availability of

Gio across the country. It will take a couple of months before we can have a nationwide launch and availability for the Gio and the Maxximo (priced at around

`2.3 lakh),’ said Senior Vice President, Sales & Customer Care, Mahindra & Mahindra, Arun Malhotra.

Malhotra added that the

value proposition with smaller-sized commercial vehicles has to be very clear in addition to wider availability and service network. These factors are likely to act as a major barrier to entry for players seeking an entry into the segment.

To meet that very require-ment, PVPL is planning to expand the existing dealership network by around 50-60 new dealers over the next one year. It currently has a network of 760 touch points, including exclu-sive dealers and service centres across the country.

PVPL sold 18,670 units for the month of August 2010, resulting in a year on year growth of 5.24 percent, while the company’s cumulative sales stood at 80,016 units. It three-wheeler sales for the month of August 2010 stood at 17,964 units, a growth of seven percent. The cumulative three-wheeler sales up to August 2010 stood at 76,131 units.

Piaggio Vehicles launches Ape Mini, passenger variant expected soon

Ravi Chopra, Managing Director, Piaggio Vehicles

Page 36: Auto Monitor - 1-15 November 2010

Your to generating keynew business opportunities

14 - 16 March 2011

Dubai International Convention and Exhibition Centre | UAE

Exhibit at the region’s exclusive showcase for

Commercial Vehicles, Parts & Services

www.commvehicles.com

Strengthen your foothold in the market and build business opportunities at the region’s only specialised event for all types of commercial vehicles, parts and services. Commercial Vehicles Middle East provides the platform for the largest annual gathering of transport, fleet and logistics decision makers from regional commercial enterprises and procurement officials from the region's transportation departments.

wwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwww.ccccccccccccccccccccooooooooooooooooooooooooooooooooooooooooooooooooooommmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvveeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeehhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiccccccccccccccccccccccccccccccccccccccccccccccccccccccccllllllllllllllllllllllllllllllllllllllllllleeeeeeeeeeeeeeeeeessssssssssssssssssssssssssssss.cccccccccccccccccccccccccccooooooooooooooooooooooooooommmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm

Organised by:Streamline Marketing GroupPO Box: 62440, Dubai, UAE

To find out more, please contact:

Tel: +971 4 447 5357 | Fax: +971 4 447 5334 | Email: [email protected]

Page 37: Auto Monitor - 1-15 November 2010

Auto Monitor 371 - 15 November 2010

CORPORATECORPORATE

China insist on suppliers hav-ing some local presence in China and we are working towards that. We have got positive feed-back from potential customers in China and are evaluating the most suitable option to estab-lish a presence, including a joint venture with a local component supplier. But we are yet to decide on an entry strategy,’ said a company offi cial on the condi-tion of anoymity.

The company is also debottle-necking and expanding existing capacities for domestic and export markets in the light of robust demand from the domestic mar-ket. By the middle of next year, the company would be manu-facturing and supplying around 1.1 million camshafts per month including 850,000 to 900,000 units for the domestic customers and another 200,000 to 250,000 cam-

shafts per month for exports. Jain expects further pick up

in domestic and export volumes by the middle of next year and is looking to establish a fourth foundry and assembling facility to meet the additional require-ment for 300,000 to 350,000 units by middle of next year.

The company had set up an additional foundry early this year taking its total installed manufacturing capacity for cam-shafts to around 900,000 units. Another new facility with capac-ity of around 300,000 per month has come on stream few months back. The existing facilities are expanded to cater to additional requirements in the backdrop of growing demand. Currently, the company is working at close to 95 percent capacity utilisation and has received additional orders for existing and newer car plat-forms – most notably from GM,

Tata Motors and Hyundai for their Indian and global requirements. It has also begun exporting to newer markets in Eastern Europe and Uzbekistan, leveraging its existing relationship with customers.

The company is a single source supplier to Tata Motors, Mahindra & Mahindra and Hyundai in India. The company is hoping to take around 15 percent of the glo-bal camshafts market by FY11 by churning out close to a mil-lion camshafts of different sizes every month. The company man-ufactures camshafts using chilled casting process with manufactur-ers like Southern Auto Castings in Chennai and Mahle in Pithampur as its competitors.

The company notched turno-ver of around `160 crore last fi scal compared to `125 crore in the previous fi scal. The company has around 85 percent share in the domestic camshafts market.

Precision Camshafts looking to... Contd. from P1

Bajaj Auto (BAL) and India Yamaha Motors (IYM) recent-

ly launched new variants of their popular motorcycles, ahead of the festive season.

BAL added metallic orange col-our on its Pulsar range, across the Pulsar 180 cc, 220 cc and 220F cc variants. The domestic volumes in for Pulsar in Q2FY11 stood at 67,468 units, up 56 percent over the same period last year and outperforming the market aver-

age of around 32 percent in the premium segment, according to a company release.

IYM, on the other hand, announced the launch of FZ series limited edition bikes under the Midnight Special version. The new version sports rich and smart graphics, and will be avail-able in an all black colour concept with golden alloy wheel. Yamaha will produce only 1,000 units of each of FZ, FZ-S and Fazer mod-els and the aluminium plate on the fuel tank will bear the vehicle serial number (1-1000) to make

the bike look as exclusive as the customer himself, claimed a com-pany release. The limited edition Fazer, FZ-S and FZ16 models will be available at ex-Delhi prices of `74,500, `69,500 and `67,500 respectively.

Bajaj, Yamaha launch new variants

Ashok Leyland, the fl agship company of the Hinduja

Group has appointed Dheeraj G Hinduja as its Chairman, who has taken over the reins from RJ Shahaney, who was Chairman of the Company since August 1997. Co-Chairman of the company for the past three years, Dheeraj G Hinduja is a third-generation member of the Hinduja fam-ily. He has over a dozen years’ experience at strategic and lead-ership levels covering a wide variety of businesses across diverse sectors such as auto-motive, energy, infrastructure, fi nance and banking, IT and ITes, media and healthcare, a company statement stated.

Ashok Leyland gets new Chairman

Page 38: Auto Monitor - 1-15 November 2010
Page 39: Auto Monitor - 1-15 November 2010

Auto Monitor 39GLOBAL WATCHGLOBAL WATCH

1 - 15 November 2010

Booming auto sales in China have spurred manufactur-ers to step up production

so fast that concerns over ‘blind investment’ and overcapacity in the sector are emerging, analysts told AFP. China’s auto market overtook the United States in 2009 as the world’s largest and will remain so this year with up to 17 million vehicles expected to be sold.

Analysts believe the Chinese market potential remains huge in the world’s most populous nation as the percentage of people own-ing cars is still relatively low. Sales in 2010 are expected to increase by between 25-30 percent, after a massive 46 percent surge last year, as an emerging middle class

snaps up cars along with other consumer status symbols.

At this stage, the international joint ventures in China just don’t have enough capacity to build all the cars they could sell, AFP quot-ed Klaus Paur of TNS Research International as saying. ‘Much of the current growth was coming from China’s inland provinces where the potential for auto sales is the biggest,’ he said.

To meet the rising demand, for-eign automakers last year began announcing plans to increase their production capacity.

While gearing up to open its 10th factory in China this year, German auto giant Volkswagen also announced it will open an 11th production facility in 2013.

PSA Peugeot Citroen will boost production capacity at its joint venture plant with Dongfeng from 450,000 units to 750,000 units, while also setting up a second joint venture plant with Chinese auto-maker Chang’an in Shenzhen. Since the beginning of last year, Nissan, Toyota, BMW, Hyundai, the Chinese automaker FAW and others have all announced plans to build new factories.

Negative Market Competitiveness

Local provinces and cities are also adopting numerous initia-tives to encourage the expansion of production facilities. But the pace of investment in car pro-duction has raised concerns by

the National Development and Reform Commission (NDRC), China’s powerful economic planning agency. ‘Serious over-production capacity will lead to negative market competi-tiveness, a loss in enterprise effi ciency, factory stoppages and other problems,’ a leading com-mission offi cial, Chen Bin told the National Business Daily while warning of ‘blind investment’ in the sector.

Production capacity of 31 mil-lion vehicles projected for 2015 by 30 major manufacturers is nearly double current capacity, but remains lower than the total capacity projected by China’s regional governments, the com-mission said.

Paur, meanwhile, raised con-cerns that there will be too much capacity in two or three years ‘because the market may be slowing down’. Projecting mar-ket trends is always diffi cult for auto makers who often need up to two years to build new plants, he added.

Market analyst, JD Power, John Zeng on the other hand said this is not the fi rst time the Government was making such an alert. This happens every three to four years, he said. He believes OEMs are paying attention to market swings and will readjust their investment if necessary, adding that announced increases in production capacity were not always realised.

Overcapacity concerns as Chinese OEMs plan increased production

German luxury carmaker Porsche has said its planned

absorption into Volkswagen by the end of next year, may not materi-alise due to some unresolved legal and tax issues related to the deal.

Reuters reported that the company plans to carry out a €5 billion capital increase between January and June 2011 and will ask shareholders at its annual general meeting on 30 November to approve issuing up to 1.25 bil-lion new shares for each of its two classes of stock. Mid-October, Porsche unveiled preliminary results that showed its majority-owned sports car business drove in a near-unheard of 23 percent operating margin during the fi s-cal fourth quarter. Earlier, Chief Executive Officer, Volkswagen, Martin Winterkorn too hinted he may put on hold a combination with Porsche to fi rst resolve US lawsuits and German tax disputes. ‘The legal proceedings may drag on for some time to come until a fi nal decision is reached. For that reason, the planned merger could possibly be delayed,’ Winterkorn, also CEO of Porsche’s holding company, said.

It was in August 2009 that VW had agreed to join with Porsche after the sports carmaker’s debt tripled to more than €10 billion ($14 billion) following a failed bid to buy Europe’s largest carmaker by securing stock through options trading. VW has since purchased 49.9 percent of Porsche’s operat-ing unit for €3.9 billion, setting the stage for a merger in 2011. Porsche is being sued by US-based short sellers of VW stock who claim the COMAPNY secretly cornered the market in VW shares and later caused them more than $1 bil-lion in losses. VW’s merger with Porsche is also being hampered by negotiations with German tax authorities over the tax-exempt status of profi ts from Porsche’s options transactions.

As part of the original deal, VW also has the option to pay cash for the remaining stake in Porsche’s automobile operations without merging with the holding com-pany. Under this scenario, the holding company would contin-ue to manage Porsche’s VW stake and be legally responsible for the pending US litigation.

Porsche, VW integration faces delay

Page 40: Auto Monitor - 1-15 November 2010

Auto Monitor40GLOBAL WATCHGLOBAL WATCH

1 - 15 November 2010

Global major, Continental of Germany has devel-oped a system that offers,

with a push of a button, a sports car, eco-friendly car and more conventional car – all in one. Each pre-configured mode setting changes the driving dynamics of the car, as well as the look and feel of the interior.

Continental’s technology represents the continued incor-poration of electronics in today’s vehicles, a trend being high-lighted at the recent Society of Automotive Engineers Convergence 2010 conference at Cobo Center in Detroit.

At Continental, the new feature called ‘Simplify Your

Drive’ is being demonstrated in a Volkswagen Passat. It was

shown recently to reporters at the supplier’s US headquarters

in Auburn Hills, and is being demonstrated to prospective cli-

ents before it returns to Germany in November.

Development began about two years ago, said Senior Manager, Business Development for Interior Electronics Solutions, Continental, Javier Gonzalez. The idea of pushing a button and hav-ing the car make the adjustments came from digital cameras, Gonzalez said. The user picks a setting, and the camera makes the changes, he said.

Each of the three car modes has different engine and trans-mission settings and markedly distinctive instrument clusters as well as centre console graph-ics and information, said Senior Manager, Systems Projects, Continental, Stephan Wetzel. In the ‘Comfort’ mode, the transmission shifts early for a smoother, quieter ride. The chassis, accelerator and steering wheel are set for a softer, more cushioned response. The gauges and ambient lighting are a sooth-ing blue. There is even a message suggesting the driver buy fl owers for someone nice.

In the ‘Eco’ setting, displays are in green, and there are sever-al adjustments to save fuel. Gears shift early to get to higher gears; an engine inhibitor reduces avail-able horsepower from 300 on the demo vehicle to 180. The car is lowered slightly for better aero-dynamics, and there’s increased resistance on the accelerator pedal to deter a lead foot.

The eco-friendly driver’s behaviour is reinforced by a green ‘magic eye’ that grows larger on the screen with care-ful driving. To provide a further incentive for continued prudent driving, the leaves of a cloverleaf are coloured in.

At the other end of the spec-trum, the ‘Sport’ profile is designed to deliver performance for the more aggressive driver. The setting releases the full power of the engine, the car shifts later and closer to redline, and the bright red gauges mimic the gauges on a Formula One car – even measur-ing the G-forces on each turn.

The feature is a logical exten-sion of systems already on some vehicles today. There are luxury cars that offer a sport mode for a more spirited drive, hybrids with an eco-friendly setting and vehi-cles able to alter the response to different terrains such as snow or mud.

The trick is making the system easy to use and ensuring each mode feels noticeably differ-ent and is effective, Brinley said, as opposed to being a jack of all trades but master of none.

India Inc. Spearheading Ecological Balance Participate in the Siemens EcovativesTM Awards 2010

Corporate India has been making its mark in the global market. Now, it aims to make another, very positive

one, on the environment. Maintaining ecological balance is high on its agenda and India Inc. is willing to

walk that extra mile to achieve it.

If you believe that your company has deployed innovative processes to ensure a positive impact on the

environment, please nominate for the Siemens EcovativesTM Awards 2010.

Visit http://ibnlive.in.com/siemensecovatives/ to participate and let the world know of the change that

you managed to bring. Your effort will go a long way in inspiring others.

Last Date for Nomination 25th October 2010.

In Association with Process Advisors

Continental creates ‘Simplify Your Drive’ technology

Page 41: Auto Monitor - 1-15 November 2010

Auto Monitor 411 - 15 November 2010

CLASSIFIEDCLASSIFIED

Feel the pulse of the trade

India’s No. 1 Magazine for Automotive News, Views & AnalysisAuto Monitor

Aftermarket

Retail

Sales &

Service

Dealer

Network

Spare Parts

SUBSCRIBE NOW

India’s No. 1 Magazine for Automotive News, Views & AnalysisAuto Monitor

Auto Monitor is an ideal medium

to advertise.

You can reach to the

right audience through

the vast reader-base of

Auto Monitor.

India’s No. 1 Magazine for Automotive News, Views & AnalysisAuto Monitor

9920401226 | www.engg-expo.com

PUNE-19-22 NOV 2010Venue: Auto Cluster Exhibition Centre,

Pimpri - Chinchwad Industrial Area

THE WAY I DO AT

VISIT, EXPERIENCE, GROW BUSINESS

Page 42: Auto Monitor - 1-15 November 2010

Automation & Drives

Efficient Manufacturing

Page 43: Auto Monitor - 1-15 November 2010

Auto Monitor 431 - 15 November 2010

ADVERTISERS’ LISTADVERTISERS’ LIST

Pg No....... Advertiser ..........................................................................Tel ..........................................E-mail ..............................................................Website

30 ............ ADEA-Automotive Dealership Excellence Awards ..............+91-22-30034650...................prachi.mutha@infomedia18.in

11 ............ Assab Sripad Steels Ltd ......................................................+91-44 24951980 [email protected] ..............................www.assabsripad.com

37 ............ Atlas Copco (India) Ltd .......................................................+91-20-30722222 [email protected] ............................www.atlascopco.com

6 .............. Auroral Sinter Metals Co., Ltd. ...........................................+886-37-542-988 [email protected] .............................www.auroral-sinter.com.tw

25 ............ Birla Tyres .........................................................................+91-33-22814717 ...................advt@birlatyre.com.........................................www.birlatyre.com

38 ............ CII ......................................................................................+91-44-42444555 [email protected] ............................................www.ciiautoserve.in

9 .............. Coatec India ......................................................................+91-160-2648700 .................. [email protected] .....................................www.coatecindia.com

16 ............ DB Schenker Logistics................................................................................................................................................................................www.dbschenker.com

12 ............ Dynascan Inspection Systems Co .......................................+91-80-41102747 [email protected] ........................................www.dynascan.info

1,4,20,26 . Engineering Expo ..............................................................+91-9920401226....................engexpo@infomedia18.in ...............................www.engg-expo.com

17 ............ Forging Machinery Manufacturing Co ...............................+91-161-5011755 ................... [email protected] ..................................www.nkhhammers.com

29 ............ G W Precision Tools India Pvt Ltd ......................................+91-80-40431252 .................. [email protected] ..............................................www.gwindia.in

BC ............ G S Auto International Ltd .................................................+91-161-2511001 [email protected] ..................................www.gsgroupindia.com

BIC ........... Guhring India Private Limited ...........................................+91-80-40322500 .................. [email protected] .............................................www.guhring.in

5 .............. Haas Automation India Pvt Ltd .........................................+91-20-32935433 [email protected] ......................................www.HaasCNC.com

32 ............ Hitech Manufacturing Show ..............................................+91-9820373804 [email protected] ...................................

12 ............ Igus India Pvt Ltd ..............................................................+91-80-39127800 .................. [email protected] ....................................................www.igus.in

39 ............ Indian Machine Tool Manufactures’ Association ...............+91-80-66246600 ..................bala@imtma.in................................................www.imtex.in

19 ............ ISMT Limited .....................................................................+91-20-66024901 [email protected] ...................................www.ismt.com

23 ............ Jyoti CNC Automation ........................................................+91-2827-287081 ................... [email protected] ...............................................www.jyoti.co.in

41 ............ Klipco Pvt Ltd ....................................................................+91-22-28684221 [email protected] .........................................www.klipcohoseclamps.com

7 .............. Lanxess India Pvt.Ltd. .......................................................+91-22-21729200 ............................................................................................www.lanxess.in

3 .............. M And M Auto Indus Ltd ....................................................+91-124-4763200 [email protected] ......................www.mandmsprings.com

27 ............ Marks Pryor Marketing Technology ...................................+91-20-66743300 .................. [email protected] .....................................www.markspryor.com

21 ............ Micromatic Machine Tools .................................................+91-80-41492285 [email protected] ..........................www.acemicromatic.com

35 ............ Norka Instruments (Shanghai) Co., Ltd. .............................+86-21-5032-7099 [email protected] ................................www.afa-tech.com.cn

FIC ........... Oetiker India Pvt Ltd .........................................................+91-2192-250107 [email protected] ...................................www.oetiker.com

15 ............ Padmini VNA Mechatronics Pvt. Ltd..................................+91-124-3207398 [email protected] ................................www.padminivna.com

24 ............ Plexium International .......................................................+91-20-26650219 ................... [email protected] ..................................www.autoplas.in

33 ............ Siemens Product Lifecycle Managemen ............................+91-124-4092244...................sundaram.mallik@ugs.com .............................www.siemens.com/plm

41 ............ Sreelakshmi Traders ..........................................................+91-44-24343343................... [email protected] ......................www.sreelakshmitraders.com

36 ............ Streamline Marketing Group .............................................+971-444-75357 ....................mail@commvehicles.com................................www.commvehicles.com

22 ............ Tata Motors Ltd. ................................................................+91-22-66561820 ............................................................................................www.prima.tatamotors.com

8 .............. Tech-Cast Mfg. Corp. .........................................................+886-5-591-6351 [email protected] ...................................www.techcast.com.tw

31 ............ Tvs Srichakra Limited ........................................................+91-4522-420461 [email protected] ..............................www.tvstyres.com

42 ............ Ultima Media Ltd ...............................................................+44 (0)20 8987 0902 [email protected] ......www.automotivelogisticsindia.com

40 ............ Web 18 Software Services Ltd. ...................................................................................................................................................................http://ibnlive.in.com/siemensecovatives

13 ............ Yamazaki Mazak India Pvt Ltd ..........................................+91-20-27351417 [email protected] ................www.mazak.com

Our consistent advertisers FIC : Front Inside Cover, BIC : Back Inside Cover, BC: Back cover

COMPLETE ENGINEERING UNDER ONE ROOF @

www.engg-expo.com

Page 44: Auto Monitor - 1-15 November 2010

Auto Monitor44 1 - 15 November 2010

PRODUCT INDEXPRODUCT INDEX

Product ..................................................................................................................... pg no.

Accelerated pedal sensor accessories ..........................................................................................15

ADEA-Automotive Dealership Excellence Awards ........................................................................30

AMS India Conference ..................................................................................................................42

Auto Parts ....................................................................................................................................17,BC

Auto Serve 2010 ...........................................................................................................................38

Automation ..................................................................................................................................9

Automobile Parts .........................................................................................................................6

Autoplas 2010 ...............................................................................................................................24

Axles .............................................................................................................................................BC

Bearings .......................................................................................................................................12

Billet Shearing Machines ..............................................................................................................17

Bolts .............................................................................................................................................BC

Building Automation ....................................................................................................................9

Cable Carriers ...............................................................................................................................12

Cable Connectors .........................................................................................................................12

CAD/CAM ......................................................................................................................................33

Camera .........................................................................................................................................8

Castings Forgings .........................................................................................................................17

CED Coating Machines ..................................................................................................................9

C-Frame Power Press ....................................................................................................................17

Chains ...........................................................................................................................................12

Chemlok Coating Machines ..........................................................................................................9

Clamps ..........................................................................................................................................FIC

CNC ...............................................................................................................................................5,23

CNC Cutting Machines ..................................................................................................................9

CNC HMCS .....................................................................................................................................23

CNC Laser Cutting Machines .........................................................................................................9

CNC Lathes ...................................................................................................................................21

CNC Machines ...............................................................................................................................23

CNC Oval Turning Centers .............................................................................................................23

CNC Oxy Fuel Cutting Machines....................................................................................................9

CNC Plasma Cutting Machines ......................................................................................................9

CNC Turn Mill Centers ...................................................................................................................23

CNC Turning Center ......................................................................................................................23

CNC Vertical Machining Center .....................................................................................................23

CNC/VMC Machines ......................................................................................................................13

Coating Machines .........................................................................................................................9

Coating Plants ..............................................................................................................................9

Coating Systems ............................................................................................................................9

Commercial Vehicles ....................................................................................................................22

Commerical Vehicles- Middle East ...............................................................................................36

Compression Springs ....................................................................................................................3

Compressor ..................................................................................................................................37

Connectors ...................................................................................................................................12

Countersinks ................................................................................................................................BIC

Cutting Machines..........................................................................................................................9

Cylindrical Grinders ......................................................................................................................21

Diamond Tools .............................................................................................................................BIC

Dip Spin Coating Machines ...........................................................................................................9

Drilling Tools ................................................................................................................................BIC

DVR...............................................................................................................................................8

EGR Valve .....................................................................................................................................15

Electronic Control Unit .................................................................................................................15

Engineering Expo .........................................................................................................................1

Ex Series .......................................................................................................................................23

Exhibition - Hi Tech Manufacturing Show ....................................................................................32

Exhibition-Imtex 2011 ..................................................................................................................39

Exhibition-Tooltech 2011 .............................................................................................................39

Extension Springs .........................................................................................................................3

Factory Automation .....................................................................................................................9

Fluidised Bed Coating Machines. .................................................................................................9

Forging Press ................................................................................................................................17

Friction Drop Hammers ...............................................................................................................17

Friction Screw Press .....................................................................................................................17

Front Axles ...................................................................................................................................BC

Product ..................................................................................................................... pg no.

Glide Coating Machines ................................................................................................................9

Gun Drills .....................................................................................................................................BIC

H Frame Power Press ...................................................................................................................17

Hammers ......................................................................................................................................17

Hollow Bars ..................................................................................................................................19

Horizontal CNC Machines .............................................................................................................23

Horizontal Machining Center .......................................................................................................5,23

Hose Clamp ..................................................................................................................................41

Imaging & Vision Systems ............................................................................................................9

Kx Series .......................................................................................................................................23

Kxg Series .....................................................................................................................................23

Lathes ...........................................................................................................................................5

Logistics ........................................................................................................................................16

Machinery Steel ............................................................................................................................11

Marking Solutions ........................................................................................................................27

Metal Cutting Tools ......................................................................................................................29

Milling Centres .............................................................................................................................5

Milling Cutters ..............................................................................................................................BIC

Modular Tooling System ...............................................................................................................BIC

Mx Series ......................................................................................................................................23

Nuts ..............................................................................................................................................BC

Nx Series .......................................................................................................................................23

Paint Shop Equipments ................................................................................................................9

Paint Shop Machines ....................................................................................................................9

Parking Sensor .............................................................................................................................8

Powder Matallergy Products ........................................................................................................6

Power Chucking Cylinders ............................................................................................................21

Pre-treatment Systems .................................................................................................................9

Profi le Projectors .........................................................................................................................12

Quality Steel .................................................................................................................................11

Reamers .......................................................................................................................................BIC

Rear Axles .....................................................................................................................................BC

Roatry ...........................................................................................................................................5

SCADA & DCS Implementation .....................................................................................................9

Self Adhesive Tapes ......................................................................................................................41

Solid Carbide Drills .......................................................................................................................29

Solid Carbide Drills With IC ..........................................................................................................29

Solid Carbide Mills ........................................................................................................................29

Solid Carbide Reamers .................................................................................................................29

Solid Carbide Reamers With IC .....................................................................................................29

Solid Carbide Special Drills ..........................................................................................................29

Solid Carbide Special Mills ...........................................................................................................29

Solid Carbide Special Reamers .....................................................................................................29

Speciality Chemicals .....................................................................................................................7

Stainless Steel Gear Parts .............................................................................................................6

Strip Steel .....................................................................................................................................11

Sx Series .......................................................................................................................................23

Taps ..............................................................................................................................................BIC

Testing Machine ...........................................................................................................................35

Tool Bits .......................................................................................................................................11

Tool Steel ......................................................................................................................................11

Torsion Springs .............................................................................................................................3

Transmission Gears ......................................................................................................................6

Truck Tyres ...................................................................................................................................25

Turrets ..........................................................................................................................................21

Two Wheeler Tyres........................................................................................................................25

Tyres .............................................................................................................................................25, 31

Vaccum Pump ..............................................................................................................................15

Ventilators ....................................................................................................................................41

Vertical Line Series .......................................................................................................................23

Vertical Machining Center ............................................................................................................5, 21

VMC-Linear Series .........................................................................................................................23

Wire Forms ...................................................................................................................................3

Wireless ........................................................................................................................................8

FIC : Front Inside Cover BIC : Back Inside Cover BC: Back cover

FINALISE SUPPLIERS @www.engg-expo.com

Page 45: Auto Monitor - 1-15 November 2010

Auto Monitor 45GLOBAL WATCHGLOBAL WATCH

1 - 15 November 2010

Hyundai Motor forms CV venture in ChinaSouth Korea’s largest automaker, Hyundai Motor, plans to form a 500 billion won

($443 million) venture with Ziyang Nanjun Automobile in China next year to expand its marketshare in the world’s biggest auto market. An agreement to form a partnership was recently signed to build commercial vehicles, in which each will have a 50 percent share, Hyundai said in an e-mailed statement. The venture will take over Ziyang’s CV opera-tion, which has annual output capacity of 120,000 vehicles. It will target 90,000 heavy truck and bus sales in China next year, rising to 300,000 in 2015, the statement said. Sales of trucks and buses in China is expected to reach 4.5 million units this year and may total 5.5 million in 2015, led by development in inland regions, Hyundai said.

Toyota to make Prius in Thailand Global market leader, Toyota Motor, announced its plans to start producing its Prius

hybrid in Thailand in November this year — the auto maker’s latest move to expand production overseas as the strong yen bites into profi t. The plan to begin making the Prius at a plant near Bangkok marks the fi rst time Toyota’s fl agship hybrid will be mass produced outside of Japan, where the company produced around 400,000 of the cars last year. Toyota makes a small number of Prius models in China, but doesn’t mass produce the car in China and assembles the vehicles using components from Japan. The Thailand

plan is part of the company’s efforts to sell one million hybrid vehicles in the coming decade. Toyota aims to sell at least 700,000 hybrids this year world-wide.

China targets one million electric cars a year by 2020A recent report from State news agency, Xinhua, said China’s annual output of elec-

tric vehicles with lithium-ion batteries is expected to reach one million units by 2020. The Ministry of Science and Technology will shortly issue a new policy framework for 2011-2015 to help boost production, and the Government aims to spend 100bn yuan ($15 billion) over the next 10 years to support the fl edgling industry. China already has a pilot programme set up to promote EVs in 25 cities including Shanghai, Changchun, Shenzhen, Hangzhou and Hefei, with the Government now providing subsidies of up to 60,000 yuan ($9,000) for the purchase of zero emission vehicles.

Hitachi, Johnson Controls partner in lithium-ion auto batteriesHitachi signed a deal with Johnson Controls to develop and manufacture batteries

for green vehicles. The areas of co-operation will span sales, marketing and standardi-sation, and the companies may also work together in energy storage technology, The Associated Press reported. Hitachi, which has produced 1.2 million lithium-ion battery cells for hybrid buses and trucks and plans to supply GM as well.

International auto round-upPeugeot lifts full-year forecast

French automaker Peugeot-Citroen raised its full-year earnings forecast recently, as it reported a consensus-beating rise in third-quarter revenue, the Wall Street Journal reported. Europe’s second-largest carmaker after Germany’s Volkswagen AG said it now expects to achieve an operating profi t for 2010 greater than €1.5 billion and that its core automobile division’s operating earnings should break even in the second half. The company based its earnings-forecast revision on a more optimistic outlook for its main markets. It now expects the European automobile market to contract by fi ve per-cent this year, compared to a previous estimate of a seven percent decline, and expects the Chinese market to surge by almost 20 percent, while Latin America should see an increase of close to 10 percent.

Autoliv buys Delphi’s share of Chinese ventureSwedish auto safety company Autoliv recently acquired Delphi’s 51 percent share in

Chinese seatbelt maker Beijing Delphi Automotive Safety Products. Without disclosing terms of the deal, President and CEO, Autoliv, Jan Carlson said the purchase strengthens the company’s commitment to the Chinese auto industry. Autoliv’s Chinese sales are expected to grow 50 percent this year to more than $700 million. According to Autoliv, the operations are expected to generate approximately $30 million of annualised sales in 2010 and employ 240 people. BDS is a two-year-old joint venture between Delphi and Beijing Hainachuan Automotive Parts. Its main customers are Hyundai Motor and Kia and their Chinese partners.

Porsche plans a hybrid in every model lineTo reduce its fl eet CO2 emissions, Porsche is counting on a hybrid drive, with plans

being put in place to have a hybrid drive in every model line, Development Chief, Porsche, Wolfgang Duerheimer was recently quoted as saying. The German carmaker had, earlier this year, launched a hybrid version of its Cayenne SUV. A Panamera sedan will go on sale with the Cayenne’s hybrid technology in 2011. Porsche’s fi rst electrically powered sports car, the 918 Spyder, will come next, with small production runs planned in three to four years. Duerheimer held out the prospect of hybrid versions of the 911, the Boxster and Cayman, but did not give a time frame.

Volvo Trucks initiates field testing with methane diesel gasVolvo Trucks will initiate public fi eld testing with methane diesel trucks that can run

on liquefi ed methane gas (LNG). At the same time, Sweden’s fi rst fi lling station for lique-fi ed methane gas will open at Stigs Center in Göteborg. Volvo said recently that trucks running on liquid gas combined with methane diesel technology has up to four times longer driving range compared to most traditional gas trucks. Three Volvo FM trucks with 13-litre engines are currently being fi eld tested. The technology is based on Volvo’s proven Euro V diesel engine, which has been converted for gas operation. The fi eld test trucks are equipped with special tanks for liquefi ed methane gas. When liquid methane and diesel are used in a ratio of 75-25, a truck performing long haul or intercity duties has an operating range 500 to 1000 km, depending on driving conditions. This is twice the operating range of methane diesel vehicles running on compressed gas and four times that of gas trucks with Otto (spark ignited) engines.

Russia to top Europe’s auto market by 2014Russian Industry and Trade Minister, Viktor Khristenko has said the country is poised

to become the largest auto market in Europe by 2014 as economic recovery boosts sales. Two years back, analysts predicted that Russia would become Europe’s largest car mar-ket by 2010, but that was before the global fi nancial crisis squeezed demand, erasing two years’ rapid growth. Khristenko told legislators that by mid-2013 the market would return to pre-crisis volumes, and in 2014 will be the number one market in Europe, with more than three million cars sold. The Ministry expects car production to reach 1.3 mil-lion units in 2010, while sales are expected to top 1.7 million vehicles.

Electric cars make their debut on Finland’s streets Finland got its fi rst ThinkCity electric cars, less than a year after production began at

Valmet Automotive’s factory in Uusikaupunki, Finland, in December 2009. The company behind these electric cars, Norway’s Think Global,

manufactured the fi rst prototype of the ThinkCity electric car in 1991. The car entered serial production eight years later with

the help of Ford. The Finns claim that the ThinkCity is the world’s fi rst European Union-approved and European

Commission-certifi ed electric car. The completely car-bon-emission-free and nearly silent ThinkCity electric car can reach a top speed of 110 kmph. The car, which can be charged up at an ordinary electric socket, has a driving range of 160 km. The price of the car is about €50 000.

EUROPE

ASIA

AMERICASCanadian network to develop complex auto software

A new Canadian network is being set up to help researchers develop complex software systems for electric vehicles. The $16.6 million network will be collaboration between uni-versities and industry, including General Motors of Canada and IBM Canada. McMaster University will lead the effort and will be joined by researchers at other universities across the country, media reports said. It will be backed by a fi ve-year grant of $10.5 million from a federal government initiative called Automotive Partnership Canada. Their work will help integrate several pieces of complex software in vehicles, including braking, stability, safety and fuel systems. These systems are even more complex in electric vehicles, and GM says the research will help develop more widespread use of the green technology.

Fiat Group to invest $6 billion in Brazil by 2015Reuters recently reported that the Fiat Group of Italy will invest 10 billion reais ($6

billion) in Brazil by 2015 in operations that include production of cars, auto parts and agricultural machinery. Seventy percent of the total will be invested in cars, with the company expecting in 2011 to unveil 20 new models or upgraded version of current ones. Further details would emerge by the end of the year. Fiat’s Brazilian factory is operating close to the limits of its 800,000-unit-per-year capacity. To meet the strong demand in Brazil, Fiat expects to triple production in the next two years at its Argentina facility.

Honda recalls autos in Brazil due to gas pedalsHonda Motor recently announced recalls of 126,774 City and New Fit models of cars

because of potential problems with the acceleration sensor. The entrance of dirt and particles into the acceleration pedal mechanism may cause problems in reducing the speed of the automobile and may cause accidents, Honda said in a statement on its web-site. A worldwide problem, recalls have plagued the Brazilian auto industry this year. Other Brazilian manufacturers hurt by recalls this year were local units of Toyota, Fiat, Volkswagen and Ford. Recalls in the world’s fourth-largest car market have affected more than 800,000 Brazilian-made motor vehicles so far in 2010, with problems ranging from faulty ball bearings to bad window switches.

Toyota mulling setting up new factory in MexicoToyota Motor is considering setting up new facilities in Mexico in 2013 to produce small

cars for the North American market, the Asahi Shimbun reported. The paper said that the move would be the Japanese automaker’s latest attempt to contend with the strong yen. In Mexico, Toyota currently produces small trucks mainly for export to the US.

Harley-Davidson 3Q profit up but sales dropHarley-Davidson recently reported that net income

more than tripled in the third quarter, despite a 7.7 percent drop in retail sales because of weak consum-er spending, as the company returned its fi nancing unit to profi tability, the Wall Street Journal reported. The Milwaukee, US-based motorcycle manufacturer reported net income of $88.8 million in the latest quar-ter, up from $26.5 million a year earlier. The main factor in the improved earnings was a swing to operating income of $50.9 million from fi nancial services, mainly lending to fi nance motorcycle purchases, from a loss of $31.5 million in the year-earlier quarter.

Navistar, Auto Union reach tentative deal on four-year contract Commercial truck maker Navistar International (NAV) and the United Auto Workers

Union have reached a tentative agreement on a four-year contract, the company recently said. Dow Jones reported that no details of the deal were released by the company or the union. The agreement is subject to a ratifi cation vote by union members at six Navistar sites. A majority of the members voting on the tentative contract must approve it for the deal to become binding. The new contract would replace a three-year deal that expired on 1 October. Union members made no moves toward striking and continued to report to work after the contract expired.

GM partners with Envision Solar for Chevy Volt rechargingEnvision Solar of San Diego has partnered with General Motors to provide solar-

powered charging ‘trees’ to GM dealers selling its soon-to-be released Chevy Volt. The Volt is a plug-in electric vehicle that runs on a 16-kilowatt lithium-ion battery and a range-extending gas engine. Envision solar trees track with the sun to maximise energy production. Set up in one- and six- parking-space confi gurations, each space can gen-erate enough electricity to fully charge one Volt in a day. Although some of the trees are transportable, most will be tied in to the grid. The charging stations within the trees are provided through existing providers, such as Ecotality and Coulomb Technologies, and will consist of Level 1 (120-volt) and Level 2 (240-volt) chargers. Each charge will cost about one-third as much as refuelling a gas vehicle.

Page 46: Auto Monitor - 1-15 November 2010

A: Passenger Cars- No of seats not over 6A1: Mini - (Upto 3400 mm) Maruti Suzuki India Ltd (Maruti 800 ) 3,112 3,572 18,304 19,816 3,207 1,608 15,856 12,113 103 1,336 2,419 5,771Tata Motors Ltd (Nano) 2,549 5,696 6,775 35,698 2,524 5,520 7,500 37,402 0 0 0 0Total 5,661 9,268 25,079 55,514 5,731 7,128 23,356 49,515 103 1,336 2,419 5,771A2: Compact (3401-4000mm Fiat India Automobiles Pvt Ltd (Palio, Fiat500,Grande Punto) 1,726 933 8,220 7,014 1,514 926 7,125 6,529 0 96 231 810Ford india Pvt Ltd ( Fusion, Figo ) 143 6,711 455 43,219 83 6,465 436 38,179 0 880 0 3,474General Motors India Pvt Ltd (Beat, Spark,U-VA) 5,167 5,558 22,403 36,308 5,431 5,441 22,920 34,729 28 23 231 158Honda Siel Cars India ltd (Jazz) 300 180 6,249 856 504 649 4,602 2,800 18 4 22 15Hyundai Motors India Ltd(Santro,Getz, i10, i20) 49,937 49,342 249,198 267,664 24,998 28,565 128,658 152,664 24,484 18,108 131,744 114,953Maruti Suzuki India Ltd (Alto,Wagon R,Zen,Swift, A-Star, Ritz) 62,269 80,398 366,799 441,178 52,508 68,921 299,829 369,466 11,418 11,242 63,140 69,008Nissan Motor India Pvt Ltd (Micra) 0 5,792 0 10,657 0 1,170 0 3,280 0 0 0 0SkodaAuto india p.ltd ( Fabia ) 721 262 2,126 2,836 889 256 2,609 2,820 0 0 4 0Tata Motors Ltd (Indica) 9,868 9,314 55,459 69,167 9,858 6,258 56,868 48,902 447 651 1,877 3,556Volkswagen India Pvt Ltd (Polo) 0 2,992 0 12,233 0 2,891 0 12,022 0 0 0 0Total 130,131 161,482 710,909 891,132 95,785 121,542 523,047 671,391 36,395 31,004 197,249 191,974A3: Mid -Size (4001-4500mm) BMW India Pvt Ltd (Z4 Roadster) 0 0 0 0 0 3 0 40 0 0 0 0Ford India Pvt Ltd (Ford ikon,Fusion,Fiesta) 2,984 2,120 13,657 9,681 3,101 1,633 12,910 8,198 150 123 474 697General Motors India Pvt Ltd (Cheverlet Aveo NB) 403 304 1,412 2,212 412 323 1,517 2,057 12 2 31 77Hindustan Motors Ltd (Ambassador, Lancer,Cedia) 739 568 3,711 4,296 750 512 3,711 4,234 0 1 0 1Honda Siel Cars India Ltd (City) 4,407 5,564 19,007 24,863 4,281 6,164 18,875 23,432 8 9 10 32Hyundai Motors India Ltd (Accent,Verna) 4,060 5,403 20,481 29,100 2,752 3,170 15,255 19,370 1,517 1,582 8,227 10,436Mahindra Renault Pvt Ltd (Logan) 965 1,045 3,525 5,118 510 1,000 2,901 3,869 300 0 750 1,500Maruti Suzuki India Ltd (SX4,Dzire) 7,383 10,850 44,498 61,430 7,356 10,531 44,225 60,320 43 71 193 400Nissan Motor India Pvt Ltd (Nissan 370Z) 0 0 0 0 0 0 0 4 0 0 0 0Tata Motors Ltd (Indigo,Marina) 178 2,811 2,542 24,281 3,420 8,783 18,498 43,771 76 225 543 1,055Volkswagen - Audi (TT, R8) 0 0 0 0 0 3 0 3 0 0 0 0Volkswagen India Pvt Ltd (Beetle) 0 1,020 0 1,020 0 1,401 0 1,603 0 0 0 0Total 21,119 29,685 108,833 162,001 22,582 33,523 117,892 166,901 2,106 2,013 10,228 14,198A4 : Executive (4501-4700mm) BMW india pvt Ltd (3 Series) 108 137 608 986 143 255 519 1,105 0 0 0 0Fiat India Automobiles Pvt Ltd (Linea) 1,041 711 5,773 5,472 1,053 724 5,768 5,334 38 28 190 68General Motors India Pvt Ltd (cheverlet Optra, Cruze) 7 1,141 832 6,104 319 1,083 1,020 5,185 0 0 2 3Honda Siel Cars India Ltd (Civic) 540 604 2,538 2,704 695 574 2,524 2,460 0 0 0 3Hyundai Motors India Ltd (Elantra) 0 0 0 0 0 0 0 2 0 0 0 0Mercedes-Benz India Pvt Ltd (C-Class,SLK Roadster, 47 219 795 1,191 254 253 882 1,281 0 0 0 0CLK Cabriolet, E-Coupe) Skoda Auto India Pvt Ltd (Octavia,Laura) 498 301 2,524 3,672 684 845 3,759 3,648 0 0 0 0Toyota Kirloskar Motor Pvt Ltd (corolla) 910 1,055 4,543 4,998 905 1,082 4,468 4,967 0 0 0 0Volkswagen - Audi (Q5) 0 0 0 0 6 61 113 316 0 0 0 0Volkswagen India Pvt Ltd (Jetta) 0 567 273 2,701 221 254 1,197 1,860 0 0 0 0Total 3,151 4,735 17,886 27,828 4,280 5,131 20,250 26,158 38 28 192 74A5 : Premium (4701-5000mm) BMW india pvt Ltd ( 5 & 6 Series) 100 340 742 886 195 319 699 1,090 0 0 0 0Honda Siel Cars India Ltd ( Accord ) 300 300 1,440 1,080 313 253 1,412 1,172 0 5 0 5Hyundai Motors India Ltd ( Sonata ) 30 20 285 141 52 16 238 145 0 0 0 0Mercedes-Benz India Pvt Ltd (E-Class, CLS) 127 254 404 1,073 98 272 399 1,098 0 0 0 0Nissan Motor India Pvt Ltd (Teana)** 0 0 0 0 21 18 102 137 0 0 0 0Skoda Auto India Pvt Ltd (Superb) 190 325 1,344 2,046 257 366 1,345 2,036 0 0 0 0Toyota Kirloskar Motor Pvt Ltd (Camry ) 0 0 0 0 23 38 124 265 0 0 0 0Volkswagen - Audi (A4,A6)* 0 0 0 0 104 152 580 977 0 0 0 0Volkswagen India Pvt Ltd (Passat, Touareg) 0 57 55 628 55 107 308 602 0 0 0 0Total 747 1,296 4,270 5,854 1,118 1,541 5,207 7,522 0 5 0 5A6: Luxury (5001mm&abve) BMW india pvt Ltd (7 Series ) 0 0 0 0 59 45 208 249 0 0 0 0Mercedes-Benz India Pvt Ltd ( S-Class) 16 28 207 293 51 86 211 275 0 0 0 0Volkswagen - Audi (Q7,A8) 0 0 0 0 78 76 263 249 0 0 0 0Volkswagen India Pvt Ltd (Phaeton) 0 0 0 0 0 10 0 21 0 0 0 0Total 16 28 207 293 188 217 682 794 0 0 0 0Total A 160,825 206,494 867,184 1,142,622 129,684 169,082 690,434 922,281 38,642 34,386 210,088 212,022Utility VehiclesB: Max. Mass upto 3.5 tn, B1(a): No of seats not over 7BMW india Pvt Ltd (X3, X5, X6) 0 0 0 0 36 65 320 190 0 0 0 0Force Motors Ltd (trax) 3 8 8 24 3 8 8 21 0 0 0 0Ford India Pvt Ltd (Endeavour) 275 278 884 1,758 221 282 863 1,525 0 0 0 0General Motors India Pvt Ltd (Tavera, Captiva) 596 817 2,665 3,767 743 969 3,449 4,632 0 0 2 0Hindustan Motors Ltd (Pajero) 107 333 761 1,342 129 330 765 1,345 0 0 0 0Honda Siel Cars India Ltd (CR-V) 0 0 0 0 1 88 108 307 0 0 0 0Hyundai Motors India Ltd (Tucson) 0 0 0 0 1 0 12 0 0 0 0 0Mahindra & Mahindra Ltd (Scorpio, Bolero, 6,964 8,990 43,997 46,644 8,965 9,674 41,881 46,077 54 66 264 569Soft Tops, Hard Tops, Xylo)Maruti Suzuki India Ltd (Vitara) 0 0 0 0 9 8 59 49 0 0 0 0Mercedes-Benz India pvt. Ltd (GL-Class, M Class) 0 0 0 0 11 53 50 222 0 0 0 0Nissan Motor India Pvt Ltd (X-Trail)* 0 0 0 0 36 55 68 256 0 0 0 0Tata Motors Ltd (Safari) 1,608 1,979 9,449 11,597 1,644 2,251 9,089 11,074 15 23 58 140Toyota Kirloskar Motor Pvt Ltd (Innova,Prado) 2,541 2,992 10,877 18,738 2,662 3,007 11,023 18,864 0 0 0 0Total 12,094 15,397 68,641 83,870 14,461 16,790 67,695 84,562 69 89 324 709(b) :No of seat inculding driver exceeding 7 but not exceeding 9(7+1&8+1)( M1(B2) ) Force Motors Ltd (Trax) 0 0 10 0 0 0 0 0 0 0 0 0General Motors India Pvt Ltd (Tavera) 123 96 901 649 114 104 1,439 640 0 1 0 1International Cars & Motors Ltd (Rhino) 94 50 463 419 101 57 595 380 0 0 38 0Mahindra & Mahindra Ltd (Scorpio, Bolero, 3,937 6,165 26,175 34,123 4,759 6,612 25,013 32,800 21 118 207 721Soft Tops, Hard Tops, Xylo)Maruti Suzuki India Ltd (Gypsy) 217 331 1,352 2,510 217 258 2,096 3,758 0 35 30 47Tata Motors Ltd (Sumo, Safari, Winger) 230 1,005 1,816 6,208 175 396 1,750 3,007 21 71 90 212Toyota Kirloskar Motor Pvt Ltd (Innova) 2,110 2,047 11,880 13,643 2,158 2,108 11,862 13,567 0 0 0 0Total 6,711 9,694 42,597 57,552 7,524 9,535 42,755 54,152 42 225 365 981Total B1 18,805 25,091 111,238 141,422 21,985 26,325 110,450 138,714 111 314 689 1,690B2: Max Mass upto 5 tonnes (a) : No of seat inculding driver not exceeding 13(M2(A1)) Force Motors LtdForce Motors Ltd (Trax, Traveller) 570 750 2,813 3,981 583 683 2,818 3,805 4 0 4 0General Motors India Pvt Ltd (Tavera) 553 684 2,613 4,730 595 671 2,315 4,561 0 0 5 4Mahindra & Mahindra Ltd (Bolero, Soft Tops, Hard Tops) 1,119 284 6,759 1,428 1,572 251 6,536 1,397 27 12 53 30Tata Motors Ltd (Sumo, Winger) 772 90 5,422 451 683 824 5,790 5,895 45 10 123 75Total B2 3,014 1,808 17,607 10,590 3,433 2,429 17,459 15,658 76 22 185 109Total Utility Vehicles (Uvs) 21,819 26,899 128,845 152,012 25,418 28,754 127,909 154,372 187 336 874 1,799C :Multi Purpose Vehicles (MPVs)-Van type vehicles & Max Mass not excdding 3.5 tonnes (M1( c )) Van Type Force Motors Ltd (trip) 0 40 0 79 0 19 0 30 0 0 0 0Maruti Suzuki India Ltd (Omini,Versa) 8,308 14,124 45,060 76,903 8,297 13,822 44,433 75,117 148 174 637 929Tata Motors Ltd (ACE-Magic) 4,317 3,860 23,234 24,815 4,116 3,955 22,445 24,718 15 0 46 24Total MPVs 12,625 18,024 68,294 101,797 12,413 17,796 66,878 99,865 163 174 683 953Total Passenger Vehicles (PVs) 195,269 251,417 1,064,323 1,396,431 167,515 215,632 885,221 1,176,518 38,992 34,896 211,645 214,774Commercial VehiclesM&HCVsA: Passenger Carriers, A1: Max mass not over 12 tn (b): No of seats over 13Ashok Leyland Ltd 104 95 717 928 141 133 610 915 42 24 118 125Swaraj Mazda Ltd 207 394 1,076 1,851 195 298 879 1,797 0 0 0 4Tata Motors Ltd 538 426 2,615 2,919 537 336 2,571 3,410 5 19 41 308VE CVs - Eicher 136 120 1,074 1,621 126 222 1,042 1,538 0 5 2 117Total A1 985 1,035 5,482 7,319 999 989 5,102 7,660 47 48 161 554A2: Max mass exceeding not over 16.2 tn(b): No of seats over 13Ashok Leyland Ltd 1,616 2,520 6,770 10,963 1,251 2,023 5,248 8,704 165 386 701 1,855JCBL Ltd 0 NA 0 14 0 NA 0 14 0 NA 0 0Swaraj Mazda Ltd 0 10 13 46 0 8 9 43 0 0 0 0Tata Motors Ltd 1,378 2,164 7,167 9,490 1,126 1,367 6,082 7,935 204 597 1,502 2,196VE CVs - Eicher 11 2 102 102 3 13 98 82 13 0 38 11Volvo Buses India Pvt Ltd 59 30 282 128 34 32 256 132 0 0 0 0Total A2 3,064 4,726 14,334 20,743 2,414 3,443 11,693 16,910 382 983 2,241 4,062A3: Max. Mass exceeding 12 but no exceeding 16.2 tonnes (M3(C)) Passenger Carrier (D) Volvo Buses India Pvt Ltd 7 16 31 91 4 16 27 86 0 0 0 0Total M&HCVs(passenger carriers) 4,056 5,777 19,847 28,153 3,417 4,448 16,822 24,656 429 1,031 2,402 4,616B: Goods CarriersB1: Max mass over 7.5 tn & less than 12 tnAshok Leyland Ltd 137 319 700 1,691 135 317 531 1,463 46 34 181 146Swaraj Mazda Ltd 333 392 1,655 2,034 512 431 1,562 1,822 9 30 68 115Tata Motors Ltd 1,596 1,435 8,980 8,631 1,587 1,604 8,310 10,547 154 245 639 1,258VE CVs - Eicher 1,415 1,844 7,098 9,892 1,565 2,074 6,781 9,867 62 51 285 298Total 3,481 3,990 18,433 22,248 3,799 4,426 17,184 23,699 271 360 1,173 1,817B2: Max mass not over 16.2 tn(a): Max mass 12-16.2 tnAshok Leyland Ltd 1,277 1,428 5,859 9,999 869 1,827 4,781 8,060 248 332 1,008 1,690Tata Motors Ltd 3,269 4,734 14,610 23,115 2,824 3,484 13,368 17,882 456 556 2,092 2,633VE CVs - Eicher 189 341 827 1,759 101 369 365 1,376 84 44 499 290Total B2 4,735 6,503 21,296 34,873 3,794 5,680 18,514 27,318 788 932 3,599 4,613B3: Max mass over 16.2 tn(a): Rigid Vehicles (i) Max mass 16.2-25 tnAshok Leyland Ltd 1,534 2,361 5,563 13,533 1,523 2,929 5,743 12,835 0 0 214 0Asia Motor Works Ltd 206 510 839 2,583 192 511 956 2,515 0 0 0 0Force Motors Ltd 0 0 1 0 0 0 0 0 0 0 0 0Mahindra Navistar Automotives Ltd 0 87 0 314 0 11 0 47 0 0 0 0Tata Motors Ltd 4,442 5,314 24,246 28,336 4,562 5,062 22,873 27,379 243 94 1,302 1,126VE CVs - Eicher 52 69 139 410 27 113 156 406 15 0 53 4VE CVs - Volvo 0 0 0 1 0 0 0 12 0 0 0 0Total 6,234 8,341 30,788 45,177 6,304 8,626 29,728 43,194 258 94 1,569 1,130(b) Max mass over 25 tnAshok Leyland Ltd 341 730 367 5,199 398 1,112 609 4,840 0 0 5 0Daimler India Commercial Vehicles Pvt Ltd* 0 25 0 78 0 19 0 49 0 0 0 0Kamaz Vectra Motors Ltd 0 0 0 0 0 0 0 0 0 0 0 0Mahindra Navistar Automotives Ltd 0 18 0 18 0 4 0 4 0 0 0 0Mercedes-Benz India Pvt Ltd 7 0 21 101 16 0 83 83 0 0 0 0Tata Motors Ltd 871 4,846 4,030 22,069 998 2,814 3,679 12,204 18 7 104 202

PRODUCTION AND SALES FLASH REPORT FOR SEPTEMBER 2010 Source: SIAM

Category Segment/Subsegment Manufacturer. Production Domestic Sales Exports

For the month of Cumulative For the month of Cumulative For the month of Cumulative

September April-September September April-September September April-September

2009 2010 08-09 09-10 2009 2010 08-09 09-10 2009 2010 08-09 09-10

Auto Monitor46 1 - 15 November 2010

SIAM DATASIAM DATA

Page 47: Auto Monitor - 1-15 November 2010

VE CVs - Eicher 49 39 107 227 40 77 132 224 0 0 12 0VE CVs - Volvo 70 62 284 437 107 76 398 387 0 0 0 0Total 1,338 5,720 4,809 28,129 1,559 4,102 4,901 17,791 18 7 121 202Total B3 7,572 14,061 35,597 73,306 7,863 12,728 34,629 60,985 276 101 1,690 1,332B4: Max mass over 16.2 tn - Haulage tractor(a) Max. Mass exceeding 16.2 tonnes but not exceeding 26.4 tonnes Ashok Leyland Ltd 0 0 0 0 0 0 0 0 0 59 43 357Total 0 0 0 0 0 0 0 0 0 59 43 357(b) Max. mass exceeding 26.4 tonnes but not exceeding 35.2 tonnes Ashok Leyland Ltd 243 512 761 1,914 269 540 767 2,004 87 10 103 30Tata Motors Ltd 0 0 1 0 636 838 2,092 4,158 0 0 0 0Total 243 512 762 1,914 905 1,378 2,859 6,162 87 10 103 30Ashok Leyland Ltd 156 720 343 2,833 173 593 783 2,514 21 5 59 25Asia Motor Works Ltd 94 61 252 418 81 48 262 362 0 0 0 0Tata Motors Ltd 0 0 0 0 750 1,132 2,447 5,384 0 0 10 0VE CVs - Eicher 0 13 0 48 1 14 32 46 0 0 0 0VE CVs - Volvo 0 8 0 79 8 6 34 71 0 0 0 0Total 250 802 595 3,378 1,013 1,793 3,558 8,377 21 5 69 25Total B4 493 1,314 1,357 5,292 1,918 3,171 6,417 14,539 108 74 215 412Total M&HCVs (Goods Carriers) 16,281 25,868 76,683 135,719 17,374 26,005 76,744 126,541 1,443 1,467 6,677 8,174Total M&HCVs 20,337 31,645 96,530 163,872 20,791 30,453 93,566 151,197 1,872 2,498 9,079 12,7902: Max mass upto 5 tonnesLCVsA: Passenger carriersA1: Max mass upto 5 tn (M2(A2)) (a): No of seats over 13Force Motors Ltd 569 800 2,646 4,245 579 739 2,603 4,018 22 26 58 72Hindustan Motors Ltd 0 0 1 4 0 0 4 4 0 0 0 0Mahindra & Mahindra Ltd 191 0 1,674 0 237 0 1,489 0 40 0 111 0Mahindra Navistar Automotives Ltd 0 339 0 1,791 0 302 0 1,695 0 0 0 0Tata Motors Ltd 304 248 2,418 1,907 246 217 2,867 2,735 3 11 20 152Total A1 1,064 1,387 6,739 7,947 1,062 1,258 6,963 8,452 65 37 189 224A2: Max mass 5-7.5 tn(b): No of seats up to & over 13Ashok Leyland Ltd 69 76 447 577 50 39 320 365 30 0 166 62Force Motors Ltd 7 25 103 151 9 26 98 134 0 0 0 0Mahindra & Mahindra Ltd 20 0 1,773 0 86 0 1,704 0 22 0 84 7Mahindra Navistar Automotives Ltd 0 150 0 1,440 0 94 0 1,374 0 0 0 0Swaraj Mazda Ltd 102 249 1,050 1,756 94 285 891 1,582 1 0 21 21Tata Motors Ltd 1,123 1,030 7,881 7,617 913 725 7,158 7,212 217 224 802 1,072VE CVs - Eicher 106 241 1,220 1,670 136 180 993 1,458 12 28 236 223Total 1,427 1,771 12,474 13,211 1,288 1,349 11,164 12,125 282 252 1,309 1,385Total LCVs (Passenger Carriers) 2,491 3,158 19,213 21,158 2,350 2,607 18,127 20,577 347 289 1,498 1,609B Goods CarrierB1: Max mass not over 3.5 tnForce Motors Ltd 334 466 1,190 3,068 307 468 1,101 2,854 0 4 4 8Hindustan Motors Ltd 37 9 126 237 22 11 117 209 0 0 0 0Mahindra & Mahindra Ltd 6,367 8,950 33,752 51,933 6,665 9,255 30,571 47,028 406 779 1,759 4,359Piaggio Vehicles Pvt.Ltd 1,110 921 5,172 5,506 1,100 1,128 5,163 5,013 10 6 28 12Tata Motors Ltd 12,643 15,114 62,271 79,428 10,811 11,891 55,615 66,701 745 1,921 2,973 10,765Total 20,491 25,460 102,511 140,172 18,905 22,753 92,567 121,805 1,161 2,710 4,764 15,144B2:Max mass 3.5-5 tnForce Motors Ltd 201 128 786 598 210 99 800 595 0 0 9 0Mahindra & Mahindra Ltd 106 0 500 0 111 0 512 0 0 0 0 0Mahindra Navistar Automotives Ltd 0 304 0 1,086 0 255 0 1,046 0 0 0 0Tata Motors Ltd 539 521 1,672 4,189 489 431 500 3,751 24 60 36 290Total 846 953 2,958 5,873 810 785 1,812 5,392 24 60 45 290B3: Max mass 5-7.5 tnAshok Leyland Ltd 0 0 0 24 0 0 0 0 0 0 0 0Force Motors Ltd 21 12 72 125 15 10 56 112 0 0 2 4Mahindra & Mahindra Ltd 349 0 1,567 0 264 0 1,164 0 83 0 401 64Mahindra Navistar Automotives Ltd 0 424 0 1,767 0 403 0 1,760 0 0 0 0Swaraj Mazda Ltd 122 171 922 588 197 118 841 407 103 70 287 200Tata Motors Ltd 2,000 2,080 10,829 10,949 2,240 1,723 11,255 9,351 193 343 1,038 1,638VE CVs - Eicher 418 498 2,082 2,942 317 603 1,557 2,240 56 71 354 403Total 2,910 3,185 15,472 16,395 3,033 2,857 14,873 13,870 435 484 2,082 2,309Total LCVs (Goods Carriers) 24,247 29,598 120,941 162,440 22,748 26,395 109,252 141,067 1,620 3,254 6,891 17,743Total LCVs 26,738 32,756 140,154 183,598 25,098 29,002 127,379 161,644 1,967 3,543 8,389 19,352Total Commercial Vehicles 47,075 64,401 236,684 347,470 45,889 59,455 220,945 312,841 3,839 6,041 17,468 32,142Two WheelersA: Scooter/Scooterette, Wheelsize not over 12’’A1: Engine Capacity less than 75cc Mahindra Two Wheelers Ltd 0 1,500 0 6,839 0 1,066 0 5,978 0 0 0 0TVS Motor Company Ltd 2,489 1,746 11,870 9,590 2,513 1,729 11,901 11,745 0 0 0 0Total 2,489 3,246 11,870 16,429 2,513 2,795 11,901 17,723 0 0 0 0A2: Engine capacity 75-125 ccBajaj Auto Ltd 522 0 3,203 0 402 0 2,909 27 260 0 624 0Hero Honda Motors Ltd 17,376 27,708 101,546 156,167 17,299 26,468 99,519 149,865 636 1,232 2,372 7,280Honda Motorcycle & Scooter India (Pvt) Ltd 51,925 62,940 353,760 446,444 52,552 64,191 348,596 440,794 843 743 4,518 6,707Mahindra Two Wheelers Ltd 2,971 15,000 14,314 73,818 3,006 15,503 15,664 64,793 182 176 549 854Suzuki Motorcycle India Pvt Ltd 10,238 17,856 56,434 101,831 10,217 17,862 56,367 101,746 20 1 41 90TVS Motor Company Ltd 26,405 39,382 139,603 205,081 26,955 39,675 136,764 199,478 980 1,682 5,071 8,619Total 109,437 162,886 668,860 983,341 110,431 163,699 659,819 956,703 2,921 3,834 13,175 23,550A3: Engine capacity 125 -250 ccHonda Motorcycle & Scooter India (Pvt) Ltd 0 0 0 0 0 0 287 0 0 0 0 0LML Limited NA NA NA NA NA NA NA NA NA NA NA NAMahindra Two Wheelers Ltd 0 0 763 0 0 0 290 68 0 0 133 0Total 0 0 763 0 0 0 577 68 0 0 133 0Total Scooter/Scooterettee 111,926 166,132 681,493 999,770 112,944 166,494 672,297 974,494 2,921 3,834 13,308 23,550B: Motorcycle/Step-Through: Wheel size more than 12”B2: Engine capacity 75-125 ccBajaj Auto Ltd 162,518 168,894 548,659 944,426 108,227 92,490 308,017 598,214 52,998 56,156 243,521 329,494Hero Honda Motors Ltd 353,472 386,726 2,067,634 2,245,256 353,531 370,944 2,032,101 2,158,813 8,577 8,264 41,565 51,697Honda Motorcycle & Scooter India (Pvt) Ltd 0 14,549 30 96,927 11 12,997 13 90,444 13 1,305 13 8,751India Yamaha Motor Pvt Ltd 7,103 6,357 37,642 41,209 5,775 5,476 32,720 38,487 691 1,244 1,499 5,686Mahindra Two Wheelers Ltd 0 1,122 0 1,122 0 0 0 0 0 0 0 0TVS Motor Company Ltd 35,389 52,779 225,561 317,735 35,821 50,779 182,170 242,244 5,589 7,047 39,913 52,382Total 558,482 630,427 2,879,526 3,646,675 503,365 532,686 2,555,021 3,128,202 67,868 74,016 326,511 448,010B3: Engine capacity 125-250 ccBajaj Auto Ltd 85,406 138,985 534,958 755,200 74,675 138,455 435,884 600,557 13,233 27,414 95,042 183,598Hero Honda Motors Ltd 20,612 27,052 126,356 154,777 20,395 26,141 122,682 146,385 852 592 3,983 5,943Honda Motorcycle & Scooter India (Pvt) Ltd 32,257 43,755 240,732 266,354 28,953 41,027 212,621 242,320 3,889 2,160 29,212 25,529India Yamaha Motor Pvt Ltd 19,960 25,172 91,014 123,533 20,619 18,653 80,440 86,826 2,815 8,567 21,748 41,242LML Limited NA NA NA NA NA NA NA NA NA NA NA NASuzuki Motorcycle & Scooter India (Pvt) Ltd 4,631 4,665 23,086 18,728 5,325 4,672 22,996 18,467 156 1 583 449TVS Motor Company Ltd 18,904 22,040 86,395 118,614 16,010 12,919 65,897 67,186 3,139 10,636 19,482 47,552Total 181,770 261,669 1,102,541 1,437,206 165,977 241,867 940,520 1,161,741 24,084 49,370 170,050 304,313

B4: Engine capacity over 250 ccHonda Motorcycle & Scooter India (Pvt) Ltd 0 0 0 0 0 0 6 0 0 0 0 0India Yamaha Motor Pvt Ltd 0 0 0 0 0 4 8 23 0 0 0 0Royal Enfield (Unit of Eicher Ltd) 4,810 3,865 26,880 25,224 4,551 3,795 25,455 23,964 138 102 923 1,349Total 4,810 3,865 26,880 25,224 4,551 3,799 25,469 23,987 138 102 923 1,349Total Motor Cycles/Step-Throughs 745,062 895,961 4,008,947 5,109,105 673,893 778,352 3,521,010 4,313,930 92,090 123,488 497,484 753,672C: Mopeds: Engine capacity <75 cc, wheels over 12”TVS Motor Company Ltd 51,164 60,241 275,915 343,435 51,303 60,316 274,416 337,882 564 0 1,970 3,951Total 51,164 60,241 275,915 343,435 51,303 60,316 274,416 337,882 564 0 1,970 3,951D: Electric two WheelersElectrotherm (india)Ltd NA NA 2,549 NA NA NA 2,482 NA NA NA 50 NATVS Motor Company Ltd 0 0 18 0 12 0 229 0 0 0 0 0Total 0 0 2,567 0 12 0 2,711 0 0 0 50 0Total Two Wheelers 908,152 1,122,334 4,968,922 6,452,310 838,152 1,005,162 4,470,434 5,626,306 95,575 127,322 512,812 781,173III Three Wheelers (CVs)A: Passenger Carriers A1:No. of seats including driver not exceeding 4 & Max.Mass not exceeding 1 tonnes Atul Auto Limited 459 826 1,600 4,389 442 778 1,599 4,321 11 18 11 79Bajaj Auto Ltd 30,672 38,680 142,929 209,893 16,007 19,715 80,289 97,324 14,190 18,390 63,538 117,965Force Motors Ltd 15 0 54 0 9 0 48 5 0 0 0 0Mahindra & Mahindra Ltd 3,019 4,372 13,600 19,604 2,948 4,066 13,776 18,797 45 318 56 998Piaggio Vehicles Pvt.Ltd 12,290 15,048 63,858 73,957 12,101 13,389 62,574 67,096 180 1,608 1,902 7,244Scooters india Ltd 191 297 1,279 1,984 196 376 1,298 1,934 0 0 0 0TVS Motor Company Ltd 1,142 3,780 5,395 18,692 1,106 2,100 5,204 12,333 94 1,122 300 5,422Total 47,788 63,003 228,715 328,519 32,809 40,424 164,788 201,810 14,520 21,456 65,807 131,708A2: No.of seats including Driver exceeding4 but not exceeding 7 & Max.Mass exceeding 1.5 tonnes Force Motors Ltd 58 0 387 84 38 0 158 26 56 0 266 84Mahindra & Mahindra Ltd 0 938 20 3,686 42 886 153 3,534 0 0 0 60Scooters india Ltd 189 237 1,295 1,308 221 268 1,286 1,245 0 0 0 0Total 247 1,175 1,702 5,078 301 1,154 1,597 4,805 56 0 266 144Total Passenger Carrier 48,035 64,178 230,417 333,597 33,110 41,578 166,385 206,615 14,576 21,456 66,073 131,852B: Goods Carriers B1: Max.mass not exceeding 1 tonnes Atul Auto Limited 695 707 3,100 4,226 691 763 3,121 4,260 10 0 16 2Bajaj Auto Ltd 927 122 4,611 1,790 924 149 4,661 1,531 0 0 0 174Mahindra & Mahindra Ltd 672 769 6,473 6,365 1,272 1,053 6,748 6,334 5 18 72 152Piaggio Vehicles Pvt.Ltd 4,600 4,928 23,361 27,614 4,587 4,677 23,525 27,101 16 66 167 489Scooters india Ltd 214 316 1,454 2,041 222 387 1,454 1,963 0 0 0 0Total 7,108 6,842 38,999 42,036 7,696 7,029 39,509 41,189 31 84 255 817B2: Others Force Motors Ltd 97 0 605 15 103 1 608 104 9 0 9 0Mahindra & Mahindra Ltd 0 0 25 0 0 0 74 0 0 0 0 0Scooters india Ltd 202 107 1,237 1,068 222 229 1,235 1,187 0 0 0 0Total 299 107 1,867 1,083 325 230 1,917 1,291 9 0 9 0Total Goods Carrier 7,407 6,949 40,866 43,119 8,021 7,259 41,426 42,480 40 84 264 817Total Three Wheelers 55,442 71,127 271,283 376,716 41,131 48,837 207,811 249,095 14,616 21,540 66,337 132,669Grand Total of all Categories 1,205,938 1,509,279 6,541,212 8,572,927 1,092,687 1,329,086 5,784,411 7,364,760 153,022 189,799 808,262 1,160,758

Category Segment/Subsegment Manufacturer. Production Domestic Sales Exports

For the month of Cumulative For the month of Cumulative For the month of Cumulative

September April-September September April-September September April-September

2009 2010 08-09 09-10 2009 2010 08-09 09-10 2009 2010 08-09 09-10

* Exports of Ford indicate CKDs

Auto Monitor 471 - 15 November 2010

SIAM DATASIAM DATA

Page 48: Auto Monitor - 1-15 November 2010

MV-Motor Vehicles (LV+CV) Aston Martin Aston Martin 133 111 19.82 1573BMW BMW 30670 33523 -8.51 393928 Mini 5977 7167 -16.60 85560 Other 21 11 90.91 353 Total 36668 40701 -9.91 479841China Brilliance 0 1 -100.00 1 Changan 0 2 -100.00 11 Great Wall 83 58 43.10 967 Landwind 0 0 1 Lifan 0 1 -100.00 12 Other 6 7 -14.29 36 Total 89 69 28.99 1028Chrysler Chrysler 782 808 -3.22 12408 Dodge 637 1237 -48.50 8694 Jeep 656 1142 -42.56 9378 Total 2075 3187 -34.89 30480DAF DAF 2122 1566 35.50 20180Daimler Mercedes 42707 41535 2.82 503705 Smart 4170 4941 -15.60 56638 Other 105 51 105.88 942 Total 46982 46527 0.98 561285Fiat Alfa Romeo 5921 5814 1.84 68665 Fiat 44693 58486 -23.58 716425 Iveco 5754 5135 12.05 55811 Lancia 3759 5661 -33.60 72604 Other 187 214 -12.62 3765 Total 60314 75310 -19.91 917270Ford Ford 60781 73914 -17.77 886177 Mercury 0 0 5 Volvo 9355 8453 10.67 149469 Other 0 2 -100.00 7 Total 70136 82369 -14.85 1035658GM Chevrolet 11452 11509 -0.50 117673 Opel 53667 61455 -12.67 709661 SAAB 1110 1126 -1.42 11247 Other 96 138 -30.43 1400 Total 66325 74228 -10.65 839981Jaguar Land Rover Jaguar 1064 859 23.86 17314 Land Rover 2632 2489 5.75 52725 Total 3696 3348 10.39 70039Japan Daihatsu 1103 2287 -51.77 13851 Honda 8952 13661 -34.47 125840 Mazda 10828 13036 -16.94 128138 Mitsubishi 8908 6852 30.01 80109 Nissan 23422 27011 -13.29 297140 Subaru 2786 2253 23.66 28714 Suzuki 11718 17491 -33.01 130946 Other 801 718 11.56 9119 Total 68518 83309 -17.75 813857Korea Daewoo Hyundai 22987 24031 -4.34 241194 KIA 15137 16786 -9.82 175192 Other 353 668 -47.16 4764 Total 38477 41485 -7.25 421150MAN MAN 3103 2944 5.40 23952 Other 17 23 -26.09 246 Total 3120 2967 5.16 24198MG Rover Rover Porsche Porsche 1881 1209 55.58 25176PSA Citroen 53404 58185 -8.22 695276 Peugeot 58324 64506 -9.58 798790 Total 111728 122691 -8.94 1494066Renault Dacia 19823 19966 -0.72 192636 Renault 69053 70120 -1.52 955138 Other 30 1 2900.00 91 Total 88906 90087 -1.31 1147865Scania Scania 1722 1280 34.53 15783Toyota Toyota 38306 47149 -18.76 426156 Lexus 916 1128 -18.79 12723 Total 39222 48277 -18.76 438879Volkswagen AG Audi 37063 36827 0.64 419542 Seat 18339 20035 -8.47 211027 Skoda 30257 31872 -5.07 309191 Volkswagen 100484 115169 -12.75 1158643 Other 81 74 9.46 1362 Total 186224 203977 -8.70 2099765Volvo Trucks Volvo 1645 1176 39.88 17360Other 2803 3491 -19.71 28912Total 832786 927365 -10.20 10484346 PC- Passenger Cars Aston Martin Aston Martin 133 111 19.82 1573BMW BMW 30488 33457 -8.87 393319 Mini 5977 7167 -16.60 85546 Other 21 11 90.91 353 Total 36486 40635 -10.21 479218China Brilliance 0 1 -100.00 1 Changan 0 2 -100.00 11 Great Wall 23 5 360.00 100 Landwind 0 0 1 Lifan 0 1 -100.00 12 Other 6 7 -14.29 36 Total 29 16 81.25 161Chrysler Chrysler 727 739 -1.62 12004 Dodge 599 1175 -49.02 8145 Jeep 584 1082 -46.03 8622 Total 1910 2996 -36.25 28771DAF DAF Daimler Mercedes 29359 30140 -2.59 379935 Smart 4170 4941 -15.60 56638 Other 0 Total 33529 35081 -4.42 436573Fiat Alfa Romeo 5914 5807 1.84 68559 Fiat 37058 49919 -25.76 590817 Iveco 70 58 20.69 734 Lancia 3757 5659 -33.61 72580 Other 187 214 -12.62 3765 Total 46986 61657 -23.79 736455Ford Ford 51642 64834 -20.35 777695 Mercury 0 0 5 Volvo 9333 8433 10.67 149207 Other 0 2 -100.00 7 Total 60975 73269 -16.78 926914

GM Chevrolet 11428 11490 -0.54 117440 Opel 49437 57501 -14.02 660569 SAAB 1110 1125 -1.33 11242 Other 82 135 -39.26 1304 Total 62057 70251 -11.66 790555Jaguar Land Rover Jaguar 1064 859 23.86 17314 Land Rover 2298 2195 4.69 47997 Total 3362 3054 10.09 65311Japan Daihatsu 1103 2287 -51.77 13849 Honda 8951 13641 -34.38 125800 Mazda 10662 12756 -16.42 126477 Mitsubishi 7409 5706 29.85 63216 Nissan 20767 24578 -15.51 267544 Subaru 2779 2219 25.24 28636 Suzuki 11685 17391 -32.81 130358 Other 2 24 -91.67 27 Total 63358 78602 -19.39 755907Korea Daewoo Hyundai 22681 23692 -4.27 237948 KIA 15058 16682 -9.74 174374 Other 310 623 -50.24 4423 Total 38049 40997 -7.19 416745MAN MAN MG Rover Rover Porsche Porsche 1825 1198 52.34 25003PSA Citroen 43422 48543 -10.55 579484 Peugeot 49372 55826 -11.56 689807 Total 92794 104369 -11.09 1269291Renault Dacia 18934 18837 0.51 181356 Renault 54278 57767 -6.04 783705 Total 73212 76604 -4.43 965061Scania Scania Toyota Toyota 35558 44808 -20.64 401301 Lexus 916 1127 -18.72 12719 Total 36474 45935 -20.60 414020Volkswagen AG Audi 36772 36742 0.08 418083 Seat 18206 19936 -8.68 209762 Skoda 29978 31434 -4.63 305927 Volkswagen 89490 105043 -14.81 1048203 Other 81 74 9.46 1362 Total 174527 193229 -9.68 1983337Other 1097 1664 -34.07 12586Total 726812 829675 -12.40 9307557 LCV-Light Commercial Vehicles up to 3.5t ** BMW BMW 182 66 175.76 623 Mini Total China Great Wall 60 53 13.21 867Chrysler Chrysler 55 69 -20.29 403 Dodge 38 55 -30.91 541 JEEP 72 60 20.00 756 Total 165 184 -10.33 1700DAF DAF Daimler Mercedes 7651 6582 16.24 80503Fiat Alfa Romeo 7 7 0.00 106 Fiat 7465 8407 -11.20 123165 Iveco 2718 2422 12.22 31186 Lancia 2 2 0.00 24 Total 10192 10838 -5.96 154481Ford Ford 8908 8882 0.29 105610 Volvo 22 20 10.00 262 Other 0 Total 8930 8902 0.31 105872GM Chevrolet 22 19 15.79 213 Opel 4222 3938 7.21 49024 SAAB 0 1 -100.00 5 Other 14 3 366.67 89 Total 4258 3961 7.50 49331Jaguar Land Rover Jaguar Land Rover 334 294 13.61 4728Japan Daihatsu 0 0 2 Honda 1 20 -95.00 40 Mazda 163 280 -41.79 1653 Mitsubishi 1344 1006 33.60 15140 Nissan 2592 2367 9.51 28998 Subaru 7 34 -79.41 78 Suzuki 33 100 -67.00 588 Other 673 601 11.98 7920 Total 4813 4408 9.19 54419Korea Daewoo Hyundai 306 337 -9.20 3242 KIA 79 104 -24.04 818 Other 43 45 -4.44 341 Total 428 486 -11.93 4401Porsche Porsche PSA Citroen 9975 9633 3.55 115674 Peugeot 8934 8652 3.26 108694 Total 18909 18285 3.41 224368Renault Dacia 889 1129 -21.26 11280 Renault 13299 10978 21.14 156380 Total 14188 12107 17.19 167660Toyota Toyota 2732 2333 17.10 24617Volkswagen AG Audi 291 85 242.35 1458 Seat 133 99 34.34 1260 Skoda 279 438 -36.30 3258 Volkswagen 10718 9826 9.08 108253 Total 11421 10448 9.31 114229Other 680 596 14.09 6835Total 84999 79555 6.84 994817 LBC- Light Buses & Coaches upto 3.5 tn Daimler Mercedes 102 239 -57.32 1421Fiat Fiat 13 27 -51.85 161 Iveco 18 11 63.64 57 Total 31 38 -18.42 218Ford Ford 42 34 23.53 293GM Opel 6 15 -60.00 38 Chevrolet Total Japan Nissan 1 3 -66.67 9 Toyota Total Korea Hyundai 2 -100.00

GROUP BRAND 2010 AUGUST 2009 AUGUST % CHANGE YEAR TILL DATE 2010 GROUP BRAND 2010 AUGUST 2009 AUGUST % CHANGE YEAR TILL DATE 2010

New Registrations in Enlarged Europe*-By Manufacturer Source: Association Auxiliaire de l’Automobile

Auto Monitor48 1 - 15 November 2010

EUROPEAN SALESEUROPEAN SALES

Page 49: Auto Monitor - 1-15 November 2010

Kia Other Total PSA Citroen 1 20 Peugeot 0 3 -100.00 18 Total 1 38Renault Renault 65 148 -56.08 580Volkswagen AG Audi Seat Skoda Volkswagen 110 58 89.66 791 Total Other Dodge Other 75 67 11.94 1103 Total 433 609 -28.90 4506 Total Light Commercial Vehicles up to 3.5t (LCV+LBC) BMW BMW 182 66 175.76 623 Mini Total China Great Wall 60 53 13.21 867Chrysler Chrysler 55 69 -20.29 404 Dodge 38 55 -30.91 541 JEEP 72 60 20.00 756 Total 165 184 -10.33 1701DAF DAF Daimler Mercedes 7753 6821 13.66 81924Fiat Alfa Romeo 7 7 0.00 106 Fiat 7478 8434 -11.34 123326 Iveco 2736 2433 12.45 31243 Lancia 2 2 0.00 24 Total 10223 10876 -6.00 154699Ford Ford 8950 8916 0.38 105903 Volvo 22 20 10.00 262 Other 0 Total 8972 8936 0.40 106165GM Chevrolet 22 19 15.79 213 Opel 4228 3953 6.96 49062 SAAB 0 1 -100.00 5 Other 14 3 366.67 89 Total 4264 3976 7.24 49369Jaguar Land Rover Jaguar Land Rover 334 294 13.61 4728Japan Daihatsu 0 0 2 Honda 1 20 -95.00 40 Mazda 163 280 -41.79 1653 Mitsubishi 1344 1006 33.60 15140 Nissan 2593 2370 9.41 29007 Subaru 7 34 -79.41 78 Suzuki 33 100 -67.00 588 Other 673 601 11.98 7920 Total 4814 4411 9.14 54428Korea Daewoo Hyundai 306 339 -9.73 3244 KIA 79 104 -24.04 818 Other 43 45 -4.44 341 Total 428 488 -12.30 4403Porsche Porsche PSA Citroen 9976 9635 3.54 115694 Peugeot 8934 8653 3.25 108712 Total 18910 18288 3.40 224406Renault Dacia 889 1129 -21.26 11280 Renault 13364 11126 20.12 156960 Total 14253 12255 16.30 168240Toyota Toyota 2732 2335 17.00 24629Volkswagen AG Audi 291 85 242.35 1459 Seat 133 99 34.34 1265 Skoda 279 438 -36.30 3264 Volkswagen 10828 9884 9.55 109032 Total 11531 10506 9.76 115020Other 755 663 13.88 7938Total 85432 80164 6.57 999323 CV-Commercial Vehicles (trucks) over 3.5t ** China Other 0 Chrysler Other 0 7 -100.00 8DAF DAF 2101 1545 35.99 19960Daimler Mercedes 4887 3621 34.96 36672Fiat Fiat 145 112 29.46 2123 Iveco 2321 1979 17.28 20312 Total 2466 2091 17.93 22435Ford Ford 47 30 56.67 481GM Chevrolet 1 0 19 Opel 1 0 8 Other 0 0 7 Total 2 0 34Japan Mitsubishi 155 140 10.71 1753 Nissan 62 62 0.00 584 Other 124 88 40.91 1147 Total 344 290 18.62 3492Korea Daewoo MAN MAN 2853 2523 13.08 22208PSA Citroen 6 6 0.00 82 Peugeot 12 21 -42.86 231 Total 18 27 -33.33 313Renault Renault 1370 1162 17.90 13720 Other 30 1 2900.00 91 Total 1400 1163 20.38 13811Scania Scania 1593 1155 37.92 14497Toyota Toyota 16 7 128.57 230Volkswagen AG Volkswagen 132 124 6.45 1211Volvo Trucks Volvo 1542 1097 40.57 15637Other 460 674 -31.75 4708Total 17861 14354 24.43 155699 BC-Buses & Coaches over 3.5t DAF DAF 21 20 5.00 219Daimler Mercedes 708 953 -25.71 5174 Others 105 51 105.88 942 Total 813 1004 -19.02 6116Fiat Fiat 12 21 -42.86 159 Iveco 627 665 -5.71 3522 Total 639 686 -6.85 3681Ford Ford 142 134 5.97 2098

GM Chevrolet Opel 2 1 100.00 23Japan Nissan 2 30 Mitsubishi Toyota Others 6 -100.00 Total MAN MAN 241 414 -41.79 1659 Others 17 23 -26.09 246 Total 258 437 -40.96 1905PSA Citroen 0 1 -100.00 16 Peugeot 6 6 0.00 40 Total 6 7 -14.29 56Renault Renault 41 65 -36.92 753Scania Scania 129 125 3.20 1286Volkswagen Volkswagen 34 118 -71.19 197Volvo Trucks Volvo 103 79 30.38 1723Others 491 490 0.20 3680Total 2681 3172 -15.48 21767 Total Commercial Vehicles (Trucks) & (Buses) over 3.5t China Other 0 Chrysler Other 0 7 -100.00 8DAF DAF 2122 1565 35.59 20179Daimler Mercedes 5595 4574 22.32 41846 Others 105 51 105.88 942 Total 5700 4625 23.24 42788Fiat Fiat 157 133 18.05 2282 Iveco 2948 2644 11.50 23834 Total 3105 2777 11.81 26116Ford Ford 189 164 15.24 2579GM Chevrolet 2 0 20 Opel 2 1 100.00 30 Others 0 0 7 Total 4 1 300.00 57Japan Mitsubishi 155 140 10.71 1753 Nissan 62 63 -1.59 589 Others 126 93 35.48 1172 Total 346 296 16.89 3522Korea Daewoo Hyundai Total MAN MAN 3094 2937 5.35 23867 Others 17 23 -26.09 246 Total 3111 2960 5.10 24113PSA Citroen 6 7 -14.29 98 Peugeot 18 27 -33.33 271 Total 24 34 -29.41 369Renault Renault 1411 1227 15.00 14473 Others 30 1 2900.00 91 Total 1441 1228 17.35 14564Scania Scania 1722 1280 34.53 15783Toyota Toyota 16 7 128.57 230Volkswagen AG Volkswagen 166 242 -31.40 1408Volvo Trucks Volvo 1645 1176 39.88 17360Others 951 1164 -18.30 8388Total 20542 17526 17.21 177466 HCV-Heavy Commercial Vehicles (trucks) over 16t ** China Other 0 5DAF DAF 1776 1244 42.77 16982Daimler Mercedes 2922 1906 53.31 21136Fiat Iveco 1020 845 20.71 9295Ford Ford GM Chevrolet Japan Other 11 5 120.00 86MAN MAN 2105 1714 22.81 16127Renault Renault 1026 793 29.38 10156 Other 3 1 200.00 22 Total 1029 794 29.60 10178Scania Scania 1587 1149 38.12 14428Volvo Trucks Volvo 1428 999 42.94 14490Others 200 270 -25.93 2030Total 12078 8926 35.31 104753 HBC-Heavy Buses & Coaches over 16t DAF DAF 13 4 225.00 100Daimler Mercedes 457 628 -27.23 3254 Other 105 51 105.88 942 Total 562 679 -17.23 4196Fiat Iveco 447 377 18.57 2276MAN MAN 225 401 -43.89 1472 Others 17 22 -22.73 246 Total 242 423 -42.79 1718Renault Renault 16 21 -23.81 486Scania Scania 128 123 4.07 1279Volvo Trucks Volvo 103 79 30.38 1721Others 331 243 36.21 2331Total 1842 1949 -5.49 14107 Total Heavy Commercial Vehicles (Trucks & Buses) over 16t China Other 0 DAF DAF 1789 1248 43.35 17082Daimler Mercedes 3379 2534 33.35 24390 Other 105 51 105.88 942 Total 3484 2585 34.78 25332Fiat Iveco 1467 1222 20.05 11571GM Chevrolet Japan Others 11 5 120.00 86 Total MAN MAN 2330 2115 10.17 17599 Others 17 22 -22.73 246 Total 2347 2137 9.83 17845Renault Renault 1042 814 28.01 10642 Other 3 1 200.00 22 Total 1045 815 28.22 10664Scania Scania 1715 1272 34.83 15707Volvo Trucks Volvo 1531 1078 42.02 16211Others 531 513 3.51 4361Total 13920 10875 28.00 118860

GROUP BRAND 2010 AUGUST 2009 AUGUST % CHANGE YEAR TILL DATE 2010 GROUP BRAND 2010 AUGUST 2009 AUGUST % CHANGE YEAR TILL DATE 2010

*EU 15 + EEFTA (Iceland, Norway & Switzerland) + Western Europe (10 new members) ‘(*) EU27 including Bulgaria and Romania; data for Malta and Cyprus not available

Auto Monitor 491 - 15 November 2010

EUROPEAN SALESEUROPEAN SALES

Page 50: Auto Monitor - 1-15 November 2010

Auto Monitor50 1 - 15 November 2010

Getting PersonalWith Sanjay Soni, Managing Director, Logix Microsystems

Illus

trat

ion:

Sac

hin

Pan

dit

Managing Director of Logix Microsystems, Sanjay Soni (40) loves his daily game of golf and is a striving photographer. His favourite author is Ayn Rand (Fountainhead). He lis-tens to a lot of music from various genres, including pop, rock and Bollywood, while his favourite music band is Moody Blues. He also loves to dance on popular music. Sanjay is also a certifi ed scuba diver.

For someone, whose motto in life is to ‘live each day as it were your last’, Sanjay is a gadget freak and spends lots of time over weekends fi ddling with his iPhone or playing the Play Station3 with his building kids. He got the MacBook Air before it was launched in India and is pleased with it!

His bookshelf ranges from classics by Edgar Allen Poe, Renaissance fi c-tion by Umberto Eco, contemporary fi ction by Robert Ludlum, spirituality by Khalil Gibran, historical books – The Mitrokhevin Archives, thrillers by Martin Reilly etc.

Sanjay is an afi cionado of Vodka with Sprite and a dash of lime. He and his wife love to travel. He always remembers his trip to Alaska a year ago, but his most memorable journey was the drive along Highway Pacifi c 1 from Monterrey to Big Sur. It is one of the most scenic drives in the world with towering mountains on one side and the Pacifi c Ocean on the other. The winding road is so scenic that there are caution signs warning drivers to keep their attention on the road!

In Person If not in the auto industry, where would you be?

In the fi nancial services industry

What car do you drive? What do you dream of driving?I drive a Toyota Camry; dream of driving an Aston Martin Rapide

Your most recent indulgence…A Swiss watch with a tourbillion – wanted to have one for a long, long time

What are you currently reading?Prince of Dharma – by Ashok Banker

What is Mr Soni doing when not talking auto?Either in the wild capturing some unforgettable images on his camera or playing golf or playing games on his PS3

Outdoor activity you would miss offi ce for…A day in the jungle with my camera

Where did you go for your last holiday?Skiing holiday in Chamonix, France

You get angry when…When I encounter someone practising double standards; it makes my blood boil

What is the one thing you would like to change about yourself?I am too blunt and straightforward with people. I’d like to be more diplomatic

Best thing to have happened to you…Meeting then Prime Minister, late Rajiv Gandhi and receiv-ing a commendation from him for writing books on Computer Science when I was 21-years-old

THE OTHER SIDETHE OTHER SIDE

This happened in 1986-87. It was during the peak of the Punjab problem. I was studying in Bombay at that time. We had heard some reports that some of the Punjab terrorists had sneaked into Bombay because of the cleanup opera-tions being done by KPS Gill in Punjab. I did not bother much about the same as it did not really concern us.

One afternoon, I was in a taxi going to the airport to take a fl ight to Bangalore. The taxi had stopped at a signal and we were waiting for the signal to turn green to take a right turn on LBS Marg, towards Powai. Heard something that sounded like gunshots (having been in NCC for four years I was aware that these were not crackers). Looked out of the window of the taxi and saw two terrorists on a motorcycle fi ring from their AK-47 rifl es at some people who had stopped to refuel their car at a petrol bunk on the side of the road.

There was utter panic as hell broke loose and people started fl eeing helter-skelter. I was frozen for a moment but quickly ducked down below the seat so as to avoid getting shot by a wayward bullet or a ricochet. The terrorists left the scene in a few minutes after shooting, whoever they were after. The taxi guy quickly got me out of there and to the airport. However, I can never forget that scene ever. It was a really close call.

An experience I won’t forget…

Page 51: Auto Monitor - 1-15 November 2010
Page 52: Auto Monitor - 1-15 November 2010

52

Regn. No. MH/MR/WEST/20/2009-2011. RNI No. MAHENG/2000/11414 WPP Licence No: MR/Tech/WPP-269/WEST/09-11 Licenced to post without pre-payment at Mumbai patrika channel sorting office G.P.O. Mumbai 400 001.

Date Of Mailing: 1st & 2nd Fortnightly Issue