aftermarket - september 2012

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INDIA’S FIRST MAGAZINE FOR THE AUTOMOTIVE AFTERMARKET Vol. 2 No. 3 September 2012 52 Pages `50 INTERVIEW Devdutta Chandavarkar, MB Brought to you by News Carnation Auto Monitor Special Report Virtual Wheeling

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Aftermarket is India's first business magazine for the automotive aftermarket . Brought to you by Auto Monitor, it acts as a vital link between manufacturers and dealers and fulfills the communication needs of significant section of automotive professionals and entrepreneurs.

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Page 1: Aftermarket - September 2012

I N D I A ’ S F I R S T M A G A Z I N E F O R T H E A U T O M O T I V E A F T E R M A R K E T

Vol. 2 No. 3 September 2012 52 Pages `50

Brought to you by

INTERVIEW Devdutta Chandavarkar, MB

Brought to you by

NewsCarnation

Auto Monitor

Special Report Virtual Wheeling

Page 2: Aftermarket - September 2012
Page 3: Aftermarket - September 2012
Page 4: Aftermarket - September 2012
Page 5: Aftermarket - September 2012

SEPTEMBER 2012 AFTERMARKET 5

AN industry that was established just around half a decade ago is looking to make a meaningful

contribution to the auto sector. Multi-brand service stations are just beginning to make their

presence felt but it may be a while before they are visible and gain customers’ confidence. So how

does one assess these workshops that are literally on the fringes of the auto industry?

Reaching out to the vast population of car owners by promises of cheaper alternatives compared

to OEM authorised service stations, while also being accessible (through convenient and at times,

prime locations) would have been a challenge for any new player. Moreover, lack of support from

OEMs and increasing complexity in new generation of cars coupled with restricted supply of spare

parts from OEMs can only make things more difficult for multi-brand workshops. These hurdles

have led to much slower growth of the segment compared to what was envisaged a few years ago.

Unlike the car servicing market here, sales and servicing of cars are distinct activities carried out

in separately owned networks in most developed markets. There is a scope for closer monitoring

of repair & replacement and transparency in spare parts consumed at independent service outlets.

Given the market dynamics here, it may be a while before something similar is witnessed in India.

A clear issue for these multi-brand service solution providers is to gain customer confidence.

Achieving that might be a tall order but many things may subsequently fall into place once

customers show more confidence in such independent service outlets, according to a senior member

of general insurance company.

In the latest issue of Aftermarket, we have focussed on major opportunities in the export of

spare parts and what is required to be done to achieve a larger footprint for Indian suppliers in

the global aftermarket.

We welcome your feedback.

Comments can be sent to [email protected]

A Tall order

EDITORIAL

Page 6: Aftermarket - September 2012
Page 7: Aftermarket - September 2012

SEPTEMBER 2012 AFTERMARKET 7

NEWS

IN CONVERSATION

SPECIAL REPORT CUTTING EDGE

COVER STORY

CONTENTS

12 Talbros-Marugo tie-up for rubber based products

13 Interchain acquisition steels India footprint

14 Deeper penetration,vehicle safety on Hella’s cards

15 Minda to Spark in-car infotainment market

26 Mercedes Benz’s Devdutta Chandavarkar speaks on the nuances of setting up a luxury car service network & his outlook for the auto service industry

20 Will virtual wheeling reach its destination?

40 Advanced CV safety technologies to be showcased at IAA

22

26

20 40

22 Are You Being Served? Multi-brand service centres look to take the next step in their evolution. Also on the cards are strategic plans to win customers’ trust with better service packages. Read on…

I N D I A ’ S F I R S T M A G A Z I N E F O R T H E A U T O M O T I V E A F T E R M A R K E T

Vol. 2 No. 3 September 2012 52 Pages `50

Brought to you by

INTERVIEW Devdutta Chandavarkar, MB

Brought to you by

NewsCarnation

Auto Monitor

Special Report Virtual Wheeling

Cover DesignVaruna NaikMahesh Talkar

NEWS 12 13

14 15

Page 8: Aftermarket - September 2012
Page 9: Aftermarket - September 2012

SEPTEMBER 2012 AFTERMARKET 9

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Views and opinions expressed in this magazine are not necessarily those of Network18 Media & Investments Ltd (Network18)*, its publisher and/or editors. We at Network18 do our best to verify the information published but do not take any responsibility for the absolute accuracy of the information. Network18 does not accept the responsibility for any investment or other decision taken by readers on the basis of information provided herein. Network18 does not take responsibility for returning unsolicited material sent without due postal stamps for return postage. No part of this magazine can be reproduced without the prior written permission of the publisher. Network18 reserves the right to use the information published herein in any manner whatsoever.

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Page 10: Aftermarket - September 2012

10 AFTERMARKET SEPTEMBER 2012

NEWS

CARNATION Auto has opted to

take the franchise route to reach out

to customers and recently kicked off its

first used car dealership in Thane, near

Mumbai. Its franchise partner, Car

Galaxy will provide Carnation certified

pre-owned cars.

“We are seeing increasing interest

among car buyers for upgrading to

premium or higher segment cars from

compact cars that they might own.

Moreover, we are looking to encourage

buyers to seek quality alternatives

in the used car segment on a neutral

platform not aligned with OEMs,”

said Chairman & Managing Director,

Carnation Auto, Jagdish Khattar.

Leveraging its existing car service

network, the company is hoping to

provide certified cars that have been

subjected through 160 points quality

check and in-house refurbishment.

Additionally, the certified used cars

would be offered free services, warranty,

hassle-free documentation, and after

sales support.

According to Carnations’ estimates,

the used car industry is expected to

grow at a rate of 18-20 percent per

annum, and the organised segment

is likely to witness faster growth at

around 40 percent.

“We are in a position to create leads

for used cars and even new cars by the

virtue of operating a network of multi-

brand service stations. We are looking

to leverage this advantage and this

franchise is a step in that direction,”

Khattar added. He emphasised that

Carnation is working on a portal or

online platform to connect buyers and

sellers of used cars and it is critical

for such potential to have a physical

infrastructure in place in order to create

customer confidence. The company is

looking to tie-up with finance partners

including banks and finance companies

to offer a one stop solution including

service, sales support and financing

for potential customers at most of its

outlets over a period of time.

Promoted by former Managing

Director of Maruti Suzuki, Jagdish

Khattar, Carnation Auto operates a

chain of multi-brand automobile sales

and service network with a state-of-

the-art infrastructure for car services,

and related solutions like accessories,

insurance, WoW (Workshop on

Wheels) and certified pre-owned cars.

It received its first round of funding

of `108 crore from Premji Invests and

IFCI Ventures, and debt funding from

Punjab National Bank for executing

the nation-wide rollout of its multi-

brand auto solution hubs. It also

recently concluded its second round

of funding of `85 crore from Gaja

Capital. Since its launch in October

2008, Carnation Auto has already set

up around 24 service centres, with a

collective count of 635 service bays

across 16 cities. It also operates 17 pre-

owned cars showrooms, and 50 odd

Workshop-on-Wheels. �

Our Bureau

Carnation takes franchise route

The used car industry is expected to

grow at a rate of 18-20 percent

per annum, and the organised segment

is likely to witness faster growth at

around 40 percent

(L-R)Rajan Pental, VP, HDFC Bank, Sanjay Wasan, CEO, Car Galaxy, Jagdish Khattar, Chairman & MD, Carnation Auto,

Ashok Khanna, Sen VP, HDFC Bank, At The Thane Dealership

Page 11: Aftermarket - September 2012

Bosch Limited, Automotive Aftermarket, P.B. No. 3000, Hosur Road, Adugodi, Bengaluru - 560 030.Ph.: (080) 2299 9228, Fax: (080) 2299 9796 .www.boschindia.com

Sales Offices: Ahmedabad: Ph.: (079) 6614 2201. Bengaluru: Ph.: (080) 2213 2081/ 2222 5101/ 2227 7653/ 2223 7056. Bhubaneswar: Ph.: (0674) 662 8000/ 030. Chandigarh: Ph.: (0172) 458 7228. Chennai: Ph.: (044) 2815 5815/ 3916. Delhi: Ph.: (011) 2334 8264. Ernakulam: Ph.: (0484) 280 5601. Ghaziabad: Ph.: (011) 2334 7803. Guwahati: Ph.: (0361) 213 1647/ 648. Hubli: Ph.: (080) 2223 7056. Indore: Ph.: (0731) 425 5010. Jabalpur: Ph.: (0731) 425 5010. Jaipur: Ph.: (0141) 510 5881. Jodhpur: Ph.: (0141) 510 5881. Kolkata: Ph.: (033) 4015 1400/ 4015 1421. Lucknow: Ph.: (0522) 491 2503. Madurai: Ph.: (044) 2815 5815/ 3916. Mumbai: Ph.: (022) 2493 2071/ 72. Nagpur: Ph.: (0712) 268 1738. Panchkula: Ph.: (0172) 458 7708. Patna: Ph.: (0612) 645 0685. Punjab: Ph.: (0172) 458 7708. Pune: Ph.: (020) 6725 4769. Raipur: Ph.: (0771) 425 5600. Ranchi: Ph.: (0651) 236 1183. Rajkot: Ph.: (0281) 246 1571. Secunderabad: Ph.: (040) 2799 0266/ 0308. Vijayawada: Ph.: (040) 2799 0266/ 0308.

Save lakhs.Year after year.

Money saved is money earned!

Now, add to your profits by saving 5 litres per day! Here’s how… A truck that travels one lakh kms a year, will consume about 73 litres of diesel a day, considering an average mileage of 3.75 kmpl. Regular pump overhauls at Bosch Authorised Workshops will improve the mileage by at least 0.25 kmpl, bringing the diesel consumption down to 68 litres a day. Which is an outright saving of over 6 lakhs* a year! Go ahead, opt for Bosch Authorised Workshops. The advantage is yours!

*Conditions Apply. Estimated savings with regular servicing at Bosch Authorised Workshops are as per various field studies conducted by Bosch. Estimated annual savings for a fleet of 10 trucks each covering, 1,00,000 kms per year.

To know more about Bosch products and services, SMS ‘Bosch’ to 56363.

Page 12: Aftermarket - September 2012

12 AFTERMARKET SEPTEMBER 2012

NEWS

JAPAN-BASED Marugo

Rubber Industries Ltd has

recently signed an equal joint

venture with Talbros Automotive

Components to manufacture

anti-vibration components for

automotive applications.

According to Talbros, the joint venture

company would undertake designing,

development and manufacturing of

rubber to metal bonded anti-vibration

products (suspension bushes, engine

mounts, strut mounts) and hoses for

the automotive sector. As a part of the

JV agreement, rubber business owned

by Talbros Automotive Component is

likely to be transferred to the proposed

joint venture company to be owned

by Marugo Rubber Industries Ltd,

Japan (50 percent + one Share) and the

company (50 percent-one Share).

The company declined to share any

details on the development. “We will

share details of the JV only after we

have plant ready for it,” said a company

official.

Marugo Rubber Industries, based

in Kurashiki, Japan designs and

manufactures rubber products such as

anti-vibration products, bushes and

rubber hoses for several OEMS such

as Suzuki, Mitsubishi, Fuso, Isuzu and

Nissan.

Talbros Group has been actively

scouting for global partners in different

areas within the automotive sector in

recent months. Talbros Automotive

Components (TACL) signed an equal

JV with the global automotive systems

and components supplier, Sistemi

Sospensioni SpA, a subsidiary of Italy's

Magneti Marelli for manufacturing

steering and suspension components.

Another group company, QH Talbros

entered into a technical alliance

agreement with the Japanese ball joint

manufacturer, Musashi Auto Parts.

The Japanese company which also

manufactures camshaft, transmission

and gear components apart from ball

joint will help the Indian partner

in design, development, testing of

prototypes and give the process for

mass manufacturing.

The gasket division of the group had

earlier signed a technical assistance

agreement with Sanwa Packaging

Industry Company, Japan, for

obtaining technical know-how for

the manufacturing of heat shields for

automotives and related applications.

The group has recently set up a plant

in Chennai for manufacturing steering

and suspension to cater to the needs of

Daimler’s new project, Bharat Benz to

which, it claims to be the single source

supplier for all chassis parts. �

tie up for rubber based products

Talbros-Marugo

Our Bureau

As a part of the JV agreement, rubber

business owned by Talbros Automotive Components is likely

to be transferred to the proposed joint

venture company to be owned by Marugo Rubber

Industries

Page 13: Aftermarket - September 2012

SEPTEMBER 2012 AFTERMARKET 13

NEWS

HARMAN has acquired Bangalore-

based Interchain Solution to augment

the company’s automotive infotainment

and telematics offerings. Interchain’s

products such as GWVectra and

GWTrack will complement Harman’s

portfolio and also expand the

company’s reach to include commercial

vehicle makers.

Interchain Solution offers telematics,

fleet management, android-based in-

vehicle infotainment and location-based

solutions. Telematics is a technology

that uses IT and communications

in an integrated manner in cars and

other vehicles. According to Harman

officials, the acquisition will expand

its design and engineering footprint

in India and augment Harman’s

telematics offerings in the aftermarket

and OEM segment. Interchain has an

array of hardware platforms that are

deployed for fleet tracking, connectivity,

telematics applications and an Android-

based infotainment solution for auto

manufacturers. The acquisition also

complements Harman’s existing portfolio

and gives it access to Interchain’s

customers that include TeleAtlas,

ALJACS Toyota, Mahindra & Mahindra

and government institutions such as

police and transport departments of

various cities across India.

MD, Harman India, Anand

Ramamoorthy said, “The combination of

Interchain and Harman will provide our

customers in both established and emerging

markets a compelling proposition. In

addition to enhancing our competitiveness,

speed to innovate and spread of offerings

in the space, it will allow us to offer our

clients integrated and competitive products

and solutions.”

In addition to planned integration

with Harman, Interchain will continue

working with its existing customers in

deploying and maintaining its custom

solutions. Interchain employs some of

the brightest engineers for end-to-end

product design and development at its

R&D centre in Bangalore. �

steels India footprintInterchain acquisition

Our Bureau

In addition to enhancing Harman’s competitiveness,

speed to innovate and offerings, the tie up with Interchain will allow it to

offer competitive products & solutions

Page 14: Aftermarket - September 2012

14 AFTERMARKET SEPTEMBER 2012

NEWS

PRODUCTS like BCMs (Body

Control Modules) with remote key

and CAPE (Car Access Passive Entry)

systems may well be the road to growth

for Hella India Automotive Private

Limited (HIAPL) or erstwhile Hella

India Electronics (HIE). The company

sees a high potential for the range of

products that can be tailored to this cost

sensitive vehicle segment.

The company has tuned a number

of products catering to the emerging

requirements of OEMs. Its portfolio

includes products like battery sensors

and voltage stabilisers to implement

idle-stop functionality and fuel control

modules to reduce the average power

consumption of the fuel pump. The

manufacturer of components and

systems for lighting technology and

electronics sees a rise in demand for fuel

efficient vehicles in the Indian market.

Currently, the industry demand is

driven by the increasing fuel prices,

the cost of ownership, government

regulations on environmental

target and emission control norms,

and competition with respect to

global OEMs.

With all the major global vehicle

manufacturers making their foray

into the Indian markets, the ready

availability of advanced features has

fuelled the demand for electronics

content in the vehicles here. In order to

cater to the rising demands of the ‘more

aware end customers’ for safety, comfort

and to ‘stay connected’, the pressure

to enhance the electronic component

usage on OEMs has significantly gone

up. In fact, high electronics content is

now one of the main differentiating

factors contributing to the success of

the respective vehicles.

The key features that are sought after

are fuel efficiency, comfort and safety.

At the Auto Expo 2012 held early

this year, a shift in trend was observed

viz-a-viz the previous Auto Expos.

The driving and differentiating factors

were high electronics-based passenger

comfort and safety enhancing features.

Another trend leading to enhanced

electronic component usage is driven by

the government regulations.

“In the area of fuel efficiency, we don’t

see a big difference, rather a greater

need for cost sensitive vehicles as these

products help to reduce the cost of

ownership. The challenge will be to make

comfort features cost competitive for B

and even A segment cars. We will see B

segment cars in the future with BCMs,

RKE (Remote Keyless Entry), CAPE

(Car Access Passive Entry) systems,”

said MD, HIAPL, Naveen Gautam.

Products contributing to fuel

efficiency include FCM (Fuel Control

Module), EVP (Electronic Vacuum

Pump), IBS (Intelligent Battery

Sensors) and DC/DC Converters &

Stabilisers. In addition to this, the

company sees an increase in Drive by

Wire, where HIAPL is offering APS

as well as torque and angle sensor for

power steering. In terms of growth,

Hella is targeting a growth of 25 percent

between 2010 to 2015.

“In these areas, we are working on a

variety of products in the market like

EVP, FCM, battery sensors, DC/DC

converters and stabilisers, oil sensors,

Position Sensors (CIPOS) such as

steering or throttle position sensors and

APSs (Accelerator Pedal Sensor), where

we are one of the leaders in the global

market,” added Gautam. �

vehicle safety on Hella’s cardsDeeper penetration,

Nabeel A Khan

Page 15: Aftermarket - September 2012

SEPTEMBER 2012 AFTERMARKET 15

NEWS

SPARK Minda sees a huge growth in

terms of upgradation from the basic

audio systems to ones with touchscreen,

mobile connectivity, navigation & TPMS

and is looking to strengthen its footprint

the in-car infotainment segment.

The component manufacturer’s JV

partners are already providing telematics

solutions to companies in Europe for

commercial vehicles and the company

is looking to provide solutions to Indian

OEMs and the aftermarket with the help

of JV partner. It is continuing to explore

merger and acquisition opportunities in

telematics and navigation systems.

“We plan to become a major player in

this segment. We see the growth both in

OEM and aftermarket on same platform.

Although the current market scenario is

a little bleak, but the silver lining, even in

current scenario, is that sales of high-end

audio systems are increasing rapidly,”

said Group Chief Executive Officer,

Spark Minda Group, Ashok Minda

to Aftermarket.

Telematics and in-car navigation—

defined as the exchange of information

between a satellite, fixed on a mobile

asset through a wireless communication

device with the external world—is a

tool that helps in enhancing driver

experience. The company is also eyeing

a breakthrough in technology to provide

a low cost solution by integrating the

fixed navigation to instrument cluster

or central information display. This can

extend the market to mid-size and entry

level cars and reverse the scenario as more

than 50 percent of the navigation system

can be integrated unit. Presently, nearly

90 percent of the navigation systems are

smart phones or portable devices, which

are sold as aftermarket products. The

electronic content in a car used be about

10 percent of the cost in 80s. The present

car has about 35 percent of electronics

and is expected to be 50 percent in next

10 to 15 years.

The global trend with regard to in-

car entertainment category is towards

integration of devices and functionalities.

After integrating various products like

navigation, video, Bluetooth technology

in one product that is wi-fi enabled. It

is expected that in-car entertainment

systems, which will work on in build wi-

fi systems and transfer of music not only

from within the car but from home or

other cars.

“The Indian market is catching up

very fast with the changes, while new

technologies are getting adopted both at

OEM and aftermarket levels. New car

models have been launched with integrated

double-din touchscreen systems, which

has in-built navigation, Bluetooth, parking

assistance etc. Even A & B segment cars

are now coming with company fitted

systems. The consumer is also getting tech

savvy and is ready to adopt / spend on the

new technology,” Minda added. �

in-car infotainment market

with JVs, new tech

Minda to SparkNabeel A Khan

The consumer is getting tech savvy and

is ready to adopt / spend on the new technology—

Ashok Minda, CEO

Ashok Minda, Group Chief Executive Officer, Spark Minda Group

Page 16: Aftermarket - September 2012

16 AFTERMARKET SEPTEMBER 2012

NEWS

HINDUSTAN Motors Ltd (HML)

launched its Mitsubishi dealership in

Amritsar recently, thus bringing the

number of dealerships in the country

to 39 of which, 12 are located in

north India.

HML is already successfully

running four Mitsubishi dealerships

in Punjab. Those are located in

Chandigarh, Ludhiana, Jalandhar

and Mohali and its recent addition,

the new dealership is called M/s

Kapoor Motors.

Speaking on the occasion, Managing

Director, HM, Uttam Bose said, “Punjab

has always nurtured a special fondness

for the macho Mitsubishi sports utility

vehicles. Our vehicles and the people of

Punjab share the rare mix of strength

and go-getter ability. The renowned

automobiles appeal to the spirit of those

who want to explore racing across the

most difficult and challenging terrains.

At the same time, our SUVs serve as

most comfortable and luxurious modes

of travel on city roads.”

The dealership has 3S facility and is

owned by Revant Kapoor, who has an

MBA and comes from a family that is

already involved in automotive business.

The dealership is located in the heart

of Amritsar on GT Road, NH 1. The

showroom is spread over an area of

6,000 square feet with a service area

across 16,650 square feet with 14 bays

and a capacity of servicing 25 vehicles a

day. It also has 800-square feet space for

spare parts.

M/s Kapoor Motors employs 26

personnel—eight in sales department and

18 in service department. All of them are

trained up to L1 and L2 standards. �

launches dealership in

Amritsar

Mitsubishi

Our Bureau

The Mitsubishi SUVs appeal to those who want

to explore racing across challenging terrains. At the

same time, our SUVs serve as luxurious modes of travel on city roads—Uttam Bose

(Left & Right) Uttam Bose Speaks At The Dealership Launch

Page 17: Aftermarket - September 2012

SEPTEMBER 2012 AFTERMARKET 17

NEWS

HMIL has extended strategic

agreement with Shell Lubricants,

as its preferred lubricants supplier

for next three years. In India, Shell

Lubricants has been the preferred

lubricant partner for HMIL since

2008. The association between Shell

Lubricants and Hyundai Motor India

Limited (HMIL) has been forged

since 2004. With more than three

years of successful association, the

extension of their strategic alliance

till 2015 is a positive for the two

automotive brands.

Commenting upon

the association, Country

Head-Lubricants, Shell

India Markets Pvt

Limited, Nitin Prasad

said, “We believe that

the combined strength

of the two global

brands will continue

to benefit all Hyundai customers in

India. Our people, technical superiority

and customer collaboration helps

Shell to develop practical solutions

to address the toughest automotive

challenges faced by our partners and our

shared customers.”

Shell Lubricants has been striving

to provide world class services

and satisfaction to all its partners

and consumers and with this new

development, the association and

level of service only gets stronger.

Innovation, world-class technology and

technical partnerships are at the heart of

Shell Lubricants. �

Our Bureau

Hyundai oils Shell alliance for three years

Page 18: Aftermarket - September 2012

18 AFTERMARKET SEPTEMBER 2012

NEWS

NATIONAL Engineering Industries

(NEI) is setting up a new bearings

manufacturing facility in Gujarat with

a capacity of around twenty million

units per annum. The CK Birla Group

company will invest around `500 crore

in this highly automated facility in the

next five years for catering to OEM and

the aftermarket requirements.

NEI, which manufactures and

sells bearings under the brand ‘NBC

Bearings’, is making this investment as

part of its `700 crore investment plan to

be implemented over the next five years

that it had chalked out earlier this year.

“We are planning to set up a new

plant in Gujarat, the land for which will

be finalised shortly. We expect that the

production from this plant should start

in the third quarter of the next financial

year,” said President & Chief Executive

Officer, NEI, Rohit Saboo.

The decision to move to the western

state of Gujarat comes as many of the

customers including Hero MotoCorp,

Tata Motors and Maruti Suzuki have

either already built their units or are in the

process of setting up of their respective

plants.

NEI hopes to increase the efficiency

at the new plant at least by 15 percent

because of the improvement in the process

technology, new machine and high level of

automation. The component maker is also

looking at reducing the quantity of nickel to

offset the increasing cost of raw materials.

“The quality of material is extremely

important in bearings. We are currently

testing alternate materials ,which may

be cheaper in the long run. These tests

will take at least one and a half years to

complete and only then we will be able to

decide on alternate material,” Saboo added

Long Term PlansThe company does think that the

current blip will impact growth in

the short run but in the long run, the

Indian growth story is likely to remain

intact. The company continues with

its previously announced investment

plans to be implemented in the next

five years. The company is looking to

invest around `500 in the Gujarat plant

while the balance `200 crore will be

invested in the existing three plants. It

remains bullish and hopes that by 2016,

it will be able to double its revenue to

`2,000 crore.

The company is also looking at

multiple suppliers of steel to avoid

monopolistic pressure. Currently, it has

two suppliers but hopes that in the near

future it will develop more suppliers.

Ironically, NEI has increased its exports

to Europe even though the European

economy is suffering. This is because

the component manufacturer’s presence

in Europe was relatively small. Now it

is adding new customers in Europe and

approximately 10 percent of the total

exports is going to Europe. NEI claims

to have maintained profit margins

comparable to the industry and going

forward, it is looking at value additions

within its product ranges itself and not

planning any diversification.

The component maker has also

increased its spending on R&D from

less than 0.5 percent of its turnover in

earlier years, to more than 1.25 percent

in the current turnover. �

to be operational by 2013NEI’s bearings plant

Nabeel A Khan

NEI is making this investment as part of its

`700 crore investment plan to be implemented over the next five years that it had chalked out

earlier this year

Page 19: Aftermarket - September 2012
Page 20: Aftermarket - September 2012

20 AFTERMARKET SEPTEMBER 2012

SPECIAL REPORT

WITH shrinking resources, civilization

is seeking refuge in new technologies

and innovations, which at times provide

solutions and at times, they fail. In

the context of automobile retail, the

biggest constraint, in the current times

is unavailability of space, skyrocketing

real estate prices and declining

profit margins.

The industry has been exploring a

couple of new methods and techniques

to undo the pressure that is impeding

growth. On several platforms, dealers

have unanimously recommended

vertical expansion for the maximum

utilisation of space. The success of the

internet has also triggered a burning

debate but could not do much to

palliate the requirements of actual

dealership.

“By way of the internet, people only see

information, and make comparisons but

when it comes to buying, the customers

rely on the real experience—like test

driving and touch-and-feel experience,”

President, Federation of Automobile

Dealers Associations (FADA), Nikunj

Sanghi told Aftermarket.

The Virtual ShowroomHowever, with the advent of newer

technologies like 3D and high quality

imaging, somewhat life-like experience

is being offered. Recently, Mahindra &

Mahindra introduced XUV 500 Virtual

Experience Centre in New Delhi. The

outlet is a showroom without any vehicles

on display—not a temporary setup, but

a company outlet. Visitors can see the

vehicle on the screen in its actual size,

in a life-like environment.

“You can see how the car would

look in the morning, afternoon, or at

a parking bay. You can also select the

colour and features; you can open the

door and peep inside. The software

provides comprehensive experience

and some of them are even better than

the actual dealerships,” said Managing

Director-Dassault Systèmes India, Dr

Chandan Chowdhury.

Changing Consumer PreferencesRecently, the Paris-based Dassault

Systems, a world leader in 3D design,

3D digital mockups and Product

Lifecycle Management (PLM)

solutions, which provided the software

support to the Mahindra & Mahindra

virtual dealership in New Delhi, puts

weightage on the immense potential for

the virtual dealership concept in India.

Will virtual wheeling reach its

asks Nabeel A Khan

destination?

You can see how the car would look in the morning, afternoon,

or at a parking bay. You can also select

the colour and features; you can open the

door and peep inside. The software provides

comprehensive experience and some

of them are even better than the actual

dealerships—Dr Chandan Chowdhury, Managing

Director-Dassault Systèmes India

Page 21: Aftermarket - September 2012

SEPTEMBER 2012 AFTERMARKET 21

SPECIAL REPORT

“We have seen that there has been

dramatic increase in the cost of real

estate in India and it will propel huge

demand for virtual dealerships in the

country. We hope that by the end of

this year we will have more than 150

virtual dealerships in the country.”

CEO, Enovia, Dassault Systemes, Andy

Kalambi said.

A recent survey conducted by

Capgemini revealed increased interest

in buying cars online, and a growing

demand for new vehicles in mature

markets (66 percent, up from 61 percent

in 2010).

The study surveyed over 8,000

consumers in Brazil, China, France,

Germany, India, Russia, the UK and

the US provides a detailed analysis

of CV buying behaviour around the

world including shopping patterns,

social media usage, online buying,

green vehicles, customer interaction,

aftersales and servicing. Key findings

from this year’s study include the role

of the internet and social media—

putting consumers in the driving seat.

Consumer internet behaviour, as well

as the rise of tablets and smartphones

are increasingly impacting the vehicle

decision and buying processes, with

price, guidance and product information

continuing to be the primary features

consumers’ research via the internet.

Future Potential“There is a potential for such outlets

(virtual dealership) but it cannot match

with the actual dealerships as people

would like to have touch and feel

experience and real test drive,” Sr Vice

President, Sales & Marketing, Honda

Siel Cars India (HSCI), Jnaneswar Sen

said. He further added that the concept

is worth exploring for HSCI.

Executive Director, Maruti Suzuki

India Limited, Shashank Srivastava, said

that the virtual dealership with the help

of digital technology can only support

the actual dealership. The customers

can get information on features, colours

and other basics using virtual and

digital showrooms, which will reduce

the pressure on the sales person at the

actual dealership.

“Cars are probably the second biggest

purchase of people, so they would like

to have the first hand touch-and-feel

experience. They would like to test the

vehicle many times before buying so the

actual dealership remains irreplaceable”

Shrivastava signed off. �

We have seen that there has been dramatic increase

in the cost of real estate in India

and it will propel huge demand for

virtual dealerships in the country. We hope

that by the end of this year we will have more than

150 virtual dealerships in the country— Andy Kalambi, CEO, Enovia,

Dassault Systemes

Page 22: Aftermarket - September 2012

22

COVER STORY

AFTERMARKET SEPTEMBER 201222

Even as multi-brand service centres look to take the next step in their evolution, concerns and issues abound on the business models. Also on the cards are multi-pronged strategic plans to win

customers’ trust with better service packages and enhanced penetration. Read on…

COVER STORY

Page 23: Aftermarket - September 2012

SEPTEMBER 2012 AFTERMARKET 23

COVER STORY

MULTI-BRAND automotive servicing

has been a relatively newer phenomenon

in the auto sector. Their acceptance by

customers could at best be termed mixed

and at worst be termed as wanting.

Some of the players who entered the

business with the desire to break the

stranglehold of OEM-authorised service

stations and offer a viable proposition

to customers, are still in the process of

evolving their business models in order

to remain viable. The business has turned

out to be tougher than expected but

players are continuing to pin their hopes

on customers to give them a chance

to serve.

Industry players point out that multi-

brand servicing is still at a very nascent

stage in India with around a percentage

of total share or value of the car servicing

business handled in the organised sector

service centres as compared to around

25 to 30 percent share in developed

countries.

“Most customers are looking for a

dependable and affordable place to

service their vehicles (mainly cars) as

opposed to choosing between extreme

alternatives—high cost manufacturer

authorised service stations versus

unorganised local garages,” stated

Chief Executive Officer, Mahindra

FirstChoice Services, YVS Vijay Kumar.

One of the first players in the multi-

brand car service segment, Mahindra

FirstChoice had its share of trial &

errors and currently has around 12

centres including nine company-owned

outlets. It is gearing up to be able to

service around 60,000 to 70,000 cars

per annum. The operating philosophy

is faster turnaround while offering

consistent service quality to attract

and retain customers. It is aiming to

grow the network to have around 50

to 60 franchisees and equal number of

company-owned outlets over the next

two years or so.

“We are looking to have an equal share

of company owned and franchisee run

service stations in the medium to long

term. We aim to establish our presence

and brand identity with retail customers

and it has taken us some time to arrive

at an optimal sized service station format

that could possibly be replicated across

the country,” he added. He elaborated

that a multi-brand player in the car

servicing business could require anywhere

between 15,000 to 25,000 sq ft space with

around 15-22 service bays to veer towards

breakeven point and turn profitable.

He pointed out that it has been a

challenge for his company and for the

sector as a whole, to establish itself

given the fact that offering services

at a lower cost, at times from prime

locations in big cities, while maintaining

23

Abhishek Parekh & Nabeel A Khan

YVS Vijay Kumar, CEO, Mahindra FirstChoice Services

Page 24: Aftermarket - September 2012

24 AFTERMARKET SEPTEMBER 2012

COVER STORY

consistently high service standards is a

tricky proposition.

Even though the industry is around

half a decade in its existence, most

players point out that it is still a struggle

to win customers’ trust and confidence.

Another major challenge is acquiring

and maintaining technical competency

despite a growing number of models and

variants and limited or complete lack of

support from OEMs.

In fact, OEM apathy is also

manifested with continuing restrictions

on availability of spare parts in the

open market. Despite significant

improvements over the last few years,

availability of spares for cars costing

more than `five lakh continues to be

restricted by some of the OEMs.

“Availability of spare parts in the

open market, especially for premium

cars is still a concern but the situation

is only likely to positively improve

towards wider availability and better

transparency as OEMs are expected to

COVER STORY

Today, there are an estimated 20 million cars

on the streets and we are adding more

everyday. Only one third of these cars

go to the authorised service stations.

Post warranty car owners look for alternatives.

That’s the opportunity we are looking to address—

Venu Donepudi, Co-Founder & Managing

Director, CarZ

Venu Donepudi & Vijay Gummadi, CarZ

Page 25: Aftermarket - September 2012

SEPTEMBER 2012 AFTERMARKET 25

COVER STORY

be concerned about the servicing costs

for the customers,” said Kumar.

“Today, there are an estimated 20

million cars on the streets and we are

adding more everyday. Only one-third

of these cars go to authorised service

stations. Post warranty car owners look

for alternatives. That’s the opportunity

we are looking to address,” Co-Founder

& Managing Director, CarZ, Venu

Donepudi told Aftermarket.

Going by the above statistics, about

1.2 crore to 1.4 crore cars go outside

the dealership network every year for

aftersales services. The average spending

on repair & maintenance on a car is

around ̀ 10,000 in a year. Hence the total

size of the aftermarket segment in India

is close to `14,000 crore.

CarZ hopes to reap a turnover of `20

crore this year thereby notching up a

growth of around 400 percent compared

to the pervious year and is looking to

maintain this pace till 2018. It services

around 16 cars on a given day, much

below its capacity of around 42 cars.

It currently operates 16 outlets spread

across Karnataka, Andhra Pradesh,

Kerala and Tamil Nadu. The company

plans to add at least 30 outlets by next

year, which will include entering new

states like Gujarat and Maharashtra.

CarZ was conceived by founder duo—

Venu Donepudi and Vijay Gummadi

in 2006 when they were working for

GM in the US. After extensive research

on the Indian automobile market, the

partners found that that there was a huge

untapped opportunity that lay for them

to explore and hence they returned to

India in 2008.

The OEM dealerships have their

hands full, as sales volume of the cars

have been constantly growing every

year. With India poised to be one of the

largest customer base for auto majors,

there has been a huge influx of cars,

both high-end and mid-segment models

on the India roads, that merit expert

handling. The company’s first service

outlet was operational by February 2010

in Hyderabad with an investment of

around `1.5 crore and the breakeven was

achieved by April, 2010.

CarZ is now looking to set up a

nationwide presence in a plan that

envisages having around 300 service

outlets by 2018, for which, it has

received a venture capital funding of

$five million last year. It is looking to go

the franchise route, wherein 70 percent

of the outlets will be franchise outlets

and the remaining would be company

owned ones.

Multi-brand service stations have

already evolved to offer a range of repair

services for all makes and models of cars

like routine and preventive maintenance,

electrical and mechanical repair, accident

repair—denting and painting, tyres and

services, battery, variety of styling and

performance accessories, interiors and

exterior detailing.

“It is critical for a new player to

establish brand equity in a segment that

one may have chosen to enter and be

seen by customers as a long term player.

Building trust is the key,” said Managing

Director, Carnation Auto, Jagdish

Khattar. He added that there is adequate

space for many more players to thrive in

this business and the segment is likely

to witness increased participation from

overseas organised players in servicing

and parts distribution business in the

coming months.

For newer players like CarZ, the biggest

challenge continues to be the availability

of real estate. It has been working on

an asset light model by opting to have

a long term lease rather than outright

purchase of land. The second challenge is

finding skilled manpower and it is trying

to address this issue by opening only one

workshop in, say a new Tier II city, and

having a maximum strength is 25 people

including 20 or so technical and five

administrative staff.

One of the positive aspects of the slower

spread of multi-brand service stations are

acceptability by insurance companies.

Donepudi said that the third party

service centre like his is a “sweetheart”

for the insurance companies.

“They just love us because we are about

30 to 40 percent lower in terms of pricing

than the authorised service stations of

OEMs,” he explained. But lower cost

does not automatically translate into

higher business as most multi-brand

service providers are realising to their

disappointment. Customers need to opt

for a multi-brand service station over a

company authorised service shop for

accidental repairs or other such jobs.

“Insurance companies are gradually

realising the potential of multi-brand

service stations and the benefits they

can bestow on the customers in terms of

lower cost of repairs and maintenance.

But it would be unrealistic to expect an

overnight change of attitudes on part of

customers. They need to have sufficient

confidence to come to us for claiming

insurance reimbursement for their

vehicles. We need to collectively address

this challenge,” said Vijay Kumar of

Mahindra FirstChoice.

Though potential for multi-brand auto

service is immense, it may be a while

before players are able to find a foothold

and settle in the ‘promised’ land. �

Jagdish Khattar, MD, Carnation Auto

Page 26: Aftermarket - September 2012

26

IN CONVERSATION

AFTERMARKET SEPTEMBER 2012

“Our job is to help our customers experience the

difference of being a

Mercedes owner”Mercedes-Benz India has already been present in the country for around two decades. It has established a wide and reliable service network across major towns and cities. Director, After Sales, Retail Training, Homologation, Member of the Board,

Mercedes-Benz India Pvt Ltd, Devdutta Chandavarkar speaks to Aftermarket on the nuances of setting up a luxury car service

network and his outlook for the automotive service industry.

Page 27: Aftermarket - September 2012

27

IN CONVERSATION

SEPTEMBER 2012 AFTERMARKET

How do you rate the aftersales

infrastructure for luxury cars?

The growing market has made it

imperative for car manufacturers (and

especially luxury car makers) to focus

attention on aftersales services. In fact,

the importance that Mercedes attaches

to aftersales services can be gauged

from the fact that the head of aftersales

services is part of the management

boards, globally and in India.

Aftersales service is an independent

vertical for Daimler globally and we

attach importance to aftersales service

in the manner very few automobile

manufacturers would do and this has

been a major factor in helping us achieve

a 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 aftersales arena in

India over the years?

One of the major changes is

that we have been able to train and

develop experienced technicians

or professionals for delivering our

aftersales services. When we started

in India in a major way around 1996,

technicians for repairing luxury cars

were just not available. We had major

issues with finding trained technicians

for many tasks at our service centres.

Even a decade ago, many of our service

centres were manned by expatriates to

deliver a consistent service experience

to customers. With strategies 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

network and Indian technicians

are amongst top five in more than

52 markets for Mercedes globally

in terms of technical competency,

service delivery and other aspects of

aftersales services.

What has this competence level

meant for you?

For any luxury car manufacturer,

it is important that a customer gets

consistent services at various locations

within a market. Also the vehicle

needs to be in the best of the condition

for most of its productive life with the

owner. Hence the major part of our job

as a luxury car manufacturer is to ensure

top-of-the-line aftersales services to

help our customers experience the

difference of being a Mercedes owner.

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 aftersales 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 partnership in

order to source qualif ied people. We

offer programmes like ‘Advanced

Diploma in Automotive Mechatronics’

(ADAM) at institutes 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 years, we are

expecting entrepreneurs to be created

through such a system and aid in

the growth and development of the

automotive service business in India.

What is your view on the growth

of multi-brand service stations in

India?

Multi-brand service networks

are majorly entrenched in developed

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, and

deliver the expected level of service

satisfaction to any customer. One can

have the latest garage equipments and

technology at the service stations but

without adequately trained people, it

is like having a body without a soul.

Moreover, we have been witnessing

multiple generations of a car model,

especially in the premium segment,

being brought to a service station

every other day. The models are

significantly different in terms of

features and controls and require

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 various locations.

We typically enter a new location with

a small workshop and then gradually

expand our presence with bigger service

and sales outlets depending on the

potential of the location. A small service

station is capable of handling four to five

cars a day while a medium or large sized

workshops -that 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. �

Abhishek Parekh

Page 28: Aftermarket - September 2012

28 AFTERMARKET SEPTEMBER 2012

SPECIAL REPORT

INDIAN component manufacturers

can avail over $10 billion opportunity in

the US aftermarket provided they match

China’s current share amongst Low Cost

Country (LCC) imports, according to a

recent study conducted by AT Kearney.

Currently, China accounts for 3.6

percent share of total imports by US

while those from India stand at a mere

0.2 percent. On India’s presence in the

US aftermarket and its entry in the US,

Senior Manager, Automotive Practice,

AT Kearney, Kaustav Sen said, “India

is nearly non-existent in the current

US aftermarket. A partnership with

speciality retailer or programme groups

can give component manufacturers a

potential entry in the US aftermarket.”

Any dilemma if ever existed on the

quality of Indian parts or components,

President, ACMA, Arvind Kapur

cleared when he said, “Today, 80 percent

of the components and parts production

goes to OEMs and Tier Is. It reflects the

quality of parts OEs are producing. They

are used to the system and therefore can

take advantage of global aftermarket.”

Supporting AT Kearney’s study, a

prospective study from Frost & Sullivan

throws light on decreasing OE and

aftermarket parts sourced from suppliers

in the US in the last 10 years. On the

contrary, countries like Japan, China,

Germany, Korea, Mexico and Canada

have become main exporters of auto parts.

In order to capitalise on the US

aftermarket, Indian suppliers need to

focus on some key areas. Expanding

aftermarket portfolio is the first step to

be taken wherein the Indian suppliers

need to focus on becoming system

suppliers rather than components or

parts suppliers. Another approach can

be to diversify as per the demands in the

respective market. Frost & Sullivan sees

a growing demand for tyres, body parts,

brake parts and batteries in the North

American market.

Maintaining a diverse parts portfolio

however comes with its own share

of problems like higher inventory

levels and distribution costs, inventory

obsolescence owing to rapid pace of

innovation and makes the supply chain

stiff due to longer order response times.

However, AT Kearney suggests counter

measures like rationalising low value or

low volume parts and outsourcing them

completely from third parties in order to

deal with the situation.

On the contribution of SMEs towards

growth of larger industries, Joint

Secretary, Ministry of Micro, Small and

Medium Enterprises, Government of

India, CK Mishra said, “SMEs can help

and stand and try to see how to push

aftermarket globally. Contribution of

SMEs to large industry units is vital”.

Secondly, Indian suppliers need to focus

on OE supplies and aftermarket supplies

Ten billion dollar opportunity for

Indian aftermarket

India is nearly non-existent in the current

US aftermarket. A partnership with

speciality retailer or programme groups can give component

manufacturers a potential entry in the US

aftermarket—Kaustav Sen, Senior Manager,

Automotive Practice, AT Kearney

Jagdev Kalsi

Page 29: Aftermarket - September 2012

SEPTEMBER 2012 AFTERMARKET 29

SPECIAL REPORT

equally rather than being OE-centric. As

per AT Kearney’s findings, integrated retail

channel and programme group distribution

channel have relative ease of penetration,

average margins and uncomplicated

channels. However, penetrating OE

replacement channel remains the toughest.

Thereby, a shift of focus is necessary for

component and part manufacturers.

Thirdly, bigger SME pools need to be

created in order to flex manufacturing

setup that will further support the

above findings. For conventional OEM

orders, suppliers can optimise resource

utilisation while lead time can be reduced

for aftermarket orders.

Another territory that can prove

advantageous for component

manufacturers is introduction of their

private labels in the US aftermarket and

supplying them to programme groups or

large retailers which thereby benefit from

increased reach and scale.

Additionally, the US aftermarket also

remains a risk-free option considering its

steady growth (two-three percent CAGR)

instead of the undulating OE market that

is more prone to ups and downs. Year

2012 has also seen the average age of car

fleet reach an unprecedented level of 10.8

years. Between 2007-10, aftermarket in

North America continued to grow despite

the economic recession, as per Frost &

Sullivan study. It is also expected that the

US aftermarket to grow with a CAGR of

2.1 percent for the next seven years. �

Page 30: Aftermarket - September 2012

30 AFTERMARKET SEPTEMBER 2012

INSIGHT & OUTLOOK

30

Capturing the automotive aftermarket

windsThe customer perspective: Increasing choices

INSIGHT & OUTLOOK

SINCE June 19, 2011, the automobile

industry in Europe has been subject to

EU Regulation 566/2011, according to

which, manufacturers are obligated to

release electronic data enabling the exact

identification of replacement parts for

vehicles. This will further strengthen the

position of independent service providers

in the aftermarket sector, a sector that

includes automotive services, parts,

and the maintenance business. In the

future, independent operators will thus

have the same access to electronic repair

and diagnostic information enjoyed by

authorised repair shops.

With this, the EU Commission is

systematically following the path it has

pursued since the turn of the century

with a variety of regulatory amendments

(eg 1400/2002; 715/2007; 692/2008;

595/2009; 461/2010; 64/2012). The

goal is to create a competitive landscape

in Europe in which independent repair

shops and authorised repair shops

compete to serve different customer

needs and segments. The idea is to

strengthen the customer’s position and

to encourage intense competition on all

Michael Book, Eric Ellul Cornelia Ernst, Benjamin Frowein, Ewald Kreid, Rafael Rilo, Georg Sticher & Hadi Zablit

Page 31: Aftermarket - September 2012

SEPTEMBER 2012 AFTERMARKET 31

INSIGHT & OUTLOOK

levels of the repair and parts value chain.

So far, the Commission seems to have

been successful in realising this goal:

Independent service providers have in

recent years further expanded their parts

and service businesses at the expense

of OEM; traditional authorised repair

shops are experiencing (price) pressure

from large independent service providers;

and in the meantime, non-traditional

players have also entered the market:

Insurers, fleet operators, and leasing

firms have long since begun to strike

exclusive agreements with independent

repair shops, effectively lowering their

costs and channelling customers to

contractually agreed independent

service providers.

Brisk competition and price pressure

have been advantageous for European

customers. The European aftermarket

has thus been transformed, in terms

not only of prices, but also of customer

satisfaction—just as the EU Commission

wanted. In summer 2011, the European

Automobile Manufacturers Association

(ACEA) contracted BCG to perform

a detailed analysis of the aftermarket in

Europe with the view to establishing the

facts around the state of competition

in the sector and overall customer

satisfaction in this area. BCG has

investigated the current market dynamics

and identified trends that will shape the

coming decade. Our analysis was based

on three central questions currently

being asked by both market players and

the EU Commission: How do customers

benefit from the changes? How intense is

competition now? And in what direction

will the market develop?

Building on our industry expertise

we conducted extensive interviews with

automotive industry experts from across

the aftermarket business spectrum. A

statistically relevant survey of over 1,500

customers in five European countries—

Germany, France, Spain, Great Britain,

and Poland—provided the customer

perspective. Analysing the results, we

developed forecasts about the trends

that will characterise the market. Based

on these results, we were able to identify

opportunities and challenges facing the

various market players.

Within the highly fragmented overall

market for automotive services, two

channels can be differentiated: The first,

the “authorised” channel, is comprised

of vehicle manufacturers (VMs), their

country organisations, dealer networks,

and repair shops, both single- and multi-

brand. The second, “independent” channel

is comprised independent service providers

(or independent operators). The central

players in wholesale are independent

distributors and purchasing networks

comprising numerous players that join

forces to bundle volume and realise better

prices. Finally, the independent channel

also includes companies that collect,

process, and sell data.

On the retail level, independent service

providers can be broken down into three

types of repair shops: (1) franchises that

offer a full range of services and are

part of a dealer network or franchise

system; (2) automotive centres and “fast

fitters,” ie repair shops with standardised

and often limited service offers that

frequently include parts retail; and

finally, (3) small, “corner” repair shops

that offer the full range of services and

function completely independently.

High Quality, Lower CostsEuropean drivers are profiting from

increased market transparency and lower

service costs. The cost of auto repairs and

parts has declined steadily in Germany

in recent years: From 2003 to 2010,

maintenance costs per year and vehicle

sank by an average of 21 percent. This

significant reduction is less the result of

intensified competition among service

providers than of better-quality parts

and thus longer maintenance intervals.

At the same time, the cost of parts has

risen only slightly.

In addition to cost advantages,

the structural developments in the

aftermarket have made for a highly

transparent market. For each repair

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32 AFTERMARKET SEPTEMBER 2012

INSIGHT & OUTLOOK

or service event, customers can choose

the offer that best fits their individual

requirements and personal criteria. This

level of market transparency and the

steady decline of costs have resulted in

high customer satisfaction. Nearly all of

the surveyed customers indicated that

they are highly satisfied or satisfied with

the performance of their repair shops,

including initial price quote, final price

paid, time to get an appointment, value

for money, time needed for repairs,

different part options, technical quality,

and adherence to schedule.

The survey showed which criteria are

most important for customers to select

a repair shop: At the top of the list

are value for money and parts quality.

Customers feel that they get the best

value for their money from automotive

centres, fast fitters, and independent

repair shops, but when it comes to

parts quality, customers prefer franchise

repair shops and traditional authorised

repair shops.

Wide Recognition Of Branded ChainsCustomers are well aware of the wide

range of service offers: Our survey, which

was conducted in summer 2011, shows

that nearly all European car drivers—

nine out of ten—know the names of

the big independent service providers

in Western European countries. Of

the independent service providers,

Carglass is the most well-known brand

in France, with name recognition of

90 percent. In Spain and Great Britain

Kwik-Fit is the most recognised with

86 percent recognition, and in Germany

A.T.U is the most recognized with 85

percent recognition.

Brand name recognition is considerably

lower in Poland than in the surveyed

Western European countries: Only every

third respondent knows Autoglass, the

most familiar service chain there. The

reason for the low market penetration

of large independent service providers

in Poland is the country’s still highly

fragmented market, characterised by

small independent repair shops.

Across all countries, Carglass is the

most widely known player, showing

highest or second highest awareness

level of customers. Broad satisfaction

across all channels Customers in

Western Europe favour independent

repair shops. In seven of the ten criteria

for customer satisfaction, these repair

shops came out on top. Customers

especially like the value for money in the

independent channel.

Decreasing Customer Loyalty Over Time

After purchasing a vehicle, many

customers first stay with an authorised

repair shop. Loyalty to authorised

repair shops is highest among new-

vehicle owners and business customers.

Reliability, good quality, and warranty

are the reasons that two thirds of these

respondents named for taking their

vehicles to authorised repair shops when

they need repairs or maintenance.

But a different picture emerges among

owners of used and older vehicles. The

majority favour independent repair

shops—with price as the deciding factor.

This also goes for loyalty to a certain

repair shop; generally, customer loyalty is

strongly influenced by price, while “soft

factors” such as time needed for repairs,

service quality, and time needed to get

an appointment are additional “nice-to-

have” factors that are seldom central to

decisions to switch repair shops.

Customer loyalty is significantly higher

in markets that are less consolidated. In

Poland and Spain, trust and a personal

relationship count even more than price;

here, unlike in Germany and France,

the willingness to switch repair shops

declines with the age of the vehicle rather

than increasing.

Overall, the results of the customer

survey make it clear that the aftermarket

in Europe has changed dramatically

for the better for vehicle owners and

drivers—numerous service providers with

different strengths offer customers a wide

service selection based on their personal

priorities and specific requirements.

The introduction of new vehicle

materials such as aluminium, carbon,

and UV paint require special tools,

Page 33: Aftermarket - September 2012

SEPTEMBER 2012 AFTERMARKET 33

INSIGHT & OUTLOOK

instruments, and increased training

requirements as well. Smaller

independent operators are not equipped

to surmount these obstacles and are

forced to either exit the market or to

join a larger franchise. In Germany, the

number of small independent repair shops

has been sinking for years, even though

the “death rate” has slowed considerably.

With a total of ~ 38,000 repair shops

in Germany in 2010 (~ 18,000 of them

authorised and ~ 20,000 independent),

the decline from 2009 to 2010 was 0.8

percent for authorised repair shops and

0.5 percent for independent repair shops.

Cost AdvantagesThe clear winners in the independent

channel are big service chains. Franchise

operations, fast fitters, and automotive

centres have three major advantages: (1)

Due to their size, they have accordingly

larger purchasing volumes, which they are

able to translate into cost advantages and

pass on to customers as lower prices. (2)

to 2010, from three to 15 percent; during

the same period in the Netherlands, the

share of exclusive contract repairs rose

from 45 to 65 percent.

This phenomenon poses new challenges

for both traditional players in the market

and for the costumers themselves who

have little or no choice with regard

to repair shop selection, and the parts

used for repair. Traditional factors such

as vehicle age and customer personal

choice have less and less influence. In

today’s environment, it is primarily the

independent repair shops that are profiting

from partnerships with insurers, fleet

operators, and leasing firms. Authorised

repair shops lag behind and their current

market share will slide unless they find an

entré into this segment.

Increasing ConsolidationIntense competition is accelerating

industry concentration. The German

market, where the top ten independent

operators have a market share of 30 percent

(measured by number of outlets), has the

highest level of concentration—with an

11-percent increase since 2007. Similarly,

the level of concentration in France is 29

percent. The aftermarket in UK, Spain,

and Poland is less concentrated: In UK,

the ten largest players have a market

share of 16 percent, in Spain 13 percent

(an 18 percent increase since 2007), and

in Poland 12 percent (for a nine percent

increase since 2007). In the coming

decade, concentration in these countries

is expected to rise to the level in Germany

and France.

Consolidation on the retail level is

the result not only of organic growth,

but primarily as a consequence of the

brisk pace of M&A activities. In 2011,

for instance, the Japanese tire specialist

Itochu Group acquired 1,500 Kwik-Fit

locations from the British fast fitter in

order to gain access to its market.

Competitive PressureIn the decade until 2020, the European

automotive services market will continue

to come under pressure from various

sides. Market volume growth in Western

Europe is not expected in coming years:

Vehicle density is already so high that

the number of vehicles can hardly change

significantly. Of the countries analyzed

for the study, only Poland can be seen

as a growth market. Its comparatively

low market volume—only 10 percent

of the German market—will grow at a

rate of 5.7 percent per year in nominal

terms—until it is on a par with Western

European countries.

Furthermore, intense competition and

increasing market transparency will mean

constant or even slightly lower average

annual service costs per vehicle. Another

factor in the rising competitive pressure

in automotive services are the technical

developments in vehicle manufacturing

and parts production. Improved parts

quality will mean longer part lifetimes

and accordingly longer service and repair

intervals. At the same time, repair shops

will also need to invest to address the

rise in vehicle electronics. This applies

both to information requirements and to

ongoing training for employees to stay up

to date on technical developments.

Longer term, electrical vehicles and

hybrids—which require considerably

less maintenance than traditional

combustion motors—will further change

the automotive services market. Along

the entire value chain and range of

services, the competitive situation for

repair shops will intensify. This goes for

both authorised repair shops as well as

for independent service providers and

chains, which will be able to expand their

market shares only with squeeze-out

competition. Creative strategies will be

needed to address the opportunities and

risks of market developments early on.

Opportunities For Independent Repair Shops

Independent repair shops and chains

have a number of options for securing

their future market positions. They can

Loyalty to authorised repair shops is highest

among new-vehicle owners and business customers. However, the majority favour independent repair

shops—with price as the deciding factor. While “soft factors” such as

repair time, service quality are additional “nice-to-have” factors that are

seldom central to decisions to switch repair shops

Page 34: Aftermarket - September 2012

34 AFTERMARKET SEPTEMBER 2012

INSIGHT & OUTLOOK

strengthen their procurement power

by forming large purchasing alliances,

thus retaining their most important

competitive advantage—cost leadership.

They can profit from rising price

awareness among customers who—as

in many other sectors—are increasingly

better informed about quality and

value for money, and consequently in a

position to select the best offer for every

type of repair and service.

Because many independent providers

do not offer a full range of services, they

can follow a competitive strategy of

specialising on either services with higher

margins or services with high volume;

authorised repair shops, in contrast,

usually offer a full range of repair

and maintenance services. Perceived

gaps in quality (from the customer

perspective) between independent and

authorised repair shops will probably

also narrow: Study results show that

many independent repair shops and

chains are becoming increasingly

professional, thanks to better access to

repair and maintenance information,

better parts logistics, and investments in

diagnostics technology.

Opportunities For Authorised Repair Shops

In coming years, OEMs and their

authorised repair shops will actively

use cost and price strategies to assert

themselves in the highly competitive

market. Customers perceive authorised

repair shops as being considerably more

expensive than independent repair shops.

The development of strategies that enable

attractive prices for customers while

simultaneously avoiding the erosion

of margins may be one of the biggest

challenges of the service business for

OEMs. Also, they and their service

networks belong to large companies: In

competing with small, flexible, and agile

service providers, they will face a different

set of challenges when it comes to aligning

their business models, price strategies, and

service offers to the needs of the market.

OEMs and their authorised repair shops

will have to focus on consistently utilising

their current competitive strengths: They

are perceived by customers as a guarantee

for quality and thus enjoy their trust. As

affiliates of the OEMs, they also profit

in regard to new technologies, such as

new, fuel-efficient drive technologies

and electronics. Continuing advances in

“networked vehicle communications” also

represent an opportunity to strengthen

customer loyalty and earn points for offers

of remote diagnosis and other services.

This will be an important factor when

longer service intervals in the initial years

after the purchase of a new vehicle could

have a negative effect on customer loyalty

to OEMs.

Trends In Competitive EnvironmentWe believe that the development of

the competitive landscape will allow

independent service providers to expand

their market share, though slightly.

Thanks to their cost advantages, they are

in the best position to address customers’

increasing price awareness. This applies

primarily to large independent service

chains. Small independent repair shops

will be increasingly challenged by know-

how and investment barriers, so that we

see a further decrease in outlet numbers

until 2020.

Also, longer maintenance intervals and

generally higher quality will have a negative

effect on customer loyalty to authorised

repair shops. And non-traditional market

players such as insurers, fleet operators,

and leasing firms will partner primarily

with independent service providers in

order to reduce their own costs.

In Western European markets, the

market share of independent service

providers will rise by up to 6 percent.

Only the market in Poland, where

independent repair shops enjoy a

traditionally high market share of 70

percent, is expected to remain stable in

this regard. �

(Authors work with Boston Consulting

Group. Reprinted with permission)

Page 35: Aftermarket - September 2012

SEPTEMBER 2012 AFTERMARKET 35

FACILITY VISIT

THE wheel turned full circle for

Mumbai-based Mariwala family with

the opening of largest workshop for

Mercedes in Andheri East, a Mumbai

suburb. Auto Hanger started as a

workshop for servicing Mercedes cars

in Mumbai way back in 1991 and is

now hoping to take luxury car servicing

standards to a different level with largest

of its kind workshop for Mercedes

in India.

Spread over a lakh sq ft, Auto Hangar’s

new workshop has around 54 service bays

and has been set up with an investment

of around `52 crore. Located in an

industrial area in suburban Mumbai,

the service centre is capable of offering

round the clock servicing.

“Our priority is to cater to growing

population of Mercedes car owners in

and around Mumbai and in the western

region with faster turnaround time. We

are also looking to offer single or set

of services rather than full servicing to

enable owners to take their car within

few hours, if required,” said Managing

Director, Auto Hanger (India) Pvt Ltd,

Mohan Mariwala. He pointed out that

there is an estimated population of

around 7,000 Mercedes cars in Mumbai

and Thane alone and there is a dire need

for servicing these vehicles. Moreover,

the workshop is also gearing up to meet

the needs of neighbouring cities with

hits milestone with

new workshop

Auto Hanger

Auto Hanger is to provide specialised

and quick turnaround services for its

customers. Mercedes is to offer its globally

benchmarked services at the workshop that could

work as a laboratory for service innovation in India before wider adoption across other centres in the country

Abhishek Parekh

The New Auto Hanger Workshop

Page 36: Aftermarket - September 2012

36 AFTERMARKET SEPTEMBER 2012

FACILITY VISIT

sizeable Mercedes car owners like Pune,

Nashik and Ahmednagar as well as

Kolhapur and Aurangabad.

Mariwala added that the workshop

is looking to provide specialised and

quick turnaround service options for

its customers. Mercedes would also be

looking to offer its globally benchmarked

service at the workshop and it could serve

as a laboratory for service innovation in

India before wider adoption across other

centres in the country.

“Many of our existing dealers started

their journey with us as our service

partners before establishing dealerships

to sell our cars. As our car population

grows, we are likely to see many more

entrepreneurial ventures in the car

servicing business. We are bracing up for

more innovative service models in the

luxury car segment in the coming years in

India,” said Director, After Sales, Retail

Training, Homologation, Member of the

Board of Management, Mercedes Benz

India Pvt Ltd, Devdutta Chandavarkar.

The workshop will provide service,

general repairs, body repairs, paint job,

wheel alignment, wheel balancing, tyre

change, car wash, polishing and other

specialised services. It is also capable of

providing advanced services like remote

sensing diagnosis used by Mercedes-

Benz globally. The workshop will employ

around 155 personnel.

Auto Hangar (India) is a leading

automobile dealership group based in

Mumbai established in 1991 by JV

Mariwala’s family. Over the last two

decades, it has gradually spread its wings

to cater to the sales and servicing needs

of premium auto brands including

Lamborghini, Mercedes Benz and

Honda. Mariwala family is engaged in

businesses like food ingredients, spices

and spice extraction. Auto Hangar is

the group’s first venture outside the food

industry and is managed by Mohan

Mariwala, who had had several years of

experience in sales and service of luxury

brands in India and the US.

The other dealerships of the Group

include Lamborghini Mumbai, Linkway

Honda, Redline Automotive, the

insurance division of the Auto Hangar

Group. Redline Automotive is also an

authorised dealer for Ashok Leyland

commercial vehicles. The Group also

owns Auto Hangar Pre-Owned Cars

catering to clientele aspiring to upgrade

their existing vehicle by trading it in for

a newer model.

Auto Hanger has been awarded

Mercedes Benz’s ‘Best After Sales

Service’ award in 2003. Linkway Honda

has also received Honda’s Gold award for

‘Best Overall Performer’ in the same year.

Mercedes Benz is looking to maintain

its service edge and already has the

biggest service network among luxury car

manufacturers in India owing to its long

standing presence in the Indian market.

Mercedes-Benz is present across 31

Indian cities through its 72 touchpoints.

Located at Saki Vihar Road, Andheri

East, the new workshop of Auto Hangar

is easily accessible from the West East and

Eastern Express Highway. Mariwala said,

“Increasingly the need for a world-class

servicing facility will define the way luxury

car purchase is going to evolve in India.”

Mercedes-Benz has one of the

densest networks among luxury car

manufacturers in India owing to its long

standing presence in the Indian market.

It is already present across 31 cities

through its 72 touchpoints. Many of the

full scale service centres offer facilities

like the Star Lounge, the Star Lease,

organising Star Drive, opening of Trendz

concept stores, inauguration of AMG

Driving Academy at BIC and rolling-

out of Star Showcase across the country;

Mercedes-Benz remains confident of its

strong traction and steady growth and

further expanding its footprint in the

dynamic Indian market. �

Many of our existing dealers started their

journey with us as our service partners before establishing dealerships

to sell our cars. As our car population

grows, we are likely to see many more

entrepreneurial ventures in the car servicing business—Devdutta

Chandavarkar

(Centre) Peter Honegg, MD & & CEO Mercedes-Benz India At The Launch Of Auto Hanger, Mumbai

Page 37: Aftermarket - September 2012

SEPTEMBER 2012 AFTERMARKET 37

INSIGHT & OUTLOOK

Used car salesto treble by 2016-17

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.

Used car sales expected to reach about ��������������� ���������������������

CRISIL Research expects annual used

car sales to treble 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 preceding 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 market

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.

������������������������ ������ ����������� ������� ��

A 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.

���������� ����� ������ On 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.

Ajay Srinivasan, Director &Hetal Gandhi, Associate Director

Page 38: Aftermarket - September 2012

38 AFTERMARKET SEPTEMBER 2012

INSIGHT & OUTLOOK

� ������������������������ �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 per cent 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

models. As dealers face competition in

the new car business, OEM-led used

car companies provide them alternate

income avenues and also help sustain

competitive 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 companies include

independent players like Carnation

and OEM-led companies like Maruti

True Value, Ford Assured, Mahindra

First Choice, etc. The presence of

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 companies 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 standards.

In such cases, an organised dealer

may sell such cars at a low margin to

unorganised dealers.

� ������ ������������ �����������!� �"����� �������� ��#���������New Cars

The used car business is a profitable

proposition for dealers. 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 business also

helps dealers shield risks to margins,

especially during a down cycle when

new cars sales may be affected. In case

of used cars, dealers also have a higher

bargaining power—determining 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 manufacturers and

financiers, or in lieu of potential service

income expected from the customer.

������ ���$�������� ���%������Cautious

Finance penetration in the used car

market has been traditionally lower,

as the credit profile of used car buyers

is relatively weaker than new car

buyers. Disbursements for used cars by

organised financiers (banks, NBFCs and

captive finance companies) are expected

to record a 20 percent CAGR in the

next five years in line with the growth in

used car sales. Organised financiers 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.)

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

Page 39: Aftermarket - September 2012
Page 40: Aftermarket - September 2012

40 AFTERMARKET SEPTEMBER 2012

CUTTING EDGE

CONTINENTAL is set to unveil

technologies, products and services, with

which, the manufacturers of commercial

vehicles can make their vehicles safer,

more economical and cleaner, as well as

network them more intelligently with

focus on economy and efficiency at

this year’s IAA to be held this month.

Some of the technologies include driver

assistance and braking systems, vehicle

networking and operating concepts,

drive technologies, sensors, interior trim

materials and tyres.

“Only when trucks, vans or buses are

less involved in accidents, keep their fuel

consumption as low as possible and have

clever data exchange with the driver

and environment, can they actually be

operated economically with reduced

operating costs and thereby achieve

the effectively lowest overall costs,”

said Chairman of the Executive Board,

Continental, Dr Elmar Degenhart.

The company will display tyres of

the third generation that would be

gradually introduced to the market

from mid-2013. These third generation

Advanced CV safety technologies to be showcased at IAA

Page 41: Aftermarket - September 2012

SEPTEMBER 2012 AFTERMARKET 41

CUTTING EDGE

tyres will simplify the work of those

in charge of vehicle fleets—from tyre

selection to service solutions. The

company’s fleet management system

Conti 360° Fleet Services offers modular

services, which enable individual and

expert tyre management specific to

the needs of the customers. The fleet

operator thus ensures that the condition

of his vehicles’ tyres is constantly

optimised, the administrative workload

and expenses are low, and the costs

are easily calculable. Meanwhile,

the mobility service for fleets with

international operations is available in

13 European countries.

In the ‘Safety’ megatrend area at the

company’s booth at the IAA, the focus is

on driver assistance and braking systems.

The highlight is the MK 100 ESC

XT electronic braking system, which

Continental will present at the IAA

for the first time. Volume production of

the system is slated to get underway in

2015. It is an extension of the modular

and scalable MK 100 product family,

which allows the use of the Anti-Lock

Braking System (ABS) and electronic

stability control (ESC) in all vehicle

categories and thereby even saves space

and weight.

The MK 100 ESC XT was specially

developed for heavy vehicles or vehicles

transporting heavy loads with a focus on

supporting active safety by enhancing

braking dynamics. The MK 100 ESC XT

thus offers all standard ESC functions

right up to adaptive cruise control

(ACC) and, as an extra in the premium

versions, full speed range ACC (FSA).

The premium version can be used in

hybrid vehicles with an efficiency of 98

percent in braking energy recovery. This

offers the customers full installation

compatibility for ICVs and hybrids.

Reducing EmissionsProducts and solutions aimed at

reducing CO2 emissions are presented

in the ‘Environment’ megatrend area.

The company is hoping to demonstrate

systems expertise with solutions for

exhaust gas aftertreatment, which help

in complying with exhaust standards

such as Euro VI (2013) and US10 /

Tier4f. The selective catalytic reduction

(SCR) of nitrogen oxides (NOx) and

diesel particulate filters (DPF), which

remove particulate emissions from truck

exhaust fumes, play a key role.

In SCR, a watery urea solution

(AdBlue) is injected in the exhaust

gas flow to be able to transform

nitrogen oxides in a catalytic converter.

Continental delivers important

components for this purpose: From

2013 onward, newly developed AdBlue

injectors with air cooling for light-duty

use will enter mass production. At the

same time, Continental is developing

a water-cooled version for use in

trucks. ContiTech’s heatable hose line

modules also form part of the SCR

systems expertise.

The newly developed fuel quality

sensor can be used to determine the

quality of fuel and thus optimize fuel

injection. New types of air spring

systems with plastic pistons save up to

12 kilograms of weight per axle and

thus cut fuel consumption. The use of

renewable resources for interior trim

materials in driver’s cabs is an additional

contribution to a more environment-

friendly vehicle.

The ‘Information’ megatrend area is

primarily devoted to vehicle networking

and operating concepts. The company

will be presenting an intelligent camera

system for commercial vehicles at the

IAA. With this camera system, the

driver receives 360-degree visibility

around his commercial vehicle in real

time. This will help truck drivers during

manoeuvring, bus drivers during safe

departure from crowded bus stops and

drivers of construction vehicles in the

centimetre-accurate positioning of their

machines. An efficient control computer

that adds up the digital signals of the

cameras to a 2D or 3D image works

in the background. The new system

thus gives the commercial vehicle

driver an optimum bird’s-eye view in

critical situations.

Continental is a leading supplier

of brake systems, systems and

components for powertrains and

chassis, instrumentation, infotainment

solutions, vehicle electronics, tires and

technical elastomers. �

Continental’s fleet management system that will be displayed at IAA

is Conti 360° Fleet catering to individuals

and tyre experts specific to their needs. The

fleet operator ensures that the condition

of his vehicles’ tyres is constantly optimised,

the administrative workload and expenses

are low, and the costs are

easily calculable

The company will display third generation tyres

that would be gradually introduced to the market

from mid-2013. These third generation tyres will simplify the work of those in charge of

vehicle fleets—from tyre selection to

service solutions

Page 42: Aftermarket - September 2012

42 AFTERMARKET SEPTEMBER 2012

GLOBAL

FORD'S UK fleet business is reaping

the benefits of the company's vehicle

range, as car sales accelerate. Ford's

total fleet vehicle sales—comprising

95,752 cars and 32,654 vans—make up

62 percent of Ford's total vehicle sales.

The Ford Dagenham-built 1.6-litre

TDCi engine is the UK's most popular

engine choice for fleet managers and

accounts for 25 percent of Ford fleet

car sales for the year to date.

The Ford C-Max has seen the largest

growth in Ford's fleet car sales with a

22 percent increase for the year to date,

compared with 2011. The Ford Galaxy

is close behind with a 20 percent rise.

Further, fleet sales increases have been

recorded by the Ford Fiesta, Focus and

Mondeo with sales up seven percent,

three percent and three percent,

respectively, for the year to date,

compared with 2011. The new Ford

B-Max is now on sale and is expected

to record over 6,000 fleet sales in its first

full year.

Ford of Britain Fleet Director, Kevin

Griffin said, "Ford sells its vehicles across

all sectors of the UK fleet markets and I

am delighted that the company has seen

an increase in total fleet sales, in 2012.

The combination of Ford's best-ever

vehicle range, latest fuel-efficient diesel

and EcoBoost petrol engines, improving

residual values and the power of the

UK's largest dealer network has seen

Ford's fleet business go from strength-

to-strength.

"We are seeing growing interest

around the one-litre EcoBoost petrol

engine, with 40 percent of Ford Focus

one-litre EcoBoost sales going to fleet

buyers, despite the fleet market being

diesel-led," he concluded.

Ford continues to lead the UK

commercial vehicle fleet market with a

26.7 percent share, 13 percentage points

ahead of its closest competitor. The Ford

Transit tops UK commercial vehicle fleet

sales with 27,006 registrations for the

year-to-date and it remains Ford's third

best-selling vehicle in Britain. �

Ford’s vehicle range boosts

fleet sales leadership

Page 43: Aftermarket - September 2012

SEPTEMBER 2012 AFTERMARKET 43

GLOBAL

THE upcoming 10th parts2clean trade

fair to be held in Stuttgart, Germany from

October 23-25, 2012, anticipates around

230 exhibitors to present products and

services for the optimised cleaning of parts

and surfaces in manufacturing industries,

maintenance and remanufacturing. In

a growing number of industrial sectors,

the cleanliness of components and

surfaces has become a quality criterion

defined by specific, reproducible residual

contamination values.

With global competition continuing to

rise, it has become essential for companies

involved in the manufacturing business,

in maintenance or remanufacturing to

be able to fulfil these requirements in a

cost-optimised way and as

eco-efficiently as possible.

However, this can only be

achieved by implementing

solutions that are

individually adapted to

a company’s needs and

capable of carrying out

complex cleaning tasks,

removing oils and greases,

removing burrs, assessing

residual contamination or providing

temporary corrosion protection.

One of the world’s broadest trans-

sectoral range of products and services

will be on show for the industrial

cleaning of parts and surfaces. Exhibiting

companies from all areas of industry will

be presenting numerous innovations and

a range of solutions to ensure that cleaned

parts and surfaces are protected against

corrosion, preserved and packaged in an

efficient and cost-effective way. �

Our Bureau

German trade fair to offerbroader range of products, solutions

An Earlier Parts2clean Edition

Page 44: Aftermarket - September 2012

44 AFTERMARKET SEPTEMBER 2012

GLOBAL

AFTER an extensive six-month

construction programme, the Bracknell

Honda car dealership has opened its

doors to welcome customers to their

brand new residence.

Confirmed as one of the largest stand-

alone Honda new car showrooms in

Europe, the site is owned and operated

by the Cloverleaf Group. It already has

two retail sites in the Berkshire area,

further increasing the profile of Honda

and Jardine Motors Group.

It will mark a significant change

in Cloverleaf 's presence in the area,

as the Honda dealership in Ascot

closes its doors. The Ascot site, just

three miles away, has transferred all

22 staff to the Bracknell premises and

has created a new role of Used Car

Sales Manager.

Work on developing the London

Road site began last September and

what has risen from the rubble is a

brand new state-of-the-art dealership.

The showroom has space for 14 new

cars from Honda's modern and fuel-

efficient range, plus forecourt space for

around 60 ‘Approved Used' vehicles.

A seven-bay workshop will provide

service and repair work, with further

dedicated bays offering MoT testing

and wheel alignment.

From 1998 until 2009 the site was

Honda's Racing Development location

and the engine assembly base for third

generation Formula One activities.

Honda was involved in F1 racing from

2000 until 2008, so the site will be sure

to bring back fond memories for the

locals and Honda employees.

Operations Manager for Cloverleaf

Group, Gary Peters, commented,

"The most exciting part of the move

to Bracknell is being able to welcome

customers into a stunning new facility

that's in keeping with Honda's

and Jardine's brand image. We had

outgrown the Ascot site and Bracknell

gives us much more space to show off

Honda's exciting model range, which

is set to expand significantly in the

near future."

Commenting on the new dealership,

Head of Dealer Development at

Honda (UK), Nick Campolucci said,

"This is an exciting addition to the

Jardine Motors Group' portfolio. With

successful sites already in the Berkshire

area we look forward to inviting

new and current customers into the

new showroom." �

Bracknell Honda opens for business

Page 45: Aftermarket - September 2012

SEPTEMBER 2012 AFTERMARKET 45

GLOBAL

TO boost communication with fleet

decision-makers and company car

drivers, Mazda is embracing web-

based smartphone technology.

The company’s fleet-specific

mobile phone website that went

live recently, has been developed

to help make access and usage

efficient and straight-forward.

Mazda is further expanding

its communications with fleet

customers—both fleet decision-

makers and company car

drivers—as well as prospects by

utilising LinkedIn, the world's

largest professional network

on the internet with more than

nine million members in the

UK and sponsoring the Fleet

Academy—a web-based forum

where fleet professionals can

share news, views and opinions

with others in the fleet industry.

"Technology and methods of

communication are changing

rapidly and the fleet-dedicated

initiatives we are introducing

enable two-way interaction with

existing customers and prospects

at times convenient to them and

while they are on the move,"

said Manager Fleet and Used

Car Marketing at Mazda UK,

Michael Stewart.

He further explained, "Few

if any motor manufacturers

have a dedicated fleet site that

has been specifically designed

for smartphone use. Most sites

are not designed for mobile phone

use and many use

incompatible technology.

The site contains up-to-date details

on the comprehensive Mazda range

including images and video footage, a

section on new models such as

the recently launched Mazda

CX-5 compact crossover

SUV featuring breakthrough

Skyactiv technology, special

vehicle offers, information on

Mazda Contract Hire and

details on how to contact the

Mazda Corporate Support

Centre and the marque's

franchise dealer network.

The new LinkedIn site also

goes live this month and has

two facets—a Mazda fleet

profile section highlighting its

complete model range and new

launches. It has forum sections

with one targeted at employees

with fleet responsibility in

small and medium sized

companies and another at

full time fleet professionals.

Information will be available

on Mazda and its model range

and key industry issues and

topics such as: tax, legislation,

fuel pricing, telematics, service

maintenance and repair costs

and vehicle funding.

Stewart added, "We want to

encourage debate, questions

and dialogue from the fleet

community and specifically

fleet managers as well as

employees in SMEs with

fleet responsibility. �

Phone-web tech vitalises

Mazda communicationOur Bureau

Page 46: Aftermarket - September 2012

PRODUCTS

46 AFTERMARKET SEPTEMBER 2012

‘Bosch@Home’ Power Tools BOSCH Power Tools launched its ‘Bosch@Home’ range with the interest and needs of Indian consumer at the forefront. Consumers can choose from a range of exciting tools such as the Lawn & Garden Tools, Hobby Tools—Dremel, Smart Kit for home needs, IXO and Aquatak high pressure jet washer for cleaning of your car or bike. The tools are available at Home Town, Metro Cash & Carry, FutureZ First, Home Town Express and Kavyee Associates in Bangalore. Additionally, Bosch Power Tools has also launched the Bosch Kiosk to promote the ‘Bosch@Home’ range. The concept, backed by print promotion, will be rolled out across the country in the coming months. ‘Bosch@Home’ aims to usher in a new trend of Home Improvement that help consumers execute jobs at home and office, ranging from drilling, carving, etching, mowing and fixing to cleaning. We believe that these Do-It-Yourself tools will help bring back the joys of self reliance, like never before”.

Bosch Power Tools is the leader of the power tools market in India. The company has built an enviable reputation for itself in India and its tools are popular due to the superior technology and quality offered by the company. Its legacy is reinforced by the fact that ‘every minute, one Bosch Power Tool is purchased in India. The Bosch Group is a leading global supplier of technology and services. According to preliminary figures, more than 300,000 associates generated sales of 51.4 billion euros in the areas of automotive and industrial technology, consumer goods, and building technology in fiscal 2011. The Bosch Group comprises Robert Bosch GmbH and its more than 350 subsidiaries and regional companies in some 60 countries.

Bosch LimitedPost Box No: 3000,

Hosur Road, Bangalore: 560 030

Tel: +91-080-2299 9228

Fax: +91-080-2299 2525

Web: www.boschindia.com

‘Balmerol’ Oils & LubricantsBALMER Lawrie launched the new packaging for ‘Balmerol’ in a two day Channel Partner Meet 2012 held on 24th& 25th

August, 2012 at Silvassa. Balmer Lawrie manufactures and markets greases, oils & specialty lubricants under the brand name of Balmerol. The Greases & Lubricants business undertook a rebranding exercise recently and the Balmerol logo has been given a new and modern look. Around 60 distributors attended the event and visited the upcoming state-of-the-art Greases & Lubricants plant at Silvassa. Besides Silvassa, the Company has plants in Kolkata, Chennai and Mumbai.

Balmer Lawrie21, Netaji Subash Road, Kolkata -700 001

Tel: +91 33 2222 5218

Web: http://www.balmerlawrie.com/

Vision System With Autofocus, Integrated Lighting

COGNEX Corporation has introduced the In-Sight 7010, an entry level vision system developed specifically for inspection tasks. Every aspect of the In-Sight 7010 has been designed to make deploying a vision system easier than ever before. It is a completely self contained vision system that includes

autofocus optics and integrated lighting in a compact IP67 rated industrial housing. Applications can be configured very quickly

Page 47: Aftermarket - September 2012

PRODUCTS

SEPTEMBER 2012 AFTERMARKET 47

using the intuitive EasyBuilder user interface. The vision library on the In-Sight 7010 has been simplified to focus on the tools most frequently used in straightforward vision applications.

The built-in autofocus capability of the In-Sight 7010 makes it ideal for production situations requiring regular part changes, or applications that require the vision system to be placed in hard-to-reach spaces where manual focus adjustment would be difficult. With autofocus, users can simply set and save the focus values associated with the inspection of each part. Users can also fine-tune focus levels manually with the interactive software. The In-Sight 7010 autofocus system is available with five different lens options to match the working distance and field of view requirements of each application. The compact In-Sight 7010 features integrated white lighting that is suitable for most vision applications. If a specific colour light is required to highlight particular parts or features, four optional coloured lights are available. The autofocus optics and integrated lighting developed for the In-Sight 7010 are also being deployed as options across the full In-Sight 7000 product range.

In-Sight 7010 features EasyBuilder and a selection of the key inspection, measurement, alignment and guidance vision tools found on other In-Sight vision systems. With the unique combination of hardware features and software tools, the In-Sight 7010 is the ideal out-of-the-box solution for many straightforward vision applications.

Cognex Sensors India Pvt. LtdEmail: [email protected]

Mo: 9881466003

Car Mats From 3M3M has increased its car care product portfolio with the launch of car mats Nomad in the country. One of the pioneers in the manufacturing of Vinyl Coil car mats, 3M Nomad car mats claims both durability and performance. The company claimed that the mat is characterized by superior dirt trapping features which doesn’t allow soil and dirt and liquids to remain on the surface, these mats are easy to clean and maintain.

The product is available in four colour variants including grey, black, beige and brown for a customized fitting for their car floor

which includes two pieces in front and three mats in the rear. 3M Car Care Stores offer a gamut of services including paint treatments, interior treatments, 3M Scotch Paint Protection Film and car wraps.

3M India LimitedConcorde Block, UB City, 24, Vittal Mallya Road,

Bangalore - 560001

Tel No: 0091-80-22231414 / 66595759

Fax No: 0091-80-22231450

Web: www.3mindia.co.in

Dual Magnetic SensorsNXP Semiconductors NV launched the KMA220, a dual magnetic sensor designed for all automotive applications where a mechanical angle needs to be measured. Integrating two sensor systems in a single package, it is particularly relevant for throttle control applications where a redundant system solution is required. Operating in a simple disk magnet configuration with no need for a PCB or external components, the KMA220 offers a unique solution to the automotive market. It is fully calibrated and ready to use, and incorporates three capacitors in addition to two sensors dies and two signal conditioning

Page 48: Aftermarket - September 2012

PRODUCTS

48 AFTERMARKET SEPTEMBER 2012

ASICs. This, combined with its dual nature, reduces system cost for customers and simplifies the assembly process. To achieve redundancy in throttle applications, car manufacturers have previously had to install two single sensors on a leadframe or onto a PCB, bending them to fit � typically requiring an expensive ring magnet configuration to operate. With the dual KMA220 sensor, only one simple installation is required.

Its uses NXP’s unique ABCD9 technology, an automotive platform at the cutting edge of analogue mixed-signal integration. This technology is based on NXP’s CMOS 14 process and significantly improves performance compared to previous sensor products with integrated ASICs. The KMA220 is also qualified according to the new HMM (Human Metal Model) with excellent electrostatic discharge (ESD) protection and EMC performance. It is available at $3.30 US in quantities of 10k pieces and $2.60 US in quantities of 100k pieces.

NXP Semiconductors India Pvt LtdInformation Technology Park

Bangalore 560045Nagawara Village, Kasaba Hobli

Tel: +91 (0)80 40240000

Fax: +91 (0)80 40247000

Web: www.nxp.com

Tools & Alloy SteelsSTEEL Mart offers import substitute tools and alloy steels to meet the demands of major industries, like defence, heavy and medium engineering, automobile, sugar, cement and other small scale industries. The latest range of products include, specialised steel category of alloy steel forgings, carbon spring steel sheets, high manganese steel plates, wear resistant plates, die steel blocks, flange steels, boiler quality plates, etc. Apart from special steels, normal range of EN series steels is readily available off-the-shelf and the same can be supplied in random lengths as well as cut lengths as specified.

Steel Mart, Mumbai 400 011.Tel: 022-2308 0096, Fax: 022-2307 9961, Mob: 09820038501

Email: [email protected],

Website: www.steelmartmumbai.com

Painting BoothsAMI Industries offers side draft, non-pressurised painting booths that are totally compact and suitable for small and medium size component painting. These painting booths are suitable for conventional or electrostatic hand guns with no addition or modification. Adequate exhaust results in effective removal of overspray paint particles and thus eliminates its setting on wet painted surface. They also provide clean air to the operator. Washing

action minimises escape of paint along with exhaust air and thus eliminates surrounding pollution and also the risk of fire. The air flows have been so designed so as to offer total comfort to operator and in accordance with safety standards applicable. They find applications in automobile parts, control panels, pumps, valves, cycle parts, castings, fans, non-stick cookware, ball pens, air pins, refrigerators, etc.

Ami Industries, Mumbai 400 063.Tel: 022-2686 3120, Fax: 022-2873 4753

Email: [email protected],

Website: www.amiindustries.com

Welding HoldersATUL Arc manufactures and offers welding electrode holders that are available with fully-insulated brass body lightweight with fibre body. Some of the features of these welding holders include: for high conductivity of current (copper/bass) body; heat-resistant insulators for longer life; heavy-duty manual arc welding; current rating up to 600 A; suitable for electrode dia up to five mm; open mouth jaw type; for better cable connection 2 Allen screws provided with grip plate in fully insulated; and for better cable connection three bolts provided with grip plate in semi-insulated.

Atul Arc, New Delhi 110 005.Tel: 011-2573 6102, Fax: 011-2705 3622,

Mob: 9811825256, 9810273058 (SK Jain)

Email: [email protected],

Website: www.atularc.com / www.atularc.net

Page 49: Aftermarket - September 2012

PRODUCTS

SEPTEMBER 2012 AFTERMARKET 49

The information published in this section is as per the details furnished by the respective manufacturer/

distributor. In any case, it does not represent the views of

���������� DIGITAL automatic tyre inflators (model SetAir-201S) offered by Instrument Research Associates are fully automatic, safe, electronically controlled closed loop systems to inflate tyres accurately to a preset pressure level by adjusting the filling rate automatically after sensing the size and type of the tyre. These equipments automatically decide to inflate or deflate a tyre depending on the under-/over-pressure of the tyre. A single equipment can inflate and deflate tyres of all types of vehicles including mopeds, scooters, mobikes, cars, vans, buses, trucks and tractors. The equipments offer utmost ease of operation to users who are not well versed in English. Features include: exhaustive facility for fast inflation of flat tyres; convert function to show the desired and actual tyre pressure in kg/cm³ and PSI; confirm/backlight functions combined in one switch; LCD specially designed with icons to indicate the select units of pressure reading kg/cm, PSI, etc; and waterproof integrated keypad with positions of inc, dec, flat tyre, convert and confirm/backlight functions.

Instrument Research Associates Pvt Ltd, Bengaluru 560 100.Tel: 080-2852 0590/2/4, Fax: 080-2852 1525

Email: [email protected],

Website: www.irainstrumentation.com

Dock LevellersTEXTILE Machinery Manufacturing Company

manufactures and offers dock levellers (model TL-2H & TL-3E) with lifting capacity up to 3000 kg and 10000 kgsrespectively. These dock levellers are available in modular and electro-hydraulic versions. They are ideal equipments for use where there is a difference in the levels of storage and level where goods are to be transferred. By acting as a bridge these dock levellers make work easier, faster and economical. A variety of customised versions are available to suit end-user requirements.

Textile Machinery Manufacturing Company, Ahmedabad 380 021.Tel: 079-2216 1389, 2294 1747, Fax: 079-2294 1822,

Mob: [email protected]

Email: [email protected],

Website: www.truckmanindya.com

Spray GunsPILOT India manufactures and offers HVLP spray guns (model HVLP-03) that are lightweight and come with sleek body. These spray guns have comfortable handle and trigger action. They make operation easier and non-tiring. The spray guns have round-to-flat pattern adjustment. Water-based lacquers can also be applied. Other features include: air volume control, symmetric gravity cup for perfect balance, etc. Unique Air Circulation Technology (ACT) air cap delivers greater transfer efficiency resulting in substantial saving of material, which can be as high as 25-30 percent. The versatility of these HVLP spray guns has resulted in multiple applications in diverse industries. Some of the technical specifications are: cup capacity 0.57 litres, gravity feed, gun distance from workpiece 200 mm (8”), fluid nozzle orifice diameter 1.3 mm, required pressure 3 kgf/sqcm, minimum air compressor three HP, weight of gun with cup 700 gm.

Pilot India, Mumbai 400 069.Tel: 022-6697 8900, Fax: 022-6697 8907

Email: [email protected],

Website: www.pilotindia.com

Engine OilsMAHATHOL 2T Super from Mahatha Petroleum is a two-stroke engine oil developed with suitable base oil and select additives to minimise spark plug fouling and pre-ignition. These oils prevent rusting, minimise deposit formation and provides protection against seizure, scuffing and wear. The oils also have advantage of lower oil consumption and contain diluents for easy mixing with petrol. These oils are recommended for all types of two stroke engines of mopeds, scooters, motorcycles and three wheelers. The recommended dosage of Mahathol 2T Super is 20 ml per litre of petrol.

Mahatha Petroleum Pvt Ltd, Chennai 600 117.Tel: 044-2247 1542, Fax: 044-2247 3800, Mob: 09444065754

Email: [email protected],

Website: www.mahathapetroleum.com,

Certification: An ISO 9001:2000 Certified Company

Page 50: Aftermarket - September 2012

50 AFTERMARKET SEPTEMBER 2012

LIST OF PRODUCTS & ADVERTISERS’

Automotive dealership excellence award .................................................4

Batteries ..................................................................................................11

Bearing housing. ....................................................................................47

Brake pads ..............................................................................................11

Bus air conditioners ..................................................................................3

Car mats ................................................................................................47

Clutch plates & cover assemblies ...........................................................11

CNC/VMC machines ......................................................................... BC

Compressors .............................................................................................3

Condensers ...............................................................................................3

Cooling module ........................................................................................3

Dock levellers .........................................................................................49

Dual magnetic sensors ...........................................................................47

Engine oils ..............................................................................................49

Exhibition - AutoMech 2012 ................................................................39

Exhibition - AutoServe 2012 ...................................................................6

Exhibition - Engineering Expo ...............................................................8

Filter cleaning unit .................................................................................24

Filters ......................................................................................................11

Garage equipments ................................................................................43

Gasoline systems ....................................................................................11

Gear pumps ............................................................................................11

Go-jack ...................................................................................................24

Heating solutions ................................................................................BIC

Heavy duty bike lift ................................................................................24

Horns ......................................................................................................11

Hvacs & evaporators ................................................................................3

Hydraulic press .......................................................................................24

Instant drying & curing technology ...................................................BIC

Integrated Lighting ................................................................................46

Laptop trolley .........................................................................................24

Lighting ..................................................................................................11

Lubricants ...............................................................................................11

Mobile service van ..................................................................................24

Oils & lubricants ....................................................................................46

Painting booths ......................................................................................48

Parts washer ............................................................................................24

Pistons ....................................................................................................19

Pistons & pistons rings ........................................................................FIC

Power tools .............................................................................................46

Relays ......................................................................................................11

Seals ........................................................................................................47

Socker observers .....................................................................................29

Soses & tubes ...........................................................................................3

Spark plug ...............................................................................................11

Spray guns ..............................................................................................49

Starter motor ..........................................................................................11

Tool trolley .............................................................................................24

Tools & alloy steels .................................................................................48

Transmission jack ...................................................................................24

Tyre inflators ..........................................................................................49

Vision system with autofocus .................................................................46

Waste oil disposer ..................................................................................24

Welding holders .....................................................................................48

Wheel balancing weights .......................................................................17

Wiper blades ...........................................................................................11

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

Advertiser’s Name & Contact Details Pg No Advertiser’s Name & Contact Details Pg No Advertiser’s Name & Contact Details Pg No

Automotive Dealership Excellance Awards 4

W: www.adea.in

Bosch Limited 11

T: +91-80-22999228

W: www.boschindia.com

Confederation Of Indian Industry 6

T: +91-44-42444555

E: [email protected]

W: www.ciiautoserve.in

Confederation Of Indian Industry 39

T: +91-124-4014060

E: [email protected]

W: www.jetfindia.in

Engineering Expo 8

T: +91-09819552270

E: [email protected]

W: www.engg-expo.com

Federal Mogul 19

T: +91-124-4784530

E: [email protected]

W: www.federalmogul.com

Icon Autocraft 43

T: +91-9873337373

E: [email protected]

W: www.iconautocraft.com

KYB Asia Co Ltd 29

T: +91-9871687888

E: [email protected]

W: www.kyba.co.th

Litel Infrared Systems Pvt Ltd BIC

T: +91-20-66300636

E: [email protected]

W: www.litelir.com

Oil Lube Systems 24

T: +91-129-2430786

E: [email protected]

Puja Fluid Seals Pvt Ltd 47

T: +91-20-27112016

E: [email protected]

W: www.pujaseals.com

Ranger Stork 17

T: +91-120-4372157

E: [email protected]

W: www.rangerstork.com

Shriram Pistons & Rings Ltd FIC

T: +91-11-23315941

E: [email protected]

Subros Ltd 3

T: +91-120-2567028

E: [email protected]

W: www.subros.com

Yamazaki Mazak India Pvt Ltd BC

T: +91-2137-668800

E: [email protected]

W: www.mazak.com

Our consistent advertisersFIC : Front Inside Cover BIC : Back Inside Cover BC: Back cover

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