Piaggio Vehicles Pvt Ltd has launched Vespa LX 125 in the premium two-wheeler range priced

at `66,661 (ex-showroom Pune) across 35 major cities in the domestic market. The company has set-up a manufacturing facil-ity for production of the Vespa at Baramati in Maharashtra.

The company plans to have an initial production of around 1.5 lakh units at the Baramati facility and this may subse-quently expand depending on the market demand and export commitments to around 2.5 lakh units.

“Vespa is not just our most famous and bestselling product around the world; it is also our

business card, our technological f lagship,” said Chairman and CEO, Piaggio Group, Roberto Colaninno during the launch of the Vespa in Mumbai.

The company has developed a new LX 125 engine specifically for the Indian market and may use it for the model globally. This new engine is ecofriendly and fuel efficient. It is a new gen-eration global engine which will also be produced in Piaggio’s other manufacturing facilities in Europe and Asia.

The LX 125 has been built with a single piece monocoque steel body construction as opposed to modular develop-ment in most modern scooters. The front suspension system in the Vespa has an aircraft derived single sided trailing arm for bet-ter ride quality, according to a company release.

The company will sell the brand from 70 exclusive dealer-ships across 35 cities and plans to grow the network to more than 100 over the next couple

of years.It is in the process of creating

exclusive accessories and mer-chandise that will complement the Vespa, in addition to mem-bership to Vespa Club.

The company is presenting a retro classic Vespa that not only comes with a whole series of design and ergonomic marvels but also marks the worldwide debut of a brand revived for a new generation of two-wheeler customers in developing markets like India.

Auto Monitorwww.amonline.in30 April 2012Vol. 12 No. 10 32 Pages ` 50

I N D I A ’ S N O . 1 M A G A Z I N E F O R A U T O M O T I V E N E W S , V I E W S & A N A LY S I S

Now Turns

Weekly

ZF Group is looking to launch its next genera-tion electronic power steering systems for

commercial vehicles and pas-senger car applications through its new entity, ZF Lenksysteme, in which ZF Steering Gears (India) will have a minority stake.

“We are hoping to introduce our next generation and some of the current generation steering systems and products through ZF Lenksysteme from the new Pune facility. We are looking to enable seamless addition of customers from ZF Steering Gears for the latest products and will launch all our steering system related products from this entity in the coming years,” said Chief Executive Offi cer, ZF Lenksysteme GmbH, Michael Hankel. He added that one of the major reasons for establishing the new entity, as opposed to intro-ducing new products through ZF Steering Gears (India), a publicly

listed entity headed by Dinesh Munot, is better control over intellectual property and seam-less connectivity with ZF entities globally for product development and marketing.

The company is also evaluat-ing aftermarket business in India and may utilise either ZF Steering Gears’ service and distribution network or Bosch’s aftermarket channel in addition to the OE’s authorised service network for

distributing spares and support services.

ZF Lenksysteme’s new facility, situated at Phulgaon near Pune, will help the company to step-up its India presence and address its commitments to Indian OEMs in the CV and passenger car seg-ment. The new facility is spread over 10,000 sq mt with an initial production capacity of 70,000 commercial vehicles steering sys-tems and approximately 400,000

passenger car steerings. ZF Group has invested around Euro 70 million in the facility. The pro-duction would be further ramped up to cater to market demand and other commitments from group entities over the coming years. The company will employ around 100 skilled and admin-istrative staff at full capacity in the facility.

Hankel added that the com-pany chose Pune given the

proximity to the world’s lead-ing forging company (Bharat Forge) and many other lead-ing auto manufacturers such as Tata Motors, Daimler Chrysler, General Motors, Force Motors in and around Pune, as well as two prominent automotive research labs, namely Automotive Research Association of India (ARAI) & Central Institute of Road Transport (CIRT).

“Our primary target is to achieve 80 to 100 percent local-isation over the next couple of years,” said Chief Executive Offi cer, ZF Lenksysteme India Pvt Ltd, Ronaldo Alves. The company plans to manufacture hydraulic steering systems for commer-cial vehicles as well as electrical power steering systems for pas-senger cars at the plant.

ZF Lenksysteme GmbH is a JV between Robert Bosch GmbH and ZF Friedrichshafen AG and aims to bring together ZF s experience in hydraulic steering systems and Bosch’s expertise in electron-ics and sensors to form a pool of advanced steering solutions.

Piaggio India revives Vespa

ZF to launch next-gen steering systems

Top 5 CV Makers

Company Mar-11 Mar-12 Change

TML 44,970 51,803 15.19%

ALL 11,313 12,663 11.93%

M&M 10,941 12,313 12.54%

EICHER 4,722 5,786 22.53%

FML 2,615 2,750 5.16%

Top 5 CV Exporters

Company Mar-11 Mar-12 Change

TML 5,186 4,127 -20.42%

M&M 1,528 2,083 36.32%

ALL 856 1,622 89.49%

EICHER 343 265 -22.74%

SML 96 69 -28.13%

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

DATA MONITOR

Our Bureau Mumbai

Abhishek Parekh Pune

ANALYSIS OF TWO-WHEELER INDUSTRY IN INDIA

STUDY

Pg 14

‘LINE FIT NAVIGATION WILL GIVE A BOOST TO IN-CAR NAVIGATION MARKET’

INTERVIEW

Pg 8Kirk Mitchell, VP, Ocenia Sales, Navteq

Davide Scotti, EVP, Piaggio; Ravi Chopra, CMD, PVPL & Gabrielle Galli, CFO, Piaggio

(L) Michael Hankel, CEO, ZF Lenksysteme (R) ZF’s Phulgaon plant

Piaggio has developed a new LX 125 engine for the Indian market

and may use it for the

model globally

Antidote Awaited

The revision of India’s long term credit rating to neg-ative from stable, by Standard and Poor’s (S&P) last week has come as a bit of a surprise, though it is necessary to be factored in. The data released by

the International Monetary Fund (IMF)a couple of weeks ago showed that India has surpassed Japan to become the third biggest economy after the US and China. IMF data revealed that India’s GDP in Purchasing Power Parity (PPP) terms stood at $4.46 trillion in 2011, marginally higher than Japan’s $4.44 trillion. Its share in world GDP in terms of PPP is at 5.65 percent in 2011 against 5.63 percent of Japan. It also estimated that the gap will widen signifi cantly by 2017.

S&P cited slow fi scal progress and deteriorating eco-nomic indicators as the reason for its surprise move of revising the outlook on India’s long-term credit rating to negative from stable. Though the Finance Minister, Pranab Mukherjee stated that there is no cause for panic, he was concerned about downgrading India’s credit rating outlook, it is certainly a wake-up call for the govern-ment to pull up its socks in putting its act together on the macroeconomic front.

As far the global automotive industry is concerned, India is an attractive destination for investments due

to the sheer presence of its large untapped market, tal-ent availability, low cost manufacturing base for not only manufacturing vehicles, but also sourcing components. And these attributes will continue to woo investors in to the country. However, the government needs to take cor-rective action on a war footing so that the downgrading does not affect the prospects of the country.

While pursuing the macroeconomic policy for achieving higher economic growth, it is necessary to take specifi c meas-ures to boost inclusive growth. It is time for an antidote.

Wishing you much pleasure reading. Do send us your feedback.

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Printed by Mohan Gajria and published & edited by Lakshmi Narasimhan on behalf of Infomedia 18 LimitedEditor: T. MurraliPrinted at Infomedia 18 Ltd, Plot no.3, Sector 7, off Sion-Panvel Road, Nerul, Navi Mumbai 400 706, and published at Infomedia 18 Ltd, ‘A’ Wing, Ruby House, J. K. Sawant Marg, Dadar (W), Mumbai - 400 028. AUTO MONITOR is registered with the Registrar of Newspapers of India under No. 67827/98. Views and opinions expressed in this publication are not necessarily those of Infomedia 18 Limited. Infomedia 18 Limited reserves the right to use the information published herein in any manner whatsoever. While every effort has been made to ensure accuracy of the information published in this edition, neither Infomedia 18 Ltd nor any of its employees accept any responsibility for any errors or omission. Further, Infomedia 18 Ltd does not take any responsibility for loss or damage incurred or suffered by any subscriber of this magazine as a result of his/her accepting any invitation/offer published in this edition. No part of this publication may be reproduced in any form without the written permission of the publisher. All rights reserved.

QUOTESMarc Llistosella, CEO & Managing Director, Daimler India Commercial Vehicles

Roberto Colaninno, Chairman and CEO, Piaggio Group

India is moving from a supply driven market to a demand driven market, which spells huge opportunities for global players

The Vespa is not just our most famous and bestselling product around the world; it is also our business card, our technological flagship

Auto Monitor

T. Murrali t.murrali@infomedia18.in

EDITORIAL

CONTENTS

THE OTHER SIDE

Nissan prototype wings European wet test programme 22DeltaWing prototype sportscar kicked off its programme at Norfolk, with Marino Franchitti & Michael Krumm getting the opportunity to sample the car in wet conditions

Bosch closes acquisition of Voltwerk Electronics 24Bosch Group recently consummated acquisition of Voltwerk Electronics GmbH, a supplier of electronic components and software solutions for photovoltaic arrays

Lalit Choudary, Director, Infinity Cars Pvt LtdChoudary saw the opportunity for selling luxury cars in India and has emerged as marquee dealer of Aston Martin, BMW and Mini

CORPORATEMaruti counts on localisation for Ertiga 9BWith around 96 percent local content, Maruti’s Ertiga is hoping to effectively compete with its rival Toyota Innova

Coating suppliers target bus segment 10AAutomotive coating suppliers are expecting higher usage from the growing bus segment.with industry volumes expected to touch 85,000 units over the next three to four years

OEMs befriend social media to up marketing 11Automobile manufacturers have to see new ways to attract younger car buyers by exploring newer terrain of marketing

Commercial vehicles in India: A segment to reckon with 12India is emerging as a manufacturing base for low cost CVs, and the global market can look at the country for sourcing not only vehicles but also components

MSIL lays foundation for new R&D centre in Rohtak 16MSIL is looking to invest Rs 2,000 to Rs 4,000 crore in its new R&D Centre at Rohtak in Haryana spread over 600 acre

MRF bags hat-trick in JD Power study 17Madras Rubber Factory has been ranked the highest in the JD Power Customer Satisfaction Index Study 2012 with a score of 841, ahead of the industry average of 825 in 2012

Re-moding freight transport: TNO study 18EU’s white paper stated goal for road freight transport aims at 30 percent of the load over 300 km should shift to other modes such as rail or waterborne transport by 2030

30

GLOBAL WATCHPeugeot debuts models at CV show 20Peugeot displayed its latest Partner Electric and unveiled the car in the UK for the first time at the recent CV Show at NIC Birmingham, UK

12

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The new Starbus Ultra Skool, with its contemporary aerodynamic design, reflects care

that goes beyond what you'd expect from an ordinary school bus. Rest assured, it has all

the superior safety and comfort features that are Government-mandated, and also

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Power & performance from best-in-class technology • Aesthetics, comfort & safety way beyond the ordinary

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Auto Monitor

830 APRIL 2012

I N T E R V I E W

Could you highlight some of the current initiatives being undertaken by Nokia, Location & Commerce, in India?

Nokia’s Location & Commerce (L&C) has been established to enable unique location experi-ences for great mobile products, the navigation industry and the automotive market. Our location data is at the cornerstone for our customers being able to provide a vast array of consumer experi-ences: navigation, location based services and location-intelligent mobile advertising.

To offer our Indian custom-ers accurate location content, we have expanded our India map coverage by almost 80 percent from 2,299 cites to 4,125 cit-ies over a quarter; this coverage expansion includes over 1.225 mn km of road network, and more than six million Points of Interest (POIs).

On an average, we have launched a new product every quarter in India in the past year. The latest product launched early this year was our Navteq Traffi c Pro real time traffi c service. We continue to build and offer a robust product portfolio, which is ‘made for India’ including point addressing, discover cities and natural guidance amongst many others. We will continue to drive and walk the roads in India, adhere to rigorous quality stand-

ards to develop maps unrivalled in richness, detail and accuracy. We are looking to humanising technology to improve the end-user navigation experience.

What is the current level of line fi t navigation system in vehicles globally? What is the level of the same in India?

In our tracking study 2011 for India, we noticed an increase of 12 percent point change in the awareness levels of in-vehicle nav-igation (versus 2010). The launch of India’s fi rst line fi t navigation in Tata Aria at the end of 2010 has set the trend in the industry, and subsequent conversations in the industry could have driven this positive change. In terms of expe-rience with line fi t navigation, this number remains unchanged from 2010 to 2011. Slow adoption of in-vehicle navigation by consumers in 2011 could be due to the fact that in-vehicle navigation was avail-able in a select few SUV vehicles in India. Lag time exists between OEM launches and getting dealers up to speed about navigation being available in these new vehicle launches which may in turn delay consumer education/awareness.

Additionally, in the past year, we witnessed a positive growth in the aftermarket navigation in the auto industry. We expect to see more traction with leading auto OEMs to launch more line

fi t navigation in mid-high seg-ments in 2012.

What kind of opportunities are you looking at in India? What are the prospects in the line fi t-ment segment?

The opportunities are immense. In terms of part-ners, we work with automobile OEMs, telecom players (handset manufacturers, carriers), and application developers to enable a ‘Where ecosystem’. All major OEMs have launched naviga-tion or at least conducted trials for line-fi t navigation systems in India. Line fi t navigation is likely to take off from this year onwards and we are currently in discus-sions with numerous leading auto OEMs. In terms of aftermar-ket segment, there is tremendous growth and we continue to work with Mega Audio, Garmin and NNG to launch new devices pow-ered by Navteq Maps.

Launch of 3G services in India, coupled with growing adoption of smart phones has resulted in a buoyant LBS (Location-Based System) application in India, never seen before previously. Contribution of VAS (Value Added Service) to total telecom revenue here is increasing with a strong demand for regional and multilin-gual apps, leading to application developers and telecom operators focusing on local content. We see location-aware applications grow-ing with more telecom operators providing navigation and map services. We have worked with Tata Docomo to launch the ‘Route

Finder’ and ‘Friend Finder’ with Navteq Maps in India. iPhone navigation apps, launched by our partners, Navigon, NDrive and NNG are also powered by Navteq maps. Globally, our loca-tion content powers nearly 175 million navigation-enabled devices (including Nokia devices).

What are the challenges that you face in the Indian market and how do you plan to address them?

The map build-ing process has countr y specif-ic nuances. We researched the India market before entering, to ensure that our maps are developed by local experts who possess the local knowledge and know their cit-ies well. In addition, products & services are developed based on local consumers needs.

One of the unique character-istics of Indians is that they place value on guidance from people to reach their destinations. And they look for POIs, like banks, hospitals, movie theatres, places of worship and traffi c signals for guidance. We saw this uniqueness as an oppor-tunity and created and launched the Navteq Natural Guidance in India. For the fi rst time in India,

navigation applications are able to provide guidance that moves beyond the norm of using only time and distance-based direc-tional cues like “turn right in 50 metres”—it guides users through vivid descriptions of static orien-tation point, eg “turn left after the blue glass building” or “turn right at the traffi c signal”.

The road infrastructure in India is constantly changing. Our local fi eld teams are passionate about building the most robust map database and they ensure that we are constantly aware of the changes in the local road net-works, ensuring that we have the highest quality map data.

‘Line fi t navigation will give a boost to in-car navigation market’Vice President, Ocenia Sales, Navteq, Kirk Mitchell speaks to Shambhavi Anand on current scenario in mobility space and how Nokia could offer value for automotive segment globally.

Auto Monitor

C O R P O R A T E 930 APRIL 2012

Competi-t ion has compelled car man-

u fac t u rers i nto developing all kinds of strategies to suc-ceed. While offering more features at competitive rates and manufac-turing products locally are some of the strategies often adopt-ed by the car makers, there is another strategy that is getting more attention from them ie increasing the intensity of local component sourcing. In order to position its new segment vehi-cle, Ertiga in the Indian market, Maruti Suzuki has priced it very competitively. The car has 96 percent local content, there-by competing with its rival Toyota Innova.

Capturing New SegmentsMaruti Suzuki has always

been a frontrunner in identify-ing new passenger car segments and providing increasingly bet-ter products to its customers. The latest addition to this is the new seven-seater Ertiga, an MPV (Multi Purpose Vehicle) that is uniquely positioned and called as LUV (Life Utility Vehicle), at just above the price-tag of a com-pact car.

Eye On ExportsSince the new MPV has high

localised content, the man-ufacturer is able to price it competitively and planning to increase its market share in the other emerging markets. Taking

this forward, Maruti will be exporting Ertiga to Indonesia soon. “The fi rst batch of Ertiga will be shipped to Indonesia by the end of May,” said Maruti Suzuki India, Chief General Manager (Marketing), Shashank Srivastava. He added that the company has about three per-cent market share in the country and hopes to increase it in the future with the launch of Ertiga in Indonesia. The company will export the MPV as a Completely-Knocked Down (CKD) unit and assemble it there.

Targeting IndonesiaMPVs in Indonesia accounts

for about 60 percent of the total car sales and with Ertiga, Maruti Suzuki is going to make its presence felt in the booming MPV segment. The company has targeted to sell over 50,000 units in the first year. The car maker has also plans to roll out Ertiga in the other ASEAN mar-kets as well, since the demand for a multipurpose vehicle in these countries is quite high. Though major markets like Europe and Australia have com-municated their interest in such a low cost MPV, the company is not looking at these markets as of now.

Ertiga looks like an extended version of Ritz when seen from the front; the sharp swept-back head-lamps dominate the front end while the grille and bonnet sig-nifi cantly complements the facia. However, the vehicle is based on an extended Swift platform, which helped Maruti to build an MPV in a monocoque chassis. The suspen-sion has been fi ne-tuned according to the size and the weight of the vehicle to keep body roll minimal. Due to the monocoque chassis, it inherantly feels like car or sedan-like vehicle. While most rival MPVs have used the ladder frame chas-sis, the monococque design is an added advantage to Ertiga.

The company has made efforts to make its new MPV look like a large hatchback. It has an overall length of 4,265 mm and width of 1,695 mm, a length of 4,580 mm with a height of 1,760 mm. On the sides, the vehicle has a clean look and the fl ared wheel arches add muscle to its shape without appearing cluttered. What’s more, Ertiga is larger in reality when compared to its pictures.

To add more space in the inte-riors, Ertiga is 155 mm taller than the Swift and the wheel base has been increased by 310 mm. The ground clearance has been increased by 15 mm when com-

pared to Swift. The width of both the Ertiga and the Swift are the same (1,695 mm). In short, the physical attributes of the Ertiga are very suitable for the purpose of a compact MPV.

On test driving the car recent-ly, this correspondent could fi nd that Maruti has executed its engineering well by considering the Indian road conditions. The vehicle has the MacPherson strut at the front and torsion beam at the rear. The riding and handling are impressive perhaps due to monocoque chassis and bumps are also absorbed effortlessly. The car was tested in the rough road conditions outside Chennai where it performed well. The steering offers a good feel and response. This combined with the hatchback-like proportions makes it quite easy to drive in city. On highways too, the car is quite smooth even during over-taking and lane changing.

Under The HoodErtiga comes with two engine

options, one is on 1.4 litre, four cyl-inder VVT engine—K series, used in petrol variants. This is a new engine that Maruti has developed recently and Ertiga is the fi rst to use this new engine, which pro-duces 95 PS of power @6,000 RPM.

This engine churns out a torque of 130 nm @ 4,000 RPM. The sec-ond engine option is 1.3 litre DDiS super turbo engine that also pow-ers the Maruti Suzuki SX4 Diesel. This VGT engine gives out 90 PS power @ 4,000 RPM and has 200 nm of torque that kicks in at 1,750 RPM. Drive-wise, the Ertiga feels like a car unlike any of the cur-rent utility vehicles and gives a feeling of immense confi dence and enables the driver to be in absolute control.

The manufacturer has used the same fi ve-speed manual gearbox, which is commonly used in the Maruti family. However, the gear ratios have been adjusted accord-ing to the nature of the car to make it most drivable at all speeds. Gear shifting is smooth and accurate. There was a slight disengagement of gears in the car, which was given to us, but the clutch pedal is soft and enhances the comfort level during gear shifts.

In terms of comfort too, the Ertiga is in line with much of the compact cars out there, with quite comfortable fi rst and sec-ond row seats, with ample space available. The leg and back sup-port is also ample and one does not feel tired after long drives. It is at the third row that the car feels a bit constrained; it is most suitable for kids due to the lack of space—both headroom and legroom—owing to its compact dimensions. Feature-wise too, the car is well loaded with almost all the features of Swift, except for the automatic AC being pro-vided in the vehicle.

According to Srivastava, MPVs have emerged as the fastest grow-ing sub-segment, registering over 20 percent growth in the last three years. MPVs presently account for ten percent share of the Indian automobile industry.

Maruti counts on localisation for Ertiga

THE JOURNEY OF A THOUSAND MILES

STARTS WITH ONE STEP

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CENTRE FOR DEVELOPMENT

OF ADVANCED COMPUTING

(C-DAC), PUNE

G-ARC (NATRiP, Chennai Centre)

G-ARC (NATRiP, Chennai Centre)

Bhargav TS Chennai

Aesthetics & Interiors

Auto Monitor

C O R P O R A T E1030 APRIL 2012

Coating suppliers target bus segment

Automotive coating suppliers are expect-ing higher usage from the growing bus seg-

ment. Industry estimates peg the total volumes of buses above eight tonnes at around 85,000 units over the next three to four years and the segment may offer major opportunities for quality solutions.

O r i g i n a l E q u i pm e nt Manufacturers (OEMs) and independent bus manufacturers are increasingly demanding for quality and consistent fi nish and gloss, Distinctness of Image (DOI) and Volatile Organic Compound (VOC) compliance, extended warranty on the paint life, which sometimes is as much as 10 to 12 years. Most coating suppliers are investing in upgrading their capability through research in colour science and craft that leads to exact formulations and state-of-the-art colour tools that meet the needs for the advanced automotive coatings market and professional body shops.

“Large commercial vehi-cle manufacturers expect value addition in terms of enhanced participation like apply & supply on turnkey basis. Superior cus-tomer service, top-notch training, full technical & logistical support and detailed local knowledge is expected from coating suppliers,” said General Manager, Marketing, Automotive & Aerospace Coating, India & South Asia, Akzo Nobel, Hitesh Mehta.

On-time delivery and unin-terrupted material availability is one of the key aspects for bus manufacturers. Additionally, maintenance of planned inven-tory close to manufacturer’s location is another supply relat-ed requirement. Manufacturers are also increasingly looking for environment-friendly solutions like waterborne paints that meet tough international VOC norms.

Bus manufacturers have tra-ditionally used paints, which are low on performance and cost, are now increasingly switching over to PU (polyUrethane) based paints for better value addition. PU provides more durability, increased weather resistance and

higher gloss.The company aims to broad-

en its product range, dealership network and service points to help reaching out to both premi-um as well as other bus segments in commercial vehicle market. There is a signifi cant increase in the number of multinational commercial vehicle manufactur-ers entering the Indian market. Global coating suppliers are look-ing to leverage their international relationship with OEMs and bus body builders to penetrate deep-er into this segment.

“Though there may be some diffi culty in terms of overall automobile production in the short term, but medium to long term outlook for automobiles is very positive and hence we decided to restructure our busi-ness interest with our partners to address the opportunities in the segment,” said Chief Executive, Asian PPG Industries, Jagdish Acharya. The company is a major supplier to many OEMs including passenger cars, two-wheelers, bus body builders and commercial vehicle man-ufacturers. Some of its major

customers include Volkswagen, Ford and GM India. He added that most suppliers are building up capabilities for the future but may not be keen to raise produc-tion capacity or output given the uncertain demand scenario.

A sia n Pa i nts recent ly restructured its joint venture arrangement with its partner PPG by bringing performance, powder and protective coating solutions under a new JV enti-ty with automotive and marine coating solutions offer existing

JV Asian PPG in order to enhance product lines in each of these segments and grow market share. He elaborated that there is a major forward momentum in the refinish market, includ-ing the bus body segment, and premium solutions will be increasingly sought after by these manufacturers. “Refinish market has been growing faster than the automobile OE mar-ket but both the segments have been lacklustre since last year,” Acharya signed off.

Abhishek Parekh Mumbai

RFID toll plaza in action

Country’s fi rst RFID (Radio Frequency Identifi cation Device)-based electron-ic toll collection plaza that has been introduced recently at Chandimandir,

Punchkula (Haryana) will help users make pay-ment without stopping at toll plazas, eventually reducing traffi c congestion and commuting time. Toll statements can be made or made available online to the road users and they need not have to stop for receipt.

RFID, besides satisfying functional require-ments, is the cheapest solution available. It is extremely simple to use and administer, requiring no action on the part of the user. In fact the sticker itself can be stuck on the vehicle by the user. It is essential to network all the toll plazas for seamless data communication between toll plazas and the Central Clearing House (CCH).

For updating toll data, a two tier database struc-ture is deployed—one at the plaza level and other at the national level (Central Clearing House). All the transaction details of the tag accounts will be stored in the central database. Before issuance of RFID tags, the road users need to register with the agency with the basic details like name, address, vehicle type and vehicle registration number. The information will be stored in the central database along with the unique identifi cation code of tag. To begin with, one-two lanes in each direction will be dedicated for Electronic Toll Collection (ETC) at each toll plaza. The number of ETC lanes may be increased depending on the number of tag users.

Each ETC lane will be equipped with an Automatic Vehicle Classifi cation (AVC) system for cross verifi cation of vehicle categories to avoid any misuse of tags. The ETC management soft-ware will compare the class of vehicle as per the tag account and the AVC class. In case of discrep-ancy, the system triggers the camera fi tted in lane and computes the image of the vehicle along with the number plate. The information will be used for the enforcement of violated vehicles.

A centralised back offi ce operation or Central Toll Clearing House (CTCH) is mandatory for the operation of nation-wide ETC systems. The CTCH concept is a transaction management system, which will enable multiple toll collec-tion agencies to share toll transaction data and revenue reconciliation.

Irrespective of the toll plazas being operated by NHAI or BOT concessionaires, the readers at toll plazas will read tag IDs and send this along with the plaza ID to the CTCH. The CCH system will debit the applicable amount from the account of road users. It will run an end of day settlement and send fi les to every toll plaza operator, and also be sent to the bank for conducting fi nancial settle-ments of all the toll collecting agencies.

Our Bureau New Delhi

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C O R P O R A T E 1130 APRIL 2012

OEMs befriend social media to up marketing

Will monetary policy announcement help revive investments?

Skoda Scout priced at `6.79 lakh

No print advertisement, not a single television commercial during the launch, yet, Mahindra

XUV500 seized customers’ imag-ination. The demand for the sports utility vehicle (SUV) went frantically so high that the manu-facturer had to stop booking. “To say that we did not communicate will be wrong, we were commu-nicating, we were advertising, but the point was that we were advertising through different media that is new media,” Vice Chairman & Managing Director, Mahindra & Mahindra, Anand Mahindra said recently.

The OEM has created a fren-zy for the XUV on social media platforms like Facebook, Twitter and blogs. One of India’s largest utility vehicle manufacturers has several thousand friends on Facebook for various products including XUV400, Xylo, Scorpio and Thar 4X4.

The average age of car buy-ers is becoming younger with

an increasing number of youth having disposable income. The manufacturers have to see new ways to attract these kinds of people and understand the new terrain of marketing. Mahindra added “Simply spending more on marketing doesn’t mean that I will get more market share. Around 90 percent of car buy-ers do comparison of research of products online. The mantra is how effectively we are able to get across to target audience.”

Echoing, Mahindra’s opinion, the country’s largest car maker, Maruti Suzuki India (MSIL), Chief General Manager (Marketing) Shashank Srivastava, said “Digital media is very good for existing brand where the posi-tioning is clear and you want to simply support the brand and have sustenance. The digital mar-keting that we use includes social media, ORM (Online Reputation Management) and search engine optimisation. We have found digital media an extremely cost effective tool of advertising. MSIL has increased its market-ing expenditure on digital media to 17 crore for this fi nancial year

from `seven crore a year ago.The average age of car buy-

ers have shrunk to 29, and these people are very tech savvy, so addressing them has to be very much different from the con-ventional customers. Hyundai Motor India, Director (Marketing & Sales) & Board Member, Arvind Saxena opined, “We are now focusing on digital platform because I think that’s where we fi nd lots of customers at least in

big cities. On this side of commu-nication, we would mean using email of the customers, social media in addition to the stand-ard way of marketing.”

Japanese car manufactur-er, Nissan Motor India has been running a successful branding campaign Star India Campaign on Facebook, which has got received a million likes, while over 80,000 people are talking about it. The carmaker is producing a fi lm with Hindi fi lm star and its brand ambassador Ranbir Kapoor and

will cast the winner of the cam-paign with him. The audition of the fi lm was done on Facebook for which over 3,000 participants uploaded their videos.

“There is emphasis on the digit-al platform, though the investment in this media for Nissan Motor is still only single digit of the market-ing spends. In three to four years, it will become double digit.” CEO, Hover Automotive India (HAI), Dinesh Jain. HAI is responsible for the marketing of Nissan Motor in India.

Union Finance Minister, Pranab Mukherjee has said that everything will be done to help maintain a supportive monetary policy stance for growth. The Finance

Minister was responding to the Annual Monetary Policy statement for 2012-13 announced wherein the RBI has declared a 50 basis point reduction in the policy rates. The repo rate under the liquidity adjustment facility now stands at eight percent and the reverse repo rate, maintaining the fi xed corridor of 100 basis points, at seven percent with immediate effect. This marks a beginning of the reversal in the policy rates after more than two years.

The minister said that the moderation in the core infl ation rate for four months in a row from 8.31 percent in December 2011 to 5.18 percent in March 2012 along with a sharper decline in the infl ation for manufactured products from 7.64 percent to 4.87 percent in this period, has facili-tated the change in the monetary policy stance. However, he said that food and primary infl ation has shown some signs of hardening in the month of March 2012, which is a cause for some worry. It was intended to continuously monitor the situ-ation and take the required steps to manage the short-term supply constraints especially in those food items which have been a cause of infl ationary spikes in the past months.

The growth outlook, which had weakened in these past months should now improve. The mon-etary policy announcement is expected to help in investment revival and contribute to strengthen-ing of business sentiments. In the coming weeks some additional steps will be taken to further rein-force the focus on growth, he said.

Skoda Auto India introduced the Fabia Scout variant to the Fabia model line at 6.79 lakh (ex-showroom Delhi). Some of the newer features include projector headlamps, front

bumper with spoiler, rear bumper with diffuser, peripheral protective cladding, front and rear door sill trims and stainless steel pedal set. The Scout would be available in petrol and diesel 1.2-litre engine with fi ve speed manual transmission. The diesel variant is priced at `8.1 lakh (ex showroom New Delhi).

Nabeel A Khan & Shambhavi Anand New Delhi

“We were advertising through

different media that is new media,” Anand Mahindra,

Vice Chairman & MD, Mahindra & Mahindra.

The OEM has a created a frenzy

for the XUV on social media platforms like

Facebook, Twitter and blogs

Our Bureau Chennai

Our Bureau New Delhi

A Haas product

Auto Monitor

S P E C I A L R E P O R T1230 APRIL 2012

Commercial vehicles in India:

India is emerging as a manu-facturing base for low cost Commercial Vehicles (CV), and the global market can

look at the country for sourcing not only vehicles but also com-ponents. This is because the megatrends of India for the com-mercial vehicles are in sync with those of the developed markets. This is the message that emerged out of the two-day event—Com-mercial Vehicle Megatrends India 2012—organised by Automotive World in Chennai recently.

Key NotesDelivering his keynote address,

CEO and Managing Director, Daimler India Commercial Vehicles, Marc Llistosella said India is moving from a supply driven market to a demand driv-en market, which spells huge opportunities for global players. The pressure to grow in India is dramatic due to the growth of population, Gross Domestic

Product and the Purchase Power Parity. These indicators show that India is rising and the truck segment is bound to witness sig-nifi cant growth.

According to him, the coun-try has low cost manufacturing capability, excellent brain centre, good sourcing and a huge market, which are enough indications for a good business in the CV seg-ment. So far, the global players have achieved little success in India due to lack of India specifi c products. The Indian market is still very heavily slanted towards local CV manufacturers, who hold around 98 percent of the local CV market.

Evolving Customer NeedsTalking on the theme of the

session—‘View From The Top,’ he said, with changing times and evolving customers’ needs, the market is expected to modern-ise in the coming years in terms of concepts, segments, technol-ogy and value added services. Besides, strong fundamentals of Indian economy coupled with

the growth will drive the truck industry volumes. The Indian CV market is expected to follow the footsteps of peers and the developed market in terms of value and technology. India has dramatic potential for the next 20 years, he said. However, the President-Commercial Vehicles Business Unit, Tata Motors, Ravi Pisharody opined that the CV seg-ment in India has a global scale, which coupled with low cost

base, will ena-ble the country to have a signifi -cant presence in the global arena. Since China b a n k s on production numbers, the scale will remain h ig her, but there exists an opportunity for building a supe-rior brand value for ‘Made in India’ products.

The Indian CV industry, in short term, will see fast recovery and growth. In the mid-term, the small CVs will remain robust due to rural penetration and increasing pur-chasing power. MHCV will see another growth spurt in two to three years on the back of increased spending on infra-structure. The shift in customer preference is expected in engine power and torque related issues besides, value added services.

According to Managing Director and CEO, Asia Motor Works, Anirudh Bhuwalka, there are fi ve key drivers that infl uenc-es the CV industry in a positive manner—infrastructure, legis-lation, environment, product and driver. Elaborating his views, he said the infrastructure is the key due to rapid expansion in urban megacities, continued impetus on road infrastructure, devel-opment of the hub and spoke transport model and upgradation of major ports. The legislation can drive the truck industry with the introduction of GST as it will improve transport efficiency by seamless inter-state travel. Legislation on replacement of trucks and ban on overloading will spur the growth further. As far as the trend concerning the environment, he said tougher emission norms will propel the demand for new and higher tech-nology vehicles. It is necessary to control development costs and the government needs to provide cleaner fuels. Customers’ expec-tations in terms of increased

Our Bureau Chennai

“Demand profile, product development and new business models to dominate”

Giving his view on CV Megatrends India 2012, the Partner and National Leader, Automotive Practice, Ernst & Young, Pakesh Batra said the emerging trends that are likely to affect the Indian CV industry, are along the dimensions of demand profi le, product development and new business models. Fleet operators focus on capacity utilisation to reduce operating cost and diversify customer base while rapid urbanisation, improving road infrastructure and regulatory policies infl uence CV buyers and OEMs. Global OEMs redefi ne brand posi-tion while their domestic counterparts build R&D competence and optimise costs through outsourcing and modularisation.

Suppliers improve local capacity and invest in R&D while improving operational effi cien-cy and developing an aftermarket proposition. OEMs tackle manpower, economic and sup-ply chain risks through skill development, production localisation and supplier collab-oration. Yet another megatrend, according to him is the building up of R&D competence and evolution of India development hub. Product development trends are evolving in response to varying product needs across customer seg-ments, he said.

Western MNCs mostly focus on global product segments as part of their product and marketing strategy for emerging markets. Some MNC’s in India have successfully begun to real-ise the opportunity in local and bottom of the pyramid customer segments, which represents a large future global market. He pointed out how Nokia, being an MNC, has made India as a manufacturing base for mobile phones. The MNCs from emerging markets are developing ‘value products’ for these segments that will be exported to developed markets and other emerging markets.

To retain and establish market leadership and exploit the opportunities in India, several changes need to be considered in the operat-ing model including product development and procurement. For many MNCs, the emerging markets like India and China now account for an important portion of the global revenue and profi ts. Product development paradigms in western countries need to change and adopt more ‘frugal engineering’ approaches to com-pete with emerging market competitors. There is a need for modular design approach to decrease time to market and cater to a wider range of customer segments. Not every country

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S P E C I A L R E P O R T 1330 APRIL 2012

A segment to reckon with power to weight ratio, interna-tional standards at competitive prices, better ergonomics, high-er safety standards, durable and reliable, lighter and effi cient vehi-cles drive the demand further. Bhuwalka expressed concern on the issue of driver shortage. He said it is necessary to elevate status of Indian truck drivers as qualifi ed drivers can adapt to new technologies.

Emerging Trends Subscribing to Bhuwalka’s

view, Director-Diesel Engine Oil Technology Programme, Castrol, Gordon Lamb said emissions, infrastructure and increasing fl eets are the emerging trends. The emerging environmental leg-islations drive future powertrain projects across the world and India is not spared. The cost of trucks is increasing due to emission regu-lation and this needs to be offset by the increased productivity, he said. Though the OEMs burn their midnight oil to increase fuel effi ciency and reduce emissions, the cost of ownership remains

key for customers, he said. The cost of ownership comprises of cost of vehicle, fuel, servicing and resale value.

The Head of Engineering (commercial vehicles), Tata Motors, AK Jindal had a differ-ent view. According to him, the key drivers for the growth of commercial vehicles are techno-logical advancements, political and social changes, environ-ment and infrastructure. The challenges for the CV engineers include managing fraudulent fuel practice, norms on vehicle weight, weak enforcement, emis-sions, poor road conditions and varying geographical conditions. Mere adoption of engineering and technology from the devel-oped markets will not suffi ce. Instead, it is necessary to offer customised solution for the market with trade-offs between cost and performance keeping geographical variations.

Scope For Improvement There is a huge scope for

improving the effi ciency since

the overall effi ciency of the auto-mobile currently is estimated at only 13 percent. According to him, up to eight percent of fuel effi ciency can be achieved by improving aerodynamics, espe-cially in tractor-trailer vehicles. Engine calibration and optimi-sation of drive train ratio can get about seven percent and fi ve percent improvement in fuel effi -ciency respectively.

The Vice President of Innovation, Dana Corporation, Don Rembosk i, said the megatrend that will spur com-mercial vehicles in India is its young population as it will fuel economic growth. Strong and sustainable growth of Indian middleclass will fuel economic growth and increase demand for trucks. “Indian emission regulation lags, but on par with western markets; enforcement is often contingent upon eco-nomic impacts,” he said. The four key elements for com-mercial vehicle efficiency are engine, drivetrain, aerodynam-ics and tyres.

According to the report released by Ernst & Yong: ‘Megatrends Shaping The Indian Commercial Vehicle Industry’, the Indian CV sales will reach 1.6 million units by 2016, grow-ing at 15 percent CAGR for the next fi ve years. The OEMs and distributors will increase cross-selling of products, promote captive fi nance and variety of value added services. The report found the need to design buses with low-fl oors, GPS and lower NVH. It also pointed out that 10 to 15 percent of the truck fl eet remain idle due to shortage of trained drivers and inadequate service network.

Urging the need for road infrastructure development to facilitate OEMs, Partner & National Leader, Automotive Practice, Ernst & Young, Rakesh Batra, said, “By 2012, one expects

to have six-laning of 6,500 km and a development of 1,000 km of expressways. Of the 66,590 km of National Highway, only 38 percent are single-lane, lead-ing to logistics ineffi ciencies as trucks can cover only 250 km per day versus 600 km global-ly. Moreover, the development of road infrastructure ena-bles OEMs to introduce higher power vehicles. By 2012, the modernisation of roads under the NHDP (National Highway Development Programme) is expected to involve a total investment of $47.2 billion.”

The report identifi ed some megatrends that will impact the Indian commercial vehi-cle industry: Focus on capacity utilisation, rapid urbanisation, improving road infrastructure redefi ned brand positioning, and value added services.

Indian CV sales to reach 1.6 million units by 2016

needs to follow the path of more mature and developed economies. In a bi-polar world, the experience and expertise required to achieve market leadership is different between devel-oped and emerging markets. India is emerging as a manufacturing and product design hub for small and low cost vehicles, he pointed out.

The competition among commercial vehicle manufacturers in India is expected to intensify as international OEMs raise the bar in terms of technology, quality, durability and reliabil-ity. While the domestic OEMs invest to upgrade products and technology, strengthen dealer relationships and loyalty, reinforce distribu-tion networks and build new competencies.

“Advancing regulations, better infrastructure to spur demand”

According to Rahul Jain of Boston Consulting Group, by 2020 global OEMs will emerge from BRIC nations and this region will outstrip TRIAD nations in terms of volumes. About 50 percent of the revenues for the world truck industry will come from BRIC nations. Six of top ten truck OEMs are from BRIC markets today. The Asian OEMs gradually conquering worldwide sales leadership, but still focusing on home markets. However, the market dynamics differ amongst BIRC nations. Industry driv-ers for commercial vehicles in India include advancing regulations, better infrastruc-ture, more organised demand and globalising CV landscape.

In this scenario, the strategic agenda for the Indian OEMs will be on managing two different portfolios over time, containing complexities, controlling the transition and retain the cus-tomers, bridging the technology gap with Triad OEMs and leveraging current portfolio in other markets. For the OEMs from TRIAD, it will be on developing a platform that offers better economics than the Indian trucks, garnering share from Indian OEMs before their portfo-lio catches up, retaining customers besides, localising and ramping up operations with the right cost-to-serve. Jain said the global sup-pliers should look at developing aggregates to serve the new Indian mid-market, localise operations to achieve the right cost to serve in addition to developing Tier II and Tier III sup-pliers despite constraints of sub-scale India operations. The Indian suppliers have to look at options to enhance technical know-how and offer superior quality to serve the mid-market, ensuring parts re-use / modularity to manage complexity and leverage cost position to serve other markets.

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S T U D Y1430 APRIL 2012

In Q3, 2011-12, the Indian two-wheeler (2W) indus-try recorded sales of 3.4 million units and main-

tained a growth of 11 percent (YoY) but a fl at (QoQ). Although the YoY volume growth of the industry remained in double digits, the pace of growth during the last quarter was at its low-est gear in the last three years. The deceleration in growth was contributed mainly by the motor-cycles segment which grew at a much lower rate of 9.2percent (YoY) in Q3, 2011-12; even as the

scooters segment continued to post 20percent+ (YoY) expan-sion. Overall, ICRA expects the domestic 2W industry to report a volume growth of ~13 percent in 2011-12 as we expect growth to fade further in Q4, 2011-122 due to base effect.

In an environment where the northward movement of infl a-tion, fuel prices and interest rates has been the nemesis of the Indian automobile indus-try at large, the 2W industry has been the most resilient, refl ected in its healthy volume growth of 15 percent (YoY) in 9m, 2011-12. The growth has been supported by various structural positives associated with the domestic 2W industry including favourable demographic profi le, moderate 2W penetration levels (in rela-tion to several other emerging markets), under developed public transport system, grow-ing urbanisation and expected strong replacement demand, besides moderate share of fi nanced purchases.

ICRA expects these strengths, coupled with the OEMs’ thrust on exports, to aid the 2W industry to report a volume CAGR of 10-12 percent over the medium term to reach a size of 21-23 million units (domestic + exports) by 2015-16.

The Indian two-wheeler (2W) industry recorded sales vol-umes of 3.4 million units in Q3, 2011-121, a growth of 11 percent (YoY) but fl at (QoQ). Although the YoY volume growth of the industry remained in double digits, the pace of growth during the last quarter was at its low-est gear in the last three years. The deceleration in growth was contributed mainly by the motor-cycles segment which grew at a much lower rate of 9.2 percent (YoY) in Q3, 2011-12; even as the scooters segment continued to post 20 percent+ (YoY) expan-sion. Overall, ICRA expects the domestic 2W industry to report a volume growth of ~13 percent in 2011-12 as we expect growth to

fade further in Q4, 2011-122 due to base effect.

In an environment where the northward movement of infl a-tion, fuel prices and interest rates has been the nemesis of the Indian automobile indus-try at large, the 2W industry has been the most resilient refl ect-ed in its healthy volume growth of 15 percent (YoY) in nine-m, 2011-12. The growth has been supported by various structur-al positives associated with the domestic 2W industry includ-ing favourable demographic profi le, moderate 2W penetra-tion levels (in relation to several other emerging markets), under developed public transport sys-tem, growing urbanisation and expected strong replacement demand, besides moderate share of financed purchases. ICRA expects these strengths, cou-pled with the OEMs’ thrust on exports, to aid the 2W industry to report a volume CAGR of 10-12 percent over the medium term to reach a size of 21-23 million units (domestic + exports) by 2015-16.

SALES VOLUMES & MARKET SHARES

Scooters: Sales VolumeBarring Q1, 2011-12, the

growth in scooter segment’s sales volumes has generally outperformed that of the motor-cycles segment, partly due to the former’s smaller base. In Q3, 2011-12 too, the sales volumes of the domestic scooters segment at ~660,000 units recorded a growth of 21.6 percent (YoY), higher than the 9.2 percent growth in motor-cycle sales. With this, the share of the scooters segment in the total domestic two-wheeler vol-umes increased to 19.4percent in Q3, 2011-12 from 17.6 percent in 2010-11.

TrendsThe Indian motorcycles seg-

ment continues to be dominated by Hero MotoCorp (erstwhile Hero Honda) which has been recording sequential gains in market share over the last three quarters. The top three players accounted for 88.2percent of the industry’s volumes in Q1, 2011-12 (92.0percent in 2007-08), with Honda Motorcycles having over-taken TVS since Q1, 2010-11 as the third largest player after Hero MotoCorp and Bajaj Auto.

SCOOTERS: QUARTERLY SALES VOLUMES AND MARKET SHARE

Sales Volumes AnalysisBarring Q1, 2011-12, the growth

in scooter segment’s sales vol-umes has generally outperformed that of the motorcycles segment, partly due to the former’s smaller base. In Q3, 2011-12 too, the sales volumes of the domestic scoot-ers segment at ~660,000 units recorded a growth of 21.6percent (YoY), higher than the 9.2percent growth in motorcycle sales. With this, the share of the scooters segment in the total domestic two-wheeler volumes increased to 19.4percent in Q3, 2011-12 from 17.6percent in 2010-11.

Market Share PatternsOverall, Honda Motorcycles

continues to maintain its lead-ership position in the scooters segment through its f lagship brand Activa (besides Aviator and Dio) enjoying a market share of

50.7 percent in Q3, 2011-12. While capacity shortfall at the compa-ny’s plant at Manesar (Haryana) had restricted its volume growth in the recent past, the company began commercial production at its new plant at Tapukara (Rajasthan) in July 2011. This has allowed the company to consoli-date its market position over the last two quarters. However, Hero MotoCorp’s demonstrated suc-cess in improving market share (through its sole brand Pleasure) coupled with new scooter models proposed to be launched by Hero MotoCorp, TVS and Yamaha over the short to medium could imply shrinkage of market share gap between the market leader and others over time.

Short To Medium Term Outlook

ICRA expects the scooters segment to gradually increase its share in the domestic 2W market from 17.6percent in 2010-11 to ~21percent by 2014-15. With this, the domestic scooters market is estimated to nearly double in size by 2014-15. Thus, even as a mul-titude of brands already dot the segment’s landscape and more are expected to follow, the likely expansion in the pie should offer suffi cient volumes for the indus-try to grow profi tably. For the new entrants, a faster gain in market share could hasten the process of profi tability improvement.

OEM FINANCIAL STATUS

• Hero MotoCorp Graph Revenues: In Q3, 2011-12,

Hero MotoCorp’s revenues at `5,983.6 crore grew by 16.9 percent YoY and 3.4 percent QoQ, supported by 11.3 per-cent YoY and 2.9 percent QoQ increase in sales volumes and 5 percent YoY and 0.5 percent QoQ increase in average real-isations. Till 2010-11, exports accounted for 2.5 percent of the company’s sales volumes. Although since the time Hero MotoCorp’s JV agreement with its erstwhile partner Honda (Japan) ceded in Dec 2010, the company has been unable to scale up its exports much; it is likely to get more aggressive on the exports front as and when its fourth manufacturing plant gets established (for which the company is mulling a location near one of the ports).

Operating Profit Margins (OPM): Hero MotoCorp’s

OPM at 15 percent in Q3, 2011-12, declined marginally by 15 basis points (bps) QoQ but increased by 454 bps YoY. The YoY expansion in HMCL’s core EBITDA margins, howev-er, was relatively lower at 194 bps YoY on exclusion of the estimated royalty payments made by HMCL to its erst-while partner Honda Motor Company (HMC, Japan) in Q3, 2010-11. Going forward, HMCL’s ability to sustain the scale required to absorb the additional expenses being incurred for creating a new corporate brand, introduction of new models, building of R&D capability and exploring overseas markets will govern its profi tability.

Net Profi ts: Hero MotoCorp’s Q3, 2011-12 PAT at 613.0 Crore grew by 42.9 percent YoY and 1.6 percent QoQ. Overall, the company’s revenues and PAT touched a record high in Q3, 2011-12.

• Bajaj Auto Revenues: In Q3, 2011-12, Bajaj

Auto’s revenues at Rs. 5,063.2 Crore grew by 21.2percent YoY but declined by 3.9percent QoQ) led by continued strong exports growth in both the 2W as well the three-wheel-er (3W) segments; increase in average realization due to both price increase as well as favourable change in product mix; and favourable curren-cy movement on exports. The company management’s out-look on exports (~32 percent of 2W volumes in Q3, 2011-12) remains robust with a target to achieve export of 1.5 million units in 2011-12E, refl ecting a growth of 25 percent over 2010-11.

Operating Profit Margins (OPM): Bajaj Auto’s OPM improved to 21.0percent in Q3, 2011-12, higher by 63 bps YoY and 89 bps QoQ. The improve-ment in margins was supported by relatively higher realiza-tions from exports, operating leverage benefi ts and ration-alization of spends on sales promotion. The DEPB ben-efi ts were discontinued post September 2011; however, BAL has undertaken price increase on export models (besides price increase on domestic models), which should allow the com-pany to sustain its margins

going forward. Net Profi ts: In Q3, 2011-12,

while Bajaj Auto’s OPBITDA growth at 25.0percent (YoY) was robust, the company’s PAT at Rs. 795.2 Crore grew at a relatively lower rate of 19.2percent (YoY). This was due to the exceptional MTM loss of Rs. 58.9 Crore recorded by the company in Q3, 2011-12 related to the valuation of for-ward exchange contracts. This is a notional loss and would get reversed on maturity of the underlying contracts (assum-ing the company’s actual exports remain in line with its budgeted estimates during the term of the contract).

• TVS Motor Revenues: In Q3, 2011-12,

TVS’ Net Sales at Rs. 1,762.2 Crore grew by 7.0percent YoY but declined by 11.5percent QoQ. While the company’s total 2W volumes in Q3, 2011-12 grew by 0.9percent YoY and total three-wheeler (3W) vol-umes declined by 11.0percent YoY, the revenue growth was much higher by virtue of favourable change in product mix. Thus, notwithstanding the increase in proportion of low-ticket mopeds in TVS’s domestic 2W sales volumes from 39percent in Q3, 2010-11 to 41percent in Q3, 2011-12, the increase in proportion of >100cc scooter (Wego) and >125cc motorcycles (mainly Apache RTR family) in its sales mix enabled it to improve its average realization YoY.

Operating Profit Margins (OPM): TVS’ OPM at 6.5percent in Q3, 2011-12 was 44 bps high-er YoY but 40 bps lower QoQ. While the company’s prod-uct mix in Q3, 2011-12 was in its favour on YoY basis, its relative deterioration on QoQ basis accordingly translated into movement in OPM.

Net Profi ts: While TVS recorded OPBITDA growth of 14.6percent YoY in Q3, 2011-12, the compa-ny’s PAT growth at 1.4percent YoY was much lower on account of higher tax rate and lower ‘other income’. Also, the compa-ny’s PAT in Q3, 2011-12 declined by 26.1percent on QoQ basis both due to negative revenue growth (QoQ) as well as decline in OPM on QoQ basis.

(Courtesy: ICRA)

Analysis of two-wheeler industry in India

The 2W industry growth has been

supported by various structural positives associated with the domestic industry

including favourable demographic profile, urbanisation & strong

replacement demand

Auto Monitor

C O R P O R A T E1630 APRIL 2012

MSIL lays foundation for new R&D centre in Rohtak

Hinduja Group Co, L&T Komatsu oil agreement for co-branded range

As contribution of Indian engineers is increasing in the development of Maruti Suzuki India’s

(MSIL) products, the carmak-er is boosting its investment in research and development in the country.

MSIL recently laid the foun-dation stone of its new R&D Centre at Rohtak in Haryana. The facility is spread over an area of 600 acres. The company is expected to invest in the range of 2,000 to 2,400 crore to set-up this facility. Speaking on the occasion, MD and CEO, Shinzo Nakanishi said, “Maruti Suzuki’s R&D centre at Rohtak will be equipped with latest infrastruc-ture and world class test tracks. It will augment its capabil-ity of Maruti Suzuki engineers manifold. This will enable us to design, develop and launch cars at a faster pace.” The centre at

Rohtak will be an integrated facility for vehicle testing and evaluation, which is crucial for developing new car models.

Maruti Suzuki has increased the number of engineers in a systematic way over the last few years, and is scaling up its R&D capability to launch newer mod-els and strengthen leadership in the fast growing Indian market.

In recent years, MSIL engi-neers have acquired signifi cant know-how and hands-on expe-rience in different areas of automobile R&D. They have co-designed and developed global models like Swift and the recent Ertiga, with their counterparts in Suzuki, Japan.

The company has introduced the highly acclaimed light weight and fuel effi cient K-series petrol engine with next generation engine technology. In the area of alternate fuel technology too, Maruti Suzuki engineers have successfully designed and developed CNG and LPG vehicles.

L&T-Komatsu Limited i n ked a n ag ree-ment with Gulf Oil Corporation Ltd (A

Hinduja Group Company) recently to market a co-brand-ed range of lubricants for its equipment aggregates across the country. L&T-Komatsu, a JV between L&T and Komatsu- world’s leading manufacturers of hydraulic excavators, while Gulf Oil Corporation is one of the leading private sector play-ers in the lubricant industry.

Gulf Oil Ltd, President & CEO, Ravi Chawla, said, “We are pleased to tie-up with L&T Komatsu, an industry leader with their high technology prod-ucts. This further strengthens our presence in the construction sector, which is the key segment for our growth in the coming years. Our products and services have been designed keeping in mind the extreme working envi-ronment of construction and mining sites. For this, our team is fully prepared to deliver total customer satisfaction.”

The co-branded oils have been specially formulated for L&T-Komatsu equipment to meet the stringent engineering speci-fi cations. The portfolio includes engine oils, transmission oils and hydraulic oils. These highly engineered products represent the next generation of lubricants and exceed the existing per-formance and emission norms, thereby increasing the life and

reliability of these capital inten-sive equipments. The products would be available in conven-ient pack sizes of 20 and 210 litres to cater to the varied consumer requirements.

Gulf Oil developed and imple-mented the usage of ‘longer drain lubricants’, with technologically advanced formulations in India over the years and is backed by a

strong and extensive distributor network.

The company has experience of marketing co-branded oils with other OEMs like Ashok Leyland, MAN Force and Mahindra & Mahindra and is confi dent that this expertise will also add value to customers of L&T Komatsu in the construction sector.

This product range will be marketed through both L&T-Komatsu’s and Gulf Oil’s distribution channels and will also be sold directly to their major customers. This will give an impetus to ensure the avail-ability of quality products to the end- customers, who are locat-ed in remote parts across the country.

Gulf Oil is expanding its reach rapidly and currently the company’s distribution channel comprises of over 50,000 retail-ers across India.

Our Bureau New Delhi

The co-branded genuine oils have been specially formulated for L&T-Komatsu equipment

and are engineered to represent the next-

gen lubricants, thereby increasing the life of

the equipment

CM Bhupinder Singh Hooda with S Nakanishi, MD & CEO MSIL at the laying of the foundation stone of Maruti Suzuki R&D centre at Rohtak

Gulf Oil and L&T Komatsu officials during the tie-up

Our Bureau Chennai

Auto Monitor

C O R P O R A T E 1730 APRIL 2012

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Volvo to triple its luxurycar sales this year

TVS Logistics appoints Gordon Silvey as global head-customer development

HML offers Montero upgrade at same price

MRF bags hat-trick in JD Power study

In spite of increase in excise duty, Swedish lux-ury car maker Volvo aims to triple its sales this year,

though it is very small in number compared to German luxury car makers.

Last year, the Swedish car-maker sold 320 cars in the country and this year, it expects to deliver over 1,000 units. For achieving this target, Volvo Auto India is planning to bring newer products and will be expanding its dealer network. “We will be bringing smaller diesel engines for the Indian market, which will have very good mileage, good torque and environmental friendly,” said Volvo Auto India, Managing Director, Tomas Ernberg.

At present German majors BMW, Audi and Mercedes Benz have a stranglehold on the luxury car market in India. They are fol-lowed by Tata-owned Jaguar Land Rover and then Volvo. The March-quarter numbers show Audi overtaking Mercedes to grab the number two slot which Mercedes

had held since 2009. Mercedes was leading the pack till BMW displaced it in 2009. Ernberg said, “We will be having a lot more pres-ence in the markets in the coming months to achieve our targets and there is intense competition for the top position. The recent trend shows that there is a space for everyone to grow and give us the confi dence to fi ght for bigger market share.”

Volvo Cars has been here since 2008 and currently has a small footprint in India, but the company believes the country will become its “focal point” in the coming months. Ernberg said “Under a relatively new owner (Ford sold Volvo to Chinese carmaker Geely in 2010) and a new CEO globally, the company has now put India in perspective – as one of the most promising markets in the world.”

The luxury car segment in India accounts for just one percent of the overall volumes of 2.5 million cars. By 2020, car volumes will touch fi ve million and is gunning for 15 per-cent of the segment by then. Volvo has eight showrooms and seven dealerships across India, which will be doubling its showrooms and dealerships by 2013.

TVS Logistics Services has announced the appoint-ment of Gordon Silvey to its senior management

team, as Global Head-Customer Development. In his new role, Gordon will be responsible for continuing the worldwide growth of TVS Logistics, its sub-sidiaries and joint ventures. Silvey will be based out of TVS Logistics’ Chennai offi ce and will be reporting to Executive

Director, TVS Logistics Services, S Ravichandran.Gordon, an alumnus of the prestigious Cranfi eld University and Henley Management Schools in UK. Working previously in senior roles for United States Lines (ship-ping); FedEx (logistics); Ryder Europe (transportation and logis-tics); Ryder GSCS (global supply chain solutions); Linfox Logistics (Asia-Pac logistics); Australia Post (Asia-Pac logistics), he has an exceptional track record as a leader and expert in global cus-tomer development in the supply

chain, logistics and transporta-tion service sectors.

Hindustan Motors Limited has launched an upgraded ver-sion of the Mitsubishi

Montero with a host of new fea-tures while the price of the vehicle will remain same that 41.34 lakh (ex-showroom). The value-added features include new muscular

coloured key front bumper, new chrome radiator grille, new fi nish on power window panel and new stitch design on leather seats.

Montero’s other acclaimed features like 3.2 litre DOHC die-sel engine with intercooler and turbocharger, 202 PS@3800 RPM power and 441 nm@2000 RPM torque continue to provide the vehicle formidable power and thrust. The vehicle is available in

solid white, black mica and cool silver metallic shades.

After the launch of Pajero Sport, Outlander 2012 and now the upgraded Montero, Hindustan Motors has also repo-sitioned the price of Mitsubishi’s sedan Cedia, a car with a strong rally pedigree, at `7.99 lakh, ex-showroom New Delhi, enhancing the value-for-money quotient for its numerous enthusiasts.

Chennai-based t yre manufacturer, Madras Rubber Factory (MRF) has been ranked the

highest in the JD Power Customer Satisfaction Index Study 2012 making it three-times in a row and ninth time in the last 12 years that the tyre manufacturer has topped the study.

According to the company statement, MRF achieved a score of 841, much ahead of the indus-try average of 825 in 2012. MRF improved by eight points from 2011 and performed particularly well across all factors.

The study has revealed that customers that are highly satis-fi ed with their OE tyres are twice as likely to repurchase their cur-rent tyre brand when buying

replacement tyres, compared with customers who are less satisfi ed.

The ‘2012 Indian Original Equipment Tyre Customer Satisfaction Index’ study is based on responses from new vehicle owners surveyed at 12 and 24 months of ownership. The study also fi nds that the occurrence of problems with original tyres negatively impacts overall satisfaction.

Bhargav TS Chennai

Our Bureau Chennai

Our Bureau New Delhi

Tomas Ernberg, MD, Volvo Auto India

Gordon Silvey

Our Bureau Chennai

Auto Monitor

S T U D Y1830 APRIL 2012

European Commission 2011 has recently pub-lished a white paper that stated that according to

one of the stated goals, for road freight transport over 300 km, 30 percent of the load should shift to other modes such as rail or water-borne transport by 2030, and more than 50 percent by 2050. For the purpose of a discussion on the feasibility and implications of this target, this paper reviews its ration-ale and the mechanisms by which a substantial modal shift could be achieved. Several concrete ques-tions emerge as to the realisation of the modal shift target.

New Target ImplicationsClearly, the new target calls for

a major trend break in modal split. Looking back, the autonomous trend in modal split over the last 13 years shows an increase in the share of road and sea transport. There are different underlying trends that together make up this picture, including (a) Increased value density of goods and val-ues of service, favouring road transport (b) Privatisation of transport markets in Central & Eastern Europe countries, also favouring road (c) Strong inter-nalisation and a modest growth in domestic transport fl ows and (d) Decreasing shares of rail and waterways transport.

These autonomous trends indicate that an increase in rail and waterways was not favoured by the market and that any modal shift policies of the past have been unable to change the share of the modes. There are, however, some autonomous future ten-dencies within the logistics and transport sector that might help to break this trend; these occur both on the demand and supply sides of the transport system.

The Impact In order to get an idea of the

impact of this policy goal on the transported volumes by transport mode in Europe, a European trend scenario for the year 2030 based on a trans-tools run is analysed.

This analysis focuses on the transport fl ows within the EU27 for the year 2030; the year 2050 is not included. In the European trend scenario, limited policy measures are included to infl u-ence the modal split. The 2030 database contains information about origin regions, destination regions, transport modes, com-modities, volume in tonnes and the distance between regions.

As expected, most of the trans-port volumes are carried over a distance of less than 300 km. For road transport and all commod-ities, 89 percent of the volume is transported over a distance of less than 300 km, while 11 percent of the volume is transported over a distance greater than 300 km. Per commodity, the share of trans-port above 300 km differs. The commodities “other products”, chemicals, metal products, crude oil and solid mineral fuels have relatively high shares of transport over distances above 300 km.

Note that these numbers refer to tonnes lifted; the distribu-

tion of transport performance (tonne/km) over distance shows quite a different picture: here the majority of tonne-km (56 per-cent) is moved below distances of 300 km.

In a next step, we focus on the transport fl ows over a dis-tance greater than 300 km. Since the European trend sce-nario contains only a few policy measures that infl uence the modal split, these results can be regarded as the expected modal-split baseline.

Of the total volume over all commodities, 75 percent is trans-ported by road, 21 percent by rail and four percent by inland navi-gation (note that the accessibility of inland navigation is limited in the EU27). The commodities

solid mineral fuels, petroleum products, ores and metal waste, fertilisers and metal products show relatively high shares of rail and inland navigation.

If the modal split objective is applied to these results, the modal split for the total over all commodities will change as indicated. The reduction of road transport by 30 percent leads to a decrease in the share of road from 75 percent to 52 percent, an increase of rail transport from 21 percent to 39 percent and an increase of inland navigation from four percent to eight percent (if the shift of road transport is equally distributed over rail and inland navigation). This means that the volume of rail and inland navigation increases by 88 per-cent. The question whether this is a feasible scenario, from the perspective of available railway capacity, is discussed further in the paper. The commodities with the highest potential of this shift —simply in terms of volume of road transport—are in the “other products” category, in build-ing minerals, chemical products and foodstuffs.

To the extent that the mar-ket cannot absorb the burden of internalisation of external costs itself (i.e., consumers are not willing to pay extra for greener products), this can be enforced through government regula-tion, emissions trading schemes or additional taxes or levies. Here, government is needed to select, introduce and maintain the fi nancial schemes, limiting investments to those cases that create a net social benefi t.

In a TNO study from 2006, the theoretical potential for rail transport, inland navigation and

short sea was determined for the Netherlands. From the perspec-tive of the demand of transport fl ows (logistical requirements of the goods to be moved), the study determined limiting fac-tors for the theoretical potential of alternative modes. These fac-tors are listed in the next table. These factors were used to deter-mine the potential of rail, inland navigation and short sea from the perspective of shipments. The maximum share for alter-native modes of transport in the Netherlands, according to these criteria, came to 34 percent. As this was a theoretical exercise, it is only a crude indication of the potential. For inland waterways, the realisation is higher than the potential, due to factors not taken into account. For rail transport, the realisation was below the potential. A doubling of fl ows for rail and inland waterways would be an extreme scenario, howev-er, which would not f it well to the known characteristics of the goods.

In this study the theoretical potential for rail, inland naviga-tion and short sea was determined from the perspective of the demand side of freight fl ows. Of course, the supply side is also an important factor: the availabil-ity of capacity is an important requirement and increasing con-gestion on the road or transport charges can have a substantial impact on the shares of the dif-ferent transport modes.

In a CE /TRT study from 2011–focusing on the potential of rail transport – a literature study was performed on studies of modal-shift potential. A lot of studies were reviewed, but in the end, it was concluded that only two studies covered the maximum potential in Europe. The other studies had different objectives, scope and methodologies. The two relevant studies are brief-ly discussed below: Vassalo and Fagan (2005).

In a scenario with new policies that repaired all the above-men-tioned defi ciencies, rail freight transport could grow by 100per-cent. The base potential of road transport that can be shifted to rail was estimated by EEA at 19per-cent. Two approaches are applied. In the fi rst, a theoretical potential is based on trip length and the assumption that the share of rail can rise signifi cantly over longer distances, leading to a growth in rail transport of 100 percent. In the second, factors such as dis-tance, costs, quality of supply and rail access are also included, lead-ing to a growth in rail transport in

Europe of seven percent.Besides the demand side fac-

tors, another important question that determines potential is whether there is enough capaci-ty in the other modes of transport to absorb a doubling of fl ows. In the EC /TRT study, an analysis was made of the available free capacity of rail infrastructure. The main fi nding was that, if rail freight volume increased by more than 30 percent to 40 percent, the current rail network would not have suffi cient capacity. We note that the free capacity depends strongly on whether fl ows are concentrated on corridors, the primary network or the whole network.

A Mode ModelBelow we discuss the effects

of policy using a simple theoreti-cal model for mode choice. The choice of mode in freight trans-port has been well researched over the past decades. The text-book model of mode choice applied most often is based on the trade-off between the out-of-pocket costs of transport (the tariff paid by the shipper) and the lead-time between origin and destination. Transport time is weighted by the value of time (measured in euro/hr, per ship-ment or tonne). The weighted sum of tariffs and time is called the generalised costs of transport and determines the attractive-ness of transport modes. Shippers will choose those alternatives that have the lowest generalised costs. In mathematical notation: GCm,g = VOTg*Tm + PmWhere GC = Generalised Costs;VOT = Value Of Time; T = Time; P = Price and subscripts; m = mode of transport; g = good

The value of time of trans-port is closely related to the logistics characteristics of goods (see e.g., Blauwens and Van de Voorde, 1988 for a discus-sion). Time-related cost drivers include physical characteris-tics, such as the value density of goods, their perishability, as well as other characteristics, such as order lead-time and produc-tion technology. An indication of the infl uence of value den-sity on mode choice is that the value density of goods decreases for slower and cheaper modes of transport. This distribution is not fi xed, however, and may change if prices or transport times change in the system.

Supply Side ChangesThere are many changes on

the supply side of the trans-port market that are relevant for

modal shift; examples of these include (a) Deterioration in the performance of road, through pricing, changes in cost com-ponents such as driver wages or fuel prices, increased regulation and congestion (b) Improvement in the performance of rail and waterways transport, in time dimension (through increased frequency, reliability, etc) or tariffs, information availability (transparency of schedules).

The effect of changes in trans-port times is less well studied. Elasticities for changes in the transport time of other modes of transport in competition with road transport vary widely (dependent on the type of prod-uct), but may be around unity (a 10percent decrease of transport time or increase in frequency can result in 10 percent increase in volume). It is questionable, how-ever, whether these elasticities could be applied to major chang-es in transport times. In any case, a doubling of f lows would require a substantial improvement in transport performance.

Demand Side ChangesChanges on the demand side

that can lead to a modal shift are less straightforward to explain than supply side changes, as they require a change in the logistics processes. In our choice model, a move away from road transport would be achieved if the VOT, or time sensitivity of the goods were to decrease. Where fi rms are able to reduce the VOT, their gener-alised costs of transport would already decrease even if they used the same mode of transport.

Note that the changes are very diffi cult, if not impossible, to induce or infl uence through public policy. These measures are not even easy to implement for companies themselves, as they require a careful reconsid-eration and reorganisation of logistics structures and opera-tions. Companies are generally well aware of typical issues, such as the trade off between transport and inventory costs, or the bene-fi ts of improved conditioning.

However, other measures are more complex, such as the crea-tion of hybrid networks, where logistics channels are split into two or more parallel channels, according to demand volume and variability. Currently, such innovations are still decades away for many companies. At the same time, it is part of a long term autonomous evolution of supply chains and will, sooner or later, transform the industry.

(Courtesy: ACEA)

Re-moding freight transport: TNO study

The reduction of road transport by 30 percent leads to a

decrease in the share of road from 75

percent to 52 percent, an increase of rail

transport from 21 percent to 39 percent and an

increase of inland navigation from four-

eight percent.This means that the volume

of rail and inland navigation increases

by 88 percent

Lorant A. TavasszyTNO and Delft University of Technology, the Netherlands

Jaco van MeijerenTNO, the Netherlands

M O DAL S P L I T I N T HE E U 27 F OR T R A NS P O R T A B OV E 3 0 0 K M

Eurostat

Road | Rail | Inland navigation

0,00

Agricultural

products

Solid mineral

fuels

Ores, metal

waste

Metal

products

Building

minerals

Other

products

Petroleum

products

Crued oil

%

Fertilisers Chemicals Total

0,10

0,20

0,30

0,40

0,50

0,60

0,70

0,80

0,90

1,00

Auto Monitor

G L O B A L W A T C H2030 APRIL 2012

Peugeot debuts models at CV showRange of models padded with better technology and safety features

Peugeot displayed its lat-est Partner Electric and has been reported to have unveiled the car in

the UK for the fi rst time at the CV Show at NIC Birmingham, UK, held recently. Grip Control ver-sions of the latest Peugeot van range, marketed under the ATV identity (All Terrain Vehicle) were on show, and the Peugeot stand was designed to illustrate these vehicles that cater to all weather and low-grip driving eventualities.

Six vans were on display: Bipper Van (Silver) ATV with Grip Control, New Partner Van ATV with Grip Control, New Partner Electric Van Preview, New Expert Cell Van, Boxer Dropside and the Boxer Van.

Fleet and Used Car Director at Peugeot UK, Phil Robson said: “Peugeot is on a roll with its cohe-sive van range that includes the established Bipper, Partner, Expert and Boxer. With Euro V engines, re-styled new-look iden-tity and the new ATV capability, we have an attractive commercial proposition for customers, and we know for those that presently operate our products they enjoy great durability and value.”

New TechnologyThe new Partner, available

in two platform lengths, renews its style in keeping with the new Marque image and incorporates the e-HDi engines to retain a technology lead in the light van segment.

The Partner light van is the fi rst vehicle in our LCV range to incorporate the new style codes of the Peugeot marquee. Until now carried by Peugeot cars, the new Marque image applied to the world of the light commercials emphasises the modernity of the lines and the quality of the new Partner.

This is demonstrated by a new front face, redesigned head-lamps for a new expression, new mirrors and a new two-material Lion badge on the bonnet. The fog lamps with static intersec-tion lighting function contribute to the modern image while the use of black coloured compo-nents to enhance the front face amplify the robust appearance of the new light van. At the rear, on vehicles which have a tailgate, the lamps are given a new smoked treatment in keeping with the re-styled vehicle. In the same way, a new ambiance with a new trim is offered for the interior.

e-HDi Technology To Take The Lead

Five latest generation Euro V engines (including four diesel

engines) are offered with the new Partner. The e-HDi micro hybrid technology (with latest genera-tion Stop & Start System) allows Peugeot’s light van to take fi rst place in the segment with best-in-class low CO2 emissions (L1 version, in the Combined Drive Cycle).

Technology that is rapid, silent and transparent in its implementation, the e-HDi sys-tem also brings a considerable improvement in driving pleas-ure by increasing the number of engine stopping phases and therefore the number of quiet periods inside the vehicle. The style and the technology offered by the new Partner reinforce the qualities and features for which the vehicle is already acclaimed: benchmark modularity, versions with three seats in the front, large loading capacity, with safe and effective handling.

Two Lengths For Optimum Loading Capacity

The Partner is available in two lengths (L1: 4.38m or L2: 4.63m) and offers loading volumes among the best in the light van segment. The L1 version reach-es a capacity of 3.7m3 with the Multifl ex seats folded a payload of 625 or 850 kg and a load fl oor length of 1.80m. For the L2 long version, this offers a volume of 4.1m3, a payload of 750 kg and a useful length of 2.05 m.

In both cases, the loading length combined with the 1.23 m width of the wheel arches means that the vehicle can accommo-date two europallets (1.20 m x 0.80 m). The rear area can be accessed by means of one or two sliding side doors and hinged rear doors (or a tailgate). The passen-gers are not forgotten as they can use up to 58 litres of storage spac-es spread throughout the interior of the vehicle.

Designed to fulfi l the expec-tations of all types of user, professionals, the new Partner is able to adapt to the different uses demanded of it thanks in par-ticular to exclusive modularity equipment which is what makes the Partner so attractive.

Multi-fl ex bench seat: three seats and an additional 400 litres of loading volume With this equipment, unique in the segment, three occupants can be seated in the front. This practical aspect is greatly appre-ciated by professionals who can transport their tools and their employees from one work site to another without making multiple journeys.

The Multi-Flex bench seat is also partly retractable, which means that the loading lengths

of the L1 and L2 versions can be increased to three and 3.25m respectively. The volume is increased by 400 litres, bringing the loading capacity of the L1 ver-sion to 3.7m3 and that of the L2 version to 4.1m3.

Safe & Effective HandlingIn terms of safety the new

Partner benefi ts from the latest technology with notably a struc-ture with three force channels at the front, the availability of Electronic Stability Control (ESP) or the possibility of having up to four airbags.

In addition to the variable speed limiter/cruise control, a speed governor is now offered as an option on the HDi engines. It can be confi gured by the dealer-ship to one of four pre-set speeds as selected by the customer. Handling is still of a high level due to the suspension (Pseudo MacPherson at the front, deform-

able cross-member at the rear) developed using the full extent of Peugeot’s expertise.

Improved Traction To move on roads, work sites

or tracks with poor surfaces, the Grip Control equipment notice-ably improves traction. Due to its individual management of wheel skid, its four driving modes suit-ed to the terrain (Sand, Snow, Mud, ESP) which can be select-ed using a dial on the dashboard control panel and ‘Winter’ tyres which accompany this option, the Partner increases its freedom of use. It can continue forward where a conventional two-wheel drive vehicle would normally become stuck.

Professional EquipmentAs light vans can be used as

a work tool, the new Partner offers equipment which makes everyday life easier: Bluetooth hands-free kit and the high-performance telematic system Peugeot Connect Navigation, Peugeot Connect Assistance and fl eet management software.

There are also numerous driving assistance systems: rear parking assistance, automatic wiping, automatic lights, electri-cally folding and heated mirrors.

New options are also available for even better personalisation of the Partner to the needs of each professional: towbars and non-slip wooden coverings for optimum protection of the load-ing cell, for example.

Versions Suited To Every Professional Use

The Partner light van is offered in various body types to provide the best response to the needs of its professional customers. In addition to the two lengths avail-able, a crew cab version with a retractable bench seat in row two with load retainer is on sale, as is a fl oor cab version for coach-builder conversions.

The new Peugeot Expert is part of the Marque’s upmar-ket trend incorporating the new style codes, new equipment and a range of Euro V engines, which position it as leader in its segment as regards emissions of CO2.

Peugeot was one of the fore-runners in the creation of compact vans and combis. Today, the restyling of the third genera-tion of the Expert symbolises the intention to continue the success of this model, with more than 475,000 units (private vehicles + light utility vehicles) produced since its launch in 1995.

The restyling of the Expert obviously includes integration of the new Peugeot design style. The Lion badge in its new form takes its place on the front face, adorns on the bonnet. The grille, rede-signed with notably the addition of a chromed edge, raises the image of the vehicle making it distinctive, while looking more dynamic.

Technological LeadThe new Expert sets itself

apart through its new range of Euro V engines allowing it to reduce fuel consumption and further improve CO2 emissions performance in its segment.

To achieve these record val-ues, the versions equipped with the two-litre HDi 128 BHP and 163 BHP engines have benefi ted from specifi c work to reduce CO2 emissions: bulkhead under the body for improved aerodynamics, advanced controls of the alterna-tor and special calibration of the engine. It is important to empha-sise that these developments are compatible with widespread dis-tribution and are not reserved for versions of limited volume.]

Improved Traction With Grip Control

Another technological lead, exclusive in the segment, is Grip Control. This equipment, at a very accessible price, notice-ably improves traction due to its sophisticated management of wheel grip. Using a dial on

the left-hand side of the dash-board, the driver can select four driving modes suited to terrain (Sand, Snow, Mud, ESP). So, the new Expert can continue forward where a two-wheel drive vehicle could become stuck.

Increased SafetyTwo options supplement

the high level of safety already offered by the Peugeot Expert (Reinforced structure, safe han-dling, up to six airbags, speed limiter / cruise control): The tyre under-infl ation detection, which is carried out by means of sensors placed in the tyres. Secondly, the speed governor on the van, which can be confi gured to one of four pre-set speeds as requested by the customer.

The Peugeot Expert Tepee Goes Upmarket

The Combi version is designed for passenger travel. It is equally suited to families wanting to have space inside the vehicle and also to passenger transport profes-sionals looking for a comfortable and high quality vehicle.

Available in two lengths, the Expert Tepee can transport up to nine people. The modular-ity of the seats offers numerous possibilities for the layout of the interior of the vehicle. The space for the luggage is generous, even when travelling with numerous passengers. In fact, the capacity of the boot, in the long version, can reach 1,239 dm3 (VDA standard) under the roof with three rows of seats on board, with space for nine passenger places.

With a great deal of care given to temperature control and noise, and a considerable glazed surface area (5.84 m²), all the occupants travel in comfort. This point is strengthened by the availability of an automatic gearbox on the two-litre HDi 163 BHP engine.

Expert Versions Two lengths and two heights

defi ne the three body types of the Expert compact van: L1H1, L2H1 and L2H2. According to the ver-sion, the loading volume is fi ve, six or seven m3 and the payload is 1,000 or 1,200 kg. This extensive range fulfi ls the varied needs of professional customers. In order to fulfi l the most specifi c expec-tations, a pre-equipped platform cab version is available to serve as a base for coachbuilder con-versions. A van with a crew cab, equipped with a fi xed bench seat in row two is also offered for pro-fessionals wishing to transport up to six people while retaining a large loading volume. Owners of the new Expert van will have access to considerable and var-ied useful capabilities in a vehicle offering the comfort and han-dling of a private vehicle.

Peugeot is on a roll with its cohesive

van range that includes the established Bipper,

Partner, Expert and Boxer. With Euro V engines, re-styled new-look identity and the new ATV

capability, we have an attractive commercial

proposition for customers, and we know for those that presently operate our products they

enjoy great durability and value—Phil

Robson, Fleet and Used Car Director,

Peugeot UK

Auto Monitor

G L O B A L W A T C H2230 APRIL 2012

Nissan prototype wings European wet test programmeT

he experimental Nissan Delt aW i ng proto-type sportscar kicked off its European test-

ing programme in England at Snetterton, in Norfolk, with Scotsman Marino Franchitti and German Michael Krumm getting the opportunity to sam-ple the car in wet conditions recently. Steady rain through-out the morning enabled the team to undertake wet weather development with tyre partner, Michelin, with the hugely inno-vative 1.6-litre Nissan DIG-T turbo-powered car.

At half the weight, half the horsepower and half the aero-dymamic drag of a traditional Le Mans sportscar, the Nissan DeltaWing features front tyres that are only four inches wide. With the famous Le Mans 24 Hours just two months away, the Nissan DeltaWing team gained valuable information about the ground-breaking car’s perform-ance in typical European track conditions, having conducted all of its development work so far in America.

General Manager Nissan in Europe, Darren Cox, said, “The whole Nissan DeltaWing team

is still on a massive learning curve. Testing in the States was a stable, predictable way of doing the initial groundwork but this exciting car is going to be rac-ing in the French countryside. On the test day, the whole team got a taste of the conditions they may well face on June 16-17, so it may not have been much fun in the Norfolk rain, but it’s about the best thing that could have happened for a project and a car that will face an enormous challenge just to make the end of the race.”

Franchitti conducted most of the morning running in condi-tions that ranged from damp to extremely wet weather—gather-ing valuable data as to how the car performs. Having only previ-ously conducted some brief wet track running on an artifi cially damp track at Sebring, with the help of a water truck, the on-track action was an important step in the development of the wet tyres for the car.

Michael Krumm climbed aboard for much of the after-noon running—enjoying drier conditions as the team worked on suspension adjustments, braking and gearbox improvements.

The Nissan DeltaWing will make its debut at this year’s Le Mans 24 Hours. Nissan’s involve-ment in the programme was announced in March, with the manufacturer not only providing the engine, but additional techni-cal resources for the car’s debut.

Designed by Ben Bowlby, the DeltaWing partnership brings together some of the big-gest names in North American motorsport, including project managing partner and American Le Mans Series founder, Don Panoz; racing legend and Nissan DeltaWing constructor, Dan

Gurney’s All American Racers organisation along with Le Mans entrant, Duncan Dayton’s Highcroft Racing.

The Nissan DeltaWing has been reported to have continued its testing pro-gramme with a two-day test scheduled recently.

Marino Franchitti“Mother nature really did us

a favour, because it was great to get another run in the wet. I basi-cally got monsoon conditions and Michael got to try the car on a drying track. It was a very good

test for the car and the tyres. The day allowed us to try the wet tyres in a real world situation—it was a proper wet, rainy day.”

He added, “The day has real-ly given us some important data and provided Michelin with some clear direction for future development. The engine and gearbox were really strong—it was a proper testing day when we were really able to get down to business doing damper work, brake work—all in all, it was a very positive test and we’re now very much looking forward to the next run.”

Ford invests $600 million in China Fiat records lowest CO2 emissions in Europe again

Record European sales for Hyundai in Q1

Hyundai registered a record number of new cars in Europe between January and

March 2012—114,571 units—resulting in a European market share high for the fi rst quarter of 3.3 percent.

According to fi gures released recently by European indus-try body ACEA, Hyundai’s sales during the fi rst three months of 2011 represented an increase of 12.5 percent compared to the same period 12 months ago. In contrast, the overall European new car market declined by 7.3 percent.

Hyundai recorded 50,131 new car registrations across Europe

in March—another new record and an increase of 13.8 percent over 2011. The overall European new-car market declined by 6.6 percent during the same month. Hyundai has now outperformed the European market trend for 39 consecutive months since January 2009.

Sales of i30, ix35 and ix20—the three models built at Hyundai’s plant in Nošovice, Czech Republic—represented over 50 percent of Hyundai’s European sales during the fi rst quarter.

Senior Vice President and COO of Hyundai Motor Europe, Allan Rushforth commented, “Hyundai cars are designed,

engineered and manufactured in Europe for Europeans— our performance in quarter one dem-onstrates how well this strategy is working. Another European car, the New Generation i30, has just gone on sale and we expect this new model to drive us towards our market share goal of 3.5 per-cent by the end of 2012.”

The New Generation i30 is available with Five-Year Triple Care, Hyundai’s award-win-ning customer care package that includes a fi ve-year war-ranty with no mileage limit, fi ve years of roadside assistance and five years of vehicle health checks.

Ford Motor Co is jointly investing $600 million in its southwest China factory to raise annual

production by over 50 percent to help meet its goal of selling eight million cars a year by 2015, Reuters reported recently. This invest-ment will increase American car maker’s total investment in China to approximately $4.1 billion.

According to the company the investment with joint ven-ture partner Changan Ford Mazda Automobile would raise annual production to 950,000 at the Chongqing plant which is Ford’s biggest factory outside south-west Michigan.

The new investment comes as Changan Ford Mazda—a joint venture among Ford, Mazda Motor and Chongqing Changan Automobile—is set to recall over 62,000 cars to fi x faulty anti-lock

braking systems. Ford recent-ly said that it will post a “small loss” in Asia in the fi rst quarter even though it raised its US sales forecast for the year.

The loss was attributed to major new investment in new products such as the mid-sized pickup truck Ford Ranger in Asia and Africa, the launch of the Ford Focus in China, and the expense of an expanded Chongqing plant, according to the reports of Reuters.

Ford said recently, that a big-ger Chongqing plant, which will

have a new assembly line, body and paint shop, would help the automaker meet its 2015 goal of raising global sales by nearly 50 percent to about eight million cars a year. Ford is a relatively late-starter in China, where General Motors and Volkswagen AG have a sizeable lead.

To narrow the gap, Ford plans to bring 15 new vehicles to China by 2015, starting with the new Focus model that is set to hit Chinese showrooms in the second quarter.

For the fi fth year running, Fiat Automobiles has recorded the lowest level of CO2 emissions by vehi-

cles sold in Europe in 2011, with an average measurement of 118.2 g/km (4.9 g/km less than the 2010 average). Fiat also ranked fi rst as a group, with 123.3 g/km, an improvement of 2.6 g/km on last year. The record is certifi ed by Jato Dynamics, the world’s lead-ing automotive consultancy and research fi rm.

This is an important achievement and a continuing improvement. Over the last fi ve years Fiat Automobiles has reduced its average emissions by 14 percent, from 137.3 to 118.2 g/km of CO2, signifi cantly lower than the tar-get set out by the European Union for 2015, which has been fi xed at 130 g/km.This result shows Fiat’s commitment to protecting the environment through the devel-

opment of simple and ingenious solutions such as the TwinAir engine, the world’s most ‘ecologi-cal’ turbo petrol engine, the use of alternative fuels such as methane/LPG, a sector in which the brand is European leader, and the devel-opment of innovative technology such as ecoDrive, an application that encourages a more respon-sible and eco-compatible driving style, and which has allowed a large number of the drivers who use it regularly to achieve emis-sions that are even lower than the type-approval levels.

Over the last 20 years all of Fiat’s eco-technological innova-tion has brought revolutionary solutions to the market, solutions that at the same time are simple and of low environmental impact; solutions that do not ask the cus-tomer to give up any of the driving pleasure which has always been so characteristic of Italian cars.

ufacturedans— ourr one dem-strategy is

opean car,0, has justxpect thiss towards of 3.5 per-.”

on i30 isar Triple

ard-win-packageear war-ge limit,

Our Bureau New Delhi

Auto Monitor

G L O B A L W A T C H2430 APRIL 2012

Dana, Ford win PACE Award

Da n a H o l d i n g Corporat ion was r e c e nt l y h on-oured with the

2012 Automotive News PACE Innovative Partnership Award for its collaboration with Ford in bringing to the marketplace its long active and passive warm-up technology–which improves fuel effi ciency by up to four percent.

Dana partnered with Ford to introduce the technology on the 2012 Ford Edge and subsequently the 2013 Ford Taurus. “This rec-ognition affi rms to us that we are creating market-driven, inno-vative technologies and truly partnering with our customers to deliver these breakthrough innovations to the marketplace,” said Dana President and Chief Executive Offi cer, Roger Wood. “To have earned this award with an important customer such as Ford is a real honour. Dana and Ford have worked in close coop-eration since the days of the Model T, and we are pleased to be collaborating on innovations nearly a century later.”

This Dana innovation also was a fi nalist for the 2012 Automotive News PACE Awards, which honour superior innovation, technologi-

cal advancement, and business performance among automo-tive suppliers. Dana’s innovative technology diverts wasted heat from the vehicle’s cooling and exhaust systems to transmis-sion oils, which accelerates the process for achieving and main-taining optimal temperatures. The results are increased effi -ciency, improved fuel economy, and reduced emissions.

The new technology combines the thermal bypass valve with the active warm-up unit to deliver an integrated system that reduces friction loss due to the oil’s vis-cosity at low temperatures. In cool temperatures, the unit trans-fers heat from the coolant to the oil, and in normal operating con-ditions, the unit functions like a traditional cooler by transferring heat from the oil to the coolant.

HCVT for construction equipment launched

At Intermat 2012 held recent-ly, Dana debuted the Spicer 318 Hydrostatic Continuously Variable Transmission (HCVT), which features a unique two-motor design that provides 20 percent fuel savings during duty cycles that require high travel

speeds, as well as increased trac-tive effort at low travel speeds.

By capitalising on the design of the larger, fi eld-proven Spicer 319 HCVT, the Spicer 318 HCVT allows construction OEMs to collaborate with a single Tier I supplier that can offer a com-plete range of drivetrain solutions for compact front-end loaders and medium-sized telescopic boom handlers.

The Spicer 318 HCVT is designed for front end loaders with six- to nine-tonne operating weights and telescopic boom handlers with six-K to 10K lifting capacities. Dana is a supplier of driveline, sealing and thermal-manage-ment technologies that improve the effi ciency and performance of passenger, commercial, and off-highway vehicles with both, conventional and alternative-en-ergy powertrains.

The company’s global network of engineering, manufacturing, and distribution facilities pro-vides original equipment and aftermarket customers with local product and service support. Based in Maumee, Ohio, Dana employs approx 24,500 people in 26 countries and has reported 2011 sales of $7.6 billion.

Carmakers plan to speed resin substitute

VW China goes for seventh plant

Bosch closes acquisition of Voltwerk Electronics

Agroup of automakers including Ford, Chrysler and GM, have agreed to a process to speed the use of alternative materials in place of a key resin that may

soon be in short supply. Supply of the resin, PA-12 or nylon-12, was jeopardised after a late March explo-sion at an Evonik Industries AG chemical plant in Marl, Germany.

The resin is used by automakers in coatings and fuel & brake systems. The group, of six major automakers and 19 suppliers, has drafted a plan to hasten approval of alternatives to PA-12, accord-ing to the Automotive Industry Action Group. GM, meanwhile, said an industry-wide resin shortage may not affect production for a month, longer than was predicted. Chrysler CEO, Sergio Marchionne told CNBC that there’s a more than 50 percent chance that the company will fi nd alternatives to the resin shortage. “I sincerely hope I have not jinxed the odds because I have said that it is a tough issue,” he said. “It would be a shame if we had to stop the production machine because we have to deal with this.” Ford declined to provide a timeta-ble or outlook for the resin crunch.

Volkswagen will invest about 170 million euro ($225 million) to build a new plant in Urumqi, western China, capable of making 50,000 vehicles annually starting

in 2015, the company said. Volkswagen currently operates six car and parts plants in the country. VW’s two Chinese joint ventures are investing a total of Euro 14 billion by 2016, and the German carmaker has said in the past its annual produc-tion capacity in China would rise to three million cars as early as next year.

CEO, Martin Winterkorn said that Beijing had approached the carmaker, the fi rst to enter China, with the request to consider extending its substan-tial manufacturing footprint to the western part of the country. The relatively modest investment sum and production capacity refl ect the risks. Compared with the 50,000 cars that VW and local partner Shanghai Automotive (SAIC) intend to build in Urumqi, VW-SAIC plan to build six times as many in a new plant in Yizheng near Nanjing.

Volkswagen also said that it agreed to extend the joint venture formed in 1991 with FAW, its sec-ond Chinese local partner, by a further 25 years. The two had announced in June 2010 they would invest about 520 million euros to build a plant near Guangzhou, VW’s fi rst in southern China, which can build as many as 300,000 vehicles. In a state-ment earlier this month, VW said its sales in China, the group’s single largest market, rose 15.6 percent to 633,900 in the fi rst quarter.

Following the approval of the anti-trust authori-ties, the Bosch Group has closed the acqui-

sition of Voltwerk Electronics GmbH, a supplier of electronic components and software solu-tions for photovoltaic arrays. The agreement to purchase was signed in December 2011. It has been agreed that the purchase price will not be disclosed. Voltwerk Electronics GmbH will become part of Bosch Power Tec GmbH by the end of 2012. The Bosch subsidiary, which is based in Böblingen, was founded at the start of 2011 and is pushing the Bosch Group’s inverter busi-ness forward. As a result of the acquisition, Bosch Power Tec now employs some 130 associ-ates at locations in Bal Vilbel, Hamburg, and Böblingen.

“The purchase of Voltwerk Electronics is very signifi cant for us. Not only have we gained additional associates with a high level of expertise and experience, the acquisition has enabled us to expand our product portfolio in the best possible manner,” said General Manager of Bosch Power

Tec, Dr Andreas Stratmann. Volt werk Electronics is

an established supplier of a broad range of string and cen-tral inverters and accessories. From the second half of 2012, the company will also offer an innovative hybrid solution for existing inverters and battery storage. Moreover, Bosch Power Tec engineers are currently working on a new generation of string inverters. “We will now benefit from our combined strengths and want to grow in the photovoltaic markets in all the major global regions.”

Inverters Gain ImportanceInverters are playing an

increasingly important role, not only in the field of renewable energy, but also for e-mobility. In electric vehicles, a conver-sion process is also needed so that the electric motor can use the direct current from the battery. Furthermore, when recuperating brake energy and feeding it back into the battery, inverters and their sophisticat-ed power electronics are needed once more.

Auto Monitor

2530 APRIL 2012

G L O B A L W A T C H

International auto round-upCoda Automotive, Great Wall Motors co-develop EV

Coda Automotive has estab-lished a deal with Chinese automaker Great Wall Motors to co-develop an affordable elec-tric vehicle. Coda CEO, Phil Murtaugh, a former GM execu-tive who headed GM China for a decade, said Coda plans to build an electric vehicle for the US market by mid-2014, and the fi rst vehicle will be based on an existing Great Wall vehicle. Coda said the fi rms will collaborate on developing the fi rst all-electric vehicle for worldwide distribu-tion. The vehicle will be designed for the North American, Chinese and European markets.

Vehicles will be developed by employees of both compa-nies in research facilities in Los Angeles and Baoding, China. Vehicles will be sub-assembled in the Great Wall’s manufactur-ing facilities in Baoding. Final assembly of US-destined vehi-cles will take place in Coda’s facility in America.

The company said it has with-drawn its application with the Energy Department for low-cost retooling loans to build vehi-

cles in the US. The company is the latest in a series of start-ups and other automakers to aban-don efforts to tap the $25 billion government loan fund; Coda had proposed to build vehicles in Ohio as part of its application. The energy department has taken a harder line in reviewing applica-tions and hasn’t approved a new auto loan in more than a year.

The Coda sedan has been completed in Benicia, Calif, US, where a small number of workers drop electric powertrains into cars largely manufactured by the Hafei Motor Co.

Ford to suspend production at Fiesta plant

Ford will suspend production at its plant in Cologne, Germany, for as many as eight days before the summer break starts in July because of falling sales in south-ern Europe. Ford will decide later on any additional days of produc-tion stoppages through October, said spokeswoman at the auto-maker’s European headquarters in Cologne, Ragah Kamel.

The plant, which makes the Fiesta subcompact car, is sched-uled to build 345,000 vehicles

this year, roughly six percent fewer than in 2011. More than 85 percent of the Cologne plant’s production volume is exported and, “with an average utilisation of 85 percent, the plant is still rel-atively busy,” she said. No similar measures are planned at Ford’s other German manufacturing site in Saarlouis, she said. The cut-backs affect 4,000 of the roughly 17,500 employees at the factory. Summer vacation at the plant is scheduled for July and August. Ford will apply for German gov-ernment assistance to make up for the curtailed hours and will pay additional compensation, the company said.

Ford passenger car sales in the 27-member EU states plus Switzerland, Norway and Iceland fell eight percent to 131,410 in March in a total market down seven percent to a 14-year month-ly low of 1.5 million, according to industry association, ACEA. Among national markets, the sales slide accelerated in much of southern Europe with sales down to 27 percent in Italy, 23 percent in France and 5 percent in Spain. Austerity measures introduced by governments as a result of the

region’s sovereign-debt crisis has hurt consumer confi dence, caus-ing new-car sales to drop.

GM to build 2013 Cadillac XTS in China

GM will begin building its all-new 2013 Cadillac XTS sedan in China this year and later will bring the ELR luxury electric coupe in the country. The pro-duction announcements mark a signifi cant step in GM’s push for Cadillac to become a glo-bal brand. “Introducing the XTS is part of our strategy of adding one new model per year to our Cadillac line-up in China through 2016 to address the needs of lux-ury car buyers nationwide,” GM Chairman and CEO, Dan Akerson said in a statement.

ELR technolog y details, production location and its Chinese introduction date will be announced at a later time,

according to a news release. The XTS will be available in the fourth quarter in China and will be manufactured by Shanghai General Motors, a partner-ship between GM and SAIC Motor Corp.

GM was expected to announce at the auto show that it would build XTS in China later this year. The all-new Cadillac ATS, a compact luxury sedan, and the popular mid-size CTS sedan will eventually be built in China. GM will build its brand in China and then Europe to grow the brand over the next decade. Currently, only the Cadillac SLS, an extended length luxury sedan, is built in China. Cadillac imports the CTS, SRX crossover and Escalade from plants in the United States and Mexico. GM began selling Cadillacs in China in 2004. Sales have grown from essentially zero at the end of 2007 and early 2008 to 30,000 last year. Its 2011 sales were up 72.8 percent from 2010.

Cadillac also expects to dou-ble its dealer network of about 50 in China in the next year or two, Cadillac spokesman David Caldwell had told The News.

Fiat expects the new China-built Viaggio to be a strong competitor in the world’s largest market, where the Italian automaker has failed twice to gain a foothold. Fiat brand CEO, Olivier Francois told Automotive News Europe that he is confi dent that the Viaggio can help end Fiat’s struggle to gain a foothold in China because the compact car will enter “the largest segment in the world’s largest market, which equals to 6 million annual sales.”

Fiat plans to sell 20,000 Viaggio units before the end of 2012 and boost annual sales to 100,000 in 2013, said General Manager of Fiat’s joint ven-ture with China’s Guangzhou Automobile Group, Jack Cheng. If the car is not a success, it will be nearly impossible for Fiat to achieve its goal of raising China sales to 300,000 by 2014 from fewer than 1,500 last year.

Fiat will start producing the Viaggio in China on June 28, ahead of a market launch in September. It will be the fi rst model from Fiat and Guangzhou Auto’s joint venture and is also an important part of the Italian automaker’s plan to grow beyond Europe, where car sales are expected to decline for the fi fth consecutive year.

Fiat has not revealed the Viaggio’s starting price. The Viaggio (Italian word journey) is a reworked version of the Dodge Dart, which is based on the Alfa Romeo Giulietta. Fiat owns the Fiat and Alfa brands and has a 58.5 per-cent stake in Dodge parent Chrysler Group. The Viaggio is slightly longer than the 4670mm Dart and fi ts in between the Ford Focus sedan sold in central and eastern Europe, Russia and China and the Mondeo mid-sized sedan. The Viaggio and Dart share doors and most of their interior. The Viaggio will be built in Fiat and Guangzhou Auto’s new factory in the Changsha Economic Zone in Hunan province. Fiat and Guangzhou Auto plan to invest 5 billion yuan (about 594 mil-lion euros) in their 50-50 JV.

In China, the Viaggio will be powered by locally built normally aspirated and turbocharged ver-sions of Fiat’s 1.4-liter gasoline engine. Fiat and Guangzhou’s joint venture powertrain plant, which is also in the Changsha Economic Zone, is forecast to have an initial volume of 220,000 engines a year.

Fiat also plans to launch a hatchback version of the Viaggio in China in 2013. That car could be exported to Europe to replace the slow-selling Bravo compact hatchback, company sources told Automotive News Europe. The automaker has been unsuccessful at gaining traction in China, whose market is expected to grow another eight percent in 2012 after exceeding 13 million pas-senger-car sales last year. Currently, Fiat’s few China sales come from models imported from Italy, such as the Bravo, Linea and Punto, and Mexico, such as the 500 and Freemont, which are built by Chrysler.

Fiat counts on Viaggio for a boost in China

Auto Monitor

S I A M D A T A2630 APRIL 2012

I Passenger Vehicles (PVs) A : Passengers Cars - Upto 5 Seats Micro: Seats Upto-4, Length Normally <3200 mm, Body Style-Hatchback, Engine Displacement Normally upto 0.8 Litre Regular: Tata Motors Ltd (Nano) 9,317 11,011 67,963 77,828 8,707 10,475 70,432 74,527 0 469 1 3,462Total 9,317 11,011 67,963 77,828 8,707 10,475 70,432 74,527 0 469 1 3,462Micro: Seats Upto-5, Length Normally <3600 mm, Body Style-Hatchback, Engine Displacement Normally upto 1.0 Litre Regular: General Motors India Pvt Ltd (Spark) 3,673 1,592 35,017 23,318 3,289 1,877 34,603 23,183 3 2 77 83Hyundai Motors India Ltd(Santro) 13,180 17,318 121,202 164,668 8,026 17,859 82,971 127,437 5,098 318 39,427 30,763Maruti Suzuki India Ltd (M800, Alto,Wagon R,A-Star) 69,927 59,361 695,361 602,005 58,799 52,826 573,238 491,389 9,399 11,788 121,873 112,635Total 86,780 78,271 851,580 789,991 70,114 72,562 690,812 642,009 14,500 12,108 161,377 143,481Compact: Seats Upto-5, Length Normally 3600-4000 mm, Body Style-Sedan/Estate/Hatch/Notchback, Engine Displacement Normally upto 1.4 Litre Regular: Fiat India Automobiles Pvt Ltd (Palio, Grande Punto) 1,234 1,080 12,862 11,592 764 954 11,759 11,732 92 5 1,200 1,103Ford india Pvt Ltd (Figo ) 10,650 9,781 90,633 95,643 8,926 7,073 78,116 70,052 1,478 2,990 11,017 24,797General Motors India Pvt Ltd (Beat, U-VA) 4,046 5,682 40,034 52,632 3,003 5,661 37,218 51,596 23 19 188 229Honda Siel Cars India ltd (Jazz) 240 6,912 3,510 14,041 152 6,890 4,862 14,635 2 19 17 43Hyundai Motors India Ltd(Getz, i10, i20) 40,984 33,435 416,249 380,815 21,870 16,392 240,567 201,137 15,494 16,767 170,793 182,090Maruti Suzuki India Ltd (Swift, Ritz, Estilo) 25,103 30,847 277,002 248,507 22,576 27,913 261,799 235,754 1,956 1,250 13,456 12,071Nissan Motor India Pvt Ltd (Micra) 10,277 4,591 74,512 99,306 2,060 1,674 12,315 18,639 13,457 5,176 46,135 86,675Renault India Pvt Ltd (Pulse) 0 454 0 2,226 0 746 0 1,993 0 0 0 0SkodaAuto india p.ltd ( Fabia ) 1,800 524 10,933 15,201 1,753 770 11,078 14,936 0 0 0 0Tata Motors Ltd (Indica,Indica Vista, Indigo CS) 13,244 6,504 170,844 167,775 10,764 17,326 147,102 163,780 272 353 5,710 3,270Toyota Kirloskar Motor Pvt Ltd (Liva) 26 4,511 26 32,613 0 4,034 0 31,761 0 622 0 622Volkswagen India Pvt Ltd (Polo) 3,919 3,471 29,168 39,838 3,881 3,940 28,904 39,465 0 0 0 0Specialty: Fiat India Automobilies Pvt Ltd (Fiat 500) 0 0 0 0 0 0 1 0 0 0 0 0Total 111,523 107,792 1,125,773 1,160,189 75,749 93,373 833,721 855,480 32,774 27,201 248,516 310,900Super Compact: Seats Upto-5, Length Normally 4000-4250 mm, Body Style-Sedan/Estate/Hatch/Notchback, Engine Displacement Normally upto 1.6 Litre Regular: Hyundai Motors India Ltd (Accent) 4,235 3,473 37,300 33,478 1,293 525 15,404 8,839 3,138 3,022 22,849 24,682Mahindra & Mahindra Ltd (Verito) 1,005 1,630 11,702 17,849 1,018 1,763 10,009 17,839 0 0 1,904 0Maruti Suzuki India Ltd (Dzire) 10,397 17,362 109,049 111,504 10,278 16,451 107,955 110,132 25 32 646 401Toyota Kirloskar Motor Pvt Ltd (Etios-Sedan) 3,561 5,116 8,549 50,244 3,257 5,104 8,101 50,157 0 193 0 193Total 19,198 27,581 166,600 213,075 15,846 23,843 141,469 186,967 3,163 3,247 25,399 25,276Super Compact: Seats Upto-5, Length Normally 4000-4250 mm, Body Style-Sedan/Estate/Hatch/Notchback, Engine Displacement Normally upto 1.6 Litre Specialty: Volkswagen India Pvt Ltd (Beetle) 0 0 0 0 21 0 398 59 0 0 0 0Total 0 0 0 0 21 0 398 59 0 0 0 0Mid-Size: Seats Upto-5, Length Normally 4250-4500 mm, Body Style-Sedan/Estate/Hatch/Notchback, Engine Displacement Normally upto 1.6 Litre Regular: Ford India Pvt Ltd (Ford ikon,Fiesta Classic) 1,567 2,172 18,835 21,624 1,228 1,937 17,279 20,371 100 132 1,138 819General Motors India Pvt Ltd (Aveo) 146 121 4,071 1,306 198 63 3,586 1,325 0 2 129 100Hindustan Motors Ltd (Lancer) 60 20 518 340 60 22 519 341 0 0 0 0Honda Siel Cars India Ltd (City) 5,805 3,763 49,898 31,968 2,773 3,920 46,631 35,906 6 8 60 27Hyundai Motors India Ltd (Verna) 575 4,309 19,631 50,041 489 4,132 19,695 49,557 0 0 0 0Maruti Suzuki India Ltd (SX4) 3,576 1,692 23,625 19,094 3,632 1,520 23,317 17,997 3 5 51 587Nissan Motor India pvt Ltd (Sunny) 0 9,183 0 29,374 0 4,151 0 14,162 0 6,118 0 14,234Skoda Auto India pvt Ltd (Rapid) 6 2,935 6 9,439 0 2,882 0 8,852 0 0 0 0Tata Motors Ltd (Indigo, Manza) 4,367 1,227 39,580 20,789 3,370 2,389 38,170 19,659 17 52 1,362 556Volkswagen India Pvt Ltd (Vento) 4,066 2,390 19,684 35,225 3,973 3,908 18,380 34,067 0 124 0 124Specialty: Hindustan Motors Ltd (Ambassador) 713 212 6,516 2,528 771 418 6,500 2,506 0 0 0 4Total 20,881 28,024 182,364 221,728 16,494 25,342 174,077 204,743 126 6,441 2,740 16,451Executive: Seats Upto-5, Length Normally 4500-4700 mm, Body Style-Sedan/Estate/Hatch/Notchback, Engine Displacement Normally upto 2.0 Litre Regular: Fiat India Automobiles Pvt Ltd (Linea) 777 506 9,034 4,443 1,101 461 9,352 4,341 30 17 164 322General Motors India Pvt Ltd (Optra, Cruze) 942 595 11,910 10,772 1,104 845 11,512 10,743 0 0 5 26Hindustan Motors Ltd (Cedia sports) 13 29 149 97 14 20 184 92 0 0 0 0Honda Siel Cars India Ltd (Civic) 420 0 4,692 2,220 379 104 5,012 2,296 0 0 3 0Hyundai Motors India Ltd (Elantra) 0 0 0 0 0 0 2 0 0 0 0 0Maruti Suzuki India Ltd (Kizashi) 0 0 0 0 103 48 138 458 0 0 0 0Renault India Pvt Ltd (Renault FLUENCE) 0 111 0 2,056 0 227 0 1,604 0 0 0 0Skoda Auto India Pvt Ltd (Laura) 725 566 6,859 5,966 591 597 6,598 5,466 0 0 0 0Toyota Kirloskar Motor Pvt Ltd (Corolla ) 951 936 10,702 8,961 953 917 10,707 8,904 0 0 0 0Volkswagen India Pvt Ltd (Jetta) 0 296 3,035 2,613 205 336 3,221 3,106 0 0 0 0Specialty: BMW india pvt Ltd ( 3 Series) NA NA 1,065 1,172 NA NA 1,372 1,299 NA NA 0 0Hindustan Motors Ltd (EVO X) 1 0 2 4 1 0 2 10 0 0 0 0Mercedes-Benz India Pvt Ltd (C-Class) NA NA 1,229 1,835 NA NA 1,278 1,473 NA NA 0 0Volkswagen - Audi (A4) NA NA 0 0 NA NA 707 1,310 NA NA 0 0Total 3,829 3,039 48,677 40,139 4,451 3,555 50,085 41,102 30 17 172 348Premium: Seats Upto-5, Length Normally 4700-5000 mm, Body Style-Sedan/Estate/Hatch/Notchback, Engine Displacement Normally upto 3.0 LitreRegular: Honda Siel Cars India Ltd ( Accord ) 300 0 2,384 1,230 216 101 2,446 1,271 1 0 9 4Hyundai Motors India Ltd ( Sonata ) 18 110 219 256 23 92 265 198 0 0 0 0Nissan Motor India Pvt Ltd (Teana) 0 93 0 246 11 31 242 171 0 0 0 0Skoda Auto India Pvt Ltd (Superb) 468 346 4,159 3,603 390 349 4,017 3,080 0 0 0 0Toyota Kirloskar Motor Pvt Ltd (Camry ) 0 0 0 0 59 0 298 140 0 0 0 0Volkswagen India Pvt Ltd (Passat) 181 218 770 1,818 0 142 662 1,564 0 0 0 0Specialty: BMW india pvt Ltd (Gran Turismo, 5 Series) NA NA 1,273 1,976 NA NA 1,431 1,905 NA NA 0 0Mercedes-Benz India Pvt Ltd (E-Class) NA NA 1,015 1,633 NA NA 1,078 1,351 0 0 0 0Toyota Kirloskar Motor Pvt Ltd (Prius ) 0 0 0 0 8 0 119 7 NA NA 0 0Volkswagen - Audi (A6, A7) NA NA 0 0 NA NA 488 754 NA NA 0 0Total 967 767 9,820 10,762 707 715 11,046 10,441 1 0 9 4Luxury: Seats Upto-5, Length Normally Over 5000 mm, Body Style-Sedan/Estate/Hatch/Notchback, Engine Displacement Normally upto 5.0 Litre Regular: BMW india pvt Ltd (7 Series ) NA NA 0 0 NA NA 307 203 NA NA 0 0Mercedes-Benz India Pvt Ltd ( S-Class) NA NA 320 278 NA NA 272 195 NA NA 0 0Volkswagen - Audi (A8) NA NA 0 0 NA NA 5 189 NA NA 0 0Volkswagen India Pvt Ltd (Phaeton) 0 0 0 0 15 0 42 14 0 0 0 0Total 0 0 320 278 15 0 626 601 0 0 0 0Coupe: Roadster - 2 Doors; 2/4 seater, retractable/firm roof Regular: BMW india pvt Ltd (6 Series, Z4) NA NA 0 0 NA NA 61 35 NA NA 0 0Mercedes-Benz India Pvt Ltd (E-Coupe, E-Cabrio, CLS, SLK) NA NA 0 0 NA NA 103 74 NA NA 0 0Nissan Motor India Pvt Ltd (370Z) 0 0 0 0 1 1 10 6 0 0 0 0Volkswagen - Audi (R8, RS5) NA NA 0 0 NA NA 5 66 NA NA 0 0Total 0 0 0 0 1 1 179 181 0 0 0 0Exotics: Upto 5 Seats, Price >Rs. 1 Crore Mercedes-Benz India pvt. Ltd (SLS AMG) NA NA 0 0 NA NA 0 5 NA NA 0 0Total 0 0 0 0 0 0 0 5 0 0 0 0Total Passenger Car 252,495 256,485 2,453,097 2,513,990 192,105 229,866 1,972,845 2,016,115 50,594 49,483 438,214 499,922B: Utility Vehicles (Uvs) B: Utility Vehicles / Sports Utillty Vehicles; 2x4 or 4x4 offroad capability; Generally ladder on frame; 2 box ; 5 seats or more but upto 10 Seats UV1: Length<4400 mm, Price Upto Rs. 15 Lakh Force Motors Ltd (Trax) 54 21 420 336 48 22 383 333 0 0 30 1Mahindra & Mahindra Ltd (Bolero, ST) 7,597 8,682 77,155 92,654 7,523 8,780 76,760 92,268 13 0 272 176Maruti Suzuki India Ltd (Gypsy) 1,179 2,813 5,015 7,304 606 1,526 5,570 6,498 27 15 226 162Tata Motors Ltd (Sumo,) 2,013 3,973 17,371 25,666 1,984 3,485 17,178 25,705 21 44 485 430Total 10,843 15,489 99,961 125,960 10,161 13,813 99,891 124,804 61 59 1,013 769UV2: Length<4400 - 4700 mm, Price Upto Rs. 15 Lakh General Motors India Pvt Ltd (Tavera) 1,378 2,069 18,423 22,216 1,395 2,073 18,335 22,076 0 2 5 76International Cars & Motors Ltd (Rhino) 17 38 582 478 20 41 652 488 0 6 0 6Mahindra & Mahindra Ltd (Scorpio, Bolero, ST, Xylo) 8,713 13,759 94,374 116,257 8,779 12,418 92,445 109,949 241 440 2,447 4,049Tata Motors Ltd (Sumo Grande, Safari) 2,646 2,132 22,715 18,282 2,503 1,942 21,873 18,071 17 8 281 113Toyota Kirloskar Motor Pvt Ltd (Innova) 4,395 6,834 52,488 57,723 4,418 6,765 52,588 57,543 0 0 0 0Total 17,149 24,832 188,582 214,956 17,115 23,239 185,893 208,127 258 456 2,733 4,244UV3: Length>4700 mm, Price Upto Rs. 15 Lakh Force Motors Ltd (Trax) 367 666 3,052 4,896 400 659 3,047 4,754 0 0 0 0Tata Motors Ltd (Aria, Xenon) 223 460 1,887 4,320 103 389 2,623 3,999 0 68 0 176Total 590 1,126 4,939 9,216 503 1,048 5,670 8,753 0 68 0 176UV4: Price Between Rs. 15 to 25Lakh BMW india Pvt Ltd (X1) NA NA 0 2,443 NA NA 0 2,016 NA NA 0 0Ford India Pvt Ltd (Endeavour) 380 20 3,147 2,173 331 16 3,142 2,242 0 0 0 0General Motors India Pvt Ltd (Captiva) 0 0 0 0 220 44 1,732 1,125 0 0 0 0Hindustan Motors Ltd (Pajero, Outlander) 208 202 2,512 1,888 205 216 2,500 1,891 0 0 0 0Honda Siel Cars India Ltd (CRV) 0 0 0 0 56 1 512 319 0 0 0 0Hyundai Motors India Ltd (Santa Fe) 144 80 477 1,457 121 122 462 1,611 0 0 0 0Maruti Suzuki India Ltd (Vitara) 0 0 0 0 14 4 96 27 0 0 0 0Nissan Motor India Pvt Ltd (X-Trail) 0 0 0 0 29 18 460 290 0 0 0 0Renault India Pvt Ltd (Koleos) 0 93 0 487 0 32 0 367 0 0 0 0Skoda Auto India Pvt Ltd (Yeti) 375 130 1,469 2,129 275 224 1,278 1,755 0 0 0 0Toyota Kirloskar Motor Pvt Ltd (Fortuner) 953 1,378 11,988 11,584 980 1,379 11,996 11,538 0 0 0 0Total 2,060 1,903 19,593 22,161 2,231 2,056 22,178 23,181 0 0 0 0UV5: Price > Rs. 25Lakh BMW india Pvt Ltd (X3, X5, X6) NA NA 0 271 NA NA 256 437 NA NA 0 0Hindustan Motors Ltd (Mentero) 14 11 67 84 14 11 69 86 0 0 0 0Mercedes-Benz India pvt. Ltd (ML Class, GL Class, R Class, G class) NA NA 0 0 NA NA 197 403 NA NA 0 0Toyota Kirloskar Motor Pvt Ltd (LC,Prado) 0 0 0 0 51 21 279 153 0 0 0 0Volkswagen - Audi (Q5,Q7) NA NA 0 0 NA NA 687 1,062 NA NA 0 0Volkswagen India Pvt Ltd (Touareg) 0 0 0 0 0 0 3 6 0 0 0 0Total 14 11 67 355 65 32 1,491 2,147 0 0 0 0Total Utillity Vehicles (Uvs) 30,656 43,361 313,142 372,648 30,075 40,188 315,123 367,012 319 583 3,746 5,189C: Vans; Generally 1 or 1.5 box; seats upto 5 to 10 V1: Hard tops mainly used for personal transport, Price Upto Rs. 10 Lakh Maruti Suzuki India Ltd (Omini,Ecco) 14,734 12,546 163,279 145,521 14,416 12,436 160,626 144,061 118 138 2,014 1,516Tata Motors Ltd (Venture) 448 1,125 1,300 8,104 247 978 704 7,643 1 0 1 1Total 15,182 13,671 164,579 153,625 14,663 13,414 161,330 151,704 119 138 2,015 1,517V2: Soft tops mainly used as Maxi Cabs, Price Upto Rs. 10 Lakh Force Motors Ltd (Trip) 51 0 327 100 33 7 237 147 0 0 0 0Mahindra & Mahindra Ltd (Gio, Maxximo Mini Van) 869 2,402 1,968 26,165 579 2,383 956 25,644 0 20 0 41Tata Motors Ltd (Magic, lris) 4,346 4,331 49,659 57,000 4,783 6,260 51,051 57,450 32 246 351 649Total 5,266 6,733 51,954 83,265 5,395 8,650 52,244 83,241 32 266 351 690Total Vans 20,448 20,404 216,533 236,890 20,058 22,064 213,574 234,945 151 404 2,366 2,207Total Passenger Vehicles (PVs) 303,599 320,250 2,982,772 3,123,528 242,238 292,118 2,501,542 2,618,072 51,064 50,470 444,326 507,318II Commercial Vehicles (CVs) M&HCVs A: Passenger Carriers A1: Max. Mass exceeding 7-5 tonnes but not exceeding 12 tonnes (M3(B1)) (b): No. of seats including driver exceeding 13 (M3(B2)) Ashok Leyland Ltd 147 323 1,551 2,234 219 340 1,588 2,373 51 2 258 225Mahindra & Mahindra Ltd 0 0 0 0 0 0 0 0 0 0 5 0Mahindra Navistar Automotives Ltd 2 20 362 153 4 1 422 8 0 0 0 0SML Isuzu Ltd 280 429 3,390 3,345 538 521 3,276 3,303 1 0 5 5Tata Motors Ltd 368 579 5,341 5,301 652 828 5,684 6,066 58 87 590 679VE CVs - Eicher 245 470 2,196 3,291 259 471 2,318 3,091 19 15 136 148Total A1 1,042 1,821 12,840 14,324 1,672 2,161 13,288 14,841 129 104 994 1,057A2: Max. Mass exceeding 12 but no exceeding 16.2 tonnes (M3(C)) (b): No. of seats including driver exceeding 13 (M3(C2)) Ashok Leyland Ltd 1,884 2,964 23,244 23,431 2,093 2,478 18,837 18,265 365 704 4,543 4,982JCBL Ltd 0 0 0 1 0 0 0 1 0 0 0 0SML Isuzu Ltd 7 14 75 90 19 35 76 95 0 0 0 0Tata Motors Ltd 1,244 680 17,421 13,802 1,506 1,362 15,012 14,650 381 228 4,572 3,148VE CVs - Eicher 38 126 240 992 27 113 157 856 3 1 64 120Volvo Buses India Pvt Ltd 34 45 279 289 35 44 283 278 0 0 2 0Total A2 3,207 3,829 41,259 38,605 3,680 4,032 34,365 34,145 749 933 9,181 8,250A3: No. of seats including exceeding 13 and max. mass exceeding 16.2 tonnes (M3(D)) Passenger Carrier (D) Volvo Buses India Pvt Ltd 38 22 291 411 37 22 285 406 0 0 4 5Total A3 38 22 291 411 37 22 285 406 0 0 4 5Total M&HCVs(passenger carriers) 4,287 5,672 54,390 53,340 5,389 6,215 47,938 49,392 878 1,037 10,179 9,312M&HCVs B: Goods Carriers (c) Max Mass exceeding 7.5 tonnes but not exceeding 10 tons Ashok Leyland Ltd 69 79 498 954 61 74 442 471 3 48 140 134SML Isuzu Ltd 335 391 3,043 3,482 321 315 2,869 3,055 0 30 131 363Tata Motors Ltd 709 330 6,860 6,976 1,107 856 8,666 9,521 70 78 699 594VE CVs - Eicher 978 968 10,965 11,934 1,124 1,201 11,101 11,676 16 20 421 223Total 2,091 1,768 21,366 23,346 2,613 2,446 23,078 24,723 89 176 1,391 1,314(d) Max. Mass Exceeding 10 tons but not exceeding 12 tons Ashok Leyland Ltd 300 513 2,515 4,057 365 493 2,368 3,699 10 32 181 259SML Isuzu Ltd 233 200 1,790 1,800 264 237 1,660 1,771 0 0 47 3

PRODUCTION AND SALES FLASH REPORT FOR MARCH 2012 Source: SIAM

Category Segment/Subsegment Manufacturer. Production Domestic Sales Exports

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

March April-March March April-March March April-March

2011 2012 10-11 11-12 2011 2012 10-11 11-12 2011 2012 10-11 11-12

Auto Monitor

S I A M D A T A 2730 APRIL 2012

Tata Motors Ltd 1,370 900 13,418 13,500 1,935 2,747 16,823 22,805 134 160 1,773 1,290VE CVs - Eicher 1,266 1,515 11,541 14,376 1,369 1,753 11,482 14,058 25 0 224 162Total 3,169 3,128 29,264 33,733 3,933 5,230 32,333 42,333 169 192 2,225 1,714Total B 5,260 4,896 50,630 57,079 6,546 7,676 55,411 67,056 258 368 3,616 3,028B2: Max Mass exceeding 16.2 tonnes (N3(A)) (a) Max. mass exceeding 12 tonnes but not exceeding 16.2 tonnes (N3(A1)) Ashok Leyland Ltd 2,374 2,280 20,820 23,163 2,393 1,886 16,039 17,106 257 673 4,133 5,483SML Isuzu Ltd 11 14 14 71 2 22 2 52 0 0 0 0Tata Motors Ltd 5,937 5,780 52,062 65,870 5,766 3,790 41,122 39,269 729 318 6,105 6,078VE CVs - Eicher 600 448 4,172 5,587 536 470 3,523 4,528 160 47 676 548Total B2 8,922 8,522 77,068 94,691 8,697 6,168 60,686 60,955 1,146 1,038 10,914 12,109B3: Max Mass exceeding 16.2 tonnes-Rigid Vehicles (N3(B1)) (a) Max. mass exceeding 16.2 tonnes but not exceeding 25 tonnes Ashok Leyland Ltd 2,024 1,779 24,060 18,013 2,440 1,794 22,969 16,989 93 0 288 681Asia Motor Works Ltd 647 689 5,601 8,644 693 945 5,838 8,673 0 0 0 0Mahindra Navistar Automotives Ltd 65 135 666 1,134 86 140 298 1,262 0 0 0 0Tata Motors Ltd 5,478 4,029 56,809 53,630 5,728 5,480 55,581 49,972 202 231 2,331 2,104VE CVs - Eicher 97 155 792 1,407 112 241 805 1,282 0 9 4 17VE CVs - Volvo 0 0 1 6 0 0 12 7 0 0 0 0Total 8,311 6,787 87,929 82,834 9,059 8,600 85,503 78,185 295 240 2,623 2,802(b) Max. mass exceeding 25 tonnes Ashok Leyland Ltd 2,471 2,599 12,216 15,652 2,214 2,397 11,595 15,474 0 0 0 0Asia Motor Works Ltd 49 38 232 691 47 79 202 594 0 0 0 0Daimler India Commercial Vehicles Pvt Ltd NA 0 188 120 0 0 103 85 0 0 0 0Mahindra Navistar Automotives Ltd 71 420 818 1,640 117 263 515 1,690 0 0 0 0Tata Motors Ltd 6,482 4,492 48,561 59,578 4,518 4,813 30,542 44,621 74 14 425 282VE CVs - Eicher 58 321 685 1,807 105 378 698 1,786 0 0 0 0VE CVs - Volvo 71 22 890 370 30 4 816 394 0 0 0 0Total 9,202 7,892 63,590 79,858 7,031 7,934 44,471 64,644 74 14 425 282Total B3 17,513 14,679 151,519 162,692 16,090 16,534 129,974 142,829 369 254 3,048 3,084B4: Max. Mass exceeding 16.2 tonnes-Haulage Tractor (Tractor-Semi Traller/Traller)(N3(B2)) (a) Max. Mass exceeding 16.2 tonnes but not exceeding 26.4 tonnes Ashok Leyland Ltd 0 0 0 0 0 0 0 0 0 86 433 190Total 0 0 0 0 0 0 0 0 0 86 433 190(b) Max. mass exceeding 26.4 tonnes but not exceeding 35.2 tonnes Ashok Leyland Ltd 783 526 4,458 2,956 651 438 4,368 2,846 48 14 124 178Tata Motors Ltd 0 652 791 2,145 991 759 8,471 8,025 0 0 0 11Total 783 1,178 5,249 5,101 1,642 1,197 12,839 10,871 48 14 124 189(c) Mass exceeding 35.2 tonnes but not exceeding 40 tonnes Ashok Leyland Ltd 0 0 2 0 0 0 2 0 0 -2 17 -2Asia Motor Works Ltd 63 0 554 417 54 81 530 479 0 0 0 0Mahindra Navistar Automotives Ltd 23 108 61 564 15 108 30 538 0 0 0 0Total 86 108 617 981 69 189 562 1,017 0 -2 17 -2(d) Max. mass exceeding 40 tonnes but not exceeding 49 tonnes Ashok Leyland Ltd 333 342 2,708 2,103 245 296 2,578 2,155 1 5 18 5Asia Motor Works Ltd 15 63 191 256 21 89 222 275 0 0 0 0Tata Motors Ltd 41 750 866 5,076 1,135 1,337 10,226 12,085 0 0 0 2VE CVs - Eicher 29 16 139 128 16 29 139 123 0 0 0 0Total 418 1,171 3,904 7,563 1,417 1,751 13,165 14,638 1 5 18 7(e) Max. mass exceeding 49 tonnes and Above Ashok Leyland Ltd 496 293 2,258 1,637 514 211 2,312 1,740 0 0 0 0VE CVs - Volvo 45 10 183 193 38 10 172 203 0 0 0 0Total 541 303 2,441 1,830 552 221 2,484 1,943 0 0 0 0Total B4 1,828 2,760 12,211 15,475 3,680 3,358 29,050 28,469 49 103 592 384Total M&HCVs (Goods Carriers) 33,523 30,857 291,428 329,937 35,013 33,736 275,121 299,309 1,822 1,763 18,170 18,605Total M&HCVs 37,810 36,529 345,818 383,277 40,402 39,951 323,059 348,701 2,700 2,800 28,349 27,917LCVs A: Passenger Carriers A1: Max. Mass upto 5 tonnes (a): No. of seats including driver exceeding 13 (M2(A2)) Force Motors Ltd 846 1,071 8,302 11,241 876 1,366 8,172 11,040 0 0 112 125Mahindra & Mahindra Ltd 0 0 0 0 0 0 0 0 0 0 0 0Mahindra Navistar Automotives Ltd 238 75 2,918 1,227 193 233 2,873 2,635 0 0 0 0Tata Motors Ltd 349 309 3,748 4,965 372 503 4,778 5,036 35 12 245 179Total 1,433 1,455 14,968 17,433 1,441 2,102 15,823 18,711 35 12 357 304A2: Max. Mass exceeding 5 tonnes but not exceeding 7-5 tonnes (M3(A)) (b): No. of seats including driver exceeding 13 (M3(A2)) Ashok Leyland Ltd 134 168 983 1,358 118 45 701 398 28 60 171 774Force Motors Ltd 7 0 160 24 5 1 149 53 5 0 10 0Mahindra & Mahindra Ltd 0 0 0 0 0 0 0 0 0 0 7 13Mahindra Navistar Automotives Ltd 157 451 1,564 3,460 158 218 1,490 1,813 0 0 0 0SML Isuzu Ltd 428 317 2,875 3,360 386 405 3,031 3,189 2 0 37 19Tata Motors Ltd 1,198 1,205 14,212 14,478 1,441 1,773 12,855 13,238 379 281 2,511 3,645VE CVs - Eicher 439 581 2,929 3,643 404 496 2,484 3,319 45 102 451 291Total A2 2,363 2,722 22,723 26,323 2,512 2,938 20,710 22,010 459 443 3,187 4,742B2: Max. Mass upto 5 tonnes (b): No. of seats including driver not exceeding 13 (M2(A1)) Force Motors Ltd 744 523 5,273 5,954 723 613 5,210 5,948 35 0 43 5Hindustan Motors Ltd 0 0 0 2 0 0 0 0 0 0 0 0Tata Motors Ltd 47 35 1,831 1,326 369 241 3,073 2,702 0 0 40 5Total B2 791 558 7,104 7,282 1,092 854 8,283 8,650 35 0 83 10Total LCVs (Passenger Carriers) 4,587 4,735 44,795 51,038 5,045 5,894 44,816 49,371 529 455 3,627 5,056LCVs B: Goods Carriers (a) Max. Mass not exceeding 2 tons-Mini Truck Segment Force Motors Ltd 50 0 1,228 696 42 16 1,046 401 30 0 62 0Mahindra & Mahindra Ltd 5,307 5,886 43,843 61,208 5,178 4,738 43,727 53,895 60 510 439 5,482Piaggio Vehicles Pvt.Ltd 653 445 9,140 10,703 680 600 9,124 10,592 0 0 18 17Tata Motors Ltd 17,100 7,632 163,276 203,925 13,638 20,735 137,476 186,298 2,004 1,924 20,609 25,359Total 23,110 13,963 217,487 276,532 19,538 26,089 191,373 251,186 2,094 2,434 21,128 30,858(b) Max. Mass not exceeding 2 but no exceeding 3.5 tons-Pick Ups Ashok Leyland Ltd 0 2,226 0 7,760 0 2,211 0 7,593 0 0 0 0Force Motors Ltd 760 460 6,158 5,395 830 591 5,680 5,493 33 11 103 105Hindustan Motors Ltd 8 28 327 191 11 25 312 189 0 0 0 25Mahindra & Mahindra Ltd 7,299 9,682 72,866 90,006 5,763 7,575 60,905 73,134 1,426 1,543 11,077 15,723Tata Motors Ltd 2,085 740 22,253 36,521 2,234 2,930 14,725 23,597 480 207 3,554 4,466Total 10,152 13,136 101,604 139,873 8,838 13,332 81,622 110,006 1,939 1,761 14,734 20,319(a) Max Mass exceeding 3.5 tons but not exceeding 6 tonnes Ashok Leyland Ltd 0 0 0 7 0 0 0 0 0 0 0 0Force Motors Ltd 167 178 1,478 1,567 139 163 1,416 1,464 14 0 43 18Mahindra & Mahindra Ltd 0 0 0 0 0 0 0 0 42 30 293 144Mahindra Navistar Automotives Ltd 375 483 5,440 5,840 295 491 5,211 5,587 0 0 0 0SML Isuzu Ltd 0 4 23 82 3 18 24 84 32 0 32 0Tata Motors Ltd 3,073 2,700 28,391 35,823 3,025 3,077 26,406 29,877 521 573 3,583 5,732VE CVs - Eicher 670 80 1,572 1,121 708 82 1,425 1,113 0 24 55 240Total 4,285 3,445 36,904 44,440 4,170 3,831 34,482 38,125 609 627 4,006 6,134(b) Max Mass exceeding 6 tons but not exceeding 7.5 tonnes Ashok Leyland Ltd 0 0 24 10 0 0 1 0 0 0 0 0Mahindra Navistar Automotives Ltd 2 104 265 420 11 60 238 285 0 0 0 0SML Isuzu Ltd 183 135 1,681 1,748 126 134 1,165 1,264 61 39 515 443Tata Motors Ltd 1,295 396 6,681 7,565 553 572 4,287 5,416 119 14 609 668VE CVs - Eicher 83 598 5,476 6,671 62 552 3,862 5,178 75 47 1,075 1,268Total 1,563 1,233 14,127 16,414 752 1,318 9,553 12,143 255 100 2,199 2,379Total LCVs (Goods Carriers) 39,110 31,777 370,122 477,259 33,298 44,570 317,030 411,460 4,897 4,922 42,067 59,690Total LCVs 43,697 36,512 414,917 528,297 38,343 50,464 361,846 460,831 5,426 5,377 45,694 64,746Total Commercial Vehicles 81,507 73,041 760,735 911,574 78,745 90,415 684,905 809,532 8,126 8,177 74,043 92,663IV Two Wheelers A: Scooter/Scooterettee : Wheel size less than or equal to 12” A1: Engine Capacity less than 75cc Mahindra Two Wheelers Ltd 131 0 11,460 3,527 311 127 26,410 21,426 0 0 0 6TVS Motor Company Ltd 1,752 151 19,063 13,676 1,729 402 21,120 13,781 0 0 0 0Total 1,883 151 30,523 17,203 2,040 529 47,530 35,207 0 0 0 6A2: Engine Capacity 75cc and above but less than 125cc Bajaj Auto Ltd 0 0 0 0 0 0 27 0 0 0 0 0Hero Honda Motors Ltd 37,559 47,664 360,819 462,956 35,732 39,173 342,991 418,224 2,240 4,805 18,482 37,360Honda Motorcycle & Scooter India (Pvt) Ltd 79,786 139,440 906,324 1,246,853 80,085 138,109 893,335 1,224,599 1,232 70 13,800 18,506Mahindra Two Wheelers Ltd 13,413 10,301 161,675 137,262 9,228 12,623 128,850 113,092 88 0 1,602 2,395Suzuki Motorcycle India Pvt Ltd 21,653 31,426 230,718 289,603 21,565 31,114 230,603 288,604 0 0 144 139TVS Motor Company Ltd 47,435 34,332 444,526 507,039 39,251 36,415 414,268 483,115 1,675 2,578 16,618 32,199Total 199,846 263,163 2,104,062 2,643,713 185,861 257,434 2,010,074 2,527,634 5,235 7,453 50,646 90,599Total Scooter/Scooterettee 201,729 263,314 2,134,585 2,660,916 187,901 257,963 2,057,604 2,562,841 5,235 7,453 50,646 90,605B: Motor cycles/Step-Throughs : Big Wheel size more than 12” B2: Engine Capacity 75cc and above but less than 125cc Bajaj Auto Ltd 171,924 168,810 1,831,942 2,046,430 109,258 87,504 1,159,190 1,128,410 38,256 65,744 639,463 832,428Hero Honda Motors Ltd 443,033 470,830 4,692,924 5,467,051 434,812 444,324 4,589,003 5,320,330 8,792 8,922 102,524 114,308Honda Motorcycle & Scooter India (Pvt) Ltd 16,337 2,256 191,945 179,494 12,587 1,239 165,849 142,075 4,000 2,608 28,547 38,131India Yamaha Motor Pvt Ltd 5,138 7,009 69,920 79,058 4,413 5,760 67,420 63,934 400 2,160 8,095 13,762TVS Motor Company Ltd 51,856 47,666 598,159 561,094 45,033 11,555 477,543 441,671 13,982 10,464 109,468 120,290Total 688,288 696,571 7,384,890 8,333,127 606,103 550,382 6,459,005 7,096,420 65,430 89,898 888,097 1,118,919B3: Engine Capacity 125cc and above but less than 250cc Bajaj Auto Ltd 135,081 149,234 1,572,161 1,802,605 110,826 122,878 1,255,416 1,438,219 16,052 24,721 332,974 435,220Hero Honda Motors Ltd 34,853 31,378 352,047 344,110 33,908 30,055 337,387 330,726 368 1,011 12,057 14,247Honda Motorcycle & Scooter India (Pvt) Ltd 48,636 77,805 552,878 668,976 44,590 72,802 492,162 614,440 4,697 4,867 61,898 53,128India Yamaha Motor Pvt Ltd 30,366 30,681 292,425 419,292 21,366 24,049 210,067 291,461 10,584 9,907 81,129 115,632Suzuki Motorcycle India Pvt Ltd 6,056 3,039 51,648 57,585 5,647 3,504 50,678 50,031 116 520 704 6,802TVS Motor Company Ltd 21,865 19,315 246,776 280,679 12,547 37,539 154,607 180,067 8,080 6,436 95,213 99,334Total 276,857 311,452 3,067,935 3,573,247 228,884 290,827 2,500,317 2,904,944 39,897 47,462 583,975 724,363B4: Engine capacity 250cc and above Bajaj Auto Ltd 0 0 0 128 0 1 0 128 0 0 0 0H-D Motor Company India pvt Ltd 0 104 0 793 0 90 0 716 0 0 0 0Honda Motorcycle & Scooter India (Pvt) Ltd 0 702 13 16,401 0 665 32 15,206 0 130 0 1,209India Yamaha Motor Pvt Ltd 0 0 0 0 5 10 59 102 0 0 0 0Royal Enfield (Unit of Eicher Ltd) 6,277 9,004 57,351 83,254 5,952 8,644 54,475 78,546 410 384 2,606 3,026Total 6,277 9,810 57,364 100,576 5,957 9,410 54,566 94,698 410 514 2,606 4,235Total Motor Cycles/Step-Throughs 971,422 1,017,833 10,510,189 12,006,950 840,944 850,619 9,013,888 10,096,062 105,737 137,874 1,474,678 1,847,517C: Mopeds: Engine capacity less than 75cc & with fixed transmission, big wheelsize>12” Engine Capacity<75cc Mopeds TVS Motor Company Ltd 65,443 73,192 704,575 785,753 64,159 74,825 697,418 776,866 325 60 6,295 9,076Total 65,443 73,192 704,575 785,753 64,159 74,825 697,418 776,866 325 60 6,295 9,076Total Mopeds 65,443 73,192 704,575 785,753 64,159 74,825 697,418 776,866 325 60 6,295 9,076Total Two Wheelers 1,238,594 1,354,339 13,349,349 15,453,619 1,093,004 1,183,407 11,768,910 13,435,769 111,297 145,387 1,531,619 1,947,198III Three Wheelers A: Passenger Carriers A1:No. of seats including driver not exceeding 4 & Max.Mass not exceeding 1 tonnes Atul Auto Limited 898 1,427 10,456 14,213 930 1,228 10,260 13,640 18 60 251 276Bajaj Auto Ltd 40,533 37,392 435,721 506,171 17,128 16,682 201,246 195,141 15,576 17,226 231,107 312,176Force Motors Ltd 0 0 0 0 0 0 10 11 0 0 0 0Mahindra & Mahindra Ltd 4,498 3,216 45,007 52,302 3,839 3,400 42,566 48,330 156 108 2,265 2,972Piaggio Vehicles Pvt.Ltd 13,233 11,807 157,370 145,905 11,763 9,717 141,042 126,319 1,492 1,920 17,155 19,143Scooters india Ltd 503 386 4,168 5,039 530 434 4,239 4,893 0 0 0 0TVS Motor Company Ltd 4,427 2,293 40,112 39,670 1,510 1,101 22,357 14,172 2,917 1,152 17,503 25,567Total 64,092 56,521 692,834 763,300 35,700 32,562 421,720 402,506 20,159 20,466 268,281 360,134A2: No.of seats including Driver exceeding 4 but not exceeding 7 & Max.Mass exceeding 1.5 tonnes Force Motors Ltd 192 98 293 560 0 0 26 0 70 56 154 602Mahindra & Mahindra Ltd 0 0 908 0 0 0 738 209 0 0 0 0Scooters india Ltd 336 441 2,949 3,313 372 435 2,874 3,521 0 0 0 0Total 528 539 4,150 3,873 372 435 3,638 3,730 70 56 154 602Total Passenger Carrier 64,620 57,060 696,984 767,173 36,072 32,997 425,358 406,236 20,229 20,522 268,435 360,736B: Goods Carriers B1: Max.mass not exceeding 1 tonnes Atul Auto Limited 1,065 1,477 8,865 13,350 1,059 1,286 8,889 13,058 0 0 6 26Bajaj Auto Ltd 602 670 4,679 7,767 645 759 4,357 7,838 0 0 174 0Mahindra & Mahindra Ltd 1,369 1,994 12,281 15,945 1,256 1,355 11,932 14,329 96 8 333 576Piaggio Vehicles Pvt.Ltd 5,837 4,705 62,292 59,519 5,881 4,602 61,549 58,043 5 257 858 1,364Scooters india Ltd 563 494 4,809 5,874 588 529 4,377 5,792 0 0 0 0Total 9,436 9,340 92,926 102,455 9,429 8,531 91,104 99,060 101 265 1,371 1,966B2: Others Force Motors Ltd 0 0 15 0 1 0 107 0 0 0 0 0Mahindra & Mahindra Ltd 610 356 7,007 4,608 674 334 6,906 4,572 0 0 0 0Piaggio Vehicles Pvt.Ltd 19 6 166 189 0 0 0 0 24 0 162 174Scooters india Ltd 336 413 2,455 3,286 335 414 2,549 3,383 0 0 0 0Total 965 775 9,643 8,083 1,010 748 9,562 7,955 24 0 162 174Total Goods Carrier 10,401 10,115 102,569 110,538 10,439 9,279 100,666 107,015 125 265 1,533 2,140Total Three Wheelers 75,021 67,175 799,553 877,711 46,511 42,276 526,024 513,251 20,354 20,787 269,968 362,876Grand Total of all Categories 1,698,721 1,814,805 17,892,409 20,366,432 1,460,498 1,608,216 15,481,381 17,376,624 190,841 224,821 2,319,956 2,910,055

Category Segment/Subsegment Manufacturer. Production Domestic Sales Exports

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

March April-March March April-March March April-March

2011 2012 10-11 11-12 2011 2012 10-11 11-12 2011 2012 10-11 11-12

* Exports of Ford indicate CKDs

Auto Monitor

C L A S S I F I E D S2830 APRIL 2012

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Auto Monitor

T H E O T H E R S I D E3030 APRIL 2012

Illus

trat

ion:

Sac

hin

Pan

dit

Getting Personalwith Lalit Choudary, Director, Infi nity Cars Pvt Ltd

Lalit Choudary is a young business entre-preneur. He is a graduate of IIM Calcutta and worked as an Investment Banker at Lehman Brothers for eight years, based in Hong Kong for the most part. He relocat-ed to India in 2006 to establish the India operations of the bank.

Choudary saw the opportunity for luxury cars and products in India and established Infi nity Cars in 2006 with the dealership of BMW in Mumbai and subsequently in Madhya Pradesh. In late 2009, Lalit Choudary initiated dia-logue with Aston Martin with a view to bringing the brand to India.

In Person

An experience I won’t forget…

If not in the auto industry, where would you be?Probably still in the investment banking sector

What car do you drive? What do you dream of driving?An Aston Martin Rapide. I dream of driving the Aston Martin One 77

Your most recent indulgence…The new showroom we established for Mini in India—it’s the stuff of dreams!

What are you currently reading? Typically, international fi nancial press—magazines or newspapers. Not into fi ction.

What is Mr Choudary doing when not talking auto? Spending time with the family and kids

Outdoor activity you would miss offi ce for…A run when the weather is pleasant

Where did you go for your last holiday?Dubai; was absolute paradise for the kids with the various attractions on offer

You get angry when…One misses deadlines for any reason or makes false commitments

What is the one thing you would like to change about you?Learn to enjoy the present moment and not think too far ahead!

Best thing to have happened to you…My marriage to Pooja; she has been a true partner in everything we have done since, including in setting-up the business

Waking up early on a freezing morning with the kids to catch a hot air balloon ride in Capadocia, Turkey. The landscape, often referred to as lunar, offers a unique and compelling environment as one rises in the balloon. The 50-70 other balloons in numerous colours rising against the backdrop of the sunrise make for a fantastic photo op. The chilly breeze blowing past transcends one into another world!

g business entre-f IIM Calcutta

ent Banker atears, based int. He relocat-ish the India

portunity for in India and in 2006

W inin

9,a-n

Regn. No. MH/MR/WEST/20/2012-2014. RNI No. MAHENG/2000/11414Licenced to post at Mumbai patrika channel sorting office G.P.O. Mumbai 400 001.Date Of Mailing:16th & 17th Fortnightly Issue. Date Of Publication: 13th of Every Month

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