auto monitor - 29 october 2012

Auto MonitorI 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

COMPONENT INDUSTRY RECORDS `210,400 CRORE REVENUES

CORPORATE

Pg 14Pg 11

Himatsingka takes over as FADA President

Mohan Himatsingka has taken over as the new President

of Federation of Automobile Dealers Associations (FADA) for 2012-13. He is a com-merce graduate from Birla Institute of Technology and Science, Pilani. He is the MD of Maurya Motors Ltd, a CV dealer for Tata Motors Ltd and also owns and manag-es Shankar Motors Pvt Ltd, a passenger car dealership of Tata Motors Ltd, located in Patna, Bihar. He was the Vice President of FADA during the years 2010-11 and 2011-12. KVS Prakash Rao, John K Paul and Mukesh Jain were elected as Vice President, Honorary Secretary and Honorary Treasurer, respectively, for the year 2012-13. FADA is the apex body of automobile dealers engaged in sale, serv-ice and spares of vehicles and has 1,500 members, including 25 state level associations.

Ma k i n o A u t o Industries Pvt Ltd is looking to intro-duce si ntered

braking technology, as opposed to the current resin based tech-nology, and its Technology Licence Agreement (TLA) with Japan’s Tokai Carbon Company will be instrumental in this objective. The company is hop-ing to be enrolled as a vendor for Suzuki and HMSI for supplying disc brake pads.

Tokai Carbon Company, a USD 1.3 billion company, is already supplying brakes pads to Honda and Suzuki in Japan. Alliance with Tokai will not only enable Makino Auto Industries to benefit from its Japanese part-ner’s R&D capabilities but will also prove influential in its talks with Suzuki and HMSI in India. “Tokai Carbon will try to do best

to contribute towards approvals from HMSI and Suzuki,” reas-sured General Manager, friction material division & Member of the Board, Tokai Carbon Co Ltd, Kiyonari Nakai.

Captive ConsumptionIn order to cater to the rising

OEM demands, Makino is com-

ing up with a fully automated die-casting plant in Noida with `25 crore investment that will cater to its captive consump-tion as well. The plant will be Makino’s fifth and is aimed at catering to HMSI, Yamaha and Hero Moto Corp. “We are in talks with Toshiba and Zatai for auto machinery and want to be a

company with lesser burdens in future. We want to be competi-tive and are looking at complete automation,” said Director, Makino Auto Industries Pvt Ltd, Rishubh Bhandari.

Currently, Makino has been using the resin based technology for its brake pads. With the TLA, it intends to bring in the sintered

brake technology that is used in two wheelers of higher engine capacity.

“The resin based brake pads are used for bikes with less-er engine capacity, but with OEMs planning to bring in their larger capacity motorcycles, we are also improving our stand-ards,” said Bhandari. Sintered brake pads will be effective at even twice the working temper-ature of the resin based brake pads and will have better work-ing life as well, however they’ll be costlier to the effect of being almost five times as expensive as compared to resin based brake pads.

Makino has also been keen to improve its R&D capability in India and spent close to $500,000 in 2010-11 as R&D investments. Furthermore, it is planning to bring in two wheeler brake clutch dynamometer by 2014 and have a test rig from Japan by 2015 to size up its R&D potential.

Aura ngabad based Endurance Technologies Pvt Ltd (ETPL) recently signed

a technical collaboration with the US based Beijing West Industries

(BWI) for foundation braking systems for four wheelers.

BWI bought over the assets of the chassis division of Delphi Corporation, North America. Delphi had been in braking busi-ness for almost five decades. BWI has retained the original Delphi management of this product line including the R&D’s, patents and manufacturing facility. It has a complete range to offer from basic foundation brakes to ABS, traction control and electronic stability control systems.

Diversification Bid“We have entered in to a

technical collaboration for four wheeler brakes systems for cater-ing to SCVs and passenger cars. There is no intent for a joint ven-ture at the moment and no plans for any stakes,” said a spokesper-son at Endurance Technologies. He added that the agreement is mainly aimed at helping ETPL strategically venture in the four wheeler brakes business. ETPL has been manufacturing two wheeler disc brakes and three wheeler drum brakes for around a decade and entering four

wheeler brakes business is a logi-cal product line extension for the Aurangabad based component manufacturer.

The company has earmarked investment of around `25 to 30 crore in the initial phase for the four wheelers business and may commit additional invest-ments depending on customer’s requirements.

Current CapacityETPL is a major auto com-

ponents manufacturer and supplies aluminium die casting & machining, suspensions com-ponents and systems, two and three wheeler braking systems, two and three wheeler clutch systems and two wheeler alloy wheels. The company’s braking division was established in 2004 and has grown to be a leading supplier in the two wheeler disc brake systems and three wheeler brake systems in India. The com-pany has built up capacities to manufacture around 1.5 million units of two wheeler brake sys-tems and around 720,000 units of three wheeler brake systems per annum.

Design Capability“We are looking to focus on

design and development of foun-dation braking systems for OEMs in India. The product range will include callipers, discs, master cylinders, boosters and drum panel assemblies.

Both the companies plan to leverage their design and man-ufacturing expertise to create a significant presence in the Indian Market,” added the com-pany spokesperson.

Tokai Carbon to aid Makino in widening canvas

4 wheeler braking systems on Endurance’s agenda

Jagdev Kalsi New Delhi

Our Bureau Mumbai Our Bureau

Mumbai

Alliance with Tokai Carbon will not only enable

Makino Auto Industries to benefit from its Japanese

partner’s R&D capabilities but will also prove

influential in its talks with Suzuki and

HMSI in India

BWI bought over the assets of the chassis division

of Delphi and has retained the original Delphi management

of this product line. It makes basic

foundation brakes to ABS, traction control

and electronic stability control systems

2007-08 2008-09 2009-10 2010-11 2011-12

Turnover (Bln USD) 26.5 23 30.1 39.9 43.4

Turnover (INR ’00 Crs) 1065 1,057 1,350 1,820 2,104

Growth rate (%) - - 0.7 27.6 34.8 15.7

Export (Bln USD) 3.8 4.0 3.4 5.2 6.9

Growth rate (%) - 5.3 -15.0 52.9 32.7

Imports (Bln USD) 6.2 6.8 6.5 8.5 10.6

Growth rate (%) - 9.7 -4.4 30.8 4.7

Investment (Bln USD) 1.8 0.1 1.7 2-2.5 1.6-1.9

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

www.amonline.in29 October 2012Vol. 12 No. 36 24 Pages ` 50

Top 5 2W Makers

Company Sep-11 Sep-12 Change

HML 530,091 393,852 -25.70%

HMSI 167,918 231,455 37.84%

Bajaj Auto 255,786 206,248 -19.37%

TVS 192,027 149,191 -22.31%

Suzuki 28,520 38,003 33.25%

Top 5 2W Exporters

Company Sep-11 Sep-12 Change

Bajaj Auto 115,422 109,066 -5.51%

TVS 23,663 15,901 -32.80%

HMSI 10,546 11,671 10.67%

IYM 10,825 11,597 7.13%

HML 19,534 10,935 -44.02%

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

DATA MONITOR

SALES ANALYSISIS

Despite headwinds facing the component manufacturers across the country, the indus-try association Automotive Component Manufacturers Association of India (ACMA)

continues to be optimistic of the vehicle manufacturing sector and continued growth in sales. There are clearly few positives visible at this stage for the hope of significant recovery or upturn in sales of passenger cars and CVs. The more worrying trend has been tepid growth of two wheel-ers, a segment that had long shown resilient over the years.

Though ACMA President Arvind Kapur termed the cur-rent downturn as a prolonged one blaming downturn in investment cycle, policy paralysis and uncertainty, he still exhumed confidence in long term growth of the automotive sector. The industry body has pegged growth rate of eight to ten percent for the segment.

In 2011-12, the component industry had revenues of around $43.5 billion while the exports stood at around $ seven billion. Imports by the component industry stood at around $10.25 billion. Incremental investments to the tune of around $1.6-1.9 billion were made in the last fiscal.

The ACMA President further pointed out that ‘under pen-etrated markets and the unfulfilled mobility aspirations of the people of India are the silver lining that gives us the con-fidence of a steady growth trajectory.’ The remarks underline the unmistakable tendency of the industry players to con-tinue treating Indian auto market as ‘emerging’ and hoping for brighter future ahead.

Most indicators suggest that cars and two wheelers sales are likely to be in the low single digit or negative territo-ry while CV manufacturers were already bracing up for a ‘cyclical’ downturn. It may be worthwhile for the component manufacturers to brace up for an uncertain environment and perhaps continued sluggishness and focus on innova-

tion and cost cutting to survive in the coming months.

Comments can be sent to [email protected]

Stronger Headwinds

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QUOTES Arvind Kapur, ACMA President Stephen Odell, Ford of Europe Chief Executive Officer

The Indian economy is experiencing not just an ordinary slowdown but a sharp downturn in investment cycle, domestic policy paralysis and uncertain trade environment

I don’t think it’s sustainable for support from governments to keep competitive companies going forward, particularly in a protracted downsized economy

Auto Monitor

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Component industry records `210,400 crore revenues: ACMA 08ACMA emphasised that the industry needs to partner in design, development & testing and develop affordable and innovative solutions for continued growth: ACMA report

Vehicle sales grows five-fold in Bihar 10Bihar government is considering lifting entry tax levied on the motor vehicle for the mutual benefit of the state government and the automotive retail trade

CONTENTS

BMW Group plans plant in Brazil 16BMW is looking to invest around Euro 200 million for a production capacity of approximately 30,000 vehicles per year in Brazil and create more than 1,000 new jobs

JLR to harness digital technology for virtual showroom 18JLR is looking to offer its customers virtual “hands-on” access to its model ranges, breaking free from the limitations that dictate what can be displayed in a conventional showroom

Ford plans to restructure European operations 18Ford is looking to restructure its Europe manufacturing operations to respond to structural market changes and deliver profitable growth in the region

GLOBAL WATCH

CORPORATE

THE OTHER SIDE

08

10

Volkswagen shows compact SUV concept at Sao Paulo show 16Volkswagen gave a preview of a small SUV based on the new small family platform with unveiling of its latest concept car, the Taigun, at the Sao Paulo motor show

Shirish Kulkarni, Director, DSK Motowheels A post graduate from Unitec University, Auckland, New Zealand, Kulkarni has been the key driving force behind DSK Group’s foray into automobile manufacturing and retailing

Auto Monitor

C O R P O R A T E829 OCTOBER 2012

Auto component indus-try’s turnover stood at `210,400 crore ($43.4 billion) for the period

April 2011 to March 2012, regis-tering a growth of 15.7 percent (in rupee terms) over the same period a year ago, Automotive Component Manufacturers Association of India (ACMA), said in the Industry Performance Review for the fiscal 2011-12.

Wider CollaborationCommenting on the perform-

ance of the auto component industry, President, ACMA Surinder Kanwar said: “The sector grew to $43.4 billion in 2011-12. Ambiguity in the fuel price regime, high cost of capital, high interest rates, and slowing

down of investment in infra-structure, is adversely impacting the growth of the automotive industry. Today, there is need for greater collaboration between the component manufacturers, OEMs, machine tool suppliers & the raw material Industry. Our aim would be to gradually make a transition from transactional relationships to those that are synergistic in nature.”

Growth ImpedimentsThe industry witnessed a

CAGR of 19 percent (in rupee terms) over the last five years. This data represents the entire supplies from the auto compo-nent industry to the on-road and off-road vehicle manufacturers and the aftermarket in India and overseas from ACMA member and non-member companies, including component suppli-

ers captive to the OEMs and the unorganized & smaller players.

The sales of vehicle in India moderated in 2011-12 and this also impacted the performance of the auto components indus-try. Even as the uncertainty in the domestic market contin-ues, ACMA is optimistic that the medium & long-term prospects of the component industry are intact. However, in the current fiscal 2012-13, the industry is expected to grow in the range of eight-10 percent.

Government SupportThe ACMA emphasised that

the industry needs to partner in design, development & testing and develop affordable and inno-vative solutions. Further, the component industry also needs to actively consider diversifying into adjacent markets including

defence, aerospace, railways, farm Implements etc. to sustain the growth momentum.

Delineating his thoughts on the current policy environment and the need for supporting auto component manufacturing in the country, Vice President, ACMA, Harish Lakshman said: “The Indian Auto Component Industry is confident of scal-ing the target of $115 billion by 2020. To achieve this, we urge the government for long-term stable policies and export incentives that are critical for

sustaining the industry in these times of global slowdown. The government continues to push for more multi-lateral and bilateral trade agreements, increasing the threat of imports due to a non-level playing field, in contrast many of the com-petitor nations are imposing non-tariff barriers on imports. The government policies per-taining to tax regimes, FTAs & infrastructure development need to be relooked for the overall growth of the auto com-ponent industry.”

Our Bureau New Delhi

Component industry records `210,400 crore revenues: ACMA

The government continues to push

for more multi-lateral and bilateral trade agreements,

increasing the threat of imports due to a non-level playing field, in contrast many of the

competitor nations are imposing non-tariff

barriers on imports - Harish Lakshman, Vice

President, ACMA

Exports: Exports of auto components grew to $6.9 billion from $5.2 billion in 2010-11 growing 32.7 percent. Europe accounted for 36 percent of exports followed by Asia at 28 percent and North America at 23 percent. The exports to Europe increased to 32 percent as compared to the previous fiscal, with America and Asia registering increase in exports to 27 percent & 28 percent respectively. The key export items include engine parts, transmis-sion parts, brake system & components, body parts, exhaust systems, and turbo chargers.

Imports: imports of auto components also grew by 25 percent to $10.6 billion in 2011-12 from $8.5 billion in 2010-11; almost 85 percent of the imports were accounted for by the OEMs, the rest 15 percent by the aftermarket. Asia and Europe contributed to over 57 percent and over 35 percent of the imports respectively. Within Asia - China, South Korea and Thailand con-tributed to the maximum imports while from Europe the key contributors were Germany, Italy and Czech Republic. The quantum of imports has also increased due to several FTAs and other trade agreements signed by the Government.

Capacity Addition: For the fiscal 2011-12 an estimated investment of around $1.6-1.9 billion was made in the auto component sector. Due to moderation in vehicle sales and depressed market sentiments, the investment in 2011-12 declined compared to the previous year. Capex in 2010-11 stood at around $2-2.5 billion. The cumulative investment (gross-block) in the auto component sector in India over the last five years stood at over $ seven billion.

Industry Performance Review 2011-12

2007-08 2008-09 2009-10 2010-11 2011-12

Turnover ($Bn) 26.5 23 30.1 39.9 43.4

Turnover (INR ’00 cr) 1065 1,057 1,350 1,820 2,104

Growth rate (%) - - 0.7 27.6 34.8 15.7

Export ($Bn) 3.8 4.0 3.4 5.2 6.9

Growth rate (%) - 5.3 -15.0 52.9 32.7

Imports ($Bn) 6.2 6.8 6.5 8.5 10.6

Growth rate (%) - 9.7 -4.4 30.8 4.7

Investment ($Bn) 1.8 0.1 1.7 2-2.5 1.6-1.9

Summary of Findings

Auto Monitor

C O R P O R A T E1029 OCTOBER 2012

Bihar has registered a 500 percent growth in vehi-cle sales in the last five to six year. The vehicle

sales which stood at 80,363 units in 2005 went up to 440,000 units in 2011-12, Bihar government informed recently.

“The increasing vehicles sales indicate the state’s economy has improved. Ever since 2004-05, the state’s economy has grown at a healthy 11.5 percent. The economy is certainly on a high growth trajectory. Per capita income has gone of remarka-bly in the last seven years, thus increasing the purchase capac-ity of average residents. This is one of the reasons pushing up the vehicle sales in Bihar,” Bihar’s Deputy Chief Minister, Sushil Kumar Modi said.

Modi further added that Bihar government will seriously think on lifting entry tax levied on the motor vehicle for the mutual

benefit of the state government and the automotive retail trade. He made these observations while delivering his address at the first ever Convention of Automobile Dealers at Patna, organised jointly by the Federation of Automobile Dealers Associations (FADA) and Automobile Dealers Association of Bihar (ADAB).

Nand Kishore Yadav, the State’s Road Construction Minister attributed the steep growth trend in vehicle sales to the strengthening of the econo-my, the government’s emphasis on building good roads and the improved law & order situation in the state. A total of 13,600 km of roads has been built by the gov-ernment in the past seven years leading to significant reduction in travel time.

Managing Director & Chief Executive Officer, National Skill Development Corporation (NSDC), Dilip Chenoy in his pres-entation, referred to the acute shortage of skilled manpower in

the wake of economic growth in the country. Spelling out the aims and objectives of NSDC, he said that the formation of Automotive Skills Development Council (ASDC) was the first step in addressing the skill gaps in automotive sector.

Former FADA President, Nikunj Sanghi urged the State Government to remove entry tax on motor vehicles in the interest of simplification of tax regime and uniformity in taxes across States to further give impetus to the growth.

Responding to this Modi assured the dealers that Bihar government will seriously think on lifting entry tax levied on the motor vehicle for the mutual ben-efit of the state government and automotive retail trade.

Highlighting the importance

The VAT collections in Bihar on vehicle sales have gone up from `200 crore in 2005-06 to over `1,000 crore. Auto retail

contributes around `1,750 crore by way of VAT and Transport Department’s revenue alone in Bihar. Around

ten lakh people are directly and indirectly employed in the auto

business and auto related activities in

the State

Our Bureau New Delhi

Vehicle sales gallop in BiharDealers pitch for exemption of vehicle entry tax to maintain momentum

of auto sector in the national & state economies, Sanghi said that the auto retail & service indus-try - having invested `35,000 crore, employing directly 7.5 lakh people countrywide and con-tributing significantly to the Central & State exchequers, plays a very important role in national and state economies due to its far-reaching forward & backward linkages.

There are around 250 automobile deal-ers in Bihar, who have invested close to `1,000 crore and provide direct employment to over 25,000 people, selling more than five lakh vehicles annually. Enormity of direct and indi-rect dependence of people on auto sector can be gauged from the fact that according to an ICRA report, a commercial vehicle generates 13.30 jobs, for every additional car, 5.3 employ-ment opportunities are created and for every two-wheeler 0.5 jobs follow. Therefore, around ten lakh people are directly and indirectly employed in the auto business and auto related activities in the State.

The VAT collections in Bihar on vehicle sales have gone up from ̀ 200 crore in 2005-06 to over `1,000 crore. Auto retail contributes around `1,750 crore by way of VAT and Transport Department’s revenue alone in Bihar. Besides, there is VAT on sales of parts, lubricants and fuel and service tax on repair & servicing of vehicles.

FADA hoped that multiplicity of and varia-tion in taxes at the regional and local levels will be removed with the introduction of GST to pave the way for faster growth of automobile industry and the economy as a whole. Similarly, there are a host of other taxes on motor vehicles, which are not only pitched at a very high level but also vary from State to State. These taxes, including road tax, registration fee and permit fees, need to be rationalized and made uniform across the country. Incidentally, incidence and cascading effect of various taxes account for 40-50 percent of the price of vehicles in India.

Auto Monitor

A N A LY S I S1429 OCTOBER 2012

-45.74%

-12.41%

1.76%

-10.61%

-16.60%

2.65%

-19.93%

-0.27%

46.65%

130.21%

831.68%

Passenger Vehicles

Passenger Cars

OEMs 2011-12 2012-13

BMW** 5,005 4,384

Fiat 8,694 4,717

Ford 42,656 40,613

GM 43,420 33,613

HM 1,559 1,006

HSCI 24,040 35,254

HMIL 180,616 183,789

M&M 8,707 7,783

MSIL 390,878 373,686

Merc 3,500 2,919

Nissan 9,438 21,727

Renault 483 4,500

Skoda 12,908 16,244

Tata 102,862 105,589

Tata JLR - 1,087

TKM 36,790 38,313

Audi 2,864 4,292

VW 38,035 30,456

Total 912,455 909,972

MPV

OEMs 2011-12 2012-13

Force 130 7

M&M 11752 15419

Maruti 78,365 59,166

Tata 28,648 38,304

Total 118,895 112,896

Commercial Vehicles Two-Wheelers

LCVs (PC+GC)

OEMs 2011-12 2012-13

ALL 216 16,220

Force 11,828 11,209

HM 86 79

M&M 58,758 67,364

MNAL 4,896 4,097

Piaggio 6,146 1,782

Swaraj 2,319 1,833

Tata 121,918 137,517

VECV - Eicher

4,947 4,872

Total 211,114 244,973

3-Wheelers (PC+GC)

OEMs 2011-12 2012-13

Atul 12,219 14,284

Bajaj 97,608 101,884

Force 8 1

M&M 33,149 31,016

Piaggio 92,105 88,117

Scooters 7,693 7,389

TVS 6,235 7,806

Total 249,017 250,497

M&HCVs (PC+GC)

OEMs 2011-12 2012-13

ALL 36,951 36,119

AMW 5,053 3,242

JCBL - -

Daimler* 80 -

M&M 0 0

MNAL 1,303 2,026

Swaraj 3,853 4,429

Tata 96,235 77,697

VECV - Eicher

16,722 16,520

VECV - Volvo

252 282

Volvo Buses

331 385

Total 160,780 140,700

Scooter/Scooterettees

OEMs 2011-12 2012-13

BAL -

HML 192,561 237,186

HMSI 520,871 723,098

IYM - 3,617

M&M 2W

74,235 58,688

Piaggio - 12,851

SMIL 135,203 164,021

TVS 257,620 222,586

Total 1,18,0490 1,422,047

Mopeds/Electric

OEMs 2011-12 2012-13

TVS 383,531 386,582

Electrotherm* NA

Total 383,531 386,582

Motorcycles/StepThroughs

OEMs 2011-12 2012-13

BAL 1,307,846 1,220,365

HDMC 0 539

HML 2,786,460 2,657,063

HMSI 346,332 567,288

IYM 172,627 159,725

M&M 2W -

RE 37,136 55,645

SMIL 29,246 42,617

TVS 330,670 267,348

Total 5,010,317 4,970,590

* Data not available since August 2008 onwards** BMW monthly data not available

UV

OEMs 2011-12 2012-13

Force 1,800 2,306

Ford 1,419 751

GM 11,635 9,813

HM 1,121 878

HSCI 151 186

HMIL 819 434

ICML 231 222

M&M 91,930 121,367

MSIL 3,846 40,366

Nissan 132 50

Renault 91 8,773

Skoda 803 771

Tata 19,754 23,008

TKM 30,473 46,950

VW 4 20

Total 164,209 255,895

7409.26%

-5.23%

-8.14%

-16.32%

-71.01%

12.79%

23.17%

-13.60%21.31%

20.46%

16.04%

38.82%

-20.94%

-6.69%

-4.64%

-7.47%

-19.15%

-0.79%

63.80%

-

49.84%

45.72%

0.80%

0.00%

-2.25%

00.00%

55.49%

14.95%

-19.26%

-1.21%

-12.49%

11.90%

16.31%

-47.01%

-3.90%

-62.12%

-3.99%

28.11%

-21.68%

33.71%

-24.50%

-5.05%

31.20%

-15.66%

-47.08%

23.18%

16.90%

25.20%

0.59%

4.38%

-87.50%

-6.43%

-4.33%

-3.95%

-35.47%

-4.79%

-4.40%

-22.59%

14.65%

-20.96%

-1.52%

The passenger car segment declined by 0.27 percent dur-ing the April-September period this fiscal, while the utility vehicles grew by 55.83 percent and the multi-purpose vehi-cles declined by 5.05 percent in this fiscal.

Renault led the passenger car segment with a growth of around 831.68 percent from 483 units to touch 4,500 units this fiscal, as compared to the previous period. Renault reg-istered the highest growth in the utility vehicle segment with 9,540.66 percent growth to touch 8,773 units in April-September 2012-13 period.

The overall commercial vehicles segment registered a growth of 3.71 percent in April-September, 2012-13 as compared to the same period last fiscal to touch 385,673 units. M&HCVs sales declined by 12.49 percent to touch 140,700 units compared to 160,780 units in the same period in the previous year. The LCV segment grew by 16.04 percent to touch 244,973 units in this fiscal, compared to 211,114 units in the same period last fiscal.

Three-wheeler sales were stagnant at 250,497 units in April-September period compared to 249,017 units in same period last year. Passenger carriers rose by 4.29 percent in April-September while goods carriers fell by 13.21 percent.

ALL registered the highest growth in the LCV segment to touch 16,220 units. TVS registered highest growth in three-wheeler segment to touch 7,806 units.

Domestic two-wheelers sales witnessed a growth of 3.12 percent in this fiscal to touch 6,779,219 units against 6,574,338 units during the same period in the previous fiscal. Mopeds, motorcycles and scooters grew by 0.8 percent, -0.79 percent and 20.46 percent respectively.

The motorcycle sales grew to 4,970,590 units in April-September period as compared to 5,010,317 units in corresponding period in the previous fiscal.

In the Motorcycle segment, Honda Motorcycles sales were up by 63.8 percent in April-September period this fiscal, while Bajaj Auto’s sales declined by 6.69 percent to 1,220,365 units compared to 1,307,846 units in same period last fiscal.

In the Scooter segment, the sales of HMSI grew by 38.82 percent while TVS Motor sales declined by 13.6 percent in this fiscal.

Hero MotoCorp sales declined by 25.7 percent for September at 393,852 units over the same month last year. Bajaj Auto witnessed 19.37 percent decline in its September sales at 206,248 units against the same month in the previ-ous fiscal.

TVS Motor Company reported total domestic two-wheeler sales of 149,191 units in September registering a decline of 22.31 percent. Honda Motorcycles India registered the high-est growth in domestic two-wheelers sales at around 37.84 percent to touch 231,455 units in September this year.

25.84%

4.14%

49.86%

949.56%

9540.66%

54.07%

400.00%

16.47%

55.83%

32.02%

-94.62%

0.80%

-35.84%

-100%

Auto Monitor

G L O B A L W A T C H1629 OCTOBER 2012

Volkswagen gave a pre-view of a possible small SUV based on the New Small Family platform,

which underpins the up! with unveiling of its latest concept car, the Taigun, at the Sao Paulo motor show. The company will

be monitoring public reaction to this vehicle before taking a deci-sion on whether to put the Taigun into production.

Just like the up!, the Taigun is small on the outside - at just 3.86 metres long and 1.73 metres wide - but big on the inside, with

a generous 2.47 metre wheel-base. These dimensions give the Taigun short overhangs (708 mm front and 681 mm rear) and pur-poseful proportions, while the clear, concise exterior styling follows the Volkswagen design DNA.

Powering the four-seat Taigun is a new one litre, three-cylin-der turbocharged petrol engine producing 110 PS at 5,000 rpm and pushing 175 Nm (129 lbs ft) of torque through the six-speed manual gearbox. The engine is based on the latest EA211 series, and with the use of direct fuel injection and turbocharging it is able to return a combined fuel consumption of just 4.7 litre per 100km (60.1 mpg), despite being able to take the 985 kg Taigun from zero to 62 mph in 9.2 sec-onds and on to 186 km/h (115 mph) top speed.

The look of the Taigun is delib-erately styled to emulate that of its SUV siblings, the Tiguan and Touareg. Wide tracks (1,473 mm front and rear) help give the Taigun a purposeful look, while 17-inch alloys with 205/50 R17 tyres, high ground clearance and plentiful torque enable it to deal with rough surfaces. This is, however, very much a vehicle for the urban environment: the high driving position gives the driver an optimum view in traffic, while there’s plenty of room for luggage, thanks to a practical 280-litre load space that increases to 987 litres with the rear seats down.

The interior of the Taigun is simple and spacious (headroom is 1,036 mm in front and 980 mm at the back), with controls pared back to a minimum. The front air nozzles not only individual-ly control the direction of the air flow, but also the blower speed and the temperature, which is displayed within the nozzle. Meanwhile the central infotain-ment system can pair with the majority of smartphones, pro-viding an intuitive interface. Above this are mounted auxilia-ry instrument gauges that display oil pressure, coolant temperature and turbo charge pressure.

Volkswagen shows compact SUV concept at Sao Paulo show

The BMW Group plans to build a new plant in Brazil subject to final approval of the plans by the Brazilian Government with the goal for pro-

duction to begin in 2014. Investments over the next few years will total more than Euro 200 million. Plans call for a production capac-ity of approximately 30,000 vehicles per year. More than 1,000 new jobs will be created at the new production site - as well as addition-al jobs within the supplier network as a result of the new plant. Negotiations with the State Government of Santa Catarina are already well underway for the new facility in the Joinville region.

“Brazil is a market with tremendous poten-tial for the future for the BMW Group. For that reason, we are strengthening our long-term commitment to this country,” said Member of the Board of Management, Sales and Marketing, BMW Ian Robertson explained. “This will create the necessary condi-tions for us to maintain the balance of sales between Europe, Asia and the Americas - and, therefore, for the long-term success of our company. With this move, the BMW Group is applying its strategic principle of ‘production follows the market’, which has already proved successful in markets such as the US, China and India.”

The new plant in Brazil will extend the BMW Group’s production network which currently comprises 29 production and assembly facili-ties in 14 countries. The company has been manufacturing BMW motorcycles at its Manaus location since 2010.

The BMW Group has had a local sales com-pany in Brazil since 1995. A total of 15,214 vehicles were sold in Brazil in 2011. This repre-sents a growth rate of almost 54 percent. BMW Motorrad also increased its sales by 55 percent in 2011 to reach a total of 5,442 motorcycles.

BMW Group plans plant in Brazil

Auto Monitor

G L O B A L W A T C H1829 OCTOBER 2012

Jaguar Land Rover has har-nessed advanced digital technology to offer its cus-tomers virtual “hands-on”

access to its model ranges, break-ing free from the limitations that dictate what can be displayed in a conventional showroom. The system, Virtual Experience, is the most sophisticated yet produced for the motor industry, ena-bling interaction with an almost 1:1 scale representation of any Jaguar or Land Rover model.

Using a touchpad screen, the customer can select model, equipment grade and feature pref-erences, which Virtual Experience renders as an ultra-high reso-lution, real time 3D image and leveraging a ground breaking five million polygons. The custom-er makes natural and intuitive movements or gestures to explore all aspects of the vehicle.

The technology may be sophisticated, but the equipment required to present the Virtual Experience is simple and portable. It requires a display screen and a

laptop loaded with the system to operate. This means it can easily be set up in vehicle showrooms, public spaces, even the sides of buildings, bringing Land Rover and Jaguar models to locations where there might not be enough space or access for a vehicle.

Jaguar Land Rover’s tech-nology department has led development of the system, moving on from an initial chal-lenge set by company CEO Dr Ralf Speth in December last year. Working alongside mar-keting, design and engineering departments, and with external suppliers, the project was stead-ily refined to ensure that the technology deployed would co-ordinate perfectly with Jaguar Land Rover’s systems. The Virtual Experience was demon-strated publicly for the first time at the reveal of the all new Range Rover in September.

Virtual Experience featured on the Jaguar and Land Rover stands at the Paris motor show, supporting the launch of the new

Jaguar F-TYPE and Range Rover. It is being further developed ultimately to present the entire Jaguar Land Rover model portfo-lio, in every variant.

Nathan Summers, Jaguar Land Rover Business Relationship Director, said: “Jaguar Land Rover offers customers an excep-tional breadth of choice to tailor their vehicle. Virtual Experience presents customers with the opportunity to experience their personally designed vehicle in a very real environment.”

The introduction of Virtual Experience is a key element in Jaguar Land Rover’s wider digit-

al strategy for its business that is making innovative use of mobile and on-line applications and tools. In the future Jaguar Land Rover plans to invest further in the technology to enable its custom-ers to design and save their vehicle on a mobile device at home which can be presented to the Virtual Experience to start the process.

Summers continued: “Virtual Experience is an innovation and shows where we see the future of our technology development. We are putting the customer in control as well as seeking new ways to modernise and cus-tomise their experience when choosing their new Jaguar or Land Rover.”

Equipments required to

present the virtual experience is simple

and portable: a display screen and

a laptop loaded with the system to operate

JLR to harness digital technology for advanced, fully interactive vehicle showroom

Ford recently announced a proposal to restructure its Europe manufacturing operations as part of its comprehensive plan to respond to structural market

changes and deliver profitable growth in the region.

Ford announced its plans to end production at a major production plant in Genk, Belgium, by the end of 2014, pending the outcome of a consultation process with employee repre-sentatives. If the plan is confirmed, Ford would resource several vehicles to more fully utilise its European plants.

The plan would help to address manufactur-ing overcapacity stemming from a more than 20 percent drop in total industry vehicle demand in Western Europe since 2007. New vehicle sales in the region have reached a nearly 20-year low this year and are expected to remain flat or fall further next year.

“The proposed restructuring of our European manufacturing operations is a fun-damental part of our plan to strengthen Ford’s business in Europe and to return to profita-ble growth,” said Chairman and CEO, Ford of Europe, Stephen Odell.

“We understand the impact this potential action would have on our work force in Genk, their families, our suppliers and the local com-munities. We fully recognize and accept our social responsibilities in this difficult situation and, if the restructuring plan is confirmed, we will ensure that we put in place measures and support to lessen the impact for all employees affected,” Odell said.

Ford has initiated an information and consul-tation process with representatives of employees regarding the company’s intention to close Ford’s underutilized Genk Plant and cease vehicle pro-duction by the end of 2014 with the reduction of approximately 4,300 positions. If the proposed plan is confirmed, production of the next-gener-ation Mondeo, S-MAX and Galaxy could move to Ford’s assembly plant in Valencia, Spain. Pending further study, production of the C-MAX and Grand C-MAX compact multi-purpose vehicles could move from Valencia to Saarlouis, Germany, in 2014 under the proposed plan.

Ford plans to restructure European operations

If the proposed plan is confirmed, production of the

next-generation Mondeo, S-MAX and Galaxy could move to Ford’s assembly plant in Valencia, Spain

Auto Monitor

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Auto Monitor

T H E O T H E R S I D E2229 OCTOBER 2012

Illus

trat

ion:

Sac

hin

Pan

dit

Getting Personalwith Shirish Kulkarni, Director, DSK Motowheels

In Person

An experience I won’t forget…

If not in the Auto industry, where would you be? Real Estate

What car you drive? What do you dream of driving? Audi Q 7 . A Ferrari Berlenetta

Your most recent indulgence? playing online poker.

What are you currently reading? Sherlock Holmes

What are you doing when not talking auto? Discussing or watching soccer as its my absolute love for the game and also I have a Soccer club named DSK Shivajians.

Outdoor activity you would miss office for? Playing soccer.

Where did you go for your last holiday? New Zealand a year back

You get angry when… Im hungry

What’s the one thing you’d like to change in yourself? Reduce my temper

Best thing to have happened to you is… I’m gonna be a father soon

Watching formula one live

Shirish, a person of dynamic skills is a commerce graduate from Symbiosis College, Pune. After completing his Post Graduate Diploma in Business Strategy, Finance, Organizational Development Skills and Banking from Unitec University, Auckland, New Zealand, Shirish currently is the Director for DSK Group.

Having multiple hats on his head Shirish Kulkarni is also the Dealer Principal for DSK Toyota having nine luxurious showrooms & six workshops. Under his leadership DSK Group have recently setup the biggest dealership in the West Zone for Hino, a Toyota Group company dealing in commercial vehicles.

Playing an active role in running a soccer club, Shirish has played a crucial role for the victims of Tsunami in India along with his keen interest in welfare of animals.

Kulkarni is football enthu-siast and is passionate about motor racing.

g ponal Development itec University,sh currently is

s head Shirish ncipal for DSK showrooms &

rship DSK Group dealership in the Group company

s.unning edf

24

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

auto monitor - 29 october 2012

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