aftermarket - july 2012

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

Vol. 2 No. 1 July 2012 68 Pages `50

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JULY 2012 AFTERMARKET 5

IT is one year since the start of your favourite magazine Aftermarket and it was a great

learning for all of us in my team. With several trials and tribulations, the magazine shaped

up to the level it is now. Though automotive aftermarket is perplexing, it is promising for

sure, irrespective of how the mother industry, auto, performs. In fact, the aftermarket has

always been growing and the only variable is the pace of its growth. History reveals that this

segment has witnessed significant growth whenever the mother industry slows down.

In the first anniversary issue, we have attempted to provide you with the pulse of the

automotive aftermarket as the cover story. The pluses and pain points including customers’

complaints regarding pricing, long queues and apparent lack of transparency, have been

discussed. In addition, you will find articles written by industry leaders—from gadget/

component manufacturers as well as service providers. Also, there is a dedicated section—In

Conversation, where industry leaders speak to you on varied issues both at micro as well as

macro levels. Besides, we have special reports on garage equipment manufacturers, tyres and

component manufacturers.

Dear readers, the first anniversary also marks my departure from this magazine. The

Aftermarket experience has been memorable and exciting because it is the first-of-its-kind

magazine in India. Initially, I must confess that I was a tad anxious when it was first

conceived, but the initial impetus was enough to keep the tempo going to date. For that, I

owe it to each of you for being so encouraging and supportive. Thank you for continuously

giving me feedback that helped me to cater to your requirements. Also, I was lucky to have

wonderful team without which, the issue would not have come as far as it has. It is Au

Revoir to Aftermarket now.

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

We Are One!

T. Murrali [email protected]

EDITORIAL


NEWS

GUEST COLUMN

IN CONVERSATION

SPECIAL REPORT SPECIAL REPORT

COVER STORY

CONTENTS

20 What’s in store for the future?: Takeshi Shinmen

24 Indian Automotive Aftermarket trends: Madhur Aneja

28 Multi-brand car servicing segment: R Srivatchan

30 Multi-brand garages in India: Jagdish Khattar 34 Development of service chains: Rajeev Dubey

38 FADA President, Nikunj Sanghi suggests dealers to cut down their overheads without compromising on demand creation expenses and focus on services

10 SKF to increase products, scope of aftermarket division

33 Apex automotive bodies call for curbing spurious products

14

38

10 33

14 Taking Stock On the eve of the first anniversary, we turn our focus on the forces shaping the aftermarket, its status and attempt to foresee what is in store for the future

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

Vol. 2 No. 1 July 2012 68 Pages `50

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Cover DesignUttam RaneMahesh Talkar

20

28 30

24

34

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Taking Stock


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10 AFTERMARKET JULY 2012

SPECIAL REPORT

SKF’s global aftermarket service

division—Vehicle Service Market is

looking to increase its product portfolio

for the automotive aftermarket in India.

It is looking to have a larger footprint and

have more Stock Keeping Units (SKUs)

in India. It recently introduced additional

range of driveshaft, constant velocity joints

and boot kits.

“The two-wheeler and four-wheeler

market in India has been reflecting

positive growth sentiments. With multiple

growth opportunities in replacement and

aftermarket segment, we see this trend

continuing in future. This expansion is

aimed at catering to the growing demands

in the automotive aftermarket across

India. With this expansion, SKF will

be in a position to assemble the critical

components of the kits and facilitate a

complete kit to the end markets,” said

Director-Vehicle Service Market (VSM),

SKF Group, Magnus Johansson. He added

that the expansion of VSM’s activities

will further reduce the lead time for

going to markets ensuring faster service

to customers.

SKF's VSM division caters to the

automotive aftermarket and offers a wide

range of products that can be classified

under the categories of deep groove

ball bearings, taper roller bearings, hub

units, bearing kits and other special

products. The division caters to auto

specialists, OE manufacturers for spares

supplies, state transport undertakings and

authorised stockists.

Globally, SKF VSM accounts for around

10 percent of the net sales of SKF Group

and caters to the aftermarket for cars,

commercial vehicles and two wheelers. It

has a global footprint with offices in North

America, Europe, Asia, Middle East and

South America.

The key product areas for the group

include wheel end and engine components

sold as kits, such as wheel bearing kits

and timing belt kits. A kit contains all

the different components, accessories and

instructions needed to perform a complete

repair of the failed area of the vehicle. The

division offers wide variety of kits including

engine bearings kits, transmission bearings

kits, steering race kits among others. The

product range comprises around 20,000

variants. Other product offerings include

enduro bearings, grease—VKG 9/xx IN,

hub greasing kit–-VKA 6000/1, universal

joint Kits and centre support bearing.

“Aftermarket requires much more than

just a physical product and we are looking

to provide technical as well as commercial

support to the market. It also requires

support that aims to make identifying,

ordering and mounting the parts as simple

as possible. In India, we see three major

factors driving the aftermarket growth—

total miles, repair per mile and value

per repair to be very favourable for most

aftermarket players,” said Johansson.

SKF to increase products, scope of aftermarket division

Abhishek Parekh

Magnus Johansson, Director-Vehicle Service Market (VSM), SKF Group

New products – Adding new products


SPECIAL REPORT

“There is still a lot of untapped potential

in utilising SKF's global capabilities

and to transfer knowledge and product

portfolios between different regions. The

trend on a global level is bigger and more

international distributors, mirroring to a

certain extent the development we have

seen with our partners in the OEM. To

be successful in the future, an aftermarket

supplier must able to produce global and

sell local,” he added.

The markets around the world are

diverse and the aftermarket usually

mirrors the cultural, political and socio-

economical differences of each regions.

For instance, in the US there are few

large sized distributors with up to Euro

10 billion turnover that are vertically

integrated, with their own retail network

and workshops. In Europe, aftermarket is

structured along franchise model. There

are independent distributors teaming

up in big trading groups in more or less,

tightly knit distributor networks due to

the many different cultures, countries and

languages. The networks in turn have their

own garage/workshop concepts, which

are normally not owned by the networks.

Latin America is closer to the European

set-up, even if there are big differences also

in the region itself. In China, the market is

still settling and it will be very interesting

to follow the development.

A major factor that differentiates the

aftermarket character is the vehicle parc,

vehicle age and vehicle value thereby

creating different demands on the

technical support that has to come with

the products. The proportion of car, two-

wheelers and heavy duty vehicles are also

unique to each region. For instance, the

two-wheeler market is proportionally

a minor market in regions like North

America, Latin America and Europe

compared to India and South East Asia.

Moreover, the diversity in the regions

IT infrastructure is also creating

variations in part distribution chain. In

the US and Europe, major part of the part

identification, ordering and logistics are

done electronically, increasing efficiency

and transparency among suppliers as well

as between suppliers and distributors.

In some regions, OEs hold more than

50 percent aftermarket share while in

some markets OEs have a very marginal

market share and impact, according to an

SKF official.

The company is looking to renew the

on-going endeavour in developing its

services and state-of-the-art products.

Additionally, with strong emphasis on

the R&D activities, the company has

been able to offer customised solutions

for the different markets. The company is

looking to have equal emphasis on product

availability and service delivery, according

to Johansson.

The factors affecting the total miles

include total vehicle parc, fuel price and

distance to work or locations. Repair per

mile is influenced by average operating

conditions of the vehicle, age of vehicle

parc and product longetivity or durability.

Value per repair is in-turn is majorly

affected by component value or cost, kits

and loose parts sold in the aftermarket

or to Original Equipment Manufacturers

(OEM). As per the company’s estimates,

the total vehicle parc in India is likely to

witness a Compounded Annual Growth

Rate of around 10 percent in the period

2005-2014 that is lower than China’s 17

percent but higher than Eastern Europe

and South America.

SKF VSM has gradually increased

distribution coverage in rural areas to 300

distributors and 20,000 retailers over the

last five years even as the divisional sales

have doubled in the same period. The

company is in the process of growing its

distribution network. It reckons that most

distributors are looking to partner with

companies having full range of products,

uninterrupted availability of parts, right

pricing and positioning in the market. Most

workshops, in addition to above factors,

also look for training and information on

‘correct’ repair procedures. �

This expansion is aimed at catering to the

growing demands in the automotive aftermarket across India. With this

expansion, SKF will be in a position to assemble the critical components of the kits and facilitate

a complete kit to the end markets—Magnus Johansson, Director-

Vehicle Service Market (VSM), SKF Group

New Products: Value added – Wheel end


COVER STORY

THE automotive aftermarket segment

was a thriving, and perhaps perplexing

business when we commenced our

efforts around a year ago. It has not lost

any of its charm since and continues

to be challenging for most local and

growing number of global players. What

makes the business interesting is the

unabated expectations of end customers

for value in price, service, expertise and

combination of these three prepositions.

Few players can claim to offer any of

these three or any combination thereoff.

Even as the country has grown to be

one of the largest and fastest growing

vehicle markets globally, the character

of the aftermarket has continued to be

essentially the same as had been a decade

ago. Though the market has expanded

to include several organised multi-

vehicle garages, regional scale spare parts

distributors and retailers, the business

continues to driven by the OE’s agenda

with authorised service continuing to

be focal point for customers and spare

parts suppliers, especially passenger

car segment.

Moreover the aftersales and

parts distribution infrastructure for

commercial vehicles and two-wheelers

continues to be largely unorganised with

very little or no role played by OEs. Even

as aftersales servicing is yet to find its feet,

parts suppliers are increasingly looking

to play a larger role, by themselves, in

reaching out to the customers through

innovative distribution models. Global

parts suppliers are also looking to have

a larger role and better control in the

aftermarket through dedicated and

focussed distribution of parts.

As per some estimates, the passenger

car service market in India is estimated

to be anywhere between `15,000 to

`20,000 crore currently, and OE dealers

and authorised service centres form the

bulk proportion.

According to Former Managing

Director of Maruti Suzuki, Jagdish

Khattar, the share of OEMs,

neighbourhood garages, and

14

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Team Aftermarket

Taking Stock


COVER STORY

independent chains is one-third each

in most developed countries. However,

the Indian market has yet to witness

this diversity as independent chains

have a negligible share. He expects

independent service chains to cater to

around 20 percent of the car servicing

market by 2015.

He is quick to point out that there is no

competition between the various players

in the aftersales car repair and second

hand car markets. With increasing

demand and the growth of third party

multi-brand garages, customers are

getting more options to suit their needs.

Trust and capability appear to be

major factors at this stage as far as

multi-brand garages are concerned.

It may be awhile before they can win

customer confidence. Market watchers

point out that these third party garages,

organised and smaller players alike, can

grow quickly if they can address the

current problems and pain points of car

owners. For instance, customers often

have complaints regarding pricing, long

queues and apparent lack of transparency

at OE authorised service stations. Multi-

Brand Operators (MBOs) can address

these issues if they can build scale and

manage to deliver superior customer

experience uniformly across the network.

The one factor that could favour the

growth of the MBOs is the relative

reluctance of OE dealers to expand

aggressively in times of slow growth

for that particular brand due to high

capital expenditure requirements and

high OE expectations. However the

MBOs have the advantage of looking at

the overall growth of the auto industry,

which is relatively more stable, for

their expansion.

Moreover, Tier III cities are

underserved by the OE brands on

standalone basis, which presents a good

opportunity for MBOs as they look at

the combined load of all the brands put

together. However they have to take

care of the problems of scarcity of skilled

manpower and spare parts logistics,

which become pronounced in these far

flung locations, as an official at a leading

MBO points out.

Parts suppliers, too, are looking to

address the market fragmentation in their

own way. The present distribution chain is

highly fragmented with the involvement

of multiple intermediaries—distributor,

wholesaler, retailer, mechanic and

several small independent ‘suppliers /

carriers’ creating inefficiencies within

the system. While the margins at each

step of the chain are not very high, the

multiple steps cumulatively add up and

result in escalation of end consumer

acquisition cost.

“We have been looking to put a robust

IT backbone in place, which will allow

our field force to spend more time with

customers and provide market feedback

rather than spend time doing any

market analysis or MIS (Management

Information System). The support staff

has been trained to analyse data and

provide intelligent feedback and support

the field staff thereby increasing efficiency

of the system as a whole,” said Vice

President-Corporate (Aftermarket),

Anand Group, Sachin Puri in an earlier

interaction with Aftermarket.The support model, akin to banking IT

backbone, may become a key differentiator

for the group going forward. TVS Group,

on the other hand, has been increasingly

relying on healthy mix of owned and

franchisee retailers/distributors with

support of IT infrastructure to provide

ever growing number of SKUs at various

depots and working on efficient supply

15

A big deterrent in aftermarket currently is the lack of adequate

infrastructure to service the new generation of vehicles. Vehicle sales have far outpaced the establishment of new garages to service the

millions of new vehicles that hit Indian roads

every year. While OEMs are doing their bit to expand their service stations, they are yet

to catch up

The present distribution chain is highly fragmented with the involvement of multi-

ple intermediaries—distributor, wholesaler, retailer, mechanicsF and several small

independent ‘suppliers / carriers’ creating inefficiencies within the system


chain to meet its objective.

Aftermarket distribution chain for

most part suppliers is expected to get

consolidated through rationalisation

of intermediaries in the coming years,

according to market players. Companies

across the value chain will have to

improve on their competence, and

enhance capabilities to produce parts

for and to service a wider variety and

complexity of vehicles.

While the number of steps in the

value chain are bound to reduce

to enhance service levels and offer

customised products to their respective

customers, each step will need to add

more value through higher investment

in infrastructure, IT tools, professional

management among other enablers. Thus

end consumer will get a better product /

service and simultaneously, the limited

number of professional intermediaries

will also earn higher margins. A

cascading effect on this model, over

a period of time, will result in a better

balance within the value chain.

A big deterrent in aftermarket currently

is the lack of adequate infrastructure to

service the new generation of vehicles.

Vehicle sales have far outpaced the

establishment of new garages to service

the millions of new vehicles that hit

Indian roads every year. While OEMs

are doing their bit to expand their service

stations, they are yet to catch up.

Roadside mechanics in the aftermarket

can no longer service the new generation

vehicles and their complex engines,

according to Vice President, Asia

Pacific, Federal-Mogul, Madhur Aneja.

He added that major investments in

the service infrastructure upgradation

in the aftermarket in service stations

has thus become necessary. While the

big investments to set-up large service

stations may take time, a possible way

ahead could be setting-up of smaller

centres that cater to specialised jobs like

brake, suspension and body & chassis.

He pointed out that the two-wheeler

and three-wheeler market has opened

doors for several foreign and local

players to expand their aftermarket

product and services portfolio and meet

the present demand, and consequently

has pushed them to cater to the market

with customised products and services

that meet the unique demands of this

market segment. However, like all

expansion plans, penetration into these

alternative segments comes with its own

share of issues such as the requirement

of huge investments and time to set-up

shop as well as recruiting and retaining

skilled manpower.

Automotive aftermarket has reached

a certain level of maturity, which had

compelled Auto Monitor to take-up

the challenge a year ago to provide

our readers with a dedicated source of

information for this rapidly growing

automotive sector. The journey so

far has been enriching but there are

many unfulfilled objectives and we

would be looking to achieve them as

we go along. �

Customers often have complaints regarding

lack of transparency at OE authorised service

stations. MBOs can address these issues if

they can deliver superior customer experience

uniformly across their networks

The support staff has been trained to analyse data and provide intelligent feedback

and support the field staff thereby increasing efficiency of the system as a whole

COVER STORY


SPECIAL REPORTT

THE Anti-Dumping Duty (ADD)

levied on imports of non-radial tyres

from China and Thailand has been

extended for another few months by the

Government of India. Although this is

positive for the industry, the increasing

import continues to raise concerns,

the apex body of Indian tyre industry,

The Automotive Tyre Manufacturers

Association (ATMA) said.

The Department of Revenue has

said “It shall remain in force up to

and inclusive of 7 October, unless it is

revoked earlier.” The extension comes

in the wake of Commerce Ministry’s

Directorate General of Anti-Dumping

and Allied Duties had initiated a review

in August last year.

Globally, dumping is treated as an

unfair trade practice. Tyres have and

continue to be dumped in India. Hence,

following a petition filed by the domestic

tyre industry, ATMA—and based on

a detailed investigation by the Anti-

Dumping Directorate—the government

have decided to impose anti-dumping

duty on bias, and later, radial tyres for

trucks and buses.

“At the time of its imposition, the

duty did help in lowering the volume

of imports. However, based on actual

experience, import volumes have again

started increasing in the recent past and

are a matter of concern for the domestic

Industry.” Director General, ATMA,

Rajiv Budhraja told Aftermarket.

The ATMA says that ADD is not to

be viewed from the perspective of any

benefit for the domestic industry of loss

from the overseas manufacturer/exporter.

It is an unfair practice, which not only

impacts the domestic industry adversely,

but also deprives the government (of

importing country) of loss of legitimate

revenues besides distorting the market.

The government move may not give

much impetus to the expansion plans of

tyre manufacturers these are not linked

to the anti-dumping duty. More so,

since the past experience (of a number

of sectors / product groups) indicates

that while ADD was instrumental in

lowering the volume of imports for

some time, over a period of time the

increase in volume, in absolute as well

as percentage (YoY) terms does take

place.

Even the ADD rules provide for Mid-

Term Review (MTR), SunSet Review

(SSR) and New Shippers’ Review (NSR),

under which, the ADD can be removed,

enhanced/lowered or exempted for

certain exporters (who were not exporting

at the time of initial imposition of ADD).

“For any domestic manufacturer to go

in for capacity expansion or investment

based on status of the ADD would be

taking a rather simplistic assessment for

a decision, which is based on a number

of other important factors (viz. growth

in demand, existing capacity, overall

performance of that sector/ industry

domestic & international markets).”

Budhraja added.

The anti-dumping duty imposed will

remain in force up to and inclusive of 27

March, 2013 unless the notification is

revoked earlier. The duty on wheels was

imposed on 29 March, 2007. �

Government wields duty extension against tyre dumping Nabeel A Khan

Globally, dumping is

treated as an unfair

trade practice, yet

tyres continue to be

dumped in India. Hence,

following a petition filed

by the domestic tyre

industry, ATMA and the

government have decided

to impose anti-dumping

duty on bias, and later,

radial tyres for trucks

and buses

Rajiv Budhraja, Director General, Automotive Tyre Manufacturers Association (ATMA)


GUEST COLUMNGUEST COLUMN

THE whole industry is eagerly trying

to foresee the future of aftermarket in

India as far as in-car entertainment

is concerned. I would rather look

at this subject by comparing the

behaviour of Indian consumers

over the years. As every research

is based on the middle-class

consumer behaviour, as the

middle-class consumer is

considered as the pillar of the

booming economy, I would

also like to follow suit.

Let’s look at general

behaviour of an average

middle-class consumer

over the years—slowly

htey are moving away

from the corner

stores for their daily needs, towards

the more comfortable “everything

under one roof” malls. Even though,

this doesn’t completely wipe out the

sustainability of corner stores, as they

still pull customers. If you map the

same situation to the in-car

entertainment scenario, the trends

are showing that OE fi tments are

increasing as the days go by. Even in

smaller cars, the OE fi tment percentage

is increasing. Accessory shops inside car

dealerships (we technically call them as

DOP—Dealer OPtions) will be getting

more business in the coming days, as

customers are opting for more of

the ‘C’ factors: Comfort during

the installation process, which

20

TAKESHI SHINMEN,

Senior Manager,

Kenwood India Liaison Offi ce



the dealerships must provide;

Confidence, which we cultivate,

especially when the installation is being

executed by the car dealership and

under the supervision of the people who

are providing cars; Cost, wherein,

customer perceptions are transforming

and today, they are ready to pay a premium

for the Comfort and Confi dence factors

they are enjoying with the dealership.

Th ere has been an increase in the

entries of sophisticated car companies in

the Indian market following the growing

awareness of the importance of in-car

entertainment. Th ey started competing

with each other by providing audio/

video systems with advanced features, as

OE fi tments/DOP. Th e USB feature has

become the basic necessity for any audio

system provided by car companies. Some

of the middle-range cars in-built with

Bluetooth facility while some high-end

cars are even loaded with touchscreen

navigation systems as OE fi tments.

Car companies are conducting

thorough research to understand the

needs of the customers from time-to-

time and are compelled to improve the

quality and features of the entertainment

systems that they are providing.

Th ere is another school of thought

prevailing in this area. Th ere will be a

gradual drop of aftermarket sale of in-car

entertainment systems. Th is is because,

as long as car companies cannot placate

the growing “thirst” of consumers

through their OE fi tments, which as of

now have limited features, consumers

will look for replacements for which,

they will approach the DOPs or the

aftermarket. Yet, there is much hope

for the extended life of the aftermarket

business.

Citing the above reasons of increase in

OE and Dealer Option Business (DOB),

it seems like the future of the aftermarket

business is slowing down and will further

go down in the coming years, especially if

you very seriously follow and understand

the examples in the other parts of the

world. As I have mentioned earlier, the

aftermarket can never die, as car audio

companies can target select aftermarket

dealers as their fl agship dealers—not

exclusive ones, but more concentrated

on a particular brand visibility. While

having such fl agship dealers, they can

have more “add-value services” like better

2121

Growth and development of in-car entertainment aftermarket in India:

What’s in store for the future?

Entry of more

sophisticated car

companies into the

Indian market has started

increasing, especially

after understanding the

importance of in-car

entertainment. The USB

feature has become a

basic necessity for any

audio system provided

by car companies. Some

of the mid-range cars

are coming with an in-

built Bluetooth facility

and some high-end cars

are even loaded with

touchscreen navigation

systems as OE fi tments



installation using professional methods,

usage of state-of-the-art tools, wiring

and technology for installation. Th is could

earn more respect and confi dence from

the customers.

Th e United States is a fi ne example

of this, as many specialty stores in that

country have become real success stories.

In India also, such possibilities can be

very well explored as the customers,

however cost-conscious they are, can pay

extra if they are receiving value-added

services. If proper training could be

provided to such fl agship dealers, they can

even educate customers, by comparing

products, through sound tests or some

other mechanism so that customers can

have a hands-on experience before the

entertainment systems are fi tted into

their cars.

I strongly feel that such experiments

can be done in India, and India can evolve

as a model market for the other Asian

markets. Compared to many other mature

markets like Japan (where navigation

market is almost 92 percent), some of the

European markets are almost saturated

and possibilities of experiments are near

to impossible. On the other hand, India,

with a variety of interests and still a lot of

untapped areas left, can extend the life of

the aftermarket further.

Personally, I like the Indian market

very much, the consumer behaviour

over the period of time, brand

consciousness among the consumers,

ability of consumers’ to understand

the importance of features, their love

for good quality sound—all of these

are highly appreciated. India is a vast

country with broad tastes, a rich cultural

heritage, and a number of languages,

and inspite of the diversifi ed tastes

and imagination of the consumers, each

one of them attempts to understand

the product that they are buying. Th is

is the quality that I am seeing among

the Indian consumers across the

board.

Th e Indian market is completely

diff erent when you compare with other

world markets or for that matter with

other Asian markets. As mentioned

above, as this market is close to my heart;

I feel India can stand alone as an example

in the case of aftermarket sustainability,

even when all the other parts of the

world are looking the other way.

My passion for Indian market will

hit another high if that happens in

the future, let there be another reason

for my love and aff ection for the

Indian consumers. �

The Indian market is

completely different

when you compare with

other world markets

or for that matter with

other Asian markets. I

feel that India can stand

alone as an example in

the case of aftermarket

sustainability, even when

all the other parts of the

world are looking the

other way


GUEST COLUMN

INDIA is home to nearly 100 million

vehicles, and the automotive sector

is one of the economy’s key drivers.

Th e Indian automotive market is

among the few that saw record

sales across all segments despite

the recent global downturn.

A large portion of India’s

automotive prof its and

thriving success can be

attributed to its fl ourishing

aftermarket segment. Th e

automotive aftermarket is

poised for solid growth

and as per McKinsey

& C ompa ny,

estimated to reach

`39,000 crore to

`44,000 crore by

2015. Given the

current trends

and improving industry standards,

the Indian automotive aftermarket

segment is bound to witness major

structural changes over the next fi ve to

seven years.

Today, the importance of consumer

costs for aftermarket parts is greater

than ever, since it inf luences the

consumer’s buying decision. Th is in

turn has increased the pressure on

component manufacturers and channel

partners to raise the bar by providing

consumers with a wider choice of high

quality products and services. In order

MADHUR ANEJA,

Head-AM Sales,

Federal-Mogul


GUEST COLUMN

to keep the momentum going and to

ensure a lucrative future for India’s

automotive aftermarket; manufacturers,

suppliers and independent dealers will

need to improve effi ciency and scale of

operations. Taking into consideration

the factors at play in the Indian market,

enhancing effi ciency and operations will

require the following factors:

Consolidation Of Multi-Step

Distribution Model

Th e Indian aftermarket value chain

is extremely complex and fragmented

with involvement of multiple parallel

and many times, even criss-cross

distribution channels. Unlike developed

countries, OEMs in India largely have

their own distribution model and sell

spares (OES) through directly-owned

or franchised service stations.

Th e present distribution chain is

highly fragmented with the involvement

of multiple intermediaries—distributor,

wholesaler, retailer, mechanic and

several small independent ‘suppliers /

carriers’ creating ineffi ciencies within

the system. While the margins at each

step of the chain are not very high, the

multiple steps cumulatively add up and

result in escalation of end consumer

acquisition costs.

Th is distribution chain is expected to

get consolidated through rationalisation

of intermediaries. Companies across

the value chain will have to improve

on their competence, and enhance

capabilities to produce parts for and to

service a wider variety and complexity

of vehicles. While the number of steps

in the value chain is bound to reduce,

to enhance service levels and off er

customised products to their respective

customers, each step will need to add

more value by way of higher investment

in infrastructure, IT tools, professional

management etc.

Thus the end consumer will

get a better product / service and

simultaneously, the limited number

of professional intermediaries will

also earn higher margins. The

cascading eff ect on this model, over a

period of time, will result in a better

balance within the value chain.

2525

A big deterrent in

aftermarket today is

the lack of adequate

infrastructure to service

the new generation of

vehicles. Vehicle sales

have far outpaced the

establishment of new

garages to service the

millions of new vehicles

that hit Indian roads

every year. While OEMs

are doing their bit to

expand their service

stations, they are yet

to catch up

Indian Automotive Aftermarket: What’s In

Store?


GUEST COLUMN

Investment In Point of Sale & Vehicle

Service Centres

A big deterrent in aftermarket today

is the lack of adequate infrastructure to

service the new generation of vehicles.

Vehicle sales have far outpaced the

establishment of new garages to service

the millions of new vehicles that hit

Indian roads every year. While OEMs

are doing their bit to expand their

service stations, they are struggling

to catch up. Roadside mechanics in

the aftermarket can no longer service

the new generation vehicles and their

complex engines. Th is necessitates major

investment in the service infrastructure in

the aftermarket at service stations. While

the big investments to set-up large service

stations may take sometime, a possible

way ahead could be setting up of smaller

centres that cater to specialised jobs like

brakes, suspensions and body & chassis.

Similarly, it is likely that we will

see emergence of larger players at the

retail and wholesale level. Signifi cant

investment is required to start the

trend of emergence of larger stores,

and possibly chain stores, that stock

genuine parts and off er a wider choice of

products and services to consumers in a

friendlier ambience.

Promote Usage Of IT Tools

At a global level, several major players

have adopted ‘IT tools’ as a strategic

business asset, using them not just for

cost reduction but for overall business

growth and improvement of customer

experience. In India, while this trend

is quickly catching up, at present, the

adoption and usage of IT across the

automotive manufacturing and supply

community is relatively low, with the

exception of few foreign players who

have brought EDI (Electronic Data

Interchange) standards and tools with

them into the country. While auto

majors have been using various IT tools

in their manufacturing cycles, they

have now started deploying the usage

of new systems in their distribution and

supply chain management to add to their

operational effi ciency and to enhance

customer experience.

Upgrading India’s automotive

aftermarket to global standards does

not stop with just implementing IT

tools, but requires the distributors and

retailers to be educated and trained

about scientifi c inventory management,

deployment of IT systems and

professional management.

While e-commerce is widely deployed

in other industries, the potential of

this has yet to be exploited in the

Indian aftermarket. While deployment

of on-line tools in the aftermarket

could change the rules of the game,

implementation of this is dependent

on various other factors including the

implementation of a harmonised GST

regime in India.

Wider & Deeper Market Penetration

Some of the bigger and established

players are now looking to expand their

business by entering smaller towns and

rural markets, where there is signifi cant

growth potential especially in the two-

wheeler and three-wheeler segments. Low

operating costs, higher fuel effi ciency,

lower maintenance costs, ease of use

within town limits and aff ordability are

among the many factors to a booming

two and three-wheeler market in these

markets. Further, improvements in

road infrastructure and inter-city road

transport has increased the scope for more

service outlets on highways.

This thriving two-wheeler and

While e-commerce is

widely deployed in

other industries, the

potential of this has

yet to be exploited in

the Indian aftermarket.

Also, as the deployment

of online tools in

aftermarket could change

the rules of the game,

implementation of this

is dependent on various

other factors including

the implementation of a

harmonised GST regime

in India

(Below & Following Page) A Range Of Federal-Mogul Products


GUEST COLUMN

three-wheeler market has opened doors

for several foreign and local players to

expand their portfolio and meet the

present demand, and consequently has

pushed them to cater to the market

with customised products and services

that meet the unique demands of this

segment. However, like all expansion

plans, penetration into these alternative

segments comes with its own share of

issues such as the requirement of huge

investments and time to set-up shop

as well as recruiting and retaining

skilled manpower.

Curbing Counterfeits

Counterfeiting of spare parts,

components and accessories is a

growing menace, and runs parallel to

the genuine spare parts business in

India. The magnitude of the problem

is huge, estimated at 36 percent of total

aftermarket spares sold today.

Various factors have contributed

to its rise—lack of availability of an

extended warranty, short replacement

cycle of certain parts, limited access to

service centres, mushrooming of smaller

unauthorised garages, loose ends in the

legislative system etc.

Another major factor is the

existence of a large network of

unorganised distribution channels,

fragmented and local mechanics.

Spurious parts compromise the safety

of the vehicle, putting lives in danger.

As per studies conducted, 20 percent of

road accidents are attributed to use of

fake parts, a serious problem especially

when we consider the 1.4 lakh deaths

due to road accidents annually.

Counterfeits not only tarnish the

brand name but their usage also translates

into a revenue loss for the industry and

tax loss to the government.

In addition to the economic impact,

counterfeit products have major impact on

environment—fake parts result in 10-15

percent increase in vehicle pollution and

also result in higher fuel consumption.

As the problem is deeply rooted

in the system, lowering prices of

spare parts or accessories is not the

best solution to curbing counterfeits.

Rather, manufacturers need to increase

awareness among consumers against the

purchase and usage of fake parts. Several

players are already engaged in a number

of anti-counterfeit initiatives such as

active customer education programmes

through display of original and fake parts

at dealerships, regular unannounced

visits to service centres/outlets, etc.

ACMA’s consumer forum is waging

a war on counterfeits—more than 400

establishments have been raided and

action taken against offenders in the last

24 months. However, all these measures

will prove pointless without the support

of the government. Amongst other

things, modifications need to be made

by the government in the Indian Motor

Vehicles Act so as to expand the purview

of the Act to include the auto parts sold in

the independent aftermarket in addition

to the fully assembled vehicles.

India’s automotive aftermarket has

a number of favourable factors that

will positively impact the sector over

the next few years. While OEMs and

OES’ have the advantage of an existing

well established network to continue

widening their business, they need to

gain a strong hold of the market. OEMs

can create a defined market position for

themselves by taking on concentrated

efforts in network expansion. Similarly,

independent players need to scale-up

operations through forward integration,

creation of generic brands and global

sourcing. However, though present

industry margins look positive, players

across the value chain need to sustain

profitability, and it is imperative that

the players focus on offering customers

enhanced products and services, upgrade

skill through education and training,

widen networks through forward

integration and collaborations, etc.

The vast pool of opportunities and

scope that India’s automotive aftermarket

holds has paved the way for large scale

transformation and has created enormous

prospects for all those involved in this

space. Thus it is fitting to say that the

future of India’s automotive aftermarket

looks more than promising. �



MULTI-brand aftermarket service

workshop—most car owners would

have found it diffi cult to comprehend

the exact meaning of the words

a decade ago. Th anks to the

exploding automobile market,

increasing disposable incomes,

multiple models and variants,

and the growing cost and

service issues coming up

in choked authorised

workshops have led to

multi-brand servicing

as a preferred and

credible alternative today.

For the benefi t of fi rst time readers let

me put it simply that it means a workshop

where consumers can walk in with a vehicle

of any brand for any kind of repairs.

When I look back and try to gauge

from my two decades of experience in

the automobile industry as to what has

been the genesis of this concept in India

(abroad, it has been existence since ’60s),

I can primarily attribute it to two factors:

Liberalisation in the ’90s and awareness of

customer-centric business models during

the following decade.

I recollect advertisements of a

multinational automobile giant that

positioned its pan-India service

workshops availability as a diff erentiator.

Needless to say, it had been a huge

success. However, soon it was observed

that the company started falling in the

eyes of customers.

Global brands and models came in

during late ’90s and brought with them a

fl urry of customer oriented terminologies:

R SRIVATCHAN

President,

TVS Automobile Solutions Ltd


GUEST COLUMN

customer centricity, customer

satisfaction, customer experience,

encircling the customer and what not.

Right they were, in understanding

that the customer is king. Th e idea

percolated from OEMs to dealers

to independent garages and even to

customers. Suddenly, OEMs were

in for a challenge on how to satisfy

the new informed, aware and value

for money Indian. Challenges must

have been plenty towards satisfying

the customer: multilingual market,

diff erent cultures, availability of land for

setting-up workshops, extensive capital

requirement, FDI rules, to name a few.

Th is challenge brought along with it a

globally tested and successful solution in

the way of multi-brand service workshop.

Multi-brand chains of service

workshops have been in India since

the mid of last decade. However, the

last couple of years have seen a fl urry of

activities in this sector. Several multi-

brand workshops have sprouted across

the nation—MyTVS, Mahindra First

Choice, Carnation, Carz, etc. PE

funds have played a pivotal role in

grooming this sunrise sector. It has

changed the entire look and feel of service

workshops.

Gone are the days when you have

to be at the mercy of the moods of self

proclaimed vehicle experts; be ready

to forget your vehicle for a couple of

days and/or even take leave and spend

half day in a grease and dirt covered

bylane workshop and dare not ask any

explanations for charges on the bill. And

wow! What do we have today?

Garages, have started coming up on

the main streets, have a wider frontage,

present a bold and good look, airy,

epoxy fl oored reception areas and off er

chilled beverages to visiting customers,

LCD TVs that beam channel

programmes even in empty lounges, and

enjoy services of well dressed ‘advisors’

and so on.

Much has changed even beyond these

cosmetics. Also, the customer is apprised

about the details of the repairs being

carried out—cost estimates with labour

and part details are provided to him

before commencing the job. Moreover,

he can walk into the workshop and see

how his car is being treated. Modern

equipment and facilities like wheel

aligners, balancers, body repair systems,

MIG welders, dent pullers, special

tools, paint booths, etc. are available for

executing the repairs.

As per the ACMA statistics, the

current Indian aftermarket stands at

`330 bn, inclusive of CV, 2W, 3W and

cars (labour & parts) and vehicle parc at

`97.7 mn as on last year. Th ese fi gures

throw open a slew of opportunities

for organisations, entrepreneurs and

technicians alike. Globally this market is

at $one trillion and is poised to grow at

fi ve percent year-on-year.

However, this beautiful canvas still

has several patches that need attention

for healthy growth and sustenance:

• Spurious and fake auto parts command

a signifi cant share in the aftermarket,

which leads to huge government losses

• Fake parts bring down the life of

vehicle and exposes vehicle owners to

safety risks

• Much has been done, still a lot needs

to be covered in terms of geographical

spread

• Lack of availability of specialized

diagnostic tools to aftermarket and

independent garages

• Optimisation of the workshop size

• Increased access to manuals

• Restriction in supply of critical

components

Needless to say, that industry is aware of

the above issues, and rightful measures

are being taken to address the above

points. It may take time but in the end

customer would always come out the

winner, as ‘He is the King’.

Th e share of organised aftermarket

is poised to grow to fi ve-seven percent

in next fi ve years. More companies are

joining the race and targeting Tier II or

Tier III cities in conjunction with metros.

Th e sheer size of the parts demand would

make it possible to obtain quality parts

from countries like Korea, Th ailand,

Japan, etc. at a fraction of current prices.

Also, training academies for workers are

helping them hone their skills towards

repairing multiple brands. Pilot models

and previous experience have changed the

approach towards setting up a workshop.

Indepth market research and consumer

behaviour mapping is carried out before

setting it up.

I foresee an environment where

organised aftermarket players,

independent workshops, OEMs and

parts suppliers would be working in a

symbiotic relationship to gain maximum

from the available opportunities. �

Opportunities galore in multi-brand car servicing segment


GUEST COLUMN

History Of Car Servicing

Neighborhood car garages

have been around forever,

while third party multi-

brand car service garages

have until some years back

gained ground over the

regular third party garages

where the car service

needs of a family are

concerned. If my

statistics is correct,

then there are

currently over

20,000 garages

in the country,

servicing every brand of car available

in India.

With time however, technology

has changed, not just the way cars

are built, but also how they are

serviced and repaired. Th ere has been

a growth in skilled manpower in

the country; compared to unskilled.

Also, the quality of cars, in general,

has improved over the years and with

that the demand and availability of

company manufactured spare parts

as well and equipments to service

such cars.

Steady developments coupled with

the increase in demand and supply of

cars on the growth path, the need for a

30

JAGDISH KHATTAR,

CEO & MD, Carnation


GUEST COLUMN

one-stop reliable place for all the needs

of an automobile is rising; be it quick

repairs, change of parts, or major repairs,

as a natural progression to that need. Th is

was transition time for the aftersales car

market in India. It was also a time when

third party multi-brand garages were

coming up and the monopoly of OEMs

through their authorised dealerships

was waning. However, the OEMs still

held ground when it came to sales and

availability of their spares in the open

market.

I fi rmly believe that every Indian

car owner has the right to get genuine

spares for their vehicle, whether they

choose to get their car repaired at the

OEMs dealership or at a third party

multi-brand garage like Carnation. Th is

is where the gap was. Also, this was an

excellent business opportunity for third-

party multi-brand garages to enter the

business. And the idea of Carnation was

born out of this need.

Th ird Party, Multi-Brand Garages In

Th e Changing Market Scenario

Th ird party multi-brand garages give

healthy competition to the other two

kind of aftersales car service options

in our country. With more of such

car service stations coming up, customers

will experience a whole new way of

car servicing, one which will be

professional, customised, and reliable.

Carnation is an attempt on my part to

initiate integration of multi-brand car

service off erings across entire India.

Th erefore, today Carnation is more than

a regular car garage; it is a one-stop-shop

for all car related needs.

Following Carnation’s lead, few other

players have also entered the market

and the market sentiment has even

made investors realise the huge business

opportunity that’s waiting to be explored.

Having gained investors’ confi dence, we

hope to be a leader in this segment by

providing a bouquet of car related services

and not restrict ourselves to the brick

and motor platform. Considering that

today’s urban customers require more

value added services, over and beyond the

regular ones, we have taken many fi rst

steps for the same.

Our e-Commerce portal, www.

carnation.in intends to cater to such need

and use technology to fulfi ll post purchase

needs of car buyers. Th e internet off ers a

level playing fi eld to everyone and hence,

it is a fantastic medium to reach out to

a wider target and we hope to utilise its

reach to the optimal. Internet is not just

helping businesses reach their audience,

but also ensuring that customers are more

educated and knowledgeable when it

comes to make purchase decision.

Growth And Development Prospects

Of Th is Sector

With more than one family member

owning a car today and not having the

time to get the car serviced at the garage

himself, there is a need to off er this service

right at their doorstep. At Carnation, we

recognised this need and hence the idea of

Workshop on Wheels (WoW) was born.

WOW is a unique car service facility that

helps urban families get their cars serviced

right at the doorstep, allowing more family

time. Plus, there is the advantage of getting

all the cars in the family serviced from one

single car service provider. And it’s more to

do with reliable and trustworthy services,

rather than the price as many would like

to believe.

Th ird party multi-brand garages are a

good option to get accidental repair done.

Since the focus is more on repair, both

customer and insurance companies stand

to benefi t. Unlike unorganised garages

transactions in third party garages are

3131

I fi rmly believe that

every Indian car owner

has the right to get

genuine spares for their

vehicles, whether they

choose to get their car

repaired at the OEMs

dealership or at a third

party multi-brand garage

Growth And Development Of Multi-Brand Third-Party Garages In India: What’s In

Store For The Future?


GUEST COLUMN

managed better, which again makes it

easier for insurance companies to deal with.

Th us the customer gets the advantage of

cashless repairs, better infrastructure, focus

on repair of cars rather than replacement,

and cost saving.

Factors For Growth

In developed countries, the share

in terms of car servicing between

OEMs, neighborhood garages, and

independent chains is one-third each.

Currently in India, independent chains

have a negligible share, but one that is

expected to grow at 20 percent by 2015.

Th e same is true for second hand cars

market as well. While only 10 percent

of the used cars market is organised,

mostly pre-owned cars are sold through

brokers spread across the country, with

no credible parties to give assurance to

either the buyer or the seller. As users

understand the concept of buying used

cars, the overall pre-owned car segment

is expected to see a growth of 16-18

percent, and the organised used market

is estimated to grow by 40 percent.

Equipment suppliers have always

been there and are growing with the

rapidly expanding business. They

work according to the need of the

OEMs. With upcoming of third party

garages, their business gets more

opportunities.

Th ere are a number of factors which

will work towards the growth of third

party multi-brand garages in India. With

time, more and more chains are entering

the fi eld. We are familiar with examples

of MyTVS, Mahindra First Choice

and others. With increasing awareness

being created by new entrants in the

fi eld, the confi dence of the audience

towards approaching third party garages

is increasing.

Availability of skilled manpower,

which was earlier an issue, has now

improved. Also, the availability of spare

parts has improved with large third

party garages setting up-better and

streamlined processes for procurement

of original spares. Customers have

welcomed this initiative. With the rise

of good third party garages, many have

moved from dealerships to this, more

customer-centric, solution. Besides

quality and experience, here the customer

is looking forward to reasonable charges;

transparency and also a host of needs for

their cars.

Finally, I’d like to say that I do not

believe there is any competition between

the various players in the aftersales car

repair and second-hand car markets.

With increasing demand and the growth

of third party multi brand garages,

customers are getting more options to

suit their needs. And that’s a good thing

for everyone involved. A demanding

customer helps keep service providers

focused and allows them to ensure high

quality of service every single time. �


SPECIAL REPORT

AUTOMOTIVE Component

Manufacturers Association of India

(ACMA) and Society of Indian

Automobile Manufacturers (SIAM)

jointly held a seminar on World Anti-

Counterfeiting Day in Delhi recently.

Th e two apex bodies of has called for

immediate government intervention for

amendments in the existing legislations

to contain sale of counterfeits.

“As per industry primary research

fi ndings, counterfeit sales is attributing

to a loss in government exchequer to

the tune of `31 billion per annum with

an employment loss estimated over 1.15

million jobs; consumption of additional

109 million litres of petrol and eight

million litres of diesel per annum. Th e use

of counterfeits resulted in 25,400 deaths

and more than 93,000 injuries in 2009”

said President, ACMA, Arvind Kapur.

Spurious auto parts are growing steadily

in the country and currently, counterfeit

products account for 36 percent of the

`330 billion Indian aftermarket. Th e

industry has shared and advocated the

global concern counterfeits have on the

trade and economy of a country. Speaking

on the automotive sector, Joint Secretary,

Ministry of Heavy Industries & Public

Enterprises, Government of India,

Ambuj Sharma called for a need for

improvement in enforcement measures

through establishment of special courts

that could specifi cally address the issues

of counterfeiting.

He also stated that his ministry along

with Th e Ministry of Road Transport

and Highways was already working

Apex automotive bodies call for curbing spurious products

Our Bureau

Ambuj Sharma, Joint Secretary, Ministry of Heavy Industries & Public Enterprises, Government Of India

Counterfeiting – A Challenge

Continued on pg 45



THE auto industry has long back

come out of the ‘waiting period’ era.

Th e choice of brands and variants

available for the customers is huge

and most of them are available

off the shelf. However, the car

servicing industry is still in the

process of catching up. Th e

consumer has to wait for days

to get a service appointment

with an OE dealer and

does not have a viable

alternative or choice

other than going to the

local garage, a little

reluctantly. Th is is

going to change

in the near future with the entry of

Multi-Brand Organised Service Chains

that promise to change the passenger

car servicing industry landscape for the

better.

Th e passenger car service market

in India is estimated to be anywhere

between ̀ 15,000 and ̀ 20,000 crore today

and is growing at a decent pace due to the

growth of the auto industry. Currently,

this industry is dominated by OE dealers

and authorised service centres on one

side and independent local garages on

the other side, each commanding close

to 50 percent market share. However, if

you take out the under warranty service

requirements (which is captive demand

in a sense for OE dealers and authorised

34

RAJEEV DUBEY,

President, After Market Mahindra

& Mahindra Limited & Member of

Group Executive Board


GUEST COLUMN

service centres) majority share of around

65 percent is held by local garages.

If one looks at developed countries

in the west, the market share of all three

segments of the industry are almost equal.

Th is means the Multi-Brand Operators’

(MBO) market opportunity could be

pegged at ̀ 6,000 crore. Th is, by any means

is a large enough opportunity to entice big

names into this segment of the industry

along with private equity players and

venture capitalists.

Current Status

Most of the multi-brand organised

service chains were established about

four years ago in 2008, but are yet to

make a big mark in terms of market

share. However, they have developed a

growing sense of awareness of the car

owner’s mind and the service chains are

ready to make a diff erence in terms of

service quality and customer experience.

Only MyTVS has been in existence for

ten years and is yet to taste big success.

Mahindra First Choice Services and

Carnation set-up shop at almost the

same time followed by Carz in

Hyderabad. Carnation has been the most

aggressive of the lot and established 25

large sized COCO (Company Owned

Company Operated) outlets across

the country. MyTVS was the fi rst to

venture into the franchisee system

with 15 COCOs and 50 franchisees,

mainly in South India. Mahindra First

Choice Services has been cautious in its

approach and has experimented with

around 15 outlets—a mix of COCOs

and franchisees—across India and are in

the process of aggressive expansion. Carz

has opened less than 10 outlets in AP and

Bangalore so far. However, the combined

market share of all these players is quite

insignifi cant.

Competitive Status

Th e OE dealers have the backing of

quality perception and genuine spare parts

to help them command better pricing and

margins. Th e independent garages play

the game on low pricing and convenience

and lay emphasis on building customer

relationships. Th e MBOs are trying to

off er the best of both worlds in terms of

good service quality combined with lower

pricing, as compared to the OE dealers.

Several industry experts believe that

whoever manages to provide a better

customer experience will fi nally emerge

as the winner.

Growth Prospects

MBOs can grow quickly if they can

address the current problems and pain

points of car owners. In the case of OE

dealers, complaints relate to pricing, long

queues and apparent lack of transparency.

With independent garages, car owners

face the problems of service quality,

lack of infrastructure and again certain

lack of trust. Can multi-brand

operators address these pain

points effectively and make their

fortunes out of this scenario? Th ey

can do it only if they can build scale

and manage to deliver superior customer

experience uniformly across the network.

Th e one factor that could favour the

growth of the MBOs is the relative

reluctance of OE dealers to expand

aggressively in times of slow growth

for that particular brand due to high

capex requirements and high OE

expectations. However the MBOs

have the advantage of looking at the

overall growth of the auto industry,

which is relatively more stable, for

their expansion.

Typically, Tier III cities are

underserved by the OE brands on

standalone basis, which presents a good

opportunity for MBOs as they look at

the combined load of all the brands put

3535

For MBOs to succeed,

they have no choice but

to consistently deliver

on the following factors

affecting customers

directly ie service

quality, competitive

pricing, timely delivery

and above all, trust and

transparency

Growth and Development of multi-brand service chains

in India



together. However they have to take

care of the problems of scarcity of skilled

manpower and spare parts logistics,

which become pronounced in Tier III

cities.

Critical Success Factors

For MBOs to succeed, they have no

choice but to consistently deliver on the

following factors aff ecting customers

directly ie service quality, competitive

pricing, timely delivery and above all,

trust and transparency. Th ey have to

invest heavily in infrastructure and the

latest diagnostics and lay heavy emphasis

on training and standardisation processes.

On top of all this, they have to build

their brand equity over a period of time

by consistently delivering on their brand

promise.

Challenges, Risk Factors & Possible

Mitigation

Th e auto and retail industry faces the

biggest challenge with respect to the

availability of skilled manpower—both

technical hands and customer facing

staff . Th ey have to fi nd their own way

of managing this situation and probably

have to rely on generating their own

supply of fresh but internally trained

manpower. Lack of availability and lower

margins of spare parts, especially parts

used in the body shop like skin panels

and other big parts, which are typically

manufactured by OEMs or their JVs, is

another big challenge for MBOs. Th is

situation is expected to ease out in the

future but for now, the MBOs are trying

to overcome by resorting to imports

wherever possible.

One factor that could derail other

than the OE dealers is the technological

changes in the auto industry. Th e

future technology is going to be more

complex with lots of electronics, which

will necessitate sophisticated diagnostic

equipment and access to proprietary

software. However going by the trends

in the developed world, diagnostic

equipment makers are competent to

come up with solutions. Th e one factor

in favour of MBOs is the fact that

cars with the latest technology will

come to their workshops with a time

gap of minimum two years from fi rst

sale of the car, which is enough time

to master the technologies and train

the workforce.

Another big challenge relates to

the availability of funds for network

expansion in order to build scale. Several

MBOs are trying to circumvent this

issue by franchising their operations.

Th is will work well provided they off er

substantial value to the franchisees in

terms of training, brand value and a low

break even point. Franchisees also expect

support from the principal for the fi rst

year or so till the time they do not turn

profi table. Venturing into franchising

without addressing these issues fi rst is

fraught with danger.

Trends In Developed Countries

Th is segment of the industry can take

heart from the fact that MBOs are a big

success in developed countries. Th ere

are also recent research reports that

indicate that the general preference for

MBOs is growing among consumers

and becomes all the more pronounced in

tough times like recession. Th e propensity

to spend more at MBOs is apparently also

growing. All this indicates that MBOs in

India are here to stay and grow quickly.

Who will emerge winners among the

current ones and future entrants is a

billion dollar question and we shall

have the answers within the next two to

three years.

Expected Upsides For Th is Industry

Th e one thing that can really work

in favour of this industry is that when

they establish a large enough network

across the country, several new business

opportunities will present themselves.

One is of course the accessories and

insurance related business. However, a

bigger opportunity could be in terms of

offi cial ties with low volume car makers

to take care of their servicing needs in

the deep reaches of the country while

they focus on sales and marketing of

their cars. Whichever way you look

at it, MBOs are here to stay and

make their mark in the auto servicing

industry and will hopefully make the

entire process for the customer a much

better experience. �

MBOs are a big success

in developed countries.

There are also recent

research reports that

indicate that the

general preference

for MBOs is growing

among consumers and is

becoming all the more

pronounced in tough

times like recession. The

propensity to spend more

at MBOs is apparently

also growing. All this

indicates that MBOs in

India are here to stay

The auto & retail industry

faces the challenge with

respect to the availability

of skilled manpower—

both technical hands &

customer facing staff.

Lack of availability & low

spare part margins is

another challenge

for MBOs


CORPORATE

TOYOTA Group has established a

fi nancial services arm with the objective

to provide customers with a loan facility

to acquire vehicles. Th e new fi nancial

arm, Toyota Financial Services (TFS)

has been launched by Toyota Motor

Corporation recently.

Th e division has been set-up to

support Toyota Group’s revenue and

to contribute to the sales promotion

of products off ered by Toyota. TFSIN

is the Indian subsidiary of Toyota

Financial Services Corporation

(TFSC), is a wholly-owned subsidiary

of Toyota Motor Corporation (TMC)

in Japan.

Toyota Group has recognised the

potential of the Indian market and

identifi ed it to be one of the key focus

markets for its global growth.

Toyota Financial Services India

mirrors its focus on the product, its

pricing and fi nal service. Th e company

has put together a formidable team and

has set-up its operations in New Delhi

with Bangalore as its headquarters,

followed by a phased launch across

India. Every Toyota dealer outlet will

have a dedicated fi nance executive

who ensures the customer gets the best

fi nance deal. Apart from dedicated

services, the company will off er several

unique products such as TFS Smart,

provide loans upto 100 percent to its

customers, insurance funding and

dedicated products designed as per the

car models. Dealer fi nancing and the

used car business will also be supported

in this scheme.

TFSIN’s MD & CEO, Kazuki Ogura

said, “Th e Indian automobile industry is

destined to be one of largest in the world.

Th is calls for special attention to our

customers to whom we will off er unique

fi nance services through highly trained

and qualifi ed fi nance executives at each

Toyota dealership. Our objective is to

provide Toyota customers with the best

auto fi nance in the market.”

Managing Director of Toyota

Kirloskar Motors Hiroshi Nakagawa said,

“We welcome Toyota Financial Services

in India, which would further strengthen

our brand and would help us come

closer to our customer by fulfi lling their

fi nancial needs. TFSIN has tremendous

potential and would work like a catalyst

in the growth of Toyota in India.”

Ogura further added that we have put

a lot of eff ort to ensure our customers

have a quick and smooth process while

purchasing their Toyota car. From an

industry best eight-hour loan approval,

to easy documentation, to customised

solutions, our global experience and

understanding of the auto fi nance

industry precedes us and we will put our

best eff orts forward to ensure a happier

Toyota customer.

Deputy Managing Director

(Marketing), Toyota Kirloskar Motor,

Sandeep Singh said, “Toyota’s objective

is to understand the fi nancial needs

of all potential customers and ensure

that these fi nancial needs are fulfi lled

through our fi nancial associates. TKM

has always shared a very good rapport

with all our fi nancial partners and we

are confi dent that TFSIN will further

help us in our eff orts to provide customer

delight in owning and driving a Toyota.”

Toyota Financial Services began

its operations in Australia in 1982

and has grown to be a company that

currently employs around 8,400

employees worldwide with assets in

excess of $150 billion. Th e company

has a global footprint in 33 countries

and enters India with an investment of

`260 crore. TESIN’s core objective is to

support Toyota sales in India through

its knowledge and specialty in the auto

fi nance industry and will bring forth

innovative products and services to

Toyota customers.

Toyota opens new fi nance services division with TFS

Our Bureau

Toyota Group Delegates At The TFSIN launch


IN CONVERSATIONNN


IN CONVERSATION

“Falling rupee will raise cost of vehicles”


IN CONVERSATIONII

In the current situation, which may be

termed ‘not so favourable’, what would

your suggestion be to fellow dealers?

My suggestions to fellow dealers

would be to cut down their overheads

as far as possible without compromising

on expenditure relating to creation

of demand. I would also strongly

recommend a major focus on service,

spare parts business and focus on CRM

to retain existing customers as it is

a time proven fact that retaining

existing customers is nearly 70

percent cheaper than acquiring new

customers.

How can one shift earning from sales

to services? How viable could the

proposition be?

The Automotive Skill Development

Council (ASDC), under the aegis of the

National Skill Development Council

(NSDC) is primarily addressing the

problem of lack of skilled manpower.

Most of the course content has almost

been finalised and pilot training batches

for machinists, technicians and drivers

have already started. We expect much

faster progress after the pilots have

been tested.

There has been talk about pushing

for uniform vehicle registration law

across India. How is the progress on

this front?

Progress on this front is not much to

talk about. As this relates to agreement

by various states, with political differences

between different parties ruling the state,

arriving at a consensus is almost like a

dream. We already have the example of

GST not yet becoming a reality.

There have been some discouraging

factors involved in automobile retail,

like availability of space and costs. How

is FADA dealing with it?

Cost of infrastructure specifically prices

of real estate are the biggest challenges

facing the automobile industry. FADA is

approaching both the central and the state

governments to develop specific ‘auto zones’

where land is made available for all kinds of

auto dealerships at reasonable prices.

There has been a call to give dealers an

industry status. Any progress?

This would be easier said than done

but if we do get industry status, it would

entitle dealers to a number of benefits

including lower costs of working capital

and lower costs of electricity. It would also

result in better terms for term loans.

Will India be able to see multi-brand

automobile dealers any time soon?

This does not seem to be very far

fetched. We can already see multi-brands

coming under different roofs but of the

same dealer owner. As competition heats

up and locating good dealers becomes

difficult, multi-brand showrooms might

become a reality in India.

The Indian economy is slowing down

substantially and the rupee has devalued

to all time low. How do you respond to it?

These are very disturbing indicators.

Both the slowing down of economy and

devaluation of the rupee, do not portent

well for the automobile industry. While

sluggish economy would result in negative

sentiments and thus decrease demand,

devaluation would mean increase in costs

of vehicle.

The vehicle sales have been almost

trailing in the last couple of months. Is

a revival expected? And what would be

conditions for revival?

There seem to be no immediate

indications of revival as the fundamentals

are weak. Revival if any can only be

expected in the likelihood of a very

good monsoon or some major positive

steps by the government towards

policy reforms.

The CV segment, which did quite well in

the last financial year is on way to ‘cyclic’

downturn. How does it augur to the

dealer community?

A downturn in the CV market

does not augur well for the dealers as

any downturn has a severe impact

on dealer profitability, especially for

CV dealers. �

IN CONVERSATION

India has made huge strides in

technological innovation and today, the country is dubbed as a global

technology hub. Though navigation has been an

unexplored territory until late, we see a large

opportunity in India

Nabeel A Khan

The sluggish economy will propel negative sentiments and eventually cause a decline in demand, whilethe devaluation of the rupee would mean an increase in the costs of vehicles. In such a situation, there seems to be no immediate indication of revival. However, the likelihood of a very good monsoon may just bring the much needed respite, according to President, Federation of Automobile Dealers Association (FADA) Nikunj Sanghi in an interview with Aftermarket. He also suggested for fellow dealers to cut down their overheads as far as possible without compromising on expenditure relating to creation of demandand put a stronger focus on service and spare parts business.


IN CONVERSATIONNN

How was the year that went by

for TVS & Sons?

On the whole, last year

was good for us as we had a

reasonable growth. Th e fi rst

half was very good, while the

second half started showing the

pressure of the volatility in the

world market. Th e dealership

business for the commercial

vehicles didn’t have growth

in the previous year but 2011-

12 was good. Overall the

dealership business was good in

terms of top line growth but not

the bottom line, simply because

of the higher interest rates and

higher input costs.

Was it due to inventories?

Th e interest rate has been

the biggest skid due to large

inventories. We are in the

growth mode in service business

and we continue to grow. I don’t

think our market share is so

high that it is worrying for us to

look at huge growth. So that’s

still growing as per our plan.

We did not have tremendous

growth in parts business but at

the same time, there has been

good growth. In our logistics

business too we had the capital

raising and so most of our time

was spent on that. Th e interest

cost had a huge impact in this

line of business. Th is is because

interest rates increase coupled

with it the higher borrowings

waiting for the new capital to

IN CONVERSATION

“Two factors that will impact growth will be industrial production as well

as movement of goods”


IN CONVERSATIONII

come in. Fiscal 2012 was a good year

overall, subject to huge bottom line

pressures, also due to higher wage costs

among other things. Both infrastructure

as well as working capital requirements

of funding has been taken at higher

interest costs.

How do you see the current fi scal

turning up for you?

Th e medium term, which is three to

four years, for all the businesses in my

view are still poised for good growth.

I would say the position is just right

for growth.

What are your plans to enhance

profi tability?

We have to tighten our belt this year

mainly on the cost side; it is not that the

market will degrow but the volatility

is so high that the month-on-month

variation will be putting lot of pressure

on us. We don’t know which one is the

driver and what will trigger a change.

We will have an issue, in practical terms,

where it is not the interest cost alone but

other macro factors will play a major role.

What according to you are the macro

factors that affect your business

growth?

Unfortunately, I can’t defi ne one

macro factor; I cannot say Europe

will aff ect my business but what is

happening in Europe is aff ecting IT or

some other sector and in turn, it aff ects

the psychological sentiments. Th e two

biggest factors are market sentiments

and industrial production including

agriculture. Assuming that agriculture is

normal, the two other factors that impact

growth will be industrial production

as well as movement of goods. And

psychological sentiments are something

that we cannot control and that’s why

I said it is volatile. One can think of

postponing servicing of cars or trucks

but it will not go beyond three or four

months. Th ere will be a lull during the

period and we need to be able to hold on

to cost. Th erefore, in the fi rst half we will

be very watchful and then take a decision

as to how we see the second half.

In which line of your business do you

see more challenges?

Each division has its own challenges

but if I can quickly summarise, I think

in the dealership business the growth

and maintaining market share will

be the challenges; because in some

of our businesses we have signifi cant

market share so we have to only keep

maintaining it. Th e challenge in the

distribution business is the supply

chain and forecasting methodology. We

have acquired a business recently and

we hope to bring that model to India

quickly, so that we can start sharpening

out practices. It will also help us in our

stocking and supply chain effi ciencies.

In the services business, I think

it’s just the delivery and continuing to

execute well, making sure the business

is profi table. In logistics, the opportunity

is huge because the market is down

now and you can make lot of good

acquisitions, good planning etc, but the

impediment is escalating cost. Since it

is a B2B segment, unlike the other two,

which are B2C, bearing the cost in mind

and managing the value addition with

the cost is our challenge.

Do you see diff erences in opportunities

available in India and rest of the world?

I think many parts of the world have

not seen the growth that India has seen.

Th erefore, expectations have been lower

than India; the more I see it the more I

see an opportunity to acquire capabilities

and customers at the right price without

worrying too much about over pain. Th e

overseas opportunity is not necessarily

to grow but make good acquisitions.

Th e challenge is that they shouldn’t lead

you in to a negative situation, where you

struggle to come out of it. Th erefore,

it is necessary to be careful and strike

a balance.

Are you looking at acquisitions or

acquiring capabilities from overseas

further?

Yes defi nitely; in logistics we are seeing

it as a crucial factor. In the distribution

business with Universal already in place,

we may make one more acquisition

as we really have covered most of our

capability requirements. Practically, in

the long-term, I see that there is enough

of management bandwidth, which we

can acquire with good acquisitions and I

think that will also benefi t us.

Is there an opportunity to expand your

scope in domestic aftermarket—say to

enter the two-wheeler segment?

I don’t think we will be looking at

the two-wheeler service, but defi nitely

we will look at off -the-road equipments

in dealership. �

IN CONVERSATION

TVS & Sons is one of the very few companies present in the entire gamut of aftermarket. While it is an opportunity for the company to strike a balance with different business divisions during market volatility, there are enough challenges that it is faced with. The Joint Managing Director of TVS & Sons, R Dinesh shares his thoughts with T Murrali on the challenges and opportunities for the company in the future. Excerpts from the interview:


IN CONVERSATION

“It’s not just enough to supply parts. Instead, it is necessary to support the distributors’ overall business”

Distribution of the right parts at the

right time is the key to off er service

successfully. Can you tell us how you

manage the distribution?

We have Bosch Car Distributors

(BCD) who will in a planned way

distribute parts to Bosch Car Service,

Express Car Service, and also the

Carbon Garages, covering more or less

the signifi cant portion of the market.

It calls for a planned inventory and

so it should be equipped with systems

and tools.

What is the objective of setting-up a

BCD?

We established ourselves as BCD

mainly to service the car segment since

we found that the car is becoming

more and more a diff erent channel as

opposed to two-wheelers, trucks and

tractors. So cars are emerging in the

market and alongside car wholesalers,

car workshops, while car retailers

are also emerging because the end

customer is becoming diff erent. Th ese

car workshops for example are not in

the transport ‘nagars’ (transport hubs),

which are specifi cally for trucks. Car

markets are emerging across various

parts of the country and there is a

need to service those markets. We are

equipping all these distributors with the

Offering quality service is key to ensure customer satisfaction. And in order to ensure success in the service domain, there are several aspects that need to be addressed. In addition to training manpower, the challenge is to make the right parts available at the right time. Vice President (Automotive Aftermarket), Bosch Ltd, S Muralidharan tells T Murrali that the company is looking at the entire ecosystem of automotive aftermarket for growth. Excerpts from the interview:


IN CONVERSATION

E-focus, a company given system tool,

which amongst other things will help

them plan. Another aspect of the system

is that it has a facility called sales force.

com, whereby we support the salesmen

of the distributors to plan their business

and optimise the productivity. All these

are just to service the market in terms of

logistics since supply of parts is critical.

How does the e-focus module

function?

As the market widens, it’s not just

enough to supply parts. Instead, it is

necessary to support the distributors’

overall business—not just billing but

also their inventory and the whole

gamut of business activities so that they

can in their own way, plan and manage

the inventory better.

Is salesforce.com a portal? How does

it help the users?

Yes, it is a portal and it helps to monitor

the secondary sales. Traditionally,

any company sells its products to the

distributors and after that, no one

knows what has happened down the

line. With this tool, we can fi nd how

much a salesman has sold out; once you

know how much he has sold out then it

is an indication for how much you can

sell in. Once you get an idea of what he

is selling out, we also know whether the

workshops are consuming those parts,

the productivity per call, seasonal trend

and so on.

Have you provided a hand-held device

for the salesman to book orders online?

No, he has to come back to his

offi ce and check the parts availability

also. Instead of the conventional daily

reports, he can use this tool as it is

much more sophisticated. Earlier, the

salesman would have prepared the

report written by hand. Now, with this

system, he keys in the report, which

makes whole business more transparent.

Will the system enable you to analyse

the whole process on real time basis?

It may not be real time, but will be

much more accurate than what it used

to be earlier. Earlier, the salesman

especially from interior areas used to

give us a call or send the orders by post.

Now it is much more online and it’s a

huge change.

In that case, the execution of order

should be faster. And you won’t lose

customers?

Yes it is. Th at is the whole purpose;

as a consequence, the delivery van in

which the BCD sends the material,

will have the right parts. Th e speed of

delivery increases and also under today’s

conditions, it will improve the working

capital because he knows what to stock,

his current status and so the whole

thing follows.

Can you elaborate the other projects

that you are working on?

Another project is constant

improvement in technology inputs.

With more and more new models of

cars coming in, we have to constantly

increase the diagnostic capability,

the test equipment and training the

people. We are planning to roll out the

quality cup, which is called ‘Q Cup’ to

honour the service personnel. We are

going to indentify the good foreman

or mechanic at every service point and

conduct tests at the regional level and

fi nally at the national level. Th e purpose

is not to test them; instead it is to create

quality awareness in that community. So

there is a certain level of competition

that comes and this, in its own way,

will bring quality awareness. We are

very sure that it will eventually increase

customers footfalls in the outlets.

Will it confi ne the personnel to the job

of providing vehicle service alone?

Service is something that delights

the customers. It includes a lot of small

things in addition to the normal quality

of repair. Motivating personnel in the

workshop is important because the

attrition level is quite high. Th ese are

smaller tools to enable the owner to

retain the personnel in its fold. At the

end of the day, the workshop’s foreman

fi nds that he has entered a contest and

he is a winner because he belongs to

Bosch’s car or diesel service. He has a

certain pride. Th erefore he knows that

as long as he is with the company, these

are some of the soft and important

things that he gets.

How does it help you at the macro

level?

Th ese initiatives and successes add

up to the entire community. To extend

this we organise intensive training; in

addition to setting-up our own training

centre, we are now setting-up a training

centre along with educational institutes.

We have one in Chennai with SRM

University and we have one in Nagpur,

which is an ITI kind of institution.

Th e University is very good as you

need engineer level personnel and ITI

is excellent if you are looking at the

Service is something that

delights the customers.

It includes a lot of small

things in addition to

the normal quality of

repair. Motivating the

people in the workshop

is important because the

attrition level is quite

high. These are smaller

tools to enable the owner

to retain the personnel

in its fold


IN CONVERSATION

workshop foreman to be trained. Th us,

we have a partnership with Nagpur

University, for ITI and diploma level

people. We are looking at extending

this partnership to areas like Pune

and Chandigarh.

Is there any strategic reason to these

geographical locations?

We can’t set-up training centres across

the country. Th e market is moving

and so we realised that the eff ective

way is to associate with universities

and educational institutes. Th e other

advantage I fi nd out of educational

institutes is there is no perception of bias.

Otherwise, people will think that we

promote Bosch at our training centres.

On the contrary, any garage workman

can come as there is an element of

neutrality across the education centre.

However, there will be equipment and

people from our company; therefore

there will be a feeling of Bosch without

being too much about our company.

How does the training programme

help you?

We are training people and not

interested in focussing on selling parts;

instead we are trying to create certain

loyalty among people who go in.

When he goes to the university, he sees

equipment made by our company and

somewhere down the line there is loyalty,

so there is a connect, there is a feeling

of familiarity with the instruments and

products. Th e education is what driving

the business in its own way without

necessarily getting into business.

What is the update on diagnostics?

Diagnostics are going on in a phase

of improvement. We have improved

on the ACS machine, the nitrogen

tyre infl ator etc. We are also focussing

more on aligners, balancers, tyre

changing equipment because there is

a huge need for tyre changers. Nobody

changes the tyres in the traditional way

and there is a need for equipment. Th e

wheels need to be balanced especially

in the car segment so there is a need to

equip the garages and tyre shops.

We have a global tie-up with

Michelin. We have an association with

Bridgestone. So this is one more area

where we are trying to touch base and

expand customer base.

Can you give us an update on the

number of Bosch Car Service centres?

We already have about 500 Bosch

Car Service centres and the number

will cross 600 before the end of this

calendar year. Th e Carbon Garages

will be doubled to 2,000 this year. We

are getting deeper into Express Car

Service; it is less than 50 now and it will

cross 200 this year.

Some time ago, you mentioned that

you would get into servicing two-

wheelers? What is the current status?

We have set-up the fi rst pilot

workshop—Express Bike Service, in

Delhi. Th e purpose is to give quality

service to the bike users as there is

clearly a gap in the market with more

and more two-wheelers coming in.

Th ere are very good OEM dealer service

centres as well as roadside mechanics;

but we do see a need for people to come

in the mid-segment.

What is the feedback for the pilot

project?

Very positive; soon we will be

rolling out across the country and will

touch 50 in next six months. It will

be a franchise model with the outlets

holding a standard signage and these

outlets will have access to genuine

parts. We are quite excited about the

two-wheeler business since it is one

more business where we are growing

by leaps and bounds.

Would you be getting into training

mechanics / garages for two-wheelers?

We are in serious discussions at the

moment, to establish our own two-

wheeler training centre. Th e challenge

is that it is no more possible to restrict

yourself only to Bosch parts. Th e

approach should be holistic. Th is is a bit

of challenge for us because we have to

give the necessary theoretical inputs for

non-Bosch parts as well.

Would you associate with the

components manufacturers who make

other parts?

We don’t have a solution to this as

yet and we are working on it. We are

looking introducing mobile training

centres to facilitate people from

remote places.

What about remanufacturing?

Th is segment is slowly emerging but

the speed of change is the challenge.

We are just choosing one or two products

like diesel parts, starters, alternatives and

injectors, which are precisely high value

parts which need not be wasted. I think

it has certain merit and as a consequence

somewhere down the line the end-user

will fi nd it useful. �

Instead of the

conventional daily

reports, he can use the

e-Focus tool as it is much

more sophisticated.

Earlier, the salesman

would have prepared the

report written by hand.

Now, with this system, he

keys in the report, which

makes whole business

more transparent


SPECIAL REPORT

with ACMA and SIAM for a time

bound roadmap on amendments to the

existing enactments. ACMA had also

conducted an extensive primary research

to understand the impact of counterfeits

with its fi ndings from a white paper

last year. Th e paper has highlighted

various enactments under the existing

legislative framework with suggested

recommendations and a rationale for

such recommendations.

Th e seminar has taken a critical look on

the dispensation of enactments listed in

the white paper with the industry’s resolve

to contain this menace. Commenting on

occasion, President SIAM, S Sandilya

said, “Th e auto industry is spending

big sums on technology to support

environment cause and for making the

world a better place for future generations.

Counterfeits act for just the opposite

cause and hence we have decided to work

on this area seriously.”

Notable amongst these enactments has

been the industry’s demand to amend

the Motor Vehicles Act that lays down

standards for components and parts of

Motor vehicles.

Th e Motor Vehicles Act, the industry

feels should be intended not only to

regulate completely assembled vehicles

but also equally apply to components

used or intended for use in vehicles

including parts sold in the aftermarket. �

The auto industry is spending big sums on technology to support environment cause and for making the world a better place for future

generations. Counterfeits act for just the opposite cause and hence we have decided to work on this

area seriously—S Sandilya, President SIAM

MOST COMMONLY COUNTERFEITED PARTS

Enging & ExcaustSuspension &

BrakingBody &

StructuralElectrical & Electronics

Oil fi lters Steering arms Sheet metals Alternators spares

Air fi lters Tie rods Bumpers Head lamps

Distributor caps Brakes Windshields Tail lamps

Fuel fi lters Brake linings Wipers

Coolant & transmission fl uids Starter moter spares

Bearings

Oil pumps

Water pumps

Spark plugs

Piston & piston rings

Lubricants

Sealing rings

National Seminar On Anti-Counterfeiting

Indian Automotive Aftermarket...continued from pg 33


SPECIAL REPORT

4646

THE Bangalore headquartered Madhus

Garage Equipments Private Limited will

celebrate its silver jubilee in November

and towards this, the company is

planning, among other things, to

organise technical colloquiums to help

interact with OEMs, its principals and

customers. Th ough it had been focussing

on garage equipment for passenger cars

for the last 24 years, it saw the demand

for equipment meant for commercial

vehicles rising during the last couple of

years. Th e company has been catering to

truck segment for the last seven years.

Speaking to Aftermarket, the

Managing Director of the company,

Ravi BM said the company sees garage

equipment for commercial vehicles

promising in the near future as the

share of business from this segment has

witnessed signifi cant growth. Th ough

the passenger car segment gets the lion’s

share of business, the growth of garage

equipment for commercial vehicles is

fast catching up.

Th e company reported a turnover of

`66 crore last fi scal, growing by about 15

percent. According to him, the company

has been growing at the rate of 10 to 15

percent year-on-year since inception.

About 15 percent of last year’s revenue

came from crash repair equipment, 25

from commercial vehicle segment and

the rest from passenger cars. Four years

ago, the revenue from sale of equipment

for commercial vehicles accounted for

fi ve percent. Th is segment is poised for

growth in the years to come and it might

account for about 40 percent in the near

future, he said.

Madhus Garage deals with garage

equipment for bodyshops, wheels

and lifts for both passenger cars and

commercial vehicles. Currently, the

company holds 65 percent market share

in the product segment it is operating

in, which is premium segment. Th e

Madhus sees future in heavy duty

segment The company plans several programmes as part of its sliver jubilee

celebrations beginning November 2012.

T Murrali

Phot

ogra

ph: B

harg

av T

S


SPECIAL REPORT

premium segment accounts for about 25

percent of the total industry. In the mid-

segment, which accounts for 20 percent

of the industry, the company holds about

15 to 20 percent market share. It is not

present in the low-end market.

It took a lot of time for the company

to convince the customers of commercial

vehicle service centres on the importance

of right equipment and their benefi ts. Now

that it is picking up, the fi rst challenge is

to meet service demands. “Customers are

asking for service that can put the machine

back to work in less than 24 hours. It is

a huge challenge for a vast country like

India. It is also due to availability of spare

parts on time,” he said.

Couple of years ago, the company has

initiated a new concept called—Customer

Service Cell (CSC), which registers the

customers’ complaints and takes action.

Th e software helps the company to identify

the profi le of the customer who has called

to register the complaint instantaneously,

including his location and his equipment

details. Th e complaint is forwarded to the

service engineer who makes a telephone

call to assess the fault and decide whether it

requires telephonic assistance or personal

attention as not every fault requires a visit

by technicians. Th e system also alerts the

spare parts department and arranges to

courier the parts the same day.

Th is way, the service call is successfully

closed within 48 hours of the receipt of the

call. Th e timeline is more in the case of

rural areas since it takes some time for the

service engineers to access. Th e challenge

is to reduce the time between registering

the complaint and rectifying it. As part

of this initiative, the company is currently

planning to increase the number service

engineers. It has increased the headcount

by about 50 percent to 60 in the last

one year. Besides, it is also planning to

decentralise and hold some inventory of

critical parts in regional offi ces also.

Madhus Garage is also mulling

options to introduce new concepts

in repairing vehicles. According to

Ravi, there are several new concepts

in repairing a crashed vehicle while

maintaining high quality of repair

and ensuring productivity that will

eventually end up in higher profi tability.

“We are planning to bring in to India

similar concepts. For instance, there may

be only one out four or fi ve cars that have

come in for service that require crash

repair service. It is not necessary for a car

with minor damages to be hooked up to

high-end machines. To address this issue,

we have a speed concept, with a smaller

benches to remove the bumpers, other

minor body parts and even pull if there is a

minor dent. Th e garages can have three or

four smaller benches and one larger one so

that it can service four to fi ve cars at a time.

Th e concept, called as ‘Master and

Slave,’ has been recently introduced and

Honda Siel has already agreed to this

concept and wants its service centres to

follow. Toyota is planning to take it up.

Other OEMs are also looking at this

option since the increased productivity

will help with respect to enhanced

profi tability,” he said.

Yet another concept is on wheel

alignment with the demand for the job

to be performed at a faster pace. “Th e new

wheel aligner from Hunter called Elite

can do a measurement in 90 seconds and

fi nish the job in ten minutes. Besides,

there will not be any human error as the

equipment off ers tremendous fl exibility.

Ravi said there are lot of changes and

improvements in wheels and tyres such

as run fl at tyres, lower aspect ratio tyres,

expensive alloy wheels etc that need

special tyre changing equipment. About

20 years ago, the tyres were changed using

hammers, which is not there anymore.

From this, the garages want to upgrade as

the end customers do not want scratches

on the rims and tyres. Th erefore, lever-

less tyre changers are coming in to the

market, he said. “We are trying to bridge

the technological gap between India and

the rest of the world,” he added.

Madhus Garage has been an importer

all through. Asked if it makes sense for the

company to manufacture these machines

locally, Ravi said the advantages of being

a retailer in a developing market are far

higher because the quantities are less while

there is access to best technologies that

had been deployed elsewhere successfully.

“Th ere is no need to reinvent the wheel.

If you manufacture locally then you are

struck with that products for few years

to make it profi table. Otherwise all the

investment made towards manufacturing

that model will not be fruitful. And there

is nothing great about assembling the kits

locally. Few companies including Hunter

are prepared to support us anytime and

willing to make changes in products to suit

Indian conditions. While they are able to

do it and give it to us here, we do not see

any reason why we should manufacture

the same here. Besides, customs duty has

reduced quite a bit, facilitating imports.”

Moreover, the companies that Madhus

Garage represents in India themselves

are participating in day-to-day activities.

Recently, the owners of Hunter visited

India to understand the ground realities

and get a feel of it. Th ey developed twin-

camera systems especially for India since

garages here still use pits. “We work

hand-in-hand with their R&D centres.

Similarly offi cials from Car-O-Liner

used to visit India often,” he said. �

Customers are asking for service that can put the machine back to work in less than 24 hours. It is a huge challenge for a vast

country like India. It is also due to availability of spare parts on time—Ravi BM, MD, Madhus Garage

Equipments


FACILITY VISITTT

CHENNAI -based MPL Automobiles,

part of the MPL Group is looking at a

faster pace of growth in the near future

due to a couple of reasons. One, the basics

are intact in terms of infrastructure at

its dealership, sales personnel grooming

and additional technical support; two,

the slew of new vehicle launches planned

by the OEM it is associated with—the

utility vehicle manufacturer Mahindra

& Mahindra.

Established as an authorised stockist

for Mahindra & Mahindra, the sojourn

of MPL Automobiles culminated

to becoming a dealer for the vehicle

manufacturer in a few years. It began

its dealership journey in 1996 by selling

MM 540, Armada, Commander and

Mahindra Mini bus. Within three years,

MPL Automobiles became at par with

the existing dealerships that have been

in the business for ages, in terms of the

number of vehicle sold.

Speaking to Aftermarket, the CEO

of MPL Automobiles, S Ashok said,

“It was a great honour for the company

when Mahindra & Mahindra decided

to appoint us as dealers, as procuring

an automobile dealership was premium

in those days. We were overjoyed.

However, the challenge for us was

to establish the dealership. We had a

clear line of thinking that we would

not operate the conventional way

that dealerships operate. ‘Customers’

delight’ was not heard of in those days.

As this had become the key with the

entry of multinational companies in

the automobile arena, we decided to

inculcate this concept from the day one

of our dealership business.”

During those days, customers for

the utility vehicles were limited as the

evolution of automobiles per se was at

an infancy stage. While the options were

limited, even for those seeking to buy

passenger cars those days, the customers

of utility vehicles barely had any choice.

Th erefore the choice of vehicles would

T Murrali

MPL Automobiles has leveraged its 15 years of experience in understanding the evolving trends and has been amongst the earliest dealers to adopt the customer-centric policies that have today revolutionised the global aftermarkets.

4848

Customising ChoiceCustomising Choice

S Ashok, CEO, MPL Automobiles


FACILITY VISIT

not draw customers. Consequently,

MPL Automobiles decided to adopt

certain things that would delight the

customers. “We learned a lot from

multinational companies—Th rough our

sister dealership MPL Ford, we realised

that it is important to focus on customer

satisfaction. We decided to create and

set-up a system that will ensure customer

satisfaction,” he said. Th e company

focussed on training the entire staff

of the dealership so that they present

themselves better with the customers

and support the customers in the entire

process of buying.

Besides, “We fi rmed up our plans to

give the customers the touch and feel

of a passenger car showroom, though

we were dealing with utility vehicles.

Our aim was to create the showroom

in such a way that the customers should

not see or feel any diff erence between

the showroom selling cars and utility

vehicles,” the dealer principal said.

Ashok, who is a chartered accountant,

said that the company did not have

exposure in selling automobiles and this

became a positive as well as negative

attribute. Positive, since there was

enough room for out of the box thinking

and negative due to lack of knowledge of

the nitty-gritty.

However, the challenge remained

to compete with giants. Th e company

appointed people from different

industries and did not confi ne themselves

only to auto, so that they would have

diff erent approaches. In those days,

the customers of utility vehicles were

not treated well. Th e company took

this seriously and presented a better

experience for the customers who

walked in to the showroom. “Today,

our sales offi cers approach prospective

customers of XUV 500 for instance,

with several gadgets including a tablet

wrapped around their elbows to explain

the features of the vehicle,” he said.

Th ough the company has grown to

what it is today, the challenge, according

to him, the hands-on man, is to retain

employees. In order to achieve this

objective, MPL has given a free hand to

its people to professionally run the retail

outlet. Th is helped it in dealing with

the customers better. Besides, it off ers

special training organised by external

agencies, especially to learn and follow

best practises from diff erent segments

and industries. Th ese initiatives also

helped in retaining the employees.

“More than 20 percent of the employees

have put in over ten years of service.

Mahindra & Mahindra guided us

throughout the journey and encouraged

us,” he said.

Currently, MPL Automobiles sells

Bolero, Scorpio, Xylo, Verito and XUV

500. Its sister concern MPL Motors sells

several models including Maximmo,

Genio, Alfa, Gio and pickups. Both the

companies sell around 400 vehicles per

month. Th e company has fi ve showrooms

and four service centres in and around

the city. Currently it sells around 400

vehicles per month and services about

160 vehicles every day. When asked

about the specialities Ashok said the

company off ers locational advantages

to the customers by being present in

diff erent geographies of the city and its

suburbs. Moreover, it off ers convenient

timings for vehicle servicing. “More than

65 percent of the vehicles that come for

service are delivered the same day. Also,

the repeat job is minimised,” he said.

With XUV 500 and other products

like Xylo, Scorpio and Verito, MPL

Automobiles is looking at a promising

growth in the years to come. It also

has Mahindra First Choice, the used

car outlet of Mahindra & Mahindra,

selling around 50 vehicles a month.

MPL Automobiles reported a turnover

of `175 crore during the fi scal 2011-12

against `25 crore fi ve years ago. Ashok

signed off by saying that the company

aims to cross `800 crore as turnover

by 2015-16. �

We learned a lot from

multinational companies—

through our sister

dealership MPL Ford, we

realised that it is important

to focus on customer

satisfaction. We decided to

create and set-up a system

that will ensure customer

satisfaction—S Ashok, CEO,

MPL Automobiles

MPL has given a free hand to its people to professionally run the retail outlet. This helped it in dealing with the customers better


TYRES & RETREADING

APOLLO Tyres Ltd is looking

to expand beyond its traditional

strongholds of truck and bus segments

to spread its operations geographically. It

is maintaining a cautious growth outlook

for the aftermarket for tyres in the

domestic market.

“Cheap imports into the aftermarket

continue to be the biggest challenge.

While the government has been

supportive and it has imposed an anti-

dumping duty on these imports, tyres

continue to be imported into the country

through unfair means. To add to this,

is the volatility of production at the

automotive manufacturers’ end, which

makes it diffi cult for us to forecast and

plan capacities,” pointed out, Chief,

India Operations, Apollo Tyres Ltd,

Satish Sharma.

Th e company is seeing good

momentum from the truck segment

and expects the industry growth rate to

be close to double-digits, according to a

recent conference call with analysts. Th e

company further pointed out that the

passenger car segment should also see

a growth rate in high single digits over

the next year or so. It is targeting around

20 percent growth in the topline. It is

looking to expand into new geographies

and has already set-up an offi ce in the

Middle East. It is also looking at new

locations in South-East Asia to set-up

sales and marketing offi ces.

Sharma added that though the

company has been exporting tyres to

many countries, the focus is on the

Middle-East, ASEAN and the Oceania

region. It is aims to mirror its domestic

aftermarket strategy in these markets

as well. He also pointed out that the

replacement market in these regions will

take time to reach the maturity levels

of the aftermarket in India. Th ough the

company has established a favourable

position in the domestic market, the

domestic aftermarket cannot be aloof to

the overall economic conditions.

Aftermarket contributed around 73

percent to the company’s consolidated

revenues of FY12. Th e company has

been gradually expanding its dealership

network and has been assessing

qualities in dealers like ability to retail

the company’s range of products, the

visibility that such a dealer can provide

for the products and the hygiene factor

of aftersales service.

On the international front, the

company has been facing diffi cult

scenario in South Africa in the last fi scal

with couple of factory shutdowns due to

national and company level issues. Th e

sales in the fourth quarter were at `340

crore, a four percent decline compared to

the same period last year. Th e sales were

impacted due to decline in volumes, of

around 18 percent but made up with

improvement in price and sales mix.

In South Africa, both OE and

replacement segments are seeing a

growth of low or mid-single digits,

said a company offi cial during a recent

analyst conference call. A large part of

the market, which was captured by the

Chinese imports about a year-and-half

or two years ago, when the industry had

a prolonged shutdown, has now become

fairly entrenched. Th e domestic players

are fi ghting for the balance 50 percent

marketshare. A much stable raw material

pricing scenario is working favourably

for most manufacturers in South Africa.

Th e company offi cial also pointed out

that the European markets have been

stable largely because it is dominated

by global majors who pass on price

increases to consumers far more quickly.

In the rising raw material scenario, since

Chinese imports do not take as many

price increases, there have been further

constraints on the domestic industry.

Growth in the European revenues

would be lower than those from Indian

and South African operations in this fi scal.

Th e company hopes to sell larger volumes

in the Apollo brand internationally.

In FY12, the Apollo brand tyres were

introduced in three new European

countries—Austria, Switzerland

and Denmark. �

Cautious outlook for aftermarket going forward: Apollo Tyres

Abhishek Parekh

Satish Sharma, Chief, India Operations,Apollo Tyres

Vital LINK betweenManufacturers

and End-Users

To know more: Call us at 022 3003 4650 OR write to [email protected]

INDIA’S FIRST MAGAZINE FOR THE AUTOMOTIVE AFTERMARKET

www.afmonline.in


TYRES & RETREADING

MICHELIN India is looking to deepen

its penetration in the second and third

tier cities in the country with exclusive

and non-exclusive stores.

“India is an important market for

us and our objective is to continue our

expansion with the right partners both

on the truck and passenger car tyres.

With the opening of every store, we

aim to reach out to our consumers and

educate them about choosing the right

tyre that is suitable for their needs,” said

National Sales Manager- Passenger Car,

Michelin India, Chandan Thakur.

It has opened new stores including

TyrePlus in Delhi and Bengaluru and

MTSC in Panvel (Maharashtra). The

company already has a presence in parts

of Tamil Nadu, Maharashtra, Karnataka,

Gujarat, Rajasthan, Punjab, Uttar Pradesh,

Bihar, Uttrakhand and New Delhi.

“We are looking to expand TyrePlus

network with dealers, who have the

potential of contributing to the long-

term relationship vision of Michelin.

They are chosen based on their strong

retail counter, service orientation, long

term relationship, brand vision and

market potential. These dealers are proud

to be on the forefront of changing the

way tyres are sold in India,” he added.

The company is looking to spread

‘TyrePlus’ brand in order to make

available the choice of brands of tyres

and related services to Indian car

owners and drivers under one roof at

fair and competitive prices. Currently,

the company has around 18 odd outlets

around the country.

The company has been gradually

introducing and expanding its global

distribution programmes including

TyrePlus (TP) and Michelin Truck

Service Centre (MTSC) to India. The

objective for bringing its global formats

to India is to make available the choice

of brands of tyres and related services to

Indian car owners and drivers under one

roof at fair and competitive prices.

MTSC provides a one-stop solution

for truck tyre needs at strategic

locations across the country. It is the

company’s global format providing

products and services to fleet-owners.

Currently, with a network of six

MTSCs across country in the regions

of Kanpur, Patran, Jaipur, Sankari,

Namakkal and Panvel, MTSC helps

truck-owners reduce maintenance

costs and optimise benefits from multi-

branded radial tyres manufactured by

various tyre manufacturers. Radial

tyres are technologically advanced, as

compared to the traditional cross-ply

tyres, and need proper fitment, timely

inspection and repair to derive the

maximum benefit out of them.

TyrePlus offers a variety of quick

automotive services helping customers

minimise the time and money

involved in maintaining their vehicles.

There are around 15 TyrePlus outlets

located across India—Tirupur, Pune,

Faridabad, Vijayawada, Madurai,Thane,

Ahmednagar, Jaipur, Surat, Haridwar,

Vashi, two each in Delhi and Bengaluru.

The company’s global formats are

geared at handling all tyre and related

services for both passenger car and truck

and bus segment respectively. Given

the fragmented nature of the aftersales

market, the challenge for any tyre maker

in the aftermarket is to set-up a cost

effective and reliable network of service

providers cum tyre outlets at most of the

strategic locations around the country.

The automotive aftermarket in India

spans manufacturers, distributors,

retailers, service providers and garages.

Currently, the market is growing at

around 10 percent per annum, primarily

fuelled by the increasing number of

vehicles on the road, as well as the

expansion of independent and foreign

players. The company is looking to

offer differentiated value-added services

through its retail concept of Tyre Plus

and MTSC will help carve out a more

robust path to profitability.

“We look to dealer partners who share

the value of a strong service and quality

culture. We seek to provide value to our

dealers through bringing global knowhow

and best practices, to enable both to grow

profitably in India,” signed off Thakur.

The company manufactures and markets

tyres for various applications and has

presence in more than 170 countries. �

Michelin to cast a cost effective network of service providers at strategic locations

Abhishek Parekh

Chandan Thakur, National sales Manager, Michelin


TYRES & RETREADING

BRIDGESTONE India Pvt Ltd is

expecting muted growth in demand for

tyres in the replacement market. It is

looking to expand its dealership network

in smaller towns and other consumption

points. It plans to increase its presence

across the country mainly through non-

exclusive stores and is in the process

of enrolling additional dealers. It is

evaluating newer segments within the

automotive segment for growth and

may be looking to have a larger play

in the commercial vehicle segment as

the radialisation level grows across the

automotive sector.

“We are increasingly looking at

the scenario of lesser number of tyres

being replaced in the aftermarket and

efforts by the owners to prolong the

life of the tyres. Earlier, all four tyres

would be replaced by a vehicle owner;

just a set of tyres are replaced for

cost optimisation purpose and this is

restricting the demand for tyres in the

aftermarket especially in a slowdown.

But we feel this phase of postponement

of purchase may be temporary and

overall demand would continue to

be good in the coming months,” said

Vaibhav Saraf, General Manager, PSR

Sales & Marketing, Bridgestone India

Pvt Ltd.

He added that high fuel prices are

likely to lead to lesser vehicle run that

could in turn imply reduced wear and

tear of tyres prompting reduced aftersales

demand. Both these factors are leading

to an average increase in the time cycle

of replacement demand from around 2.5

to three years currently, to around four

years or so.

The company currently has around

2,200 touchpoints including exclusive

and non-exclusive outlets. “We promote

multi-brand outlets as we do not have

solutions for all vehicle segments and it

is in the dealers’ and customers’ interest

to have different sizes for various

applications,” said Saraf. It has around

320 ‘committed’ dealers who derive

around 70 to 80 percent of their volumes

from Bridgestone products.

The company manufactures around

15,000 units per day at its Indore facility

and it is setting up a new facility in Pune,

which will add up similar capacity over

the next three to four years.

Bridgestone India started its operations

in 1996. It set-up its manufacturing

facility in Kheda, MP in around 1998. The

company is setting its Pune facility with

an investment of around `2,600 crore

with capacity to manufacture a range of

radial passenger vehicle tyres. �

Tyre replacement demand may be muted in coming months: Bridgestone India

Abhishek Parekh

We are increasingly looking at the scenario

of lesser number of tyres being replaced

in the aftermarket and efforts by the owners to prolong the life of the

tyres—Vaibhav Saraf, GM, PSR Sales & Marketing,

Bridgestone India Pvt Ltd

Vaibhav Saraf, PSR Sales & Marketing, Bridgestone India


AUTOPOINT

Macro-economic uncertainties

combined with constant rise in petrol

prices and firm interest rates have

pulled domestic growth levels in PV

industry

The PV industry after witnessing

a high growth scenario of around 25

percent and 27 percent respectively

during two consecutive years FY10 and

FY11 faced a road block in FY12.

The industry managed to post a growth

of mere 4.7 percent, abet by healthy

growth witnessed during last quarter. This

growth level was the lowest, domestic

PV industry has witnessed during last

one decade. Negative sentiments arising

due to economic uncertainties, spiralling

fuel prices and interest cost combined

with high inflation levels prompted

many customers to defer their purchase.

Spiralling petrol price post de-

regularisation affected the demand for

petrol vehicles significantly

De-regularisation of petrol prices from

the second quarter of FY11, has given

autonomy to oil companies for setting

petrol prices in tandem with global

crude oil prices. During April 2010-

June 2012, there have been 10 upward

revisions in petrol prices, resulting in 46

percent rise in petrol prices during this

period that consequently has inflated the

operating cost of petrol vehicles. Rise

in the operating cost of petrol vehicles,

led to sharp rise in the demand for

vehicles running on alternative fuels like

diesel, CNG and LPG. Diesel vehicles

in particular have witness strong spurt

in demand as compared to other two

gaseous fuels owing to stability in prices,

easy availability and better mileage.

Stability in prices has made diesel most

preferred fuel off-late...

Because of easy availability and

stability in price, diesel has become

the most preferred fuel option for the

passenger car buyers off-late. During the

period (ie June 2010-June 2012) when

the price of petrol rose by around 46

percent and the CNG and LPG prices

escalated by around 51 percent and 45

percent respectively, the diesel price on

the other hand rose by just 13 percent.

CARE Research observed that, the

average fuel cost per km for LPG vehicle

increased from `2.5 in June 2010 to

around `3.8 in June 2012, while that

of CNG vehicle has increased from

`1.7 per km to `2.2 during the same

period. Owing to minimal increase in

diesel prices, the fuel cost per km for

diesel vehicle has merely increased from

`2.0 in June 2010 to around `2.2 in

June 2012. As diesel is the primary fuel

used in the transportation sector and an

upward revision in diesel prices pushes

inflation northwards, hence complete

de-regularisation in diesel prices is

unlikely in short-term. During last two-

three years the demand for diesel cars

has risen like never before and buyers are

ready to shell out the additional 15-20

percent cost for buying diesel models in

order to garner the benefits of lower fuel

price and higher mileage

...though CNG still remains the

cheapest option

CARE Research observed, that

the key cost component involved for

owning a vehicle are fuel cost, initial

capital cost of vehicle, maintenance cost,

insurance cost, and financing cost etc.

which significantly influence the making

Supply shortfall makes dirty fuel preferred over the green fuel...

Revati Kasture

Head-Industry Research

Vishal Srivastav

Manager

Change in fuel prices since April 2010


AUTOPOINT

purchase decision of a buyer. In order to

estimate the total cost of operation of

a vehicle, CARE Research considered

initial cost of purchase and fuel cost as

the proportion of other costs is miniscule.

CARE Research observed that lower

initial cost of vehicle combined with

lesser fuel cost and higher mileage, the

CNG vehicle needs minimum time to

recover incremental cost over petrol

vehicle followed by LPG and then diesel.

For example, if vehicle is driven for

around 10,000 km per annum, it would

take around 12 months to recover the

additional cost paid over petrol vehicle.

Further for LPG vehicle it would

take around 22 months to recover the

additional cost, while for diesel vehicle

the period required for recovering

additional cost is around three years.

Furthermore, CARE Research

observed, inspite of diesel vehicles

offering the lowest fuel cost per km,

the incremental capital cost difference

between diesel vehicle and CNG/

LPG vehicle is considerably high. For

example the initial capital cost difference

between diesel and CNG vehicles is

around `75,000-`85,000, while there is

difference of around `90,000-`100,000

between diesel and LPG vehicles. This

makes diesel vehicles lesser cost effective

than CNG and LPG.

…supply constraints and safety

concerns make gaseous fuel less

preferred over diesel

CARE Research observed that,

although gaseous fuels like CNG and

LPG are more economical than diesel

and petrol, their availability as well as

security concerns arising due to mishaps

caused by the bursting of gas cylinders

have kept customers at bay. It was found

that acceptability of CNG is much

higher than LPG as a safer fuel. However

because of limited presence of City Gas

Distribution (CGD) network which is

currently in 41 cities in India the supply

of CNG is restricted only to those areas.

In case of LPG, constant mishaps owing

to high inflammable property of LPG

and higher maintenance cost has led

customers avoiding purchase of LPG

powered vehicles. These constraints in

gaseous fuel vehicles, has further aided

in the growth of diesel powered vehicles.

Diesel vehicles will surpass market

share of petrol vehicles shortly...

Going forward, CARE Research

expects the share of diesel-driven

vehicles to increase in the overall pie of

the Indian PV industry. With more than

90 percent of new sales in the utility

vehicle segment being diesel variants,

the dieselisation trend is now catching

up strongly in the passenger car segment

also. The diesel car sales were estimated

to be around 43 percent of the total car

sales in FY12 and for some of the models

which have diesel as well as petrol option,

sale from diesel variants was around 70

percent of the total sales. The growth

trend in the diesel vehicles sales has been

even stronger during current fiscal owing

to rising uncertainties about petrol prices.

...negating the uncertainties over

government’s plan to impose additional

tax on diesel vehicles

The rising difference between petrol and

diesel retail prices is encouraging more and

more buyers to opt for diesel vehicles. The

uncertainties over government’s intension

to impose additional tax on diesel vehicles

may dent the demand to some extent as

the recovery period of the incremental

cost for diesel vehicle would extend.

CARE Research believes, these concerns

would fade away gradually, as cost benefits

entailed over a life of a vehicle inspite of

the imposition of additional tax would

continue to drive consumers in favour of

diesel vehicle. As per our estimates diesel

vehicles would account for more than

1/2th of the new sales in the PV segment

in FY13, from the current level of around

43 percent. ��(Views expressed are personal)

Recently, the demand for

diesel cars has risen and

buyers are ready to shell

out an additional 15-20

percent for diesel models

to garner the benefits

of lower fuel price and

higher mileage

Cost comparison across different fuels


GLOBAL

THE Board of Directors of Federal-Mogul

Corporation, a global supplier of powertrain and

safety technologies, and one of leading brands

in the worldwide automotive aftermarket has

announced the election of Michael T Broderick to

the position of Chief Executive Offi cer, Federal-

Mogul Aftermarket Division eff ective 25 June, 2012.

He will fi ll the role established in March 2012

when the Board of Directors announced its decision

to modify the company’s corporate structure to

create a separate and independent Aftermarket

division. Broderick will report to the company’s

Board of Directors. Federal-Mogul’s Aftermarket

business is one of the largest independent suppliers

of leading, premium-branded automotive parts,

with global sales of $2.3 billion in 2011. Th e company

manufactures and distributes more than 20 of the

world’s most recognised auto parts brands, including

Anco wiper blades, Champion spark plugs, Moog

chassis parts and Wagner brake products.

“Th e Board is pleased to welcome Mike to

Federal-Mogul and we look forward to his

strong leadership in establishing an independent

aftermarket division that leverages the company’s

premium products and leading brands to drive

growth and strong customer loyalty,” said Chairman

of Federal-Mogul’s Board of Directors, Carl

C Icahn.

Broderick joins Federal-Mogul after 20 years of

experience in the automotive aftermarket in positions

of increasing responsibility at two of the world’s largest

aftermarket parts and service products distributors.

He was most recently president of Carquest, a leading

automotive aftermarket distributor. Prior to joining

Carquest, Broderick held senior executive sales and

operations positions during his sixteen-year tenure at

AutoZone, Incorporated.

“On behalf of the Federal-Mogul organisation

we congratulate and welcome Mike and look

forward to working with him to strengthen Federal-

Mogul’s position as a preferred supplier to the global

independent aftermarket,” said CEO of Federal-

Mogul’s OE Division, Rainer Jueckstock.

Federal-Mogul elects Michael T Broderick CEO, Global Aftermarket Division


GLOBAL

ACCORDING to a new report

published recently by The Smith Institute,

commissioned by the Society of Motor

Manufacturers and Traders (SMMT),

the growth of automotive supply chain

companies is being constrained by

restricted access to finance.

The Smith Institute Report was

launched at an event in central London

attended by the representatives from

banking and automotive sectors,

government officials and industry

stakeholders.

Offering insight into the relationship

between the domestic supply base and the

availability of suitable finance products,

the report represents the views of over 80

automotive firms operating at every level

of the supply chain, as well a range of

financial and lending institutions. The

findings of the report draw upon

comprehensive survey results and detailed

case studies compiled from one-to-one

interviews with owners and senior

managers of automotive firms, including

three UK-based vehicle manufacturers

and financial experts from some of the

largest business banks in the UK.

“With over £5.6 billion pledged to the

UK during the last 18 months, there is a

‘window of opportunity’ to strengthen

the UK supply chain, creating jobs and

prosperity for the long-term,” said

SMMT Chief Executive, Paul Everitt.

“A lack of expertise within the finance

sector is holding back growth in the UK

automotive industry. Vital opportunities

for companies to grow and develop their

businesses are being hampered, because

banks have not responded quickly enough

to the need for local knowledge and

sector expertise. There is a unique

opportunity to re-build manufacturing

capability and capacity in the UK, but it

requires industry, finance and government

to shift gear and ensure growth businesses

get the financial support they need.”

Companies reported that many

financial institutions remained wary of

the industry as a lending opportunity,

despite the UK manufacturing sector

performing strongly, exports achieving

record levels and recently pledged

investment confirming the long-term

plans to base operations in the country.

Building on a separate Smith Institute

report released last year, the study

highlights how improved dialogue

between automotive companies and

financial institutions could help to boost

economic growth and rebalance the

economy, if the two sectors work

together to address the type of finance

offered to businesses. Identifying SMEs

in particular, the report reveals how

smaller companies find it difficult to

target banks for their lending needs as

many institutions were unclear about the

key sectors they support and often

decisions take far too long.

The recommended cross-industry

‘Tooling for Growth Taskforce’ would form

the two-way relationship that is needed to

drive progress in the sector. The taskforce

would consist of banks and supplier

companies representing all tiers of the

supply chain (including OEMs), providing

a platform to explore more innovative

solutions to funding growth, specifically for

SMEs in relation to finance packages for

tooling-up facilities to meet demand.

Finance crunch holds back automotive supply chain growth

With over £5.6 billion

pledged to the UK during

the last 18 months,

there is a ‘window

of opportunity’ to

strengthen the UK supply

chain, creating jobs and

prosperity for the long-

term—Paul Everitt, SMMT

Chief Executive

A lack of understanding of the

automotive sector, within the

banks, particularly at a local level

and in regions with a number of

automotive companies in operation.

Funding gaps due to how banks

evaluate the total assets owned by a

company resulting in suppliers

often missing out on the full

amount of funding applied for,

specifically in relation to finance

tooling and capital equipment.

Securing finance for tooling

development costs due to a focus on

the residual value of the machine

tool over the long-term asset value

it will produce.

Reluctance of SMEs, particularly

the 37 percent of which, that are

family run, to seek external equity

over internal cash f low and

loan financing.

Favourable payment terms offered

by vehicle manufacturers to supply

companies are often not reflected

further down the chain.

Factors That Have Impeded Growth


GLOBAL

THE start of 2012 has seen Honda

(UK) develop its retail network; both

expanding with existing franchisees and

recruiting several new franchise

partners. These additions across the

pan-brand business illustrate confidence

in the Honda brand, with investment

being made in the long-term future of

its dealer networks.

Developments in the car business

include Gilder Honda completing the

acquisition of the Chesterfield

dealership, to operate alongside the

Sheffield and Rotherham businesses

bought in 2011. North Wales Honda

now operates the Honda brand in

Llandudno, whilst Norton Way Motors,

who also own Chiswick Honda, have

opened the doors on a brand new

dealership in Wimbledon Park,

previously an area without Honda car

representation. Other investments

within the car division include Harratts

of Wakefield and Cloverleaf in

Bracknell, both of which, have recently

moved to newly built state-of-the-art

premises.

Three new franchises have opened

in the motorcycle dealer network in

recent months, and with a further

three set to open in early summer, this

is an indication of continuing strength

of the motorcycle sector. Smiths

Honda is now open for business in

Chester, whilst Blade Motorcycles

have begun trading in Swindon. In

Plymouth GT Motorcycles has

reopened at its established destination

dealership on Elburton Road. These

new additions to the motorcycle dealer

network will further help Honda

strengthen its number one position in

the market.

The Power Equipment Division is

experiencing continued growth as

businesses look to expand with Honda

in anticipation of peak season

approaching for all four product areas.

Russell Gas & Mower Centre

has taken on the Lawn & Garden

franchise in Edinburgh, while Ernest

Doe & Sons Ltd has expanded

representation to their premises in

Albourne. Other openings in Lawn &

Garden include Burnside Garden

Machinery in Glasgow, and Balgownie

Ltd in Inverurie. In addition to L&G,

AM Phillip (Agritech) Ltd has taken

on the Energy franchise for

Fraserburgh.

Mark Weatherhead Ltd now holds

the ATV franchise in Royston, likewise

Wilsons of Rathkenny Ltd in Ballymena.

Marine Division sees Motortech

Marine Engineering gaining the

franchise for Portsmouth, Rock Marine

Services take the franchise in

Wadebridge and a boat builder

partnership has been established with

Devon based Seaswift Boats, these

changes greatly improve national

coverage.

Honda (UK)’s Head of Dealer

Development, Nick Campolucci

commented, “The continued investment

into Honda franchises by a variety of

existing and new partners illustrates that

despite challenging economic

conditions, businesses have the

confidence to invest in Honda.

“With an all new Civic recently

launched and new CR-V to follow later

this year, 2012 sees two key models in

our car product line-up refreshed.

Similarly, motorcycles has seen seven

new 2012 models launched, with

several more planned throughout

the year. These new products, along

with our commitment to dealer

commercial training, will maintain

Honda’s place as motorcycle market

leader.

“Our Power Equipment division also

continues to introduce new products to

their four market areas. This, when

combined with a strategy to support

dealers through stronger retail

promotions, has been exceptionally well

received by the dealer network and our

customers.”

New Honda dealers show higher brand confidence

Three franchises have

opened in the dealer net-

work recently, and with a

further three set to open

soon, this is an indication

of continuing strength of

the motorcycle sector

The continued investment

into Honda franchises by

existing and new partners

illustrates that businesses

have the confidence to

invest in Honda


GLOBAL

GLOBAL manufactures and supplier

of a range of innovative solutions,

Federal-Mogul has developed a patented

dual-material cylinder liner technology

to help reduce bore distortion and

improve function in the latest generation

of lighter, highly-loaded gasoline

engines. The Hybrid Liner technology

provides reliable, cost-effective, long-

term performance while reducing

engine oil consumption, especially in

high-output aluminium engines with

small interbore bridges and weight

optimised designs.

The hybrid liner by Federal-Mogul

integrates the liner into the aluminium

block casting more effectively than

alternative technologies, both

structurally and thermally. It comprises

a conventional cast iron sleeve with an

aluminium coating applied to the exterior

through a proprietary process. The cast

iron sleeve provides good tribological

properties and is compatible with cost-

effective ring packs.

“Federal-Mogul is helping engine

manufacturers to increase the power

output and durability of smaller engines,

supporting them in a key area of their

global CO2 reduction strategies,” said

Federal-Mogul Vice President for

Technology and Innovation, Powertrain

Energy, Gian Maria Olivetti. “Cylinder

bore distortion is one of the main factors

limiting increases in power and torque

outputs, particularly in lightweight

aluminium cylinder blocks. Our patented

Hybrid Liner increases the strength and

stiffness of the combined block and liner

assembly, allowing significant weight

reduction without compromising engine

performance and durability.”

AdvantagesThe outer surface of the liner is

manufactured to provide a surface

topography that is conducive to

mechanical interlocking with the

aluminium block material. The liner

coating is an AlSi12 alloy with a melting

point below that of the aluminium engine

block, which provides outstanding

intermetallic bonding between the

surfaces of the two materials. To meet

the cost and robustness requirements of

series production, the coating is applied

in a process that uses advanced wire arc

thermal spray technology to ensure that

coverage, thickness and bonding strength

are uniform around the complete

height and circumference of each liner.

The coating surface roughness is also

controlled, to provide undercuts and

micro-porosities so that an extremely

strong, intermetallic transition zone is

formed between the coating and the

block casting material.

“Compared to alternative

technologies, the Hybrid Liner reduces

bore distortion in a running engine by

two-thirds,” said Olivetti. “Maximum

second order bore distortion can be as

low as 11 percent of that experienced by

corresponding cast-in liners, while the

cylindrical distortion under operating

loads is up to three times better. As a

result, oil consumption is reduced by up

to 40 percent.”

The company’s Hybrid Liner also

results in up to 30 percent higher heat

transfer rates, reducing the cylinder

wall temperature by up to 40°C (104°F)

compared to alternative designs.

Dynamic strength increases as well; in

a cyclic pulsing pressure test, the Hybrid

Liner showed no failure at pressures of

up to 200 bar, whereas a standard liner

block design cracked at 100 bar.

“The Hybrid Liner also allows engine

manufacturers to improve packaging by

reducing the distance between adjacent

cylinders; pressure die-cast engine

blocks with Hybrid Liners can have

a material wall thickness of just three

mm between the bores,” Olivetti added.

“If a water channel is drilled between two

cylinders, the Hybrid Liner technology

limits the formation of cracks, allowing

coolant to penetrate only as far as the

liner coating. Conventional liners can

allow water to seep down the joint

between liner and casting, reaching

the crankcase and con-taminating the

lubricating oil.”

Federal-Mogul’s Hybrid Liner is

produced at its Powertrain Energy

manufacturing facility in Friedberg,

Germany. The technology was a

finalist in the 2012 Automotive News

Pace Awards.

Federal Mogul green patented tech boosts engine performance

Federal-Mogul is helping

engine manufacturers

to increase the power

output and durability of

smaller engines, support-

ing them in a key area of

their global CO2 reduction

strategies—Gian Maria

Olivetti, Vice President

for Technology and Inno-

vation, Powertrain En-

ergy, Federal-Mogul

PRODUCTS


Alcohol Detection DevicesTHE alcohol detection sensor is a device that is fi tted into a car along with micro vehicle black box (VBB). Th e driver, after turning on the ignition, is required to blow into the sensor, which detects the presence of alcohol in his breath. If the level of alcohol exceeds the permitted limit, the system sends an SMS alert to the authorised person’s mobile phone and stops the vehicle. Th e car can only be restarted via an SMS from the authorised person. Although accidents caused due to drunk driving cannot be completely stopped, a mechanism such as the alcohol detection sensor can defi nitely help in curbing the number of drunk driving accidents.

Micro Technologies (India) LtdNavi Mumbai - MaharashtraTel: 022-27686687

Mob: 09892560798


Website: www.microtechnologies.net

Vehicle Security SystemsTHE crux of Micro VBB lies in the various sensors installed in the car. Th e moment there is an unauthorised activity in the vehicle, the owner receives an SMS alert or an email on his mobile phone. Micro VBB is simple to operate and easy to use. Th e system can also be used to ward off intruders from the car as it detects unauthorised intrusions, communicates with the owner conveniently, tracks the car wherever it goes, and immobilises it with a simple SMS. It is a security and messaging device that detects any forcible intrusions in the vehicle and communicates the same to the owner. Moreover, it lets the user take control of his vehicle from anywhere in the world using a simple SMS from his mobile.

Micro Technologies (India) LtdNavi Mumbai - MaharashtraTel: 022-27686687


Website: www.microtechnologies.net

Breath Analysers with PrinterBREATH alcohol analyser detects alcohol in the breath and gives an audio-visual indication. It has a three-status technology, which includes bright graphic display, easy & quick testing, reading latching, non-

volatile memory, password protected critical menu settings, subject sample blow indicator, print readings with data & time, user selectable multiple number of prints for evidential record documentation etc. Th e instrument is housed in a robust plastic enclosure.

Subtronics (India) Pvt Ltd, Mumbai - MaharashtraTel: 022-2422 4461

Mob: 09448437845


Website: www.subtronicsindia.com

Hydraulic CranesTHE truck-mounted hydraulic cranes (model Hydra-825) superstructure frames fabricated from high tensile steel plates and

sections with mechanical superstructure lock operated from cab. Th e three-section fully synchronised fully telescoping box section boom is fabricated from high strength low alloy steel plates with internal and external welding. Boom derricking has single double acting hydraulic ram mounted on a large diameter bushes.

Til Ltd, Kolkata - West BengalTel: +91-033-25531352, Mob: 09833811406

Email: [email protected], Website: www.tilindia.in

Chain HoistsTHESE stainless steel chain hoists are made of SS304 and SS316 series stainless steel. Th e clean room hoist products arewell-suited for lifting applications in wash-down, environmentally controlled and corrosive

processing environments. Th ese are available in standard capacities up to two MT and feature sealed gearing, foodgrade lubrication and stainless steel hooks.

David Round, Inc Ohio - USA

Tel: +1-330-6561600

Email: [email protected], Website: www.davidround.com

PRODUCTS


Wheel LoadersTHE wheel loader has payload capacity of 750 kg and transmission of heavy-duty sliding mesh with 6 forward and 2 reverse speeds. Th is wheel loader comes with hydraulic brakes provided on the front wheels and mechanical brakes on the rear wheels. Some of the technical specifi cationsinclude: bucket size six-cm, maximum height 4.1 mtr, dump height 2.68 mtr, top speed 29 kmph, engine of Simpson’s S433, four cylinder, water-cooled, diesel enginewith rated power of 49 BHP @ 2,200 RPM, hydrostatically operated steering wheels with 4.7 mtr turning radius, hydraulic system tandem pump with two/three spools control valve, electrical system 12 V, negative earth with a single heavy-duty battery, optional buckets of 0.25 cu mtr to.75 cu mtr capacity four-in-one multi-purpose bucket, and operating weight of 5,500 kg.

Action Construction Equipment LtdNew DelhiTel: 011-40549900, Mob: 09967047733


Website: www.ace-cranes.com

PRODUCTS


Angle Polishers FEIN ang le polishers WPO 14–15 XE always start with the lowest speed of 200 RPM, virtually eliminating any polish splashes. Th is also prevents uncontrolled acceleration and holograms developing onsensitive paints as a result. A polishing set for all outside refurbishing applications on vehicles. Fresh paintwork canalso be given a perfect fi nish. Th e set can be used with all Fein angle polishers. Th e Fein angle polisher’s two-stage gear reduction delivers a maximum torque, which in turn ensures that the set speed is maintained, even when high contact pressure is applied. Th ere are the extensive accessories, suchas those included in the Fein paint refurbishing andfi nishing set. Th ese deliver the perfect fi nish in automotive applications—and are tailored to the corresponding paint requirements.

Fein Power Tools India Pvt Ltd Chennai - Tamil NaduTel: 044-43578680

Mob: 09825063597


Website: www.fein.in

Automotive PartsTHESE automotive parts enhance the efficiency of automobiles. The automobile parts are precisely designed and engineered in order to ensure high durability and strength. Th e range comprises gears, crack shafts, cross, shifterforks, and clutch collars. High durability, excellent performance and low maintenance of the range are someof their features.

AhujasonsNew DelhiTel: 011-23943349

Mob: 09990469999


Website: No website

Automotive BatteriesA wide range of automotive batteries are off ered. Th e range of these automotive batteries consistsof Tata greenbatteries, Exide green batteries and Amaron green batteries. Th ese batteries are widely used in automobiles, such as cars, jeeps, tractors,

two-wheelers, etc. Th e automotive batteries are availablein diff erent sizes and shapes as per the diverse requirements of clients.

Bhatia Battery House Ghaziabad - Uttar PradeshTel: 0120-4337837

Mob: 09212430899


Website: www.transworld-compressor.com

Piston CompressorsTHE RCP series of piston compressor is factory-built and tested for highest reliability of operation.Th is is designed for ease of manoeuvring. Th e compressor is useful for intermittent

operations for wide range of applications.It consists of two-7.5 hp. Model RCP-290 has twp hp,230 V/50 Hz, bar 10 G, nine cfm, 90 ltr, etc; and comes in dimensions of 1,000 mm x 410 mm x 820 mm. It weighs67 kg.

Chicago PneumaticThane - MaharashtraTel: 022-3998 2731, 9833489164

Mob: 09967047733


Website: www.cp.com

PRODUCTS


Gas converter kitsTHESE LPG gas kits are offered for all makes of motorcycles, such as Rajdoot, Bullet, Honda, Yamaha, Suzuki, Boxer, Pulsar, Freedom Caliber, etc. Th is retro fitment system is simple and quick to install on old/new motorcycles. Motorcycles fi tted with these revolutionary gas systems enjoy fuel saving up to 70 per cent, with no pollution and reduced maintenance cost. Unlike conventional car LPG kits, which are high-pressure kits, Klockner gas kits work on low pressure, hence are 100 per cent safe and specially designed for 2-stroke and 4-stroke motorcycle engines.

Gas Tech Electronic Products (P) LtdDehradun - UttaranchalTel: 011-267 2540


Website: www.gastechproducts.com

Automobile fusesTHE Maxi series automobile fuses are available in a higher range of amperage rating of 20 A to 80 A in 32 V AC/DC. These fuses are physically larger

in size as compared to other ATO and Mini series automobile fuses. Colour code is providedin each fuse for easy ampere identifi cation. Larger fusesare widely used in automobile circuits for protection of wiring harness by replacing the fusible wire or fusiblelink, which is often a plain piece of small wire. Th e ATO series fuses are suitable for automobiles, trucks; whereasthe Mini series fuses are suitable for buses, cars, etc.

Sahil InternationalNew DelhiTel: 011-2246 4894

Mob: 9899153952


Website: www.sahil-india.com

PRODUCTS


Rubber Auto PartsA wide range of specially fabricated automotive parts are off ered in compliance with quality standards. Th ese automotive parts are specially manufactured using quality materials. Also off ered are automotive components, rubber auto components, auto mould parts, automotive rubber parts, automotive parts & components, etc.

Genext Auto IndustriesDist Buldana - MaharashtraTel: 0726-263140, Mob: 09822271701

Email: genext_2007@rediff mail.com

Website: www.genextindustries.com

Pneumatic VibratorsTHE model TV-7200 turbine-type pneumatic vibrator is developed for material handling. Th is vibrator operates in any position. It is used to facilitate parts feeding in trays in the automotive industry, supply hoppers and chutes of chemicals and plastics production and in packing lines. Th e pneumatic vibrator is also used in screening, separating and sizing of fi ne and coarse powdered materials. In short, dislodge stubborn materials from hoppers or trays. Normal working pressure is six kg/cm².

San Air ToolsThane - MaharashtraTel: 022-2534 1981,09819747122

Email: [email protected], Website: www.sanairtools.com

Hydraulic OilsJaybrol hydraulic oil is anti-wear, R&O type and HLP type. Th is oil is blended from high viscosity index base stocks containing anti-rust, anti-wear, anti-oxidant and anti-foam additives. Th e oil has good chemical stability and good demulsibility. Th e oil is recommended for use in hydraulic system, circulation system, machine tools, enclosed gearbox, compressor circulating oiling system, for industrial and automotive equipment. Th e hydraulic oil meets BIS:10522-1983, BIS:11656-1986 and BIS:3098-1988 specifi cations.

Jay Bharat Lubricants (I) Pvt LtdMumbai - MaharashtraTel: 022-2529 9990

Email: offi [email protected], Website: www.jaylube.com

Tyre ChangersTh e side swinging mounting arm of the tyre changer enables users to install it near the wall occupying very less space. Specially designed bead breaker handles rims very gently and safely. Features include suitable for car and LCV tyres, side swing mounting arm, pneumatic twin cylinders for fi rm clamping, four-jaw self-centering chuck, alloy wheel plastic protector, bead breaking by pneumatically operated cylinders, clockwise and anti-clockwise rotation of turn table using electric motor, built-in FRLs, and motorcycle adopter (optional).

Manatec Electronics Pvt LtdPuducherryTel: 0413-2248926

Mob: 09344643104


Website: www.manatec.net

Timing Belt DrivesTHESE belt drives are designed and manufactured with matching pulleys as per international standards. Th e timing belt drives operate in applications requiring positive, non-

slip power transmission. Precision moulded belt teeth are designed to enter and leave the matting grooves on the pulleys in a smooth manner with low friction.

Kwedos Belt Drives Pvt LtdAhmedabad - Gujarat

Tel: 079-25507367, Mob: 09925111749

Email: [email protected], Website: www.kwedospulleys.com

Breath AnalysersBREATH alcohol analyser is used to check for drunkenness of drivers before driving and avoiding disasters. It can be charged using the car cigarette lighter socket available in the car. It gives an audio alarm along with visual fl ashing on alcohol detection. It has features like 10 hours of continuous operation, low battery indication, car

charging confi rmation light, fl ashing alarm etc.

Subtronics (India) Pvt LtdMumbai - MaharashtraTel: 022-2422 4461, Mob: 09821606439


Website: www.subtronicsindia.com

PRODUCTS


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

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

Low-Emission TapesTHE LE-series (Low Emission), high-performance adhesive tapes meet the requirements for low emission values. Th ese tapes

fulfi ll VDA 275, VDA 200, DIN 75201A ISO 6452, DIN 75201B ISO 6452, solvent-free pure acrylic adhesive, free from resins & plasticisers, etc. Th e tapes are available with a variety of diff erent carrier systems.

Lohmann Adhesive Tapes India Pvt Ltd Pune - Maharashtra

Tel: 020-30220899

Mob: 09962547906


Website: www.lohmann-tapes.com

Precision BearingsTHE super precision bearing is used for machine tools spindle. Machine tool application require superb performance in terms of running, rigidity, stability, noise level, speed and temperature stability. Running accuracy class P4 and angular contact ball bearing with phenolic cage. Th e high-precision angular contact bearings, double row cylindrical roller bearings and axial ball bearings aredesigned to satisfy these demanding requirements by machine tools. Angular contact ball bearings come in series of metric 71800, 71900, 7000, 7200 and 7300; and double row cylindrical roller ball bearings come in series of metric NN 3000 andNNU 4900.

Austin Engineering Company LtdJabalpur - Gujarat

Tel: 02873-252223


Website: www.aec-bearings.com

Fire Alarm Control PanelMULTI-PROTOCOL intelligent fi re alarm control panel (model ZX1e) is designed and constructed around proven and reliable microprocessor technology. This simple approach has produced a modular, scaleable fi re alarm platform suitable for protecting all types of premises. Th e fi re alarm control panel supports a totalof fi ve industry-leading protocols, allowing fi re detectiondevices to be independently selected based on performance or aesthetic appeal. Th e ZX series control panel seamlessly integrates with Apollo (Xplorer, XP95 and Discovery), Hochiki ESP, Nittan, Morley-IAS and system sensor detection device protocols.

Security VisionMumbai - Maharashtra

Tel: 022-24322727


Website: www.securityvision.com

LED Destination SignsTHE LED destination signs are used for public transit. Th ere are no limits to the readability of LEDs both from the side and from the bottom. Th e bus front signs are readable as it gets closer to the stop and the side sign is readable when

people are getting on the bus. Readability is optimised, thanks to the increase of contrast, due to the reduction of the refl ected light. Bus destination signs are readable in all light conditions. Th e auto-adjustment of the LED brightness, based on the levels of the surrounding ambient light environment, guarantees power consumption reduction while maintaining the readability of information at optimal contrast levels.

B R ElectronicsChennai - Tamil Nadu

Tel: 044-22456925


Website: www.brimdisplays.com


LIST OF PRODUCTS & ADVERTISERS’

Pg No. Advertiser ..............................................Tel ................................E-mail ........................................................Website

8 ..........ADEA ..................................................... . ............................................................................................................ www.adea.in

23 ..........Ask Me ............................................................... +91-35555555 ...................... twitter.com/AskMe_35555555 ...........................www.facebook.com/AskMe.infomedia18

11 ........Bosch Limited......................................... +91-80-22999228 ............................................................................... www.boschindia.com

19 ........C E Infosystem ....................................... +91-11-46009999 [email protected] ............................... www.mapmyindia.com

4 ..........Confederation Of Indian Industry ........ +91-124-4014060 [email protected]..................................... www.jetfi ndia.in

6 ..........Engineering Expo .................................. +91-09819552270 [email protected] ........................... www.engg-expo.com

17 ........Federal Mogul......................................... +91-124-4784530 [email protected] ..... www.federalmogul.com

13 ........Fiem Industries Ltd ................................ +91-9991702453 ............s.narayanan@fi emindustries.com ............... www.fi emindustries.com

32 ........Icon Autocraft ......................................... +91-9873337373 [email protected] .............................. www.iconautocraft.com

63 ........Kyb Asia Co Ltd ..................................... +91-9871687888 [email protected] ......................................... www.kyba.co.th

BIC .....Litel Infrared Systems Pvt Ltd ..............+91-20-66300636 [email protected] .......................................... www.litelir.com

FIC .....Lubrizol Advanced Materials India P ...+91-22-66027800 [email protected] ..................... www.lubrizol.com

61 ........Oil Lube Systems .................................... +91-129-2430786 [email protected]

61 ........Puja Fluid Seals Pvt Ltd......................... +91-20-27112016 [email protected] .................................... www.pujaseals.com

3 ..........Venza Automotive India Pvt Ltd ........... +91-422-4223246 [email protected] ........................ www.venzaautomotive.com

BC ......Yamazaki Mazak India Pvt Ltd ............. +91-2137-668800 [email protected] ........... www.mazak.com

� Our consistent advertisers

Abs sensor cable/grommet ..................................................................FICAlcohol detection device ........................................................................60Alternatives ............................................................................................11Angle polishers .......................................................................................62Automobile fuses ....................................................................................63Automotive batteries ..............................................................................62Automotive dealership excellence awards ................................................8Automotive lighting ...............................................................................13Automotive parts ....................................................................................62Batteries ..................................................................................................11Body shop equipments .............................................................................3Brake pads ..............................................................................................11Breath analyser .......................................................................................60Breath analyser with printer...................................................................60Car pad ...................................................................................................19Chain hoists ............................................................................................64Clutch plates & cover assemblies ...........................................................11CNC/VMC machines ......................................................................... BCDust cover ............................................................................................FICExhibition - Automach 2013 ...................................................................4Exhibition- Engineering Expo ................................................................6Filter cleaning unit .................................................................................61Filters ......................................................................................................11Fire alarm control panel ........................................................................65Fluid seals ...............................................................................................61Fuel bowl .............................................................................................FICGarage equipments ................................................................................32Gas converter kits ...................................................................................63Gasoline systems ....................................................................................11Gear pumps ............................................................................................11Go-jack ...................................................................................................61Heating solutions ................................................................................BICHeavy duty bike lift ................................................................................61Horns ......................................................................................................11Hydraulic cranes .....................................................................................60Hydraulic oils .........................................................................................64Hydraulic parking lift ............................................................................61

Hydraulic press .......................................................................................61In-dash Navi-tainment systems .............................................................19Instant drying & curing technology for water based colour ...............BICLaptop trolley .........................................................................................61LED destination signs ...........................................................................65Lighting ..................................................................................................11Low-emission tapes ................................................................................65Lubricants ...............................................................................................11Lubrication equipments ...........................................................................3Mobile service van ..................................................................................61O’ rings ...................................................................................................61Paint protection fi lm ...........................................................................FICPaint shop equipments .............................................................................3Parts washer ............................................................................................61Piston compressor ...................................................................................62Pistons ....................................................................................................17Pneumatic vibrator .................................................................................64Portable navigators .................................................................................19Precision bearings ..................................................................................65Relays ......................................................................................................11Rubber auto parts ...................................................................................64Sealing ....................................................................................................61Shift lever screen .................................................................................FICSocker observers .....................................................................................63Spark plug ...............................................................................................11Starter motor ..........................................................................................11Timing belt drives ..................................................................................64Tool trolley .............................................................................................61Transmission jack ...................................................................................61Tyre changer ...........................................................................................64Vehicle lifting equipments .......................................................................3Vehicle mover .........................................................................................61Vehicle security system ..........................................................................60Waste oil disposer ..................................................................................61Wheel loader ..........................................................................................61Wiper blades ...........................................................................................11

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