© defiance technologies ltd 2011 making india a global automotive center of excellence &...

© Defiance Technologies Ltd 2011© Defiance Technologies Ltd 2011© Defiance Technologies Ltd 2011

Making India a Global Automotive Center of Excellence & Innovation Hub

Ninth ARC India Forum, Pune August, 2011

“Achieving Operational Excellence Through IT and Automation Solutions”

Subu D Subramanian, MD & CEO, Defiance Technologies Limited

Aug 3, 2011

© Defiance Technologies Ltd 2011© Defiance Technologies Ltd 2011

Global Automotive Industry Trends

# 2

Source : J.D. Power and Associates

Sales reached a record 72 million vehicles in 2010, growth of over

23% Vs 2009

of global light vehicle sales in 2010 were in emerging markets

• In 2011 sales expected to reach a record 76.5 million new light vehicles

• Market is seen climbing to 90 - 91 million vehicles in 2013 and cross 100 million vehicles in 2015


Industry Innovation is focused on ‘Hi-tech’ & ‘Green’ Cars

# 3

Electronics constitute ~23 - 40% of the total product cost in automobiles

The Automotive electronics market space

is over $100 Billion

80% of innovations in automobiles comes from electronics

4X Growth in Green Car Market by 2016

there will be 159 hybrid and electric vehicle models available for purchase in the US market—a significant increase from 31 hybrid and electric models in 2009

Australia's green car completes world tour in $400Sydney, Feb 28 (IANS) A two-seater renewable energy vehicle crossed the finish line of a global zero emissions race covering 16 countries and 30,000 km in 80 days in only $400

Technology is driving innovation..


Next Gen Cars : Top Hi-Tech Features

The Mercedes SE350 alerts you to pedestrians in the road

Opel (Vauxhall) Insignia reads road signs

Mercedes Driver assistance system detects tiredness

# 4

Driving Yourself is Like Riding A Horse Now. Future Car Focus: Robot Cars

Made In Germany, a robotic Passat developed by Freie Universität Berlin, can be summoned with an iPad application, and will begin testing on German highways in March 2011

In the first road test of the Sartre system, a Volvo S60 autonomously follows a human-driven truck, using existing active safety systems and a vehicle-to-vehicle communication network

Biometrics• Owner identification• Keyless Entry• Vehicle Ignition

“Disappearing car door“ new technology from JATECH


Besides Hi-Tech it will be Green Cars

# 5

Key drivers.. ~800 million vehicles around the world burning nearly 250 billion gallons of fuel every year

Escalating fuel prices and environmental concerns like global warming

Gas prices have increased by over 50% in the past few years and is expected to rise further

Lexus LF-GH

From hybrids to hydrogen cells, the world's leading OEMs are working furiously to increase their production of ‘Green cars’

40 MPG Hyundai Accent 4-cylinder Ford Taurus Turbo

All-Electric BMW Active E 2013 Chevrolet Malibu Eco Debuts

http://www.insideline.com/chevrolet/malibu-eco/2013/photos/2013_chevrolet_malibu-eco_f34_ns_42111.html


Largest two-wheeler manufacturer in the world.

Largest three-wheeler market in the world.

2nd largest two-wheeler market in the world.

4th largest CV market in the world.

12th position amongst top 15 automakers in the world

4th position amongst the auto makers of developing countries

Exports of cars increased 52 % over 2007-08

India is increasingly becoming a manufacturing hub for passenger cars

Indian Automotive Sector

8 out of top 10 global companies have India presence

Source: SIAM) IMACS Analysis Automotive

Automotive Production (million units)

Car exports from India (thousand units)

# 6

2003-04 2006-07 2010-11 2015-16

7.24

11.09

14

28.5


India is moving up the automotive value chain

# 7

Valu

e Ch

ain

Phase 1 100% import of

vehicles

Phase 2 From CKD

package to Indigenous

Phase 3 Near 100%

Indigenous but designs came from abroad

Phase 4 Designed in

India, for India

Phase 5 Designed in India

for the Global market

NanoIndica

Rhino

Scorpio

Maruti Swift Dzire

http://www.google.co.in/imgres?imgurl=http://www.tatanano.org/wp-content/uploads/2010/12/2011-Tata-Nano-V2.jpg&imgrefurl=http://tatanano.org/&usg=__UzcyAy-y49vQJuHFdT4BNGuP2w0=&h=360&w=501&sz=40&hl=en&start=6&zoom=1&tbnid=F6TXIWx8x8tqMM:&tbnh=93&tbnw=130&ei=3d83Tp67BunLmAW-tNWEAg&prev=/search?q=nano&um=1&hl=en&sa=N&tbm=isch&um=1&itbs=1

http://www.google.co.in/imgres?imgurl=http://www.carsingh.com/tata/tata-indica-v2-wallpaper.jpg&imgrefurl=http://www.carsingh.com/new/Tata-Indica-V2.html&usg=__VpH_emAd_GKNmTyduiXf1dR8YH8=&h=260&w=550&sz=106&hl=en&start=5&zoom=1&tbnid=M09v0t1OFFeUhM:&tbnh=63&tbnw=133&ei=xN83TtzdJ8uOmQWJ9K2rAg&prev=/search?q=Indica&um=1&hl=en&sa=N&tbm=isch&um=1&itbs=1

http://www.google.co.in/imgres?imgurl=http://www.carsingh.com/tata/tata-indica-v2-wallpaper.jpg&imgrefurl=http://www.carsingh.com/new/Tata-Indica-V2.html&usg=__VpH_emAd_GKNmTyduiXf1dR8YH8=&h=260&w=550&sz=106&hl=en&start=5&zoom=1&tbnid=M09v0t1OFFeUhM:&tbnh=63&tbnw=133&ei=xN83TtzdJ8uOmQWJ9K2rAg&prev=/search?q=Indica&um=1&hl=en&sa=N&tbm=isch&um=1&itbs=1

http://www.google.co.in/imgres?imgurl=http://images.cardekho.com/images/car-images/large/ICML/RhinoRx/RhinoRx-1.jpg&imgrefurl=http://www.cardekho.com/pictures/ICML_Rhino_Rx_DLX&usg=__Yg_0_N1e14uaSgJsxNzl-fCKEFA=&h=300&w=500&sz=25&hl=en&start=1&zoom=1&tbnid=GD1JKDjPESZ5_M:&tbnh=78&tbnw=130&ei=EeA3Tvy7Ds3QmAXVt_WHAg&prev=/search?q=Rhino+car&um=1&hl=en&sa=N&tbm=isch&um=1&itbs=1

http://www.google.co.in/imgres?imgurl=http://images.cardekho.com/images/car-images/large/ICML/RhinoRx/RhinoRx-1.jpg&imgrefurl=http://www.cardekho.com/pictures/ICML_Rhino_Rx_DLX&usg=__Yg_0_N1e14uaSgJsxNzl-fCKEFA=&h=300&w=500&sz=25&hl=en&start=1&zoom=1&tbnid=GD1JKDjPESZ5_M:&tbnh=78&tbnw=130&ei=EeA3Tvy7Ds3QmAXVt_WHAg&prev=/search?q=Rhino+car&um=1&hl=en&sa=N&tbm=isch&um=1&itbs=1

http://www.google.co.in/imgres?imgurl=http://autoadvices.com/wp-content/uploads/2011/03/Mahindra-Scorpio-Hybrid-8.jpg&imgrefurl=http://autoadvices.com/cars/mahindra-scorpio-hybrid/&usg=___5xoYJ1JmqdpyGwTW-CP4YkAmzo=&h=1200&w=1600&sz=493&hl=en&start=16&zoom=1&tbnid=1QkzfYnHd3QZxM:&tbnh=113&tbnw=150&ei=jeA3To7lPOPWmAXo6Z2sAg&prev=/search?q=mahindra+scorpio&um=1&hl=en&sa=N&tbm=isch&um=1&itbs=1

http://www.google.co.in/imgres?imgurl=http://autoadvices.com/wp-content/uploads/2011/03/Mahindra-Scorpio-Hybrid-8.jpg&imgrefurl=http://autoadvices.com/cars/mahindra-scorpio-hybrid/&usg=___5xoYJ1JmqdpyGwTW-CP4YkAmzo=&h=1200&w=1600&sz=493&hl=en&start=16&zoom=1&tbnid=1QkzfYnHd3QZxM:&tbnh=113&tbnw=150&ei=jeA3To7lPOPWmAXo6Z2sAg&prev=/search?q=mahindra+scorpio&um=1&hl=en&sa=N&tbm=isch&um=1&itbs=1

http://www.google.co.in/imgres?imgurl=http://www.cubiccapacity.com/wp-content/uploads/2008/03/dzire1.jpg&imgrefurl=http://www.cubiccapacity.com/more-pictures-of-maruti-suzuki-swift-dzire/&usg=__NRAdj2oOKMx-y6NkmC4QwFYu-c0=&h=406&w=1000&sz=82&hl=en&start=12&zoom=1&tbnid=C1IrXjYvjAebJM:&tbnh=60&tbnw=149&ei=KuE3Tr_vFJGhmQX2itGFAg&prev=/search?q=Swift+dzire&um=1&hl=en&sa=X&tbm=isch&um=1&itbs=1

http://www.google.co.in/imgres?imgurl=http://www.cubiccapacity.com/wp-content/uploads/2008/03/dzire1.jpg&imgrefurl=http://www.cubiccapacity.com/more-pictures-of-maruti-suzuki-swift-dzire/&usg=__NRAdj2oOKMx-y6NkmC4QwFYu-c0=&h=406&w=1000&sz=82&hl=en&start=12&zoom=1&tbnid=C1IrXjYvjAebJM:&tbnh=60&tbnw=149&ei=KuE3Tr_vFJGhmQX2itGFAg&prev=/search?q=Swift+dzire&um=1&hl=en&sa=X&tbm=isch&um=1&itbs=1


India has a good automotive eco-system in place..

# 8

Eco - System

Presence of OEMs (Global &

Indian)

Auto Component Industry

Strong IT, Engineering &

Embedded Capabilities

Presence of Leading

Technology Vendors

Presence of Leading

Institutions

Government Initiatives

• National Automotive Testing and R&D Infrastructure Project (NATRIP) -$ 380 million project.

• Lower duties and taxes• Weighted tax deduction ~150 %

for in-house research and R&D activities

• Product developmental capabilities– More than 125 Fortune 500 have

R&D centres in India

• Potential to grow at a CAGR of 13% to size up to USD 40 Billion by 2015

• IITs , IISc and other leading institutions

8 out of top 10 global companies have India presence

and is emerging as a attractive market for leading Global OEMs.

http://www.google.co.in/imgres?imgurl=http://www.rajtechsolutions.com/images/Siemens%20logo.jpg&imgrefurl=http://www.rajtechsolutions.com/Clients.htm&usg=__mkDuRFBU2QY9wW3NP9ndXlOfxB4=&h=377&w=1617&sz=44&hl=en&start=1&zoom=1&tbnid=7cru2d3nVESLsM:&tbnh=35&tbnw=150&ei=scw3To6RBofMmAXjzuSuAg&prev=/search?q=Siemens&um=1&hl=en&sa=N&tbm=isch&um=1&itbs=1

http://www.google.co.in/imgres?imgurl=http://backup.vitaltech.com.my/images/manufacturers/GE%20FANUC.jpg&imgrefurl=http://backup.vitaltech.com.my/index.php?main_page=index&cPath=84_407_413&usg=__59aPX78MDG5V-tNjukKUuofgEx0=&h=312&w=630&sz=41&hl=en&start=2&zoom=1&tbnid=bN_CAHxTQPSTeM:&tbnh=68&tbnw=137&ei=xMw3TtCnNYbqmAXmq8yeAg&prev=/search?q=GE+Fanuc&um=1&hl=en&sa=N&tbm=isch&um=1&itbs=1


Breakthrough Innovation Leads to Dramatic Business Results… The apple story,

# 9Keeps innovating & re-inventing itself like a start-up

125% growth in profits

nearly 100% growth in revenues

over 200% growth in some markets

Market value > 30% of India's GDP

Cash reserves : $76.2bn > RIL's market cap

Launched a year ago, and already the second largest business ; 9.25 million units sold in Apr- Jun

iPadLaunched 4 yrs ago, already the largest business contributing 47% of the revenues, 20.34 million units sold in Apr- Jun

iPhone

55% of Fortune 500 companies testing iPhone

Design & Innovation for Global Leadership

http://www.google.co.in/imgres?imgurl=http://www.swayaminfotech.com/blog/wp-content/uploads/2011/02/iphone-2g.jpg&imgrefurl=http://www.swayaminfotech.com/blog/2011/02/iphone%E2%80%99s-and-iphone-2g-history-began-when-steve-jobs-instructed-apple-inc%E2%80%99s-top-engineers-to-investigate-touch-screens-and-create-the-iphone/&usg=__hjpKHsCSiM0990T9VYnEkt6W7ns=&h=350&w=600&sz=81&hl=en&start=5&zoom=1&tbnid=myl9OArKbYSAXM:&tbnh=79&tbnw=135&ei=GOQ3Tt6kIIvtrQe79sj-Dw&prev=/search?q=iphone&um=1&hl=en&sa=N&tbm=isch&um=1&itbs=1


Breakthrough Innovation can come through only from ‘Basic Research’ ..

# 10

DuPont has entered into a research agreement with Affinergy Inc. to help in DuPont's research and development of a new line of bio-based products

GM has also begun to cooperate on research with its alliance partners. For example, research programs have been established in Japan with Suzuki and Fuji Heavy Industries

GM and the University of Michigan's College of Engineering had launched a new collaborative research laboratory on the university's Ann Arbor campus. "Mechamatronics," GM's new approach to designing that combines mechanisms, smart materials and electronics, is the research topic of the collaborators

Smart Device Technology Innovation – Basic Research

http://www.google.co.in/imgres?imgurl=http://www.businesspundit.com/wp-content/uploads/2011/04/Dupont.gif&imgrefurl=http://www.businesspundit.com/10-most-notorious-acts-of-corporate-espionage/dupont-2/&usg=__9hcLElxHH3gHAKQRocTFzRyD4qQ=&h=293&w=748&sz=12&hl=en&start=1&zoom=1&tbnid=MDyWqGTe4LUj_M:&tbnh=55&tbnw=141&ei=tg43TrWWLNDyrQeUw8kO&prev=/search?q=DuPont&um=1&hl=en&sa=N&tbm=isch&um=1&itbs=1

http://www.google.co.in/imgres?imgurl=http://www.trademarkia.com/services/logo.ashx?sid=85241421&imgrefurl=http://www.trademarkia.com/company-affinergy-inc-35191-page-1-2&usg=___Gs_78cVhbYVIIBH2iUS_GivREg=&h=117&w=400&sz=20&hl=en&start=4&zoom=1&tbnid=zhtPoNqL8d-r7M:&tbnh=36&tbnw=124&ei=HQ83TsDvE8KGrAfn1JjpDw&prev=/search?q=Affinergy+Inc&um=1&hl=en&sa=N&tbm=isch&um=1&itbs=1

http://www.google.co.in/imgres?imgurl=http://umec.engin.umich.edu/CopyofCopyofUMEC_LOGO.jpg&imgrefurl=http://www.umec.engin.umich.edu/&usg=__z_AFBYtopHG-fYrcHsfOoNbT1Ek=&h=300&w=300&sz=46&hl=en&start=3&zoom=1&tbnid=nUHtWpBd_QwcSM:&tbnh=116&tbnw=116&ei=3w03TuXSJcuGrAfE_r36Dw&prev=/search?q=University+of+Michigan+College+of+Engineering&um=1&hl=en&sa=N&tbm=isch&um=1&itbs=1

http://www.google.co.in/imgres?imgurl=http://umec.engin.umich.edu/CopyofCopyofUMEC_LOGO.jpg&imgrefurl=http://www.umec.engin.umich.edu/&usg=__z_AFBYtopHG-fYrcHsfOoNbT1Ek=&h=300&w=300&sz=46&hl=en&start=3&zoom=1&tbnid=nUHtWpBd_QwcSM:&tbnh=116&tbnw=116&ei=3w03TuXSJcuGrAfE_r36Dw&prev=/search?q=University+of+Michigan+College+of+Engineering&um=1&hl=en&sa=N&tbm=isch&um=1&itbs=1

http://www.engin.umich.edu/research/gminstitute/sms/images/GMUMInstitute1005_lg.jpg


Presence of MNC’s

Presence of MNC’sPresence of Major MNCs

Presence of Major MNCs

India has all the ingredients

While the elements are there..

Potential Market

Potential Market

Strong Eco-system

Strong Eco-system

Infrastructure

Infrastructure

Maturing Indian OEM’s

Maturing Indian OEM’s

# 11


India should focus on Basic Research to become a Automotive Center of Excellence & Innovation Hub

For Global Leadership

# 12

Need for a Cluster Approach

.

Industry to focus & take lead to invest in ‘BASIC RESEARCH’ for breakthrough innovation

Government to incentivize through Innovation park, tax benefits and other means.

© Defiance Technologies Ltd 2011© Defiance Technologies Ltd 2011 # 13

.

ENTERPRISE

MANUFACTURING

ENGINEERING

Founded in 1976, Acquired by Hinduja Group in 2007

Leading Provider of Integrated Engineering, Manufacturing & Enterprise Solutions & Services

Key Offerings :

• New Product Development

- Investments in “Design & Innovation” CoE

• PLM & Digital Manufacturing

• MES & Shop floor Automation and Integration

• ERP, SCM, CRM & After Market Solutions

• Enterprise Mobility & Cloud Solutions

Over 60 global clients including 20 of the Global 500 / Fortune 1000 companies

One of the large independent testing facilities in North America

Presence in USA, UK Germany, Middle East, South Africa and India.

Development Center in Pune, Bangalore & Chennai in India

Keen to participate in Auto Engineering Basic Research Program at the national level

Defiance Technologies Ltd

© defiance technologies ltd 2011 making india a global automotive center of excellence &...

Documents

india phase

defiance technologies

green car market

india potential

india presence source

leading global oems

global companies

largest threewheeler