Auto Monitor - 24 September 2012

Auto Monitorwww.amonline.in24 September 2012Vol. 12 No. 31 50 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

SERVICE CONSISTENCY IS KEY IN LUXURY SEGMENT

INTERVIEW

Pg 08

The C omp e t i t ion Commission of India (CCI) recently sent notices to 17 car makers

on the alleged anti-competitive practice of selling spare parts at high prices to consumers through the authorised channels. CCI is likely to have a hearing on the matter next month.

CCI is pursuing the case under Section 4 of the Competition Act that relates to abuse of domi-nant position by enterprises. The probe was conducted after a com-plaint was filed with the CCI last

year against certain carmakers for allegedly abusing their dom-inant market position by selling spare auto parts to customers at high prices. As per the complaint, the carmakers were accused of abusing their dominant posi-tion by making available spare parts only through their author-ised dealers, who in turn sell such parts at high rates.

CCI has the mandate to eliminate practices that have adverse impact on competi-tion and protect the interests of consumers. Generally, CCI refers the complaints related to anti-competitive practices for further investigation by its

Director General, before taking any action.

According to industry esti-mates, independent service chains have around one percent

share in the `25,000 crore after-market service and spares industry. The aftermarket serv-ice industry includes over `6,000 crore of body shop and `15,000 crore service and spares work. It is growing at a compound annu-al growth rate of over 20 percent. Independent workshops account for a third of the servicing mar-ket In developed markets like UK, France and Germany. The European Commission has passed a regulation ‘Right to Repair’ making it mandatory for all OEMs to make spares availa-ble in the open market, which has brought down servicing costs for consumers.

Rajkot based Atul Auto’s first 0.35 tonne three-wheeler will hit the market by mid-January,

2013. The product is tentatively named ‘Gemini’ derived from the Gem, the company’s existing model.

The 0.35 tonne segment is the biggest three-wheeler number churner, accounting for about 50 percent of the entire three-wheeled segment. At present, Bajaj RE is the largest player in the segment.

On the avenues that this product could open up for the

company, Director, Atul Auto, Niraj Chandra said, “Exports too are mostly dominated by these small three-wheelers, especially passenger vehicles, and that too mostly powered by petrol engines.” Greaves Cotton, Atul Auto’s engine supplier, provides a 435cc diesel engine to the company, which is used in all the company’s current range. Industry sources reveal that Greaves may be develop-ing a 200-225cc petrol engine that will power the company’s latest 0.35 tonne offering. But initially, the three-wheeler will only be powered by the existing diesel unit till the petrol engine is production ready.

The new 0.35 tonne product will share most bits including the engine with the Gem thus making it cost effective. It will also share the 0.5 tonne Gem’s assembly line and once the petrol variant is introduced, another line will be added for which provision is being made on the factory floor.

Atul’s Rajkot facility oper-ates on a single shift and churns out around 27,000 units per annum. The company is gradu-ally ramping up production and is planning to build 48,000 units by November 2012, just in time for its 0.35 tonner rolling off the line. The company is looking to grow its revenues to `1,000 crore

by 2016 from current turnover of around `300 crore. Chandra is counting on new launches, geographic expansion and the new three-wheeler to aid in the growth process.

Four-Wheeler SegmentWhen asked about the lack of

other verticals to rely on, in case of any instability in the three-wheeler segment, Vice President, Finance, JV Adhia said, “We are looking to have a presence in the four-wheeler commercial vehi-cle segment too in the next few years.” He also revealed that the research on the project is done and within the next two-three years, the company will launch

a four-wheeled cargo mover with around one-tonne capacity which will be followed by a pas-senger carrier.

Atul Auto was looking at set-ting up a plant for manufacturing four-wheeled commercial vehi-cles near Ahmedabad but land prices soared multifold in the past few years due many OEMs looking to set up shop in Gujarat. The land price escalation didn’t make the project viable for the company due to which plans for the new plant were kept on hold. Once the 0.35 tonne three-wheeler is launched, Atul Auto will be searching for land for the four-wheeled vehicle.

Acquisition of Scooters India Shelved

The company had plans to purchase Scooters India but after a year of pursuing the gov-ernment to get details on the Lucknow based company, “we did not get any response from them,” said Adhia. He added, “We were looking to buy Scooters India because with numerous outlets, we could have catered to Eastern and Central India which would have reduced logis-tical costs drastically but after a lack of response, we decided to stop spending time and energy on it.”

Notice to car makers on anti-competitive practices

Atul Auto steps into 0.35 tonne segment with ‘Gemini’, plans four-wheeler CV

Top 5 2W Makers

Company Aug-11 Aug-12 Change

HML 487,616 431,739 -11.46%

HMSI 152,336 209,164 37.30%

Bajaj Auto 226,559 195,093 -13.89%

TVS 163,705 135,493 -17.23%

Suzuki 26,148 36,524 39.68%

Top 5 2W Exporters

Company Aug-11 Aug-12 Change

Bajaj Auto 111,495 109,259 -2.01%

TVS 26,479 15,227 -42.49%

HMSI 8,247 13,463 63.25%

HML 16,038 12,062 -24.79%

IYM 9,556 10,214 6.89%

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

DATA MONITOR

Our Bureau Mumbai

Anand Mohan Rajkot

The carmakers were accused of

abusing their dominant position by making

available spare parts only through their

authorised dealers, who in turn sell these

at high rates

Devdutta Chandavarkar, Mercedes Benz India Pvt LtdPg 18-22

COMMERCIAL VEHICLES

SPECIAL

The launch of the B Class from Mercedes Benz India could easily be termed as one of the more excit-ing launches in the recent months thanks to its pricing and perceived positioning in the market.

Priced at `21.5 lakh (ex showroom Mumbai), the company has already run of its allocation of 250 units from the parent for the Indian market. Prospective buyers will need to wait until early next year for newer bookings.

The B Class was among the slew of new launches in the past week could be seen as an attempt by car makers to freshen up their offerings to enliven consumer mood. Or it could also be seen as an attempt to revive sentiments in the run up to the festive season.

The ‘cheapest’ car from Mercedes’ stable, the car can potentially play a role in lifting up the fortunes of the German car maker in India at a time when it was apparently running out of options to compete with ‘volume’ driven offering from its compatriot BMW’s X1. The response to the new offerings indicates that not only has it found a model for garnering volumes in India but it may also have created a niche in the premium car market that would be hard to beat.

The new offering has taken the German car maker to unchartered territory as it would now have to deal with a wholly new set of customers and their expectations. Arguably, Mercedes has been the first luxury car maker to enter India and has one of the more wider service network among all the luxury brands in the country. It may thus be equipped to service a growing volume. But the latest launch is targeting a set of customers that are not only younger (and demanding) but also relatively fickle.

The B Class may hence be seen as a test case for the com-pany before the launch of lower segment A Class late next year in India. The premium car market promises more action in the months ahead.

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QUOTESBob Lutz, Former Vice Chairman, GM on inevitable marketshare gain for electric vehicles in The Detroit News

Takanobu Ito, Honda CEO on the company’s aim to double global car sales to six million units over the next fours years

You can’t get there from here with a conventional drivetrain

Our car business depends on the Fit series and I am confident that this is definitely a core product in any region in the world

Auto Monitor

EDITORIAL

Scania mulls low floor buses, bus body building facility 18Scania has expanded its investment plans by `100 crore to set up a new bus body building plant in Bangalore

“The medium and long term story of India is very robust” 20Questioned about his entry into the premium heavy duty segment ‘ahead of time’, MD, AMW, Anirudh Bhuwalka insists that the move is a strategic decision in line with the changing market

Mahindra draws up commodity business plan 11Mahindra & Mahindra is looking to work in a closer relationship with its suppliers by initiating a ‘commodity business plan’ with select suppliers

Maschio Gaspardo to make agricultural machinery at Pune facility 11Maschio Gaspardo is setting manufacturing facility with an investment of around `200 crore and is spread across 25,000 sq meters at Ranjangaon, Pune

Tata Motors launches six new heavy trucks, telematics services 14Tata Motors CV division recently launched six new heavy trucks and forayed into telematics service with Tata FleetMan

CONTENT

Ford Transit makes global debut at IAA CV show 30Ford Transit, developed under One Ford strategy, made its global debut at the Hanover IAA Commercial Vehicle Show

Volvo Car Corporation concludes the SARTRE project 34SARTRE project, involving seven European partners, has been successfully finalised during 2012 with the potential for implementing road trains on conventional highways

E 300 BlueTEC Hybrid sets out on an economy challenge 46Mercedes-Benz E 300 BlueTEC Hybrid is designed to be capable of combining performance and efficiency and can accelerate from rest to 62 mph in 7.5-seconds

CORPORATE

GLOBAL WATCH

CV SPECIAL

18

11

14

Auto Monitor

824 SEPTEMBER 2012

I N T E R V I E W

What is your view on the growth of multi brand service business in India?

Multi brand service networks are majorly entrenched in devel-oped countries. It is a newer concept here and has a long way to go. The biggest issue is trained manpower. It is very difficult to find a technician who can handle a car manufactured by Mercedes or BMW or Audi say and deliver the expected level of service satis-faction to any customer. One can have the latest garage equipments and technology at the service sta-tions but without adequately trained people it is like having a body without a soul. Moreover, we have been witnessing mul-tiple generation of a car model, especially in the premium seg-ment, being brought to a service station every other day. The mod-els are significantly different in terms of features and controls and requires competent handling.

What are the network expansion plans of Mercedes in India?

We are looking to have a mix of small, medium and large sized service stations in India at vari-ous locations. We typically enter a new location with a small work-shop and then gradually expand our presence with bigger serv-ice and sales outlet depending

on the potential of the location. A small service station is capa-ble of handling four to five cars a day while a medium or large sized workshops would adopt an ‘auto house format’ could handle 15 to 20 or more cars a day with a sales outlet. Infrastructure and manpower continues to be a challenge and will remain so in the coming years.

What efforts have you made to achieve the desired level of competency at your service centres?

One of the major issues that we have had to tackle (and are still facing) is that the education and training curriculum at many of the ITIs, vocational training institutes and even engineering colleges is so outdated that students are not competent to handle any vehicle. It has taken us significant efforts to train and retrain people in the after sales division to meet our expectations. We have tied up with engineering colleges and polytechnic institutions in couple of locations and are looking for more such public private partner-ship in order to source qualified people. We offer programmes like ‘Advanced Diploma in Automotive Mechatronics’ (ADAM) at insti-tutes in Pune and Aurangabad. The students can complete their regular diploma or degree at these institutes and join the advanced diploma programme for one year

and have the option of joining us or any other automobile brand. Over the next seven to ten year, we are expecting entrepreneurs to be created through such a sys-tem and aid in the growth and development of automotive serv-ice business in India.

How do you rate the after sales infrastructure for luxury cars?

Growing market has made it imperative for cars manufactur-ers (and especially luxury car makers) to focus attention on after sales services. In fact, the impor-tance that Mercedes attaches to after sales services can be gauged from the fact that the head of after sales services is part of the management board globally and in India. After sales service is an independent vertical for Daimler globally and we attach impor-tance to after sales service in the manner very few automobile manufacturer would do and this has been major factor in helping us achieve sustainable market-share in many countries globally. We have elaborate systems and processes for catering to specific requirements of customers in the premium or luxury segment and people are key to these processes.

What has been the major change for Mercedes in the after sales arena in India over the years?

One of the major changes is that we have been able to train and develop experienced tech-nicians or professionals for delivering our after sales serv-ices. When we started in India in a major way around 1996, tech-nicians for repairing luxury cars were just not available. We had major issues with finding trained technicians for many of the task at our service centres. Even a decade back many of our service centres were manned by expatri-ates to deliver consistent service experience to customers. With strategic and consistent efforts, the situation has improved for us to such an extent that technicians working in India are competing with their counterparts globally within and outside Mercedes net-

work and Indian technicians are amongst top five in more than 52 top markets for Mercedes globally in terms of technical competency, service delivery and other aspects of after sales service.

What has this competence level meant for you?

For any luxury car manu-facturer, it is important that a customer gets consistent services at various locations within a mar-ket as well as the vehicle needs to be in the best of the condition for most of its productive life with the owner. Hence major part of our job as a luxury car manufac-turer is to ensure top of the line after sales service to help our cus-tomers experience the difference of being a ‘Mercedes owner’.

Service consistency is key in luxury segment

Abhishek Parekh

Director, After Sales, Retail Training, Homologation, and Member of the Board, Mercedes Benz India Pvt Ltd, Devdutta Chandavarkar speaks to Auto Monitor on nuances of setting up a luxury car service network and his outlook for automotive industry.

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Auto Monitor

C O R P O R A T E 1124 SEPTEMBER 2012

Mahindra & Mahindra is looking to work in a closer relationship with its suppliers by

initiating a ‘commodity business plan’ with select suppliers. The company is looking to lay down the broad framework for such an agreement in order to tap its existing and newer suppliers for strategic sourcing.

“This plan is aimed at creat-ing an environment of trust with our suppliers in terms of joint development, cost reduction commitment and innovation, which can be pursued under a pre-defined framework. We would also be inclined to resist temptation of opting for an alternative sup-plier in case of five to ten percent lower cost,” said Chief Executive-Technology, Product Development and Sourcing, Automotive & Farm Equipment Sectors, Rajan Wadhera on the sidelines of the recently concluded ACMA con-vention in New Delhi. He pointed out that though there is no defi-nite assurance of the business to the supplier through this plan, it does provide a framework for the supplier to be a preferred source and benefit from OEMs product development effort. The company is hoping to reduce the overall cost of sourcing by around ten percent through this initiative over the next ten years.

Increasing number of auto component and systems sup-pliers diversifying into different product groups and looking to leverage the existing relationship

with OEM customer prompted the company to evaluate such a long term arrangement with its strategic suppliers. The company is also looking to consolidate its supplier base in order to focus on empanelling systems suppliers at a strategic level for Mahindra & Mahindra and South Korea’s Ssangyong Motors. The con-solidation of suppliers would be necessitated due to reduction or increase in the number of mod-els from the company’s portfolio in five to seven years leading to rationalisation of supplier base. Additionally, such an arrange-ment would also be helpful in ensuring that suppliers are updat-ed with latest technology through their own effort as well as closer collaboration with M&M.

M&M is looking to source systems and components worth around `26,000 crore in the cur-rent fiscal, around 35 percent growth from sourcing around `18,000 crore in the last fiscal, across the automotive and farm equipment division. The compa-ny has also set up a joint sourcing

team for developing suppliers for joint product development initia-tive with Ssangyong.

“We would be jointly sourcing parts for all the joint develop-ment efforts with Ssangyong and we have set up a joint sourc-ing team for this purpose. Additionally, we are also in the process of identifying other areas where M&M and Ssangyong could work together on sourcing of systems and components. It is much easier to source jointly for greater common benefit on joint programmes rather than for indi-vidual needs,” said Wadhera.

Though the company did not provide any specific direction in terms of petrol or diesel engine development programmes and its future evolution, the effort is to have more fuel efficient engines over the next few years compared to the current gen-eration of engines. Moreover, the company has also embarked on the development of petrol engines that could power some of the key models in the company’s utility vehicle line up.

Maschio Gaspardo is setting manu-facturing facility with an investment

of around `200 crore and is spread across 25,000 sq meters at Ranjangaon, Pune. It specialises in the production of agricultur-al machinery for tillage, sowing, seeding, landscaping, forage-making, sprayers and crop care.

The new facility will manu-facture at the beginning rotary tillers, mulchers and seeders for the domestic market. It will sup-ply machineries to M&M and New Holland India. Plans are also underway to serve the needs of Maschio Gaspardo Group’s other global customers, by pro-viding local supply to their India and Asia Pacific facilities and introduce newer technologies in the Indian market.

“Our new plant represents a key milestone in Maschio Gaspardo Group’s long-term vision of investing in fast grow-ing markets and aligning our

manufacturing footprint with the needs of our global cus-tomer base,” said MD, Maschio Gaspardo India, Alessio Riulini.

The new plant will aid Maschio Gaspardo Group to achieve over $280 million. The Pune plant will currently employ 120 people and will be increased to 250 people along with planned investment of `100 crore through 2017.

The Group’s product line up includes rotary tillers, power harrows, precision planters, cereal seed drills, combination cultivator-drills, flail-mowers, sprayers and minimum till-age equipment. The company has 11 large production plants, seven in Italy and another four overseas (Romania, India, Russia and China). In addition, it has ten sales branches locat-ed in Germany, France, Spain, Ukraine, Poland, Turkey, North America, South Korea, Iran and Georgia. The Group has 200 + models and sells about 60,000 machines each year. It current-ly employs approximately 1,400 people and achieved a turnover over $225 million in 2011.

Mahindra draws up commodity business plan

Maschio Gaspardo to make agricultural machinery at Pune facility

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Abhishek Parekh New Delhi

Mahesh Ghorpade, Sales & Marketing Manager & Alessio Riulini, MD, Maschio Gaspardo

Our Bureau Mumbai

Auto Monitor

S T U D Y1224 SEPTEMBER 2012

On the back drop of slowing economic growth and escalating inflationary pressure

since second half of the last fiscal, the average consumer spending has strained significantly during this period. This drop in consum-er spending has also affected the freight movement (Especially primary freight movement), consequently resulting into sub-stantial drop in the utilisation levels of transport operators and also the freight rates during this period. CARE Research observed that the freight rates have dropped from as high as around `1.60/BTKM for a 16 tonne pay-load capacity truck on Delhi – Mumbai route in September

2011 to around Rs1.40/BTKM in August 2012.

CARE Research believes, although government’s decision to hike the diesel price was inevi-table in order to address the issue of burgeoning under-recoveries plaguing the OMCs, it is expect-ed to pose fresh challenges to already depleting profitability of transport operators.

Healthy freight demand has been cushion for diesel price hikes in the past…

During last three fiscals, the price increase in the diesel has been around 13 times. However, the healthy economic scenar-io ensured that strong freight movement and subsequently the utilisation levels and profit-ability of the transport operators were also at healthy levels. This allowed transport operators to fully pass on the price rise to their customers. However considering current economic

scenario, offsetting the effect of 12 per cent hike in diesel price which is highest in a decade seems difficult.

With slowdown in the freight movement, the hike in the diesel prices will be challenging…

CARE Research believes with economic slowdown still haunt-ing, the current hike in the diesel prices is expected to pose chal-

Rise in diesel prices – An impact on reeling profitability of transport operatorsRevati KastureHead, Industry Research

Vishal SrivastavManager

lenging situation for transport operators on two fronts. The operators which were already struggling to keep a check on their dropping utilisation rates by pulling down the freight rates, have to now confront sharp rise in fuel cost. Studying the operating dynamics between Mumbai – Delhi route, it was observed that recent hike of `5 in diesel prices, have exert-ed an additional burden of 10 paisa/BTKM on the operating cost of the transport operators, squeezing up the gross margins by almost 250-300 bps.

…onset of festive season might provide some respite to the transport operators

Although it has been observed that transport operators union have raised the freight rates by almost 15 per cent immediately after the diesel price rise, CARE Research expects, a rise of such magnitude would be momentary in the light of subdued freight demand. However, the onset of festive season will bring some respite to the operators as it will provide them opportunity to increase the freight rates and thus negate the impact of rise in cost. CARE Research foresees an increase in the average freight rates would be in a range of 8-10 per cent in the near term.

Economic uncertainty continues to remain primary concern factor

Inspite of marginal improvement in con-sumer sentiment owing to the onset of festive season, the macro-economic scenario still remains gloomy due to low demand of consum-er discretionary goods and subdued growth in agriculture owing to below normal rainfall in most of the agricultural regions. Further, high inflation and interest rates have also been a deterring factor impacting demand for capital goods leading to slump in industrial activity. CARE Research believes, the overall impact of economic impediments has lead to a plunge in freight demand. Government’s recent decision to allow 51 per cent FDI in retail once imple-mented will create enormous opportunities for transport operators. However for short term, CARE Research expects the freight demand to remain muted.

In current economic scenario, offsetting the

effect of 12 per cent hike in diesel price which

is highest in a decade seems difficult

Auto Monitor

C O R P O R A T E1424 SEPTEMBER 2012

Tata Motors CV division recently launched six new heavy trucks and Tata FleetMan, the com-

pany’s new telematics service. The company has introduced India’s first 37 tonne five-axle rigid truck. It is powered by a Cummins 6BT 5.9L engine pro-ducing 210 hp, has twin steerable front axles, a twin-drive axle and a tag-lift axle.

Four new products were introduced in the Prima range include a 49 tonne puller-tractor, Prima 4938.S, powered by a 370 hp engine, capable of hauling heavy over dimensional cargo like windmill components and rail coaches. The company also introduced the Prima 3138.K, a 31 tonne tipper for mining oper-ations with a maximum power of 380hp. It has ABS and a hub reduction axle specially designed for mining operations. The new LX range comprising the Prima LX 4923.S and Prima LX 4023.S,

both powered by a 230 hp engine was also launched.

Also added to the range was the Tata LPK 3118, a four-axle tipper powered by the Tata Cummins 183 hp engine. On new products offensives from other players in the CV segment, Executive Director - Commercial Vehicles, Tata Motors, Ravi Pisharody com-mented, “We have been working for the past seven-eight years on the premise that the Indian mar-ket will open up. We are watching each and every move and just making sure that our products, services and strategy are one step ahead of our competition.”

Six trucks have been designed and built specifically to offer the lowest TCO (Total Cost of Ownership), best-in-class fuel efficiency; longer service runs and enhanced levels of driver comfort, resulting in best-in-class profitability and lowest payback period for the f leet operator, according to a company release.

Tata FleetManTata Motor’s new telematics

service was recently unveiled to showcase the company’s efforts in the area of vehicle connectiv-ity and electronics. It took the company around twelve months to develop. The hardware was supplied by Magneti Marelli and was then further devel-oped for Indian conditions by Tata’s Engineering and Research Centre (ERC). FleetMan has a tie-up with Google maps and Idea is its telecom partner. It is planning to add more telecom partners in the future depending on the quality of service. At present, only one service plan is available - Rs 4,000 per annum per truck. More plans will be added depending on how well this service is received. As part of the service one can track every vehicle in real time and mark zones on the map such as warehouses or stop-overs for meals where your vehicle will enter. An alert is sent via SMS or email when the vehicle enters and exits the demarcated area. The service also helps gener-ate reports so the drivers can be rated for efficiency.

Tata Motors launches six new heavy trucks, telematics services Our Bureau

Mumbai

Are you launching the FleetMan only in new CVs?

Yes but that too only in new tractors and new Primas as an OE fitment. After another two months we are going to launch an aftermarket

fitment too and post that we are also going to extend it to rigid trucks.

Are you going to have this service for other CV manufacturers too?

At present it will be only for Tata vehicles since a majority of CVs in the market are Tatas so we have a large market awaiting us. Once we are able to cater to Tata trucks, we will take a call on expanding our reach.

What are the challenges you face in terms of tampering?

Tampering with hardware is a challenge because fleet telematics in India hasn’t reached a stage where it is supported by drivers, so trans-porters still use it as a tool to police their drivers.

Does the FleetMan have two way communications?

Since the device uses a sim card, a two way communication is possible but in India what we have found is that drivers tend to misuse this sim card. So we have provided a voice disabled sim card. Once the market matures where drivers accept telematics as a tool to improve produc-tivity rather than just a policing tool for them, two-way communication can be introduced.

What are other outcomes of this service? One area we would like to be present in is vehicle diagnostics. If the truck needs spare parts, we will be able to find out the closest service station and instruct the driver to drive to that location. Another promising area is refrigerated truck temperature monitoring. It is a big telematics operation because FDI in multi-brand retail has been cleared so ‘cold chain’ will come up in a big way. Cold chain is after buying goods from farmers, they will be transported in refrigerated containers like in western countries. The tem-perature needs to be maintained otherwise the perishables get spoilt. Telematics can monitor the temperature remotely.

Sanjay Gupta, Head – Telematics and Fleet Management Services, Commercial Vehicle Business Unit

Auto Monitor

C O R P O R A T E 1524 SEPTEMBER 2012

Come festive season, when the celebrations begin across India, also starts a wave of

new launches. Within a week, three cars at different ends of the spectrum were launched – the Mahindra Quanto, the Mercedes B-class and the Rolls Royce Phantom II. Here’s a look at this week’s launches.

B-class launched with aggressive pricing

Mercedes-Benz has launched its most affordable car for the

Indian market. The B-class will come in two variants – B180 and B180 Sport priced at `21.49 lakh and 24.87 lakh respectively (all prices ex-showroom, Mumbai).

Director, Sales and Marketing, Mercedes-Benz India, Debashis Mitra said, “We are extremely excited with the initial response of the B-class in India. Our strate-gy of introducing the segment and then launching the car has been well received by our customers.”

What helps Mercedes launch the B-class at such an aggres-sive price-point is the new MFA (Modular Front Architecture) platform the B-class is based on. It is far cheaper to produce

than the previously used sand-wich platform. This platform is shared with the new A-class and the upcoming A-class sedan.

Considering that the B-class is a CBU (Completely Built Unit), the prices are highly competi-tive. Mercedes claims to have sold the entire batch of 250 units for 2012 with deliveries starting by end-October. Mitra confirmed at the launch that CKD operations of the B-class have been postponed by 12-18 months at least.

Powering the B-class is a four-cylinder in-line, 1.6-litre, 122bhp, direct-injection, tur-bo-petrol motor mated to a seven-speed dual-clutch gearbox.

2012 Rolls Royce Phantom Series II aims at the Indian affluent

Rolls-Royce Motor Cars along with their dealer Navnit Motors unveiled the new Phantom II in Mumbai. The Phantom II has a price tag of `4.5 crore while the extended wheelbase version has a price tag of Rs 5.10 crore, both prices are ex-showroom Mumbai.

The new model Phantom II with a new look front end fea-turing all LED headlamps is an evolution of the 2003 model. General Manager, Emerging Markets – Asia, Herfried Hasenoehrl, said that they worked on their customers request to not change the car but just update the technology in the car, keeping in line with Sir Henry Royce’s philosophy to “take the best that exists and make it better”.

The V12 engine powering the Phantom II is now more effi-cient by a claimed ten percent

and is now complemented by a new eight-speed automatic transmission. The multimedia user interface has also been re-designed with a new larger 8.8 inch central display.

In 2011 Rolls-Royce saw the highest annual sales in their 108 year history with 3,538 cars being sold worldwide. This is the highest numbers the com-pany has recorded since 1978. Speaking at the occasion Sharad Kachalia of Navnit Motors said “Our business is thriving and we have already received orders for the car.”

OEMs gearing up for festive season with new models Our Bureau

Mumbai

Quanto benefits from platform sharing too

Mahindra launched the Quanto with a price tag that under-cuts even a few hatchbacks. The Quanto’s prices start at ̀ 5.82 lakh

(all prices ex-showroom, Thane) for the base C2 variant going up to `7.36 lakh for the top-end C8 variant.

Speaking at the launch, President, Automotive & Farm Equipment Sectors, Mahindra & Mahindra Ltd, Dr Pawan Goenka said, “The launch of Quanto, our first compact SUV, is another defining moment in our auto-motive journey. It has been developed keeping in mind the evolving needs of our customers. I am confident that the Quanto will create a new category within the SUV segment while offering a unique value proposition to our customers”.

The Quanto was earlier known as the mini-Xylo since it is a shortened version of the Xylo. At 3985mm long and a 1.5-litre diesel engine, it classifies as a small car thus attracting lower excise duty. Also, being the fourth model on the Ingenio platform and sharing a large parts basket has reduced development costs consid-erably. The company has invested around ̀ 100 crore in its development.

Unlike the XUV500, which was launched in a phased manner due to capacity constraints, the Quanto will have a pan-India launch. The company can manufacture around 7,000 units of the Xylo, Quanto and Genio single and dou-ble cab that are based on the Ingenio platform. This allows the company to shift production to any model depending on the market demand.

Powering the small SUV will be a 1.5 litre mCR100 three-cylinder diesel engine develop-ing 100bhp and 240nm of torque. Dr Goenka also mentioned that another variant of the Quanto is in the pipeline. It will get a larg-er capacity engine and four-wheel drive. The company plans to export the Quanto to Europe, South Africa and markets similar to India.

Auto Monitor

A U T O N O M I C S1624 SEPTEMBER 2012

Used car sales are expected to treble by 2016-17, with there being just almost

two cars for every new car by that year. This is as compared to one used car for every new car in 2006-07. A host of factors will spur the growth in sales. As car owners increasingly prefer newer models, replacement cycles for

cars have been declining over the past five years. Lower prices of used cars present an attractive proposition to price-conscious buyers. The increasing presence of organised used car companies will also continue to drive used car sales. Besides aiding growth in sales, organised players will provide their dealers alternate income avenues and help them sustain competitive pressures in the new car business.

Sales May Reach Eight Million Units In Five Years

CRISIL Research expects annual used car sales to tre-ble to about eight million units by 2016-17. The size of the used car market is also likely to grow threefold to about `1.5 trillion during the period. In the pre-ceding five-year period, used car sales had doubled to 2.6 million units in volume, and had grown four-fold to `520 billion in value (In line with trends seen in new

cars, within the used car mar-ket too, small cars accounted for two-thirds of the total sales as of 2011-12). The ratio of new car to used car sales is expected to reach 1:1.8 by 2016-17 from 1:1.3 in 2011-12. However, this is still lower as compared to developed markets.

Drivers Of Used Car SalesA continuing decline in

replacement cycles of cars will spur the growth in used car sales. With carmakers releasing about 10 models in each of the past five years, car owners switched over

to these models faster. Average replacement cycle therefore fell from about 54 months in 2006-07 to about 48 months in 2011-12. As carmakers promote sales of new models through exchange offers for old cars, replacement cycles are likely to further fall to about 42 months by 2016-17.

Lower PricesOn an average, the price of

four-year old used car is about 40 percent lesser than a correspond-ing new car. Lower prices allow price-conscious Indian buyers to opt for models across segments: buy a used sedan instead of a similarly-priced new small car.

Reving Up Organised Dealers’ Gain Market Share

As of 2006-07, there were only one or two organised used car companies, including Maruti True Value. Unorganised players dominated the market with an

over 96 percent share. Gradually, other OEMs realised that the used car business allowed them to provide consumers with a prompt exchange option at the point of purchase and at the same time boost sales of new mod-els. As dealers face competition in the new car business, OEM-led used car companies provide them alternate income avenues and also help sustain competi-tive pressures.

Thus, by 2011-12, the number of organised used car companies increased to 12. This pushed up their share in domestic used car sales to 16 percent in 2011-12. CRISIL Research expects that organised used car companies, mainly led by OEMs, will have a 25 percent share by 2016-17.

Organised used car com-panies include independent players like Carnation and OEM-led companies like Maruti True Value, Ford Assured, Mahindra First Choice, etc. The presence of

CRISIL estimates that gross margins

for dealers in the used car business

are double the margins earned on

new car sales

Used car sales to treble to eight

Ajay SrinivasanDirector

Hetal GandhiAssociate Director

Used Cars To Beat New Cars

E: Estimated

Source: CRISIL Research

Auto Monitor

A U T O N O M I C S 1724 SEPTEMBER 2012

these companies will aid the decline in replacement cycles of cars, as they usually receive used cars in lieu of new car sales. Used car transactions will also become more transparent with the entry of these companies. These com-

panies ensure fair prices for buyers/ sellers. To boost buyer confidence, dealers have also started offering a warranty of six-12 months on used cars.

At times, OEM-led dealers may not want to certify used cars that do not comply with their stand-ards. In such cases, an organised dealer may sell such cars at a low margin to unorganised dealers.

Better The Gross Margins The used car business is a

profitable proposition for deal-ers. CRISIL Research estimates that gross margins for dealers in the used car business are double the margins earned on new car sales. For instance, a four-year old compact car can fetches gross margins of six-eight percent, as against a similar new car that will fetch two-four percent.

Presence in the used car busi-ness also helps dealers shield risks to margins, especially dur-

ing a down cycle when new cars sales may be affected. In case of used cars, dealers also have a higher bargaining power—deter-mining the price at which the used car is purchased. In case of new cars, dealers may prefer to trade off their margins expecting incentives from both manufac-turers and financiers, or in lieu of potential service income expect-ed from the customer.

Maintaining Caution Finance penetration in the

used car market has been tradi-tionally lower, as the credit profile of used car buyers is relative-ly weaker than new car buyers. Disbursements for used cars by organised financiers (banks,

NBFCs and captive finance com-panies) are expected to record a 20 percent CAGR in the next five years in line with the growth in used car sales. Organised fin-anciers will however maintain a cautious approach, as a large part of the used car market remains unorganised.

CRISIL Research thus believes that the used car market presents a huge opportunity for carmakers, aspirant buyers and dealers.

(Please note that the views

expressed here are those of CRISIL Research and not of CRISIL’s Ratings division. CRISIL Research operates independently of and does not have access to information obtained by CRISIL’s Ratings Division.)

million units by 2016: CRISILOn an average,

the price of four-year old used car is about

40 percent lesser than a corresponding new car. Lower prices allow price-conscious Indian buyers to opt for models across segments: buy a

used sedan instead of a similarly-priced

new small car

Gaining Clout

Source: CRISIL Research

Auto Monitor

C V S P E C I A L1824 SEPTEMBER 2012

Scania has expanded its investment plans by `100 crore to set up a new bus body building plant in

Bangalore. The facility, expect-ed to be operational by the end of 2013, will be utilised primarily to address the local demand and also export to the neighbouring countries and like Bangladesh. This plant will be apart from the already laid down plans for bus and truck CKD assembly unit.

“We are now investing `250 crore; previously it was around `150 crore. We have decided to put up a bus body factory as well—to be set up in Bangalore. The area is 45 acre and this body building area will be bigger than the one for CKD assembling,” said Managing Director, Scania, Henrik Fagrenius. The bus body building facility will have a capac-ity of 2,000 units a year for the first five years and 5,000 buses per year after that.

The CV manufacturer is also considering entering low-floor buses. They will produce the low floor buses once the new facility becomes operational. It will target the state transport department to sell these buses. And with the luxury buses, the company will position itself as a premium carri-er in the high-end segment buses. It will introduce air suspension in its buses. Scania is looking at sell-ing 1,000 bus and coach per year in next five years.

For on road trucks, Scania will be bringing in three differ-ent models of trucks, which will include, a 4/2 360 HP unit as a puller and 6/2 410 puller and 6/4 500 HP V8 by the end of this year or beginning of next year we’ll launch these.

“We are one of the few man-ufacturers that are producing the whole driveline, the engine, the gearbox and axle inhouse. We have complete control of the driveline and are able to optimise that for the best fuel capacity,” Fagrenius added.

It will be launching heavy duty trucks for the mining sector. Pointing to the potential in min-ing segment, he said, “If we talk of the mining segment, 80 per-cent of the electricity comes from coal. And definitely the segment will pick up and grow rapidly. If you look at the transport bus seg-ment, it’s also in huge demand as the cities are growing; there is congestion and a need for public transport.”

Scania hopes to get an edge over its competitor with its ‘pow-erful engines’, which it claims will give better total cost of ownership.

In the mining industry, around 45 percent of the total cost of own-ership is fuel or diesel, and only about 20 percent is on the vehicle.

This investment of `250 crore will be till the end of 2013 that will then be for CKD production of trucks, bus chassis and complete bus bodies. The facility would have around 800 employees when it is fully operational.

The company will bring the products from the global portfo-lio; it has same technology all over the world. As per its modular sys-tem, it can specify/customise the truck according to the customers’ needs. Currently, Scania has the 8/4 heavy tipper for the mining segment. There it has partnered with L&T and will continue to be partners in mining sector.

Scania will be bringing in three

different models of trucks, which will

include, a 4/2 360 HP unit as a puller and 6/2 410 puller and 6/4 500

HP V8 by the end of this year

Scania mulls low floor buses, bus body building facility Nabeel A Khan

New Delhi

Conti to setup retreading, recycling plant

Continental is establishing a new retread plant for truck and bus tyres as well as a facility to recycle rubber from used tyres at its headquarters in Hannover.

The facility is the first of its kind worldwide and makes use of the synergies between the retread-ing and recycling production. With an investment of more than Euro ten million, Continental is strengthening its position in Western Europe and further develops its ContiLifeCycle approach in production. The new ContiLifeCycle Plant will be established at Hannover-Stöcken, creating more than 100 new jobs.

“In the face of limited raw materials, we see it as our obligation to come up with sustaina-ble solutions in tyre production and retreading. We are now able to process used tread buffings and ground end-of-life tyres in such a steered and controlled way, that it can be reused in the production of new and retreaded tyres,” said Head of the Business Unit Commercial Vehicle Tyres, Continental, Dr Andreas Esser. With the new recycling plant, Continental pursues a novel approach with regard to the subsequent processing of used tread buffings.

41 percent of so-called end-of-life tyres (ELT) in the EU are used for incineration in the cement industry. Another 35 percent of these ELT are being ‘downcycled’ and subsequently used in low stress technical rubber goods, such as molded rubber products. Continental has developed a new recycling process that allows high amounts of recycled rubber in compounds for new and retreaded tyres. By implement-ing Continental’s new approach, the amount of recycled rubber in a tyre can be doubled. “Considering the planned recycling volume of approximately 4,000 tons annually, this results in the conservation of approximately 2,400 tons of rubber and 1,600 tons of carbon black and silica,” said Vice President Material and Process Development and Industrialisation, Dr Boris Mergell.

Based in Hannover-Stöcken, the new retreading factory will start production together with the recycling factory in 2013. The projected annual capacity will be 180,000 retreaded tyres once it has reached full capac-ity. ContiLifeCycle is an integrated concept that provides customers with an efficient and sustainable service solution. From new tyres, regrooving, casing-management to retreading, ContiLifeCycle offers each customer a tailor-made solution to achieve the lowest overall driving costs for their fleet, making use of the full tyre life time.

Our Bureau Mumbai

Auto Monitor


The CV segment is experi-encing a cyclic downturn. Due to this, do you have any change of plans?

We are following up with the previously announced invest-ment plans. We have slated the outlook and by the end of this fiscal, a new range of trucks will come up. We have already launched 11 products last year, which was our entry into the mass haulage. And we are launching a premium range of trucks also towards the end of this year with new cab. To start with, we are going to launch four models in the premium range.

Do you think the India story is still intact?

I can say that the medium and long term story of India is very, very robust. We are expecting our car market to go from four million to nine million units. We are hop-ing that the story turns out well. But its timing is a question mark, I mean given currently what’s hap-pening, the outlook for the rest of the year seems to be a little muted. How it is going to be next year and the ensuing couple of years is anybody’s guess. And if you take the longer outlook of three to five years, I think the story is pretty much intact. We hope that the market will grow eventually.

How different are these products going to be?

All these new products will come with electronically control-led engines and they are going come with higher horse power engine in the range of 230 to 280 horse power. The scaling up in terms of horse power will bring complete technology changes. So it’s a completely new drive-line and will be more spacious and customer-friendly, and more Indian customer oriented. We are utilising our learnings of the last five years in the new truck. Whatever learning we have had, we have tried to implement in the new cabin. We believe that the new range of products is going to complement, and not replace the existing range of products.

Any new investment and expansion plans?

The production capacity is already there—this is coming up with pre-planned investment commitments. There are no more new investment plans moving for-ward but this investment will pair itself by the end of this year. If by the end of this year, we can hold on to our last year’s volumes and grow moderately, we can expect to have reasonable growth.

What is the strategy behind

entering the premium segment?There are two perspectives—

first, we have noticed that there is a slight shift towards better and better trucks and we want to be prepared for that. This is going to be more strategic, that we are putting up these trucks a bit ahead of its time. Secondly, while in the tipper segment, we have become number two in the market, there are some segments where we are not able to service especially those which require higher horse power. So we are servicing those segments also. This is a dual strat-

egy—one, prepare for the shift in the market because the product development takes a long time. Two, to service all kind of niche market so far, we have not been able to serve.

What is the market size of your company?

See, today in the premium market, the size would not be more than 2,000 units a year. We have currently 25 percent mar-ket share in the tipper market and most of the customers that we have, are also wanting to scale up to these trucks. What we are

saying is that we can also give these offerings because the infra-structure is same, customers and service support is same and man-ufacturing facilities are the same so this is the natural expansion of what already do. We are mak-ing the segment more robust for ourselves.

Going forward, is there any focus area for your company?

One of the large thrusts that we are giving is in the haulage segment because the mining and construction segment is beginning to slow down. We are

expecting to mitigate the risk that the construction and min-ing segment may be faced with. It is in fact, timely and a must for a company like ours. Earlier, we were present in only one third of the market. Late last year, we launched a range products that allowed us to be present in the full range of the market. Now, we are able to target three times the market that we did last year, hoping that this will complement in terms of the volume that we have today. However, this will all depend on the macro economic conditions.

We are utilising our learnings of the last

five years in the new truck. We believe that the

new range of products is going to complement,

and not replace the existing range of

products

“The medium and long term story of India is very robust”Questioned about his entry into the premium heavy duty segment ‘ahead of time’, Managing Director, AMW, Anirudh Bhuwalka insists that the move is a strategic decision in line with the changing market. In a tete-e-tete with Nabeel A Khan, he said that one of the company’s main thrusts is its haulage sector because the mining and construction segment is beginning to slow down.

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DAF introduced its new flagship Euro 6 XF model at the recent Hanover truck show.

The new XF will enter production in Spring-2013. The Euro 6 DAF XF includes a new chassis, a fuel effi-cient Euro 6 PACCAR MX engine, an aerodynamic exterior design and a modern spacious interior.

“DAF’s significant investment in the new Euro 6 XF reflects the company’s strategic growth plan, driven by its operating perform-ance,” said DAF President and PACCAR Vice President, Harrie Schippers.

The PACCAR MX 12.9L engine has gained recognition in Europe and North America. DAF has developed a new generation of Euro 6 engines. The use of common rail fuel injection tech-nology, a variable geometry turbo, and efficient exhaust gas recircu-lation (EGR) ensures excellent fuel economy and vehicle relia-bility for MX12.9L. The advanced

exhaust gas after treatment system contains a DeNOx cata-lytic converter and active soot filter (Diesel Particulate Filter) and was developed to achieve maximum efficiency. The new PACCAR MX-13 Euro 6 engine is offered with outputs of 300 kW/410 hp, 340 kW/460 hp and 375 kW/510 hp and high torque outputs from 2,000 to 2,500 Nm, available across a broad engine speed range (1,000–1,425 rpm). A key principle when developing the new drivetrain was to keep fuel consumption at the same low level as that of the current Euro 5 ATe engines. The PACCAR MX-13 Euro 6 engine delivers outstand-ing durability with a B10 design life of 1.6 million kms.

A new, lighter rear axle is avail-able for combination weights of up to 44 tonnes and engine torques of up to 2,300 Nm. A stabilink sus-pension structure incorporates the function of the anti-roll bar, reducing weight and providing a

high level of stability and excel-lent handling. A new fifth wheel mounting plate and smart posi-tioning of the battery boxes result in additional weight savings. The new steering gear is mounted on a multifunctional casting, eliminat-ing the need for a separate steering box mounting bracket.

The standard 90-litre AdBlue tank (140-litre tank optional) is positioned under the cab and the batteries can be positioned

to the rear inside the chassis. Combining the DeNOx system and the soot filter into a single unit makes it possible to provide fuel tank capacities of up to 1,500 litres for a maximum operating range. Additional enhancements include new rear mudguards and a redesigned closing cross-mem-ber for the chassis.

The New DAF XF delivers highest level of driver comfort the moment you step inside. By

cleverly installing the engine and cooling system in the chas-sis, the height of the cab floor has remained virtually the same. This ensures excellent accessibility with only three aluminum steps positioned in a ‘staircase’ style. The low cab floor makes the XF Super Space Cab the most spa-cious cab on the market with a total volume of more than 12.6 m3. The low cab floor also contributes to the excellent field of vision.

DAF introduces new Euro 6 XF range

aerodynamic vehicles

The position of the pedals has been revised to include a hanging brake pedal for maximum ease of operation and more foot-well space. The steering wheel has been redesigned, along with the new central information panel on the dashboard, which features new functionalities and a new colour screen. The large screen has high clarity, making it very easy to read. The instrument panel has been redesigned with attractive aluminum accents around the dials.

The DAF XF features Vehicle Stability Control as standard, which helps to prevent jack-knifing and roll-over. Adaptive Cruise Control and Forward Collision Warning are optional, as well as an Advanced Emergency Braking System. The dashboard is equipped with shock-absorbing zones providing an ergonomic driver work environment. The new, energy-absorbing cab suspension and the rein-forced cab structure with pre-programmed front and rear crumple zones provide indus-try leading vehicle safety and passenger protection.

The new DAF XF is introducing a number of innovations that blend perfectly with the Advanced Transport Efficiency (ATe) pro-gramme, which lowers operating costs and reduces environmental impact.

The Driver Performance Assistant (DPA) is an example of DAF’s fuel efficient ATe phi-losophy. The central display on the dashboard provides the driver with detailed information on real time fuel consumption, which optimis-es driver performance. The DAF XF is one of the first vehicles in the industry to offer LED headlight technology (optional) for impressive light output, providing extra safety, as well as a long service life and lower energy consump-tion. Also new are the ‘cornering lights’ that shine in the direction of travel while turning and maneuvering. Daytime running lights (LED) ensure extra visibility during the day.

Aerodynamics is also a key focus of the new design, including the addition of new side skirts, fenders, mudguards and the new roof deflec-tor for the XF Space Cab. The height of the roof deflector can be adjusted quickly and easily by the driver. Mudguards and fenders have been completely redesigned, along with the new deflectors on both corners of the front of the cab which guide the airflow to keep mirrors and door handles clean.

A key principle when developing the new

drivetrain was to keep fuel consumption at the same low

level as that of the current Euro 5 ATe engines

Auto Monitor


Ma hindra Group (Mahindra) oper-ates in the key industries that

drive economic growth, enjoying a leadership position in trac-tors, utility vehicles, information technology (IT) and vacation ownership. Mahindra focus-es on enabling people to unite the many companies within the Mahindra Group to a common purpose.

A new Mahindra manufac-turing facility was recently set up in the Chakan corridor near Pune, India. Mahindra Group’s Automotive Sector manufactures and markets light commercial and utility vehicles, including auto rickshaws (three-wheelers). The sector currently accounts for about half of India’s utility vehi-cle market. The company exports its products to Europe, Africa, South America, South Asia and the Middle East.

Mahindra decided to expand its line up to include a new range of medium and heavy commer-cial vehicles, including SUVs, trucks and buses. This expan-sion required a new plant, so Mahindra decided to establish a new manufacturing facility in Chakan. Mahindra’s challenge was how to assess, design and build the facility, plus get it running and producing vehi-cles according to the aggressive schedule that management had defined.

As of 2012, 1,500,000 cars are produced annually in the Chakan corridor by Mahindra, Volkswagen, General Motors, Mercedes Benz and other auto-motive manufacturers. Mahindra is one of the largest manufactur-ers in this area, producing Light

Commercial Vehicles (LCV), pick-up trucks, SUVs and the Mahindra Navistar heavy duty trucks.

Revisiting Engineering Processes

Mahindra is a long-time cus-tomer of Siemens PLM Software. Designers, data administrators and some of its product assem-bly suppliers use Teamcenter software for product lifecycle management (PLM). The compa-ny also uses NX software for some of the powertrain product design, and a few years ago Mahindra started using Tecnomatix soft-ware for digital manufacturing.

“In 2007, we selected and introduced the Tecnomatix solu-tion, because it offers a full range of digital manufacturing tools that serve our needs, integrates smoothly with our existing prod-uct data management systems and clearly stands out in meet-ing the criteria we had defined,” said Senior General Manager, Assembly Systems, MES and Digital Manufacturing, Chakan plant, Mahindra Vehicles, Nagesh Nidamaluri.

Ma h i nd ra uses t he Manufacturing Process Planner solution in the Teamcenter port-folio for the planning of various production processes; as well as Plant Simulation, FactoryCAD software and FactoryFLOW software, all in the Tecnomatix portfolio, for plant design and optimisation; Process Designer and Process Simulate and Jack software, also all in the Tecnomatix portfolio, for assem-bly planning and validation.

The establishment of a new plant was a good opportunity to revisit Mahindra’s current engi-

neering processes. “We have realised that in order to short-en a vehicle manufacturing project, we need to deploy con-current engineering methods,” said Nidamaluri. “This means that manufacturing engineering needs to work concurrently with product design. Digital man-ufacturing tools provided by Siemens PLM Software facilitate this approach. This is a dramatic change to our current engineer-ing processes.

“We have a gate system, and one of the gates is the virtual val-idation gate. In the past, mostly the product design group was actually doing validations for this gate; but now, with the help of Tecnomatix digital manufac-turing tools, the manufacturing engineering group is very active in preparations for this gate.”

Mahindra decided to execute the digital manufacturing jour-ney at the Chakan plant in a series of steps, deploying point solu-tions to address specific needs, followed by the manufacturing bill of materials (MBOM) and finally the bill of process (BOP). Mahindra plans to clone proven methodologies developed in the Chakan plant at other plants.

Laying Out The New Chakan Plant In 3D

While constructing the new plant in Chakan, Mahindra decid-ed to significantly upgrade the way it creates and manages plant layout data. There were a number of issues to deal with, including the fact that there was no uniform plant layout method across the enterprise. Each site was manag-ing plant layout separately. Plant layout drawings were not main-tained in a central repository,

which made it very time-con-suming to locate them when they were needed. There was no revision management system and only one engineer at a time could work on any given layout. Drawings provided by suppliers were maintained in different lay-ers in the same file, resulting in duplication of data and unneces-sarily large files, which degrade visualisation performance.

To resolve these issues, FactoryCAD was used to cre-ate 3D plant layouts for all of the Chakan plant production lines, including body and Trim, Chassis and Final (TCF). “Providing the essentials needed to create detailed and intelligent factory models, FactoryCAD allowed our planners to use ‘smart objects’ to represent their factory resourc-es,” said Senior Manager, IT and PLM, Chakan plant, Mahindra Vehicles, Anupam Patil.

“This was especially advan-tageous because the objects

provided the ability to snap a layout model together, instead of wasting time drawing the individual equipment. Using FactoryCAD, we were able to resolve many issues before erect-ing and commissioning of the factory, such as interferences of process and utility equipment with the civil structure, for exam-ple, as well as a monorail system that caused interference with the supporting beams at a spe-cific area and a robot that caused interference with the building column in another area.”

A Planned Production Line, Virtually Simulated

Before building the produc-tion line, Mahindra completed a number of simulation projects that helped to make important decisions in configuring the pro-duction line. One of the projects addressed the inter-connections

Contd. on page 28

Mahindra turns to technology for process expansion

Final Assembly of the Mahindra Navistar truck in the Mahindra Chakan plant

Auto Monitor


of the body-in-white (BIW) weld-ing shop, paint line and the TCF assembly line, where all the parts are assembled to form a complet-ed vehicle.

The goal of the simulation project was to find out the opti-mal buffer storage capacity in between these production lines. The challenge arose because there were three BIW planned production lines (for the Maxximo, Genio and XUV vehi-cles) going into a single paint line, which then goes into three separate TCF assembly lines. Tecnomatix Plant Simulation was used to conduct a what-if simulation to determine the best scenarios for the plant’s inter-shop conveyor system. Several scenarios of mixed-model pro-duction volumes were simulated and the optimal size of central painted body buffer storage and individual BIW shop storage was determined. This simulation project substantially reduces the lead time in designing the storage. Another project was to determine the optimal rout-ing method of painted vehicle bodies from the single paint

line to the three TCF assembly lines. “The simulation helped to identify bottlenecks, and verify the robustness of the selected option,” said Digital Ma nu fact u r i ng Ma nager, Chakan plant, Mahindra Vehicles, Amit Jahagirdar. “One simulated option was a clockwise flow of bodies with no cross-over. The simulation showed that in the event that one of the three TCF lines is shut-down, the respective bodies in the main line would create blockage in moving bodies to the other TCF lines. The second option was a counter-clockwise flow, with a cross-over for the empty skids to flow back to the paint shop. This is a more robust option because each TCF feeder line is practi-cally independent of others. So, there is little or no impact on the overall performance of the line shutdowns.”

Using Plant Simulation, Mahindra gained critical insight regarding its factory layout and installation processes across vehicle lines. Accurate and fast validation of processes ena-bled the company to achieve its

goal of getting the implementa-tion right the first time. Detailed throughput examination notably reduced bottlenecks, and what-if analysis capabilities substantial-ly decreased unnecessary capital investment in machines and conveyors.

MBOM Creation Means No Part Is Forgotten In The Production

The Engineering Bill Of Materials (EBOM) is created and managed using Teamcenter. Then manufacturing engi-neers create the MBOM using Manufacturing Process Planner by consuming parts from the EBOM. The MBOM is then sent from Manufacturing Process Planner to SAP software, the enterprise resource planning (ERP) system Mahindra uses.

Due to the importance of maintaining an accurate MBOM, starting from the engineer-ing team and down to the shop floor, Mahindra uses Teamcenter to execute a daily update to synchronize any incremen-tal changes to the EBOM. In a similar manner, Teamcenter integration for SAP synchro-nises the MBOM daily with SAP based on make or buy attributes. For example, any assembly node with children, which was identi-

fied in the MBOM as a purchased assembly, will be automatically exported and will appear in SAP as a single node.

Dynamic 3D Simulation Supports Analysis For The New Maxximo

The painted body of the Maxximo mini-truck is trans-ported inside the new assembly shop for operations. The car body is moved along using a hanger system in the underbody areas and on transfer lines. The system was initially designed to carry the car body with the doors closed. After analysing the conceptual flow of assembly, other possible assembly operations were ana-lyzed. It was found that in order

to reduce production time, some assembly operations could be executed when the car body is on the hanger, as long as the doors could be opened to a certain extent, which will enable opera-tors to work inside the cabin area.

The assembly process for the Maxximo was planned so that the engine assembly from the engine production unit is transferred to the final assembly shop from a logistic area. It moves on a prede-fined track and gets synchronized with the conveyor carrying the Maxximo car bodies on hang-ers. Because this is a complex scenario, which involves many parameters, manufacturing engi-neers also performed a dynamic 3D simulation of this scenario.

Mahindra turns to....... Contd. from page 24

Tools Management Lowers Cost By Enabling Re-Use

Mahindra plans to use the resource classi-fication capability of Teamcenter to manage its many production tools. According to Jahagirdar, “The objective of this initiative is to lower costs, reduce lead time and improve quality by helping the manufacturing engi-neer/planner select the proper resource, increasing the re-use of manufacturing tools, reducing tool inventory, maximizing resource utilization and delivering digital models for verification and simulation.”

“We have defined simple categories for any tool we have in our production plants, including a tool suitable to a specific part, such as fixtures or specific gauges. There are also more generic tools, such as robots and torque wrenches. Based on this, we are defin-ing a workflow using Teamcenter to classify our existing and new tools by part number, so that eventually we will have a structured library of tools across the Mahindra automotive sector.”

The next step is the development of the BOP using Manufacturing Process Planner. Assembly operations and their duration are defined, and then linked to the parts that should be handled and to the specific tools required to carry out the work. This methodology enables Mahindra manufacturing engineers to re-use best prac-tices and captured knowledge in planning or modifying a production line.

“The digital manufacturing tools play a key role in the first steps of a car project,” says Nidamaluri. “These tools are already used in the requirements definition phase of a new or modified produc-tion line. This enables us to provide more mature engineering information upfront to our system suppliers, and will therefore reduce lead time and the overall duration of a car project.

(Courtesy: Siemens PLM)

Interference of a robot and a column found using FactoryCAD

Auto Monitor

G L O B A L W A T C H3024 SEPTEMBER 2012

The all-new Ford Transit makes its global public debut at the Hanover IAA Commercial Vehicle

Show, marking the arrival of a new generation of global Transit commercial vehicles. The new generation Transit has been developed under the One Ford product strategy for sale in six continents, including Europe, North America and other key markets worldwide.

Offering a wide range of body styles and derivatives, the all-new Transit is engineered to deliver load-carrying ability, toughness and durability, and

targets best-in-class fuel econ-omy. “The Transit van is going global, and we’ve made it more productive, more fuel efficient and tougher than ever before,” said Vice President, Product Development, Ford of Europe, Barb Samardzich.

New Level Of Capability And Versatility

The Ford Transit brings a new level of capability and versatil-ity to the medium commercial van market, with an unmatched range of body styles and deriva-tives, with multiple wheelbases, roof heights and chassis cab/

cowl versions.The purposeful, modern

exterior design conceals a load area sized to accommodate key distribution industry required dimensions and maintain best-in-class payload. A range of innovative loadspace features make operator usage easier and more secure.

Compared to the outgoing Transit, load volume has been increased by around 10 percent model-for-model, with the larg-est “Jumbo” van now capable of swallowing a massive 15.1 m3 SAE of cargo. In addition, an all-new Chassis Cab SuperJumbo

derivative will enable five-m floats or box bodies to be accommodated.

Particular emphasis has been placed on making the vehi-cle simple to modify for body builders, upfitters and camper van converters, so all customer requirements can be satisfied. For Europe, the all-new Transit is powered by the latest 2.2-litre Duratorq TDCi diesel with a choice of three power ratings (100 PS, 125 PS, 155 PS), and a standard six-speed manual transmission; front-wheel drive, rear-wheel drive and all-wheel drive versions will be available.

The comprehensive range

of bodystyles and derivatives includes Van, Double Cab-in-Van (DCiV), Kombi, Kombi Van and Bus models, plus Chassis Cab and Chassis Cowl versions. Vans are available in three dif-ferent lengths and two different roof heights with multiple gross vehicle mass options of up to 4.7 tonne. This combines with the all-new Transit Custom one-tonne range to deliver a sig-nificantly expanded overall line up.

In North America, customers can choose from several engines, including the proven 3.5-litre EcoBoost V6 or a powerful diesel option; each features rear-wheel drive and at least 25 percent better fuel economy than a com-parable E-Series. Multiple roof heights and wheelbases will be available. North American Transit vans will be manufac-tured in Kansas City, alongside the Ford F-150.

Cost-Of-Ownership, Driver Appeal & Durability

Minimising overall cost-of-ownership was a high priority throughout the vehicle design and development, and the all-new Transit delivers mini-

Contd. on page 37

Compared to the outgoing Transit, load

volume has been increased by

around 10 percent model-for-model, with the largest ‘Jumbo’ van now

capable of swallowing a massive 15.1 m3

SAE of cargo

Ford Transit makes global debut at IAA Commercial

Vehicle Show

Auto Monitor


Honda (UK) has boost-ed its Corporate Sales team with two new appointments. Lee

Wheeler has been appointed Manager-Corporate Operations (for the interim) to head up the team and Jon Jacks has been pro-moted to the position of National Leasing & SMR Manager. Both positions are effective imme-diately. These new additions strengthen the team as it pre-pares to introduce the new class-leading low CO2, high-powered 1.6 i-DTEC engine in the new Civic.

Lee has over seven years of Honda experience since join-ing Honda Finance in May 2004 where he spent the first two years in Central Europe setting up Honda Finance in Austria, Poland, Hungary and Slovakia. He then joined Honda (UK) as National Leasing & SMR Manager in August 2007 before being appointed Manager—Sales Support and Logistics two years later. Until recently Lee has been responsible for Commercial & Business Planning.

“I’m delighted to be back

within the Corporate team, espe-cially now at a time when we have some fantastic products com-ing through,” commented Lee. “It really is an exciting time for Honda in the corporate market particularly with the introduc-tion of Honda’s new 1.6 i-DTEC ‘no compromise’ diesel engine in the new Civic. This engine is perfect for company car drivers as it offers a class-leading mix of low CO2 emissions of only 94 g/km without sacrificing on power and driving experience.

“Honda’s renowned for reli-

ability, strong residual values and low whole life costs and this makes for an excellent platform to launch our small diesel engine in the Civic.” Jon Jacks joins the team as National Leasing & SMR Manager after spending the last two years as Dealer Corporate Manager for the Midlands region. Jon has over 25 years experience in the motor and motor finance industry.

Jon will be responsible for

growing Honda`s share and volume in the vitally impor-tant Contract Hire and Leasing market and dealing with Board level personnel within the larg-est Leasing Companies in Britain. Jon will also be over-seeing all Honda Contract Hire programmes, online SMR and all product launch activity to the Whole Life Cost providers to maximise competitiveness of Honda’s product positioning

through optimum residual val-ues, SMR and monthly rentals.

“This is an exciting time for Honda Corporate as we launch the 1.6 i-DTEC Civic and CR-V models,” commented Jon. “The Civic 1.6 i-DTEC firmly puts Honda at the forefront in the competitive corporate mar-ket. This is a hugely diverse and important role for Honda and I am looking forward to this new challenge.”

Lee Wheeler has been appointed Manager-Corporate

Operations (for the interim) to head

up the team and Jon Jacks has been

promoted to the position of National

Leasing & SMR Manager

Honda (UK) boosts its Corporate Sales team

(L-R) Jon Jacks, National Leasing & SMR Manager Honda UK; Lee Wheeler, Manager, Corporate Operations Honda, UK

ALD Automotive announces UK sole supplier agreement

ALD Automotive, a UK-based vehicle leasing and fleet management com-pany has recently announced that Morgan Sindall Group Plc, the UK

construction, infrastructure and design busi-ness, has signed a three-year sole supplier agreement to manage Morgan Sindall’s fleet of 2,400 vehicles in the UK.

ALD Automotive will deliver a whole range of products and services to Morgan Sindall Group, including telematics solution ProFleet2, FuelEx, ALD’s new mileage capture and fuel deduction system and PoolFleet to provide short term vehicles for specific requirements for staff in their trial period or for temporary staff. In addi-tion, ALD will supply Morgan Sindall Group with DriveSafe—a suite of risk management products.

Cost of OwnershipMorgan Sindall Group will also have access

to ALD Automotive’s threesixty online system, through which all of ALD’s customer appli-cations and functionality will be deployed. It is a feature rich, configurable application, which will provide Morgan Sindall Group with a central portal for all fleet-related processes, risk management services and management information.

Morgan Sindall Group selected ALD as being the company best suited to meet their key objec-tives of delivering reduced TCO (Total Cost of Ownership) across the fleet and reducing car-bon emissions across the new fleet policy to assist with Morgan Sindall Group’s robust CSR (corporate social responsibility) strategy.

Efficient Fleet ManagementGroup Procurement Director, Morgan

Sindall Group, Graham Edgell commented, “ALD Automotive consistently demonstrated as part of the tender process that they have the experience of managing large fleets of vehicles, whilst also being able to deliver improved cost savings as part of a thorough total cost of own-ership programme.”

Managing Director of ALD Automotive, Keith Allen commented, “The three-year sole suppli-er agreement between ALD and Morgan Sindall Group highlights their confidence in our abil-ity to deliver a fully outsourced fleet solution. The combination of ALD Automotive’s account management team and our in-house systems development will ensure that all of Morgan Sindall Group’s objectives for managing their fleet are achieved.”

Auto Monitor


BenefitsParallel with the attractive possibility to do

other things while driving, the road train brings several other crucial advantages:

drive close to each other and reap the benefit

Stakeholder Dialogue

gency situations such as obstacle avoidance or

that road trains have great potential,” con

i nv ol v i n g s e v en

ing road trains on conventional

Four-Metre Gap Between Vehicles

lowed by one truck and three

era, radar and laser technology

tures that have been added to the vehicles are:

allows all vehicles within the

Smoother Than Public Transportation

than leaving your car behind and using public transportation on

taking the road train will include

whether you own a lead vehicle or

Recognising that the challenge of implementing road train technology is not

solely a technical matter, SARTRE will identify what changes will be needed for vehicle platooning to

become a reality

Volvo Car Corporation concludes the SARTRE project

Erik Coelingh, Technical Specialist, Volvo Car Corporation

Volvo aims for leadership within autonomous driving technology Volvo

Auto Monitor

G L O B A L W A T C H 3724 SEPTEMBER 2012

mised maintenance, repair and insurance costs, and targets best-in-class fuel economy.

An all-new interior, with a stylish and functional instru-ment panel, incorporates a range of smart stowage solutions. The cabin is significantly more spa-cious than the outgoing model, with increased shoulder room, head clearance and visibility, plus a more comfortable driving position with a fully-adjustable steering column.

A wide range of convenience features and driver assistance technologies featured on Ford’s latest passenger cars can also be specified, including the Ford SYNC voice-activated, in-car connectivity system with Emergency Assistance, a rear view camera, Adaptive Cruise Control and Lane Departure Warning.

The Transit brand has estab-lished a legendary reputation for toughness and dependabil-ity, and the new global model has been engineered to extend that tradition, starting with its immensely strong uni-body construction featuring high-strength and ultra-high-strength/boron steels.

The vehicle has been sub-jected to Ford’s ultra-stringent global commercial vehicle test-ing and durability standards, covering millions of miles of arduous testing in laboratories, at proving grounds and on cus-tomer fleets.

In Europe, the all-new Ford Transit is due to go on sale in late-2013 with deliveries starting by the end of the year. In North America, the all-new Transit is scheduled to go on sale by the

fourth quarter of 2013.

Stylish, Capable & Versatile

Showcasing Ford’s latest design language, the all-new Transit Connect has a dynamic and modern appearance, from the signature trapezoidal grille and slim, technical headlamps at the front, through the pow-erful rising shoulder line, to the distinctive vertical tail lamps at the rear.

The stylish body is available in short-wheelbase (SWB) and long-wheelbase (LWB) versions, offering a spacious and practical load area with total volume of 2.9 m3 and 3.6 m3 (SAE) respectively. Customers can choose between Van, Double-Cab-in-Van and Kombi derivatives, to suit their exact business requirements.

Class-leading fuel economy and dependability

Minimising overall cost-of-ownership was a high priority throughout the vehicle design and development, and the all-new Transit Connect targets best-in-class fuel economy, along with minimised maintenance and repair costs with extended service intervals.

The powertrain line up in Europe includes the highly-effi-cient 1.6-litre Duratorq TDCi diesel with a choice of 75, 95 and 115 PS versions, and the remarkable new 100 PS one-litre EcoBoost petrol engine—2012 “International Engine of the Year”, plus a version of the acclaimed 1.6-litre EcoBoost engine available with a six-speed automatic transmission. The

latest low-CO2 Ford ECOnetic Technologies help to minimise fuel consumption, including Auto-Start-Stop available on both diesel and petrol models.

A range of efficient petrol engines with automatic trans-mission will be made available in the US to meet local market needs. Since its 2002 launch, the Transit Connect has estab-lished a reputation for toughness and reliability. The new model has been engineered to extend this tradition of class-leading dependability, using customer feedback from around the globe to ensure that toughness and durability are designed in from the start.

Unlike many rivals which are tested like passenger cars, the vehicle has been subjected to Ford’s ultra-stringent commer-cial vehicle testing and durability standards, covering millions of miles of arduous testing in labo-ratories, at proving grounds and on customer fleets.

Next-Generation Global Commercial Vehicle Platform

The Transit is based on a global platform, engineered to underpin the next-genera-tion of Ford commercial vans worldwide. It forms part of an unprecedented renewal that will see complete redesign of its com-

mercial vehicle range for Europe over the next two years.

Within Europe and worldwide markets, the new model replac-es the heavier two-tonne Transit derivatives, and joins the exciting new one-tonne Transit Custom in the line up. In North America, where Transit makes its debut, it will eventually take over from the best-selling E-Series range.

The vehicle was engineered in Ford’s commercial vehi-cle Centre of Excellence in Europe— building on dec-ades of experience developing market-leading Transit models—supported by the company’s full global product development resources.

Ford Transit makes global....... Contd. from page 30

Auto Monitor

A N A LY S I S4024 SEPTEMBER 2012

-48.44%

-11.51%

5.62%

-12.54%

-22.50%

8.07%

-18.90%

54.15%

148.95%

725.07%

0.86%

Passenger Vehicles

Passenger Cars

OEMs 2011-12 2012-13

BMW** 4,033 3,569

Fiat 7,876 4,061

Ford 35,136 32,919

GM 35,255 28,378

HM 1,313 798

HSCI 19,299 29,749

HMIL 144,859 152,994

M&M 7,147 6,251

MSIL 324,211 304,729

Merc 2,755 2,135

Nissan 7,293 18,156

Renault 383 3,160

Skoda 11,288 14,207

Tata 81,851 88,456

Tata JLR - 900

TKM 29,852 33,364

Audi 2,252 3,321

VW 31,188 25,293

Total 745,991 752,440

MPV

OEMs 2011-12 2012-13

Force 120 7

M&M 9010 12917

Maruti 66,628 46,546

Tata 23,408 30,400

Total 99,166 89,870

Commercial Vehicles Two-Wheelers

LCVs (PC+GC)

OEMs 2011-12 2012-13

ALL 193 13,152

Force 9,559 9,663

HM 69 76

M&M 48,081 55,449

MNAL 4,212 3,392

Piaggio 5,187 1,561

Swaraj 1,798 1,432

Tata 98,316 111,733

VECV - Eicher

4,109 4,303

Total 171,524 200,761

3-Wheelers (PC+GC)

OEMs 2011-12 2012-13

Atul 9,768 11,557

Bajaj 77,621 81,202

Force 4 1

M&M 25,847 24,968

Piaggio 75,506 71,455

Scooters 6,134 6,020

TVS 4,866 5,718

Total 199,746 200,921

M&HCVs (PC+GC)

OEMs 2011-12 2012-13

ALL 29,487 29,185

AMW 4,120 2,690

JCBL - -

Daimler* 49 NA

M&M 0 0

MNAL 1,019 1,741

Swaraj 3,049 3,570

Tata 78,080 62,410

VECV - Eicher

13,408 14,063

VECV - Volvo

205 221

Volvo Buses

295 349

Total 129,712 114,229

Scooter/Scooterettees

OEMs 2011-12 2012-13

BAL -

HML 158,825 187,846

HMSI 413,483 599,049

M&M 2W

60,389 50,566

Piaggio - 11,118

SMIL 112,654 135,636

TVS 204,301 183,511

Total 949,652 1,167,726

Mopeds/Electric

OEMs 2011-12 2012-13

TVS 315,423 325,527

Electrotherm* NA

Total 315,423 325,527

Motorcycles/StepThroughs

OEMs 2011-12 2012-13

BAL 1,052,060 1,014,117

HDMC 0 442

HML 2,290,105 2,312,551

HMSI 285,802 459,882

IYM 139,990 132,704

M&M 2W

RE 30,299 45,915

SMIL 23,275 32,999

TVS 260,070 218,287

Total 4,081,601 4,216,897

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

UV

OEMs 2011-12 2012-13

Force 1,410 1,864

Ford 1,138 651

GM 9,722 7,652

HM 915 839

HSCI 134 183

HMIL 621 378

ICML 161 196

M&M 74,043 99,095

MSIL 3,434 33,142

Nissan 101 47

Renault - 4,536

Skoda 753 487

Tata 15,196 18,784

TKM 24,604 39,784

VW 4 13

Total 132,236 207,651

6714.51%

1.09%

10.14%

-19.47%

-69.91%

13.65%

4.72%

18.27%

20.40%

22.96%

17.05%

44.88%

-16.27%

-10.18%

-3.61%

-5.20%

-16.07%

0.98%

60.91%

-

51.54%

41.78%

3.31%

3.20%

0.00%

-1.02%

00.00%

70.85%

17.09%

4.89%

-20.07%

-11.94%

7.80%

18.31%

-39.13%

-53.57%

-35.33%

32.20%

-8.31%

29.87%

-30.14%

-9.37%

43.36%

-21.29%

-42.79%

36.57%

18.31%

17.51%

0.59%

4.61%

-75.00%

-3.40%

-5.37%

-1.86%

-39.22%

-6.31%

-6.01%

-19.51%

15.32%

-20.36%

The passenger car segment grew by 0.86 percent during the April-August period this fiscal, while the utility vehi-cles grew by 57.03 percent and the multi-purpose vehicles declined by 9.37 percent in this fiscal.

Renault led the passenger car segment with a growth of around 725.07 percent from 383 units to touch 3,160 units this fiscal, as compared to the previous period. Maruti regis-tered the highest growth in the utility vehicle segment with 865.11 percent growth to touch 33,142 units in April-August 2012-13 period.

The overall commercial vehicles segment registered a growth of 4.57 percent in April-August, 2012-13 as compared to the same period last fiscal to touch 314,990 units. M&HCVs sales declined by 11.94 percent to touch 114,229 units compared to 129,712 units in the same period in the previous year. The LCV segment grew by 17.05 percent to touch 200,761 units in this fiscal, com-pared to 171,524 units in the same period last fiscal.

Three-wheeler sales were stagnant at 200,921 units in April-August period compared to 199,746 units in same period last year. Passenger carriers rose by 4.45 percent in April-August while goods carriers fell by 13.4 percent.

ALL registered the highest growth in the LCV segment to touch 13,152 units. Atul Auto registered highest growth in three-wheeler segment to touch 11,557 units.

Domestic two-wheelers sales witnessed a growth of 6.8 percent in this fiscal to touch 5,710,150 units against 5,346,676 units during the same period in the previous fiscal. Mopeds, motorcycles and scooters grew by 3.2 percent, 3.31 percent and 22.96 percent respectively.

The motorcycle sales grew to 4,216,897 units in April-August period as compared to 4,081,601 units in cor-responding period in the previous fiscal.

In the Motorcycle segment, Honda Motorcycles sales were up by 60.91 percent in April-August period this fiscal, while Bajaj Auto’s sales declined by 3.61 percent to 1,014,117 units compared to 1,052,060 units in same period last fiscal.

In the Scooter segment, the sales of HMSI grew by 44.88 percent while TVS Motor sales declined by 10.18 percent in this fiscal.

Hero MotoCorp sales declined by 11.46 percent for August at 431,739 units over the same month last year. Bajaj Auto witnessed marginal decline in its August sales at 195,093 units against the same month in the previous fiscal.

TVS Motor Company reported total domestic two-wheel-er sales of 135,493 units in August registering a decline of 17.23 percent. Honda Motorcycles India registered the highest growth in domestic two-wheelers sales at around 37.3 percent to touch 209,164 units in August this year.

25.86%

11.76%

47.47%

21.74%

865.11%

61.70%

225.00%

23.61%

57.03%

33.83%

-94.17%

3.20%

-34.71%

Auto Monitor


-

-

Autonomous Driving In Traffic Queues

-

-

The Self-Parking Car

-

-

E -

-

-

-

Positive Customer Feedback

-

-

-

-

-

-

-

To Attract Young Buyers

-

-

-

-

-

-

Advantages

Volvo Car Corporation aims for leadership within autonomous driving technology

Auto Monitor


The new Mercedes-Benz E 300 BlueTEC Hybrid is designed to be capable of combining perform-

ance and efficiency. In standard form it can accelerate from rest to 62 mph in 7.5-seconds. It can achieve a maximum speed of 150 mph and can return 67 mpg while emitting as little as 109 g/km of CO2.

To prove the theory in the real-world, the very first example of the car to arrive in the UK set out on an economy run—with a twist—to prove that driving fun and efficiency can be combined.

First, driving duties were handed over to ex-rally driv-er Mick Linford. Next, the E 300 BlueTEC Hybrid started its economy run in the unlikely sur-roundings of the main runway at Newquay Cornwall Airport—the most southern active airport in mainland Britain. Here the car accelerated from rest to 62 mph

in a little over seven seconds before achieving a peak speed of 136 mph.

The car was then driven entire-ly normally the 830-miles north to its counterpart in Scotland—Wick Airport—the most northern airport in mainland Britain. Over the course of the two-day jour-ney, it encountered real-world driving conditions, including heavy traffic, diversions and challenging weather.

On arrival at Wick Airport the E 300 BlueTEC Hybrid achieved a maximum speed of 120 mph down the runway, which was 911 metres shorter than at Newquay. The engineering team behind the E 300 BlueTEC Hybrid aimed to strike a balance between delivering everyday economy and performance, when required. Over a distance of 830-miles and two days, the car achieved a peak speed of 136 mph. It returned economy of 67.3

mpg. The entire trip was carried out on a single tank of fuel–of which, a quarter remained on its arrival in Wick. Had the car carried on driving it would have achieved a theoretical range in excess of 1,100-miles.

This extraordinary economy is made possible through a hybrid system linked to the efficient four-cylinder diesel engine—an

electric motor is mounted with-in the 7G-Tronic Plus automatic transmission. The gearbox substi-tutes a torque converter for a wet clutch system, therefore allow-ing for the internal combustion engine to be disengaged entirely via the clutch and for electric-only drive to be maintained for short periods, boosting economy. The system is intricately packaged

within the vehicle so as not to impact on the load capacity of the E-Class in any way.

The new E 300 BlueTEC HYBRID is available to order now in both saloon and estate form. It produces a total of 204 hp and 500 nm of torque. Prices start at £39,645.00 OTR for the saloon and £41,435.00 OTR for the estate.

E 300 BlueTEC Hybrid sets out on an

economy challenge

Caddy Cross edition to premiere at IAA Commercial Vehicle Show

With Viper Green paintwork, 17-inch ‘Canyon’ alloy wheels and a black body kit, the Caddy Cross special edition will make

its premiere on the Volkswagen stand at the IAA Commercial Vehicles show in Hanover.

The body kit extends around the lower edges of the body-coloured front and rear bumpers, and along the side sills and wheelarches to convey a more rugged appearance complete with silver roof rails, side strips and front and rear undercarriage guards to create an off-road look.

The interior has been given a unique treat-ment too, with a two-tone front seat design with contrasting inserts on the door pan-els, plus height and length adjustable centre armrest, leather-covered steering wheel and distinctive grey stitching on the gear knob and handbrake.

This model is due to go into production in early 2013 with a wide selection of engines, plus the option of 4Motion all-wheel drive. Volkswagen expects to introduce the Caddy Cross as a panel van model in the UK in the first half of 2013.

E 300 BlueTEC HYBRID sets out on an economy challenge with a twist Mercedes

The model is due to go into production in early 2013 with a wide selection of

engines, plus the option of 4Motion all-wheel drive

Auto Monitor

C L A S S I F I E D S 4724 SEPTEMBER 2012

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Wagle Industrial Estate, Thane(W) - 400 604. Tel. +91 22 2583 8191 to 98, Fax: +91 22 25838199Email: [email protected], [email protected]

Website: www.tejivs.com

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Auto Monitor - 24 September 2012