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March 2017 issue of FADA Journal

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Published by FADA Journal, 2017-04-19 01:29:16

FADA Journal - March 2017

March 2017 issue of FADA Journal

Office Bearers contents

President PRESIDENT’s MESSAGE 7 Gaining Traction
INDUSTRY TRACK 8 Auto Market Driving Out of Demonetisation Slump
JOHN K PAUL OPINION
Popular Vehicles & Services Pvt Ltd
Kuttukaran Centre, Mamangalam, Kochi - 682 025 INDUSTRY TRENDS
Tel: +91-484-234 1134 / 7872 / 5013 SURVEYS & STUDIES
E-mail: [email protected];
FADA NEWSLINE
[email protected] FUEL WATCH

Vice President KNOW OUR MEMBER 11 • Taxi Segment to Account for 15%-17% of Car Sales by 2020: ICRA
UPGRADES & VARIANTS • Scrappage Scheme Can Boost CV Sales 65%: CRISIL Research
ASHISH KALE • Securitised Vehicle Finance Pool Shrug Off DeMo with a ‘V’
Provincial Automobile Co. Ltd NEW ON WHEELS Rebound: CRISIL
Kingsway, Near Railway Station, Nagpur - 440 001 NEWS BASKET
Tel: +91-712-391 1129 / 1150 16 2017 Automotive Industry Trends - The Future Depends on
E-mail: [email protected]; WASTE MANAGEMENT Improving Returns on Capital - Strategy&, PWC
CONSUMER CASE STUDIES
[email protected] 20 Lexus and Prosche Tops in J D Power US Vehicle Dependebility Study
COMPETITION LAW
Secretary General & Editor, FADA SALES REPORTS 22 FADA to NADA100 - A Report
Journal NADA MUSINGS
24 Effects of Massive Pipelines on Oil Prices
GULSHAN AHUJA - Steve Austin for OIL-PRICE.NET
Federation of Automobile Dealers Associations
805, Surya Kiran, 19, K G Marg, New Delhi 29 Sri Sri Sri Automobiles, Khammam (Telengana)
Telefax: +91-11-6630 4852, 2332 0095
E-mail: [email protected] • Web: fada.in

ADVERTISERS’ INDEX 60 30 • 2017 Mercedes-Benz E-Class LWB Launched in India
2 • Maruti Forays into High Performance Segment with Baleno RS
Back Cover • TVS Jupiter with BS-IV Engine Launched
V E Commercial Vehicles 59 • Honda Introduces New Activa 4G
3
Front Inside Cover 4 34 Honda Launches Life Style Vehicle ‘WR-V’
Tata Capital Financial Services 6
36 • Volkswagen India Announces New Product Line-Up for 2017
Back Inside Cover 10 • ISUZU Motors Strengthens its Dealership Network
Tata Motors 15 • Galaxy Toyoto Launches Road Safety Project for School Children
19 • Satish Sharma Elected as New Chairman of ATMA
Inside Pages 27
• Mahindra & Mahindra Financial Services 28 40 Automobile Waste and its Management
• AMPL 32 - Academy for Environment and Life Sciences, INDIA
• Ford India 35
• SKF Group 39 46 NCDRC : Dewar Motors @ Dewesh Motors - Petitioner
• Prime Honda 42 Versus
• Shriram Automall India 44 Uttam Bhuyia - Respondent
• Eminence Auto 47
• Sarveshwari Technologies 51 48 Competition Law Updates - G R Bhatia
• Force Motors 54
• Maurya Motors 55 49 Vehicle and Tractor Sales & Exports and Y-o-Y Growth - Feb’17
• Sansera India 58
• Carazoo Online Solutions 56 Major developments affecting Automobile Industry in US
• Bagga Link
• Marikar Group
• Exide Industries
• K R Equipments
• Manmachine Works
• Shriram Transport Finance

For Advertisement query, please contact Printed and Published by G K Ahuja on behalf of Federation of Automobile Dealers Associations,
Ankush Sethi at [email protected] 805, Surya Kiran, 19, Kasturba Gandhi Marg, New Delhi-110001.
Printed at Sita Fine Arts P Ltd, A-22, Naraina Industrial Area, Phase-II, New Delhi-110028.
Editor: G K Ahuja



President’s Message Gaining Traction

Dear friends,
It is comforting to note that after the widespread disruption caused by
the demonetisation of high-currency notes, the auto market is slowly
but surely settling down, if the sales figures for the month of February
are any guide.
A pragmatic Union Budget presented by the Hon’ble Finance Minister
on 1st February has also, to some extent, improved the sentiment, and
given boost to the auto market. The sales are yet to reach the numbers
witnessed pre-demonetisation, though.
As informed through my previous column, a 35-member FADA
delegation participated at the 2017 NADA Convention, which also
marked the celebrations of 100 years of NADA that came into being in
1917 following the imposition of luxury tax on cars by the then US
Government. NADA’s 100-year illustrious service to the automobile
dealer fraternity and its phenomenal contribution in protecting and
promoting the interest of auto retail market in the US, send out a strong
message that an umbrella organisation like FADA can do wonders if the
automobile dealers unite and organise themselves under its banner.
The delegation members also took the opportunity of visiting two automobile dealerships in Atlanta. The visit was quite an
enriching experience for all the delegation members. It was also an occasion to rejoice and join NADA in its centenary
celebrations. Besides, FADA’s relations with NADA and other auto retail organisations across the world got a further boost.
More importantly, the participation of large delegation under the banner of FADA helped promote fellowship and goodwill
among the members.
Regarding the other activities of FADA since my previous column, taking our agenda of deepening understanding and relations
with OEMs forward, FADA team of office bearers held meetings with the CEOs and other senior officials of Ford India and
Mercedes-Benz India, separately on 1st March & 2nd March, respectively. The discussion majorly centred around the issues of
skilling & training of manpower, inventory control & management, and exit route for automobile dealers. It is heartening to
note that most of the issues taken up and discussed at these meetings evoked positive response.
FADA team of office bearers also held a meeting with Mr Abhay Damle, Jt Secretary (Transport), Ministry of Road Transport &
Highways (MoRTH) in his office at New Delhi to discuss the confusion caused by the media reports and orders of some of the
State Governments that BS-III compliant vehicles would not be allowed to be sold or registered w.e.f. 1st April 2017. It was
vehemently submitted to Mr Damle that banning sale or registration of BS-III vehicles, in stock with the dealers, from 1st April
2017 is contrary to the letter and spirit of notifications issued by the Government of India (MoRTH). FADA team pointed out
that the designated date of 1st April 2017 for BS-IV vehicles is with reference to the manufacture or production.
I am happy to inform that the Ministry of Road Transport & Highways has taken a stand in the case: M C Mehta vs Union of
India & Ors before the Supreme Court that BS-III vehicles stock in transit as at the end of the day on 31st March 2017 should be
allowed to be sold on or after 1st April 2017, in keeping the intent of the notifications issued by the Ministry and the practice
followed in the past. As I write this column, FADA is also filing an intervention application before the Supreme Court. The next
hearing in the case is on 24th March 2017. We are hopeful of a favourable order in this regard.
The next meeting of FADA Council is scheduled for 22nd April 2017 at Jaipur. A regional meeting and an awards ceremony
recognising the meritorious connected with the auto retail trade in the State of Rajasthan have also been dovetailed with the
Council Meeting. Members are cordially invited to attend the Regional Meeting and the awards ceremony followed by dinner.
Look forward to your inputs and suggestions.
With best wishes,
Yours sincerely,

John K Paul

7 March 2017



Industry Track

in 2009. The new Fortuner has sold over 8,200 units in the favourable for Honda, as we continue to grow with a 1.4%
last four months. The Innova Crysta has also maintained its increase in domestic market share of 27.2%.
growth trajectory, selling over 67,500 units since its launch India Yamaha Motor registered sales of 68,104 units (including
last year.” exports to Nepal) during February 2017, posting a 19.6%
Riding on its sub-compact Kwid, Renault India sold 11,198 upswing (February 2016: 56,960 units).
units in domestic market in February 2017, up 26.8% over Royal Enfield stayed in overdrive to clock a 19.3% growth in
8,834 units in February 2016. domestic two-wheeler sales that aggregated 56,737 units in
Ford India turned in a stellar performance both in terms of February 2017 (February 2016: 47,567 units). The company
domestic sales and exports during the month of February remains the only two-wheeler brand that has remained
2017. While the domestic wholesales grew by a whopping unperturbed despite demonetisation.
49.6% to 8,338 uiits, the exports at 15,688 units were up 32.7% With domestic sales volume of 33,641 units, Suzuki
y-o-y. Motorcycle India witnessed a massive 44.5% uptick y-o-y.
“The industry is seeing some green shoots, recovering from
the impact of demonetisation. Ford continues to grow faster BS-IV Pre-Buying Drive CV Sales Numbers
than the industry, which bears testimony to our three-pronged
strategy of product-led transformation, busting the myth of Pre-Buying rush to beat the deadline of 31st March 2017 before
cost of service and enhancing dealership experience,” said BSIV emission norms kick in all over the country, resulting in
Anurag Mehrotra, ED-Marketing, Sales & Service, Ford India. significant increase in CV prices, shored up the CV sales
Propelled by redi-GO, Nissan Motor India reported domestic numbers in February 2017 that saw the domestic CV sales
sales of 4,807 units in February 2017, up 24.9% (February 2016: grow by 7.3% y-o-y to 66,939 units during the month.
3,850 units). Tata Motors’ domestic CV sales numbering 28,722 units in
February 2017 were up marginally by 1.1%. According to the
Two-Wheelers still Reeling under Demonetisation Impact company, the MHCV Cargo segment demand has picked up
due to pre-buying on account of expected price increase led
While there was a whiff of recovery from the demonetization by BS-IV implementation from 1st April. Tata bus sales
blues, the two-wheeler sales were still muted. Total domestic continued to grow by 30% in February 2017, driven particularly
sales of 2-wheelerss at 1,362,045 units in February 2017were by STU orders, supported by Intercity and Staff Application
flat, seen against 1,362,177 units a year ago. Two-Wheeler segments. Demand from schools is also gaining momentum.
exports were, however, in fast lane, growing by healthy 19.3% Ashok Leyland witnessed a 6.4% increase in its total domestic
y-o-y to 197,531 units during the month. CV sales to 13,236 units in February 2017 from 12,443 units
Two-Wheeler market leader, Hero MotoCorp’s domestic sales in February 2016.
at 511,954 units in February 2017 were in negative terrain, Mahindra & Mahindra sold 16,383 CVs in domestic market
slipping by 4.7% from 536,928 units a year back. during February 2017, which reflected a 18.2% growth
Ditto for TVS Motor that witnessed a 5.8% drop in domestic (February 2016: 13,864 units). While domestic M&HCV sales
two-wheeler sales to 172,611 units in February 2017 (February rose 47.3% to 813 units (February 2016: 552), the below-3.5T
2016: 183,199 units). GVW products recovered strongly to notch up 16.8% growth
Bajaj Auto also saw its two-wheeler sales in domestic market at 15,094 units (February 2016: 12,919 units). The company’s
decline by 5.9% y-o-y to 142,287 units in February 2017. The CVs in the above-3.5T GVW segment did well to record 23%
company’s two-wheeler exports at 102,671 units during the uptick with sales of 573 units (February 2016: 466 units).
month, however, notched up an impressive 22.0% y-o-y VE Commercial Vehicles posted a 13.2% growth in domestic
increase. sales that aggregated 4,828 units in February 2017 vis-à-vis
Bucking the subdued market sentiment, Honda Motorcycle 4,264 units in February 2016.
& Scooter India (HMSI) reported domestic sales of 370,122 The auto market is recovering from the demonetization blow,
units in February 2017, up 5.3% (February 2016: 351,424 as buttressed by the February sales numbers. However, the
units). Commenting on HMSI’s performance in February 2017, sales numbers, particularly in the case of commercial
Yadvinder Singh Guleria, SVP-Sales & Marketing,HMSI, said, vehicles, three-wheelers and two-wheelers, may be bloated
“With the continued momentum of recovery after due to stocking by the OEMs at the dealerships to beat the
demonetisation, Honda has emerged as the first choice of price increase that the implementation of BS-IV emission
Indian two-wheeler customers. This recovery period has been standards will entail

9 March 2017



Opinion

Taxi Segment to Account for 15%-17% of Car Sales by 2020: ICRA

Taxi market has gained prominence over last 2-3 years, in the In India, road transport is primarily the domain of state
backdrop of entry of app based aggregators, which has not administration. Central Motor Vehicles Act (1988) stipulates
only disrupted auto-rickshaw and traditional taxi market but various requirements and conditions for issuing permits for
also forced automotive OEMs to revise their growth and road transport; however, the same act grants authority to
marketing strategies. Entry of aggregators like Ola and Uber state administration to issue rule and regulate taxi segment.
has changed competitive dynamics of taxi market, which till Few state governments like Karnataka and Maharashtra have
now has largely been fragmented and has lacked bargaining come out with legislation to keep a check on aggregators.
power with OEMs with even larger organized fleet operators During Q3, FY16, Government of India (GoI) came up with
typically having less than 500 cars. However, the aggregators advisory for licensing, compliance and liability for taxi
like Ola and Uber have over 25,000 cabs in NCR market alone. aggregators operating in India. Subsequently, Government of
Consequently, this segment within PV industry now enjoys a Karnataka (GoK) came out with “Karnataka On-Demand
significant clout, with some OEMs setting up dedicated team Transportation Technology Aggregators Rules, 2016” to
to address aggregator market.
In India, another segment is also regulate taxi operators. While Ola complied
emerging, which is self-drive vehicle. with regulations and got license in June-
Companies, like Zoom Cars allow 2016 itself, Uber challenged the act in High
customers to hire cars on hourly, daily Court of Karnataka and has, subsequently,
or even monthly basis. Hence, if got some relief. In January 2017, Uber also
someone intend to use a car for shorter announced that it has received license to
durations (e.g. during wedding, medical operate in Karnataka after complying with
emergencies), they can avail self driving conditions stipulated under high court
car option. Owing to combined benefit judgment.
of cab based aggregator and self drive Ministry of Road & Transport (MoRTH) has
option, benefits of owing a car in a already informed that they are working on
metro or tier-I town has blurred, which policy framework for cab aggregators.
will be discussed in subsequent Recently, GoK has banned ride sharing/car-
sections. Consequently, there will be
few customer segments, which will rely
on cab aggregators for their logistics
requirement. However, we continue to
remain upbeat on overall PV growth
potential in the Indian market given low
car penetration, rising disposable
income and prestige associated with car
ownership in Indian society.

11 March 2017

Opinion

pooling services offered by cab aggregators, which indicates whereas drivers’ incentives will reduce. Already, there have
regulatory intervention continue to remain a key obstacle for been some corrective measures regarding fare as well as driver
cab aggregators in the Indian market. Given stiff protest from incentive taken by cab aggregators, which could result in short
taxi union and auto-rickshaw union, legislation related to cab term resistance from drivers as well as riders (taxi customers).
aggregators is likely to remain a politically sensitive issue. With Primarily, a car buyer can be segregated into three key
possible drying up on investor funding in the medium term, segments i.e. 1) first time buyer, 2) replacement car buyer,
cab aggregators are likely to face resistance from drivers (given and 3) additional car purchase. FTBs accounts for 40-45% of
possible cut in incentives), which could potentially impact their Indian car market, and given low car penetration in India, FTBs
growth prospects as well as customer loyalty. are likely to remain a potent force. Similarly, replacement
If taxi were always economical, then why it has not gained segment is also expected to grow at robust pace given
steam till few years back? shortening replacement cycle of a car in Indian market.
Accessibility/Convenience: One of the biggest advantages of However, cab aggregator and taxi market poses real challenge
app based cab aggregator is accessibility and availability of to the additional car buyer segment. Considering that
AC cabs at reasonable cost. A person, who wishes to hire a customer segment already has a car, and can rely on taxi for
taxi, may not have to go down on road searching for a cab or short run/limited usage. Given increasing traffic woes, there
has to book a taxi in advance (say 30 minutes to 60 minutes is also a customer segment, which will shift towards taxi usage
prior to journey). One can now book a taxi on real time basis, due to additional comfort of chauffeur driven car without
which can be convenient as owing a car and taking it on drive paying out for driver salary. However, loss of additional car
as per requirement. Steady increase of smart-phone buyer segment will be more than compensated in the initial
penetration as well as declining data charges provided initial years by taxi fleet and replacement fleet (after few years)
thrust, which was further supported by acceptance of cash as without having major impact on overall demand.
compared to earlier dependence on only digital transaction.
In cities, cab aggregators provides additional solution to
inconvenience of parking and driving to congested areas,
which also resulted in increasing acceptance of taxis in
customer segment, already owing a car.
Availability: Another key benefit is availability of vehicles, at
least in metro and Tier-I towns, which together accounts for
large share (40%+) of Indian PV car sales. Thanks to inflow
from venture capitalists and investors, lucrative incentive
structure provided by cab aggregators helped in attracting
drivers, which ultimately result in sharp increase in taxi
population over last 2-3 years. Consequently, a rider is rarely
left with no vehicle availability, though there could be surge
pricing in case of high traffic usage. Even with occasional surge
pricing instances, a cab is more economical to use on daily
basis than using own car.
Does it mean people will only travel by cab and stop buying
car?
Unlikely - one of the key differences between developed
market and Indian market is that a car is still considered as
prestige symbol in Indian society unlike basic logistic necessity
in developed market. Also, India has the lowest car penetration
amongst all large economies, which indicate huge scope for
domestic PV industry growth. At present, in order to gain
market share, cab aggregators have entered into aggressive
pricing, which is resulting in losses that are funded by venture
capitalists. However, once the funding channels from investors
dry up for these aggregators, the fares are bound to increase,

March 2017 12









Industry Trends

Why Costs May Rise? period for smaller cities. Moreover, the real environmental
Innovative software developments may make tomorrow’s challenges that underlie these trends are not going away and
vehicles exceptionally expensive: OEMs and suppliers must will ultimately have to be confronted.
earmark resources for acquiring new technology and recruiting A New Road Map
experienced technical talent. Many of the new features going Considering these disparate pressures on costs, there is no
into cars require the expertise of software engineers, who by easy formula that OEMs or suppliers can use to improve their
and large prefer the ostensibly more dynamic work return on capital. The solution will likely come from a
environments of Silicon Valley startups to those of the combination of actions. Part of the answer lies in
automotive industry. As a result, some of the recent mergers consolidation, which reduces industry capital requirements
and acquisitions in the automobile sector were undertaken by eliminating competition and combining two manufacturing
to augment in-house technical knowledge and capabilities. and design footprints into one. To a degree, these goals explain
For instance, German supplier ZF Group, which paid US$12.4 2016’s robust supplier M&A volume, continuing the trend of
billion in 2015 to acquire TRW in order to expand into the the previous year’s record deal value, according to PwC’s
electronic safety and connectivity market, took a 40% stake Global Automotive M&A Deals Insights Year-end 2016 report.
in vehicle radar supplier Ibeo Automotive Systems in 2016. However, consolidation is not the only solution — and in fact
Taken as a whole, innovation-related challenges are reshaping not even an attractive solution for companies struggling to
traditional auto industry structures and relationships — in fund new innovations. Auto makers in particular will need to
particular, by threatening the existing distribution of profits examine other strategic channels for relief. We believe that
and the boundaries between OEMs and Tier One or Tier Two OEMs should consider three actions:
suppliers, as well as between automotive and tech companies. Share platforms and manufacturing. When the goal is to
Some suppliers will fold, as their business goes away improve efficiency in capital outlays, a good place to start is
completely, and others will struggle because changes in with platform (or chassis) and powertrain investments. Now
technology content will bring OEMs or non-automotive that each auto maker is designing and building its own engines,
suppliers into their markets as new competitors. Decisions transmissions, and related equipment, the amount of
about investments and industry alliances that are being made duplication within the industry is extraordinary. This is
now will determine the dominant positions of tomorrow. especially wasteful because consumers rarely buy cars for the
The rising cost of safety and environmental regulations is also platform — instead, they focus on such attributes as styling,
a concern for the industry. In the US, potential regulatory quality, and reliability. Many OEMs, of course, already
relaxation under the new administration has stirred at least “repurpose” platforms across brands and models. However,
some hope that higher costs associated with tightened platform sharing among OEMs is rare. One of the few examples
emissions standards might arrive more slowly or even be is Nissan’s deal with Daimler to jointly develop the MFA
avoided. However, there is a question whether a change in platform, which is used on Nissan’s Infiniti QX30 model and
federal US regulations would make a significant difference Mercedes’ CLA and GLA models. In the US, GM and Ford are
because individual US states — and the whole of Europe — jointly designing a new 10-speed transmission. In both cases,
can continue to push for stricter standards. In addition, the the companies expect cost savings, particularly in R&D and
regulatory requirements in other parts of the world are quickly materials procurement.
catching up to those in the more regulated countries. For If automakers expanded their cooperative efforts, the industry
instance, China now has emissions standards for large cities would essentially be smart-sizing, the way the airplane
similar to Europe’s, with only a brief (one- or two-year) grace manufacturing sector has over its long history. In the very
beginning of aeronautics, the Wright Brothers and companies
that grew in their wake made their own engines. Before long,
a group of separate businesses emerged to produce engines,
each of them competing to improve and advance the
equipment. As aircraft engine technology advanced rapidly,
jet engines became the dominant design — and having a spate
of companies making the same part proved costly. The industry
responded by consolidating, resulting in just a few
independent aircraft engine manufacturers and a more
efficient supply market.

17 March 2017

Industry Trends

The similarity to having many OEMs and suppliers producing should view this potential change as an opportunity to
virtually the same automobile transmissions is clear. An innovate. OEMs are finding that as customers use the Internet
approach like the aircraft industry’s may lead to potentially to research car purchases, they do less shopping in person.
more valuable auto partnerships than platform sharing: Car buyers are now visiting between one and one-and-a-half
namely, jointly manufacturing vehicles. This, too, is already dealers before buying a car, compared with visiting four or
happening in isolated cases. The difficulty of eking out profits five a generation ago. Using analytics to assess this data for
from small cars long ago prompted Toyota and Groupe PSA to demographic and location trends, auto makers hope to gain
share production at a plant in Kolin, in the Czech Republic. savings from inventory and dealer facilities management. They
Similarly, we have seen rebadging across brands in markets, can target customer preferences more effectively and place
where sales volume is low. For instance, Renault, Nissan, and the appropriate mix of retail formats in the right areas.
GM have been cooperating in manufacturing some light Improving the dealer model would be a plus for OEMs and a
commercial vehicles, virtually identical products sold under relief for customers, who by and large want a haggle-free,
three different brands. simple experience — and can’t seem to find one. That is why
By removing excess capacity and concentrating supply, these in the US, the auto sales program of warehouse club Costco,
collaborative solutions offer some of the same benefits as which represents consumers in negotiations with car dealers,
industry consolidation — in particular, improvements in capital has become popular. Costco assisted on almost half a million
efficiency and capital returns. car purchases in 2015, comparable to the volume at some of
Offload more development work to technology suppliers the country’s top dealership groups.
Many automotive companies are highly involved in developing OEMs have more leeway than suppliers to implement aspects
the new technologies their customers want — whether it is of this road map — largely because they are at the top of the
the human–machine interface for infotainment, autonomous food chain and in a better position to influence ground rules
features, or the components for electrification. OEMs need than those below them. Given these constraints, suppliers
to identify which aspects of a vehicle’s digital features they should focus on two areas. First, they should position
can hand off to tech industry partners that have more expertise themselves in a profitable part of the vehicle ecosystem.
in designing and producing digital components and software. Whether the end product is differentiated or a commodity,
In these relationships with Silicon Valley, OEMs can retain a suppliers need to be sure they have the best organizational
proprietary hold on interfaces as well as on connectivity and and operational capabilities for their niche in the current and
infotainment systems that distinguish them from competitors. future industry structure. Second, they need to optimize their
Some early initiatives (such as BMW iVentures, a venture business model. For suppliers of commodities, this involves a
capital fund based in Silicon Valley, and Toyota Connected, a relentless focus on minimizing costs. For other suppliers that
partnership with Microsoft) offer glimpses of how the auto– are able to differentiate their products or operations — through
tech ecosystem might work. technology innovation, patents, an advantageous
Redesign distribution models manufacturing footprint, or superior logistics & supply chains
Upward of 15% of a car’s cost typically goes to distribution. — the challenge is to build upon these assets by creatively
There is of course some variation by country and segment; upgrading them while enjoying the benefits of the price
for instance, fleet sales are less expensive than retail. However, premium. In short, suppliers must recognize the world they
the percentage is generally higher than it needs to be. inhabit and make sure that they can effectively navigate it.
Although OEMs are locked into dealer relationships in the US The sheer number of OEMs (and suppliers) in many segments
and Europe by complex and often antediluvian rules, they has in the past prompted hasty partnerships and investments.
should begin to explore and lobby for approaches that will Poor decisions have been made in an effort to avoid falling
reduce their costs by using more efficient channels to reach behind competitors rather than to maintain a logical, suitable
car buyers. These changes in the distribution system should path for growth. In many cases, an OEM would hear about a
aim to cut costs by minimizing the number and expense of hot market and establish a plant or distribution arm there,
retail outlets and using technology for better inventory control. only to find out that its models and brands were not a good
Savings could come from selling via Web channels. In the US, fit for that region. Auto makers often expend too much energy
OEMs are barred from bypassing dealerships, a prohibition — and money — on vehicle design and components of vehicles
that electric carmaker Tesla is campaigning to eliminate. Rather that have little impact on customers’ decisions. That’s why
than opposing Tesla, as some auto makers have, US OEMs when an automaker exits a disappointing market, as GM is
hoping to do through the proposed sale of its European
operations to PSA, industry returns on capital tick up

March 2017 18



Surveys & Studies

Lexus and Porsche Tops in J D Power US Vehicle Dependability Study

Toyota Motor Corporation Models Receive 10 Segment Awards; General Motors Receives Four

While Lexus and Porsche nameplates lead the industry in
vehicle dependability, owners of many high-volume vehicles
are also rewarded with excellent long-term quality, according
to the J D Power 2017 Vehicle Dependability Study (VDS),
released on February 22.

The study, now in its 28th year, examines problems experienced
during the past 12 months by original owners of 2014 model-
year vehicles. Overall dependability is determined by the
number of problems experienced per 100 vehicles (PP100),
with a lower score reflecting higher quality. The study covers
177 specific problems grouped into eight major vehicle
categories.

The study finds that the 10 top-selling 2014 model-year
vehicles average 134 PP100, which is significantly better than
the industry average of 156 PP100. Two perennial best
sellers—the Ford F-150 and the Toyota Camry—also lead their
segments in the VDS this year.

“We find buyers are increasingly avoiding models with poor
reputations for dependability, so manufacturers can’t afford
to let quality slip, particularly on their best sellers,” said Dave
Sargent, VP, Global Automotive at J D Power. “While many
expensive and niche vehicles do have excellent quality, the
fact is that most consumers are shopping in the high-volume
mainstream segments. The good news is that consumers don’t
have to spend a lot of money to get a very dependable vehicle.”

J D Power finds that in addition to impacting purchase
decisions and brand loyalty, better long-term quality is a key
factor in contributing to higher residual values for vehicles.
For example, J D Power estimates that Toyota—the highest-
ranked non-premium brand in the study—has a residual values
benefit of more than $750 per vehicle, compared with the
average brand. This translates into a benefit of more than $1.3
billion for the 2014 model year alone.

“In the current industry environment of record levels of leasing
and long-term loans, higher residual values allow automakers
to provide more competitive deals to buyers,” said Jonathan
Banks, Vice President of Vehicle Analysis and Analytics at J D
Power. “This creates the opportunity to achieve higher market
share and/or elevated profit margins.”
• Toyota (123 PP100) follows in the rankings, moving up
one rank position from 2016.
Highest-Ranked Nameplates and Models

Lexus and Porsche tie to rank highest in vehicle dependability • Following Toyota in the rankings are Buick (126 PP100)
among all nameplates, with a score of 110 PP100. This is the and Mercedes-Benz (131 PP100).

sixth consecutive year of Lexus topping the nameplate rankings • Hyundai (133 PP100) is the most improved nameplate in
in the VDS. the study, improving by 25 PP100 from 2016. At sixth

March 2017 20









Fuel Watch

acquisition of Permian Basin resources in Texas, expecting Who stands to lose?
drilling to pick up at any time.
Whereas low oil prices had caused drilling to stop, sustained OPEC countries
$50+ oil prices are here to stay and exploration is picking up. Saudi Arabia and Qatar's bid on a Syrian pipeline not only
US rig count stands at 741 today, an increase of 200 rigs or failed by destabilizing Syria, making it unfit to host a pipeline
37% over a year ago, with Texas adding the largest to the total in the foreseeable future, it also backfired immensely. Russia
with 362 rigs. The rig count has increased in Canada too from adopted the "funneling tactic" in fighting ISIS to counter Saudi
222 a year ago to 352 in February. Clearly, these rigs need Arabia: rather than directly obliterating ISIS and other ragtag
pipes, which is good for pipe makers like Schultz. groups (which Russia could), Russia is using restraint and
Russia forcing Islamic fighters south towards Saudi Arabia. It works:
Russia, which surpassed Saudi Arabia as the world number ISIS troops have been building up in the South of Iraq and, in
one oil and gas producer (on a daily basis), is building two January, the group successfully led a raid into the Kingdom,
major natural gas pipelines into Europe: Nord Stream into killing one Saudi general. Now instead of building a pipeline,
Germany and Turkish stream, a redundant pipeline directly the Kingdom is building a 600 mile wall to prevent ISIS fighters,
into Southern Europe. Despite protests from the EU against funneled by Russia to invade Saudi Arabia on a large scale.
Russia's apparent intent to garner a monopoly on Europe's With five layers of fencing, deep ditches, watch towers, night
energy supplies, when it comes to energy sources, Russia vision cameras and radars, the wall will separate Saudi Arabia
remains the sexiest horse in the glue factory, being able to from Iraq. Additionally, 30,000 troops patrol the area to cut
bring cheap energy reliably into Europe without financing the off the ISIS menace. The wall highlights the priorities OPEC
spread of Islamist enclaves like Gulf States. nations are dealing with right now. As pipelines are laid across
Furthermore, Europe isn't alone: Russia's shadow engulfs the rest of the world entirely bypassing Gulf states, OPEC
Venezuela too. Russia has granted huge loans to Venezuela nations will find themselves more isolated and see their
for social investment and infrastructure. The state owned geopolitical influence dwindle.
company Rosneft stands to win in Venezuela as well. Unlike Railroads
the US, which sanctioned both Venezuela and Russia, Russia Canadian Pacific Railway and Canadian National Railway
has increased investment into the near-bankrupt nation and entered the crude oil transport only in 2010 as infrastructure
Russian oil companies have gradually gained favour and crunch in the form of inadequate pipelines emerged in North
displaced western competitors in Venezuela's major oil fields, Dakota's Bakken and Canada's Alberta. By 2014, the revenue
as Venezuela considers Russia a better strategic partner, able of Canadian Pacific Railway jumped to about half a billion,
to help modernize Venezuela's aging oil infrastructure, the while Canadian National Railway clocked over two billion
lifeblood of its economy. The billions invested by Russia has dollars. At its peak, crude exports by rail amounted to 179,000
paid off and the Russian companies now also controls 40% of barrels a day in September 2014 from under 10,000 barrels a
Venezuela's Orinoco belt, the largest proven reserves in the day early in 2012.
world with 300 billion barrels, supplying 9% of US crude imports. Going forward, Dakota and Canadian oil volume will shift
Refiners towards pipes resulting in lower volume on rails. For good
Canada has one of the world's largest oil reserves next only to reasons, though. It's almost five times more expensive to
Saudi Arabia and Venezuela. Pipeline companies have heavily
invested in Alberta oil sands as it's easier and cheaper to
transport and distribute oil sand products from Canada. While
Keystone XL will move crude from Alberta to the US directly,
the Dakota Access Pipeline will also transport Canadian oil
because DAPL has enormous capacity and no one is going to
leave the space unutilized. Either way, refiners get Canadian
oil ducted directly to their refineries. No surprise then that
shares of TransCanada, the company operating and developing
Keystone XL, rose 4% soon after Trump's order. In its own way,
all things considered, it's a win-win situation for the US and
Canada as well. Canadian producers can now offload crude
oil on the US market efficiently. It lowers transportation costs.

25 March 2017

Fuel Watch

transport oil by rail than pipe. Compounded by low oil prices, Trans-national pipelines like Nord stream and Turkish stream
crude exports by rail fell by nearly half from 161,000 barrels also provide a financial incentive for countries they traverse
a day in 2014 to 89,000 barrels a day as of last November. to ensure their safety: transit royalties can be significant and
The drop is expected to intensify, as pipelines score in every a boon to the local economy. A well fed population is less
marker. It's a wash if, like Buffett, you hedged your bets and likely to revolt. Whereas pipelines bring stability; they also
own both. demand stability or will be bypassed by redundant routes, as
Tankers is about to happen in Ukraine.
Last November, OPEC cut production followed by Russia and To sum up, oil prices stand neither to go up or down but
other non-OPEC producers. Since then, with the twin blow of remain steady, and that's a good thing. More reliable
low demand and more tankers, the freight rates dropped by petroleum delivery routes that bypass the Middle East reduce
as much as 30 percent since the beginning of 2017. Tankers, the ability of OPEC to artificially inflate oil prices. Oil will
in fact, will lose more, as volume shifts away from them. trade more like a regular commodity, and its price will see
Europe less fluctuations. In fact we have started to witness this over
European consumers lose out, as European leaders don't stand the last 3 months: Despite OPEC's successive announcements
up to Russia: Take the case of Nord Stream 2 project. Said to of production cuts, oil prices have mostly ignored OPEC and
have a total capacity of 55 billion cubic metres of gas a year, remained steady in the $50 range. Three years ago, the same
the project has two pipeline strings. When the expansion was announcement would have meant $100 oil. Previously, huge
announced in 2014, many countries including US raised jumps in oil prices were caused by inelasticity of supply. This
objection. For one, the project increases Europe dependence will remain history as these massive builds in infrastructure
on Russia. So, Russia has an added tool in the bag to squeeze take place.
Europe at any time. Now, countries like Sweden, Denmark and This is not to say that all looks bright, going forward. As the
Germany have relented, and the European Commission is newly formed US government focuses inwards creating a
silent on its decision. As for US, Trump is pro-Russia and pro- "vacuum of international leadership", Russia is quick to fill to
fossil fuel. So, indications are that Nord Stream 2 opposition pick up the slack and forge key strategic alliances including
has lost steam. control over 40% of Venezuela's Orinoco basin, the world's
Environment largest proven reserves, in addition to cornering Europe's
Riding roughshod over the environment has both consequence energy supplies. Despite sanctions, the Russian economy has
and payback. Should there be a spill or explosion, the resultant seen an upswing on the heels of recovering oil prices. The
pollution on land and water will be massive. After all, oil from Ruble - Russia's currency - which has been floating for last
shale and Oil sands are more corrosive with increased chances two years has now stabilized. Which prompts the following
of pipeline failure. Remember, not long ago, we had spills into question:
the Kalamazoo River in 2010 and in Tioga, North Dakota in What prevents Russia, the world's largest crude oil exporter
2013. Still, although not ideal, pipelines are an order of from turning the Ruble into a petrocurrency (like the petro-
magnitude safer than transporting crude oil by rail. dollar) by demanding settlements of oil payments in Rubles?
This is a truly grave question. Let us not forget the one good
What it means for oil prices thing about OPEC: it is in no small part thanks to OPEC
countries settling oil payments in US dollars that the "petro-
Keystone will bring plenty of Canadian oil to US refiners. And dollar" has become the world's foremost currency enabling
if DAPL ends up carrying Canadian oil too, the refiners will the US to attract foreign investments to finance debt. Without
thank their stars. Surely, together with other pipelines, this debt financing, many things - including the Trump tower -
gives pricing power to US refiners over US producers. US still would be smaller. Conversely a weakened OPEC reduces the
imports more than a million barrels of crude a day. As per permanent demand for US dollars worldwide. This comes at a
latest reports, US producers exported 7 million barrels of crude time when the Trump administration demonstrates
oil in a week. With a robust infrastructure in place with added unwillingness to sustain US international influence and
pipelines and export terminals, the export may see more gradually withdraws from a leadership role at the global level.
growth. So, oversupply of crude can depress the oil prices. Furthermore, the administration's hostile stance towards its
Also, stockpiles of oil increased to 518 million barrels so expect own intelligence agencies - unanimous critics of Russia - will
lower WTI oil price in the near term. In general, pipelines mean unavoidably embolden Putin to challenge the US influence
safer, cheaper and more reliable oil delivery infrastructure, on energy markets
which also makes gas cheaper.

March 2017 26

Invitation: FADA Members

FADA’s Regional Meeting and Awards Function

22nd April 2017 Jaipur Marriot Hotel, Jaipur

On the occassion of its Council Meeting, FADA will be holding a Regional Meeting, jointly with Authorised
Motor Vehicle Dealers Association (AMVDA, Rajasthan) at Jaipur Marriott Hotel, Ashram Marg, Jaipur - 302015.
An awards presentation ceremony recognising the meritorious connected with auto retail business in the State
of Rajasthan will also be held as a part of the daylong programme. The State Government authorities, including
the Transport Minister, and representatives of OEMs have also been invited and are expected to attend the
meeting. The tentative programme is as follows:
2.30 p.m. to 6.00 p.m. : Regional Meeting, including Panel Discussion on GST and

Interaction with State Authorities
6.00 p.m. to 7.00 p.m. : High Tea/Coffee
7.00 p.m. onwards : Awards Ceremony followed by Entertainment Programme and Cocktails & Dinner

All FADA members are cordially invited to attend.



Know our Member

Sri Sri Sri Automobiles,
Khammam (Telangana)

Sri Sri Sri Automobiles, based in Khammam, Telangana and best in sales and services. The dealership always strives
a new Life Member of FADA, is the authorized dealership to enhance the sale & service experience of its customers.
of Hero MotoCorp Ltd, dealing in sales, service and spares The management and the employees ensure that its
of Hero two-wheelers. The dealership has been in operation customers enjoy the best of hospitality and the
for the last 16 years. experience, which the customers at the 4-wheeler
The dealership’s main 12,000 sq ft showroom is located at dealerships enjoy. The dealership’s large vehicle selection
15-9-530, Passion Towers, Wyra Road, Khammam - 507001 area displays almost all models and colours, available in
from where the bulk of the sales – around 1,000 units per the stock. The test ride is given to each and every customer
month - are carried out. so that he/she is fully satisfied about his/her choice of
Sri Sri Sri Automobiles has another sales & service outlet the vehicle.
in Khammam, measuring about 6,000 sq ft at 2-2-242,
Splendor Towers, Kalavoddu. The team at the dealership makes
The main state-of-the-art workshop of Sri Sri Sri sure that the vehicle delivery is a
Automobiles is located in VDO's colony. The 10,000 sq ft special celebratory occasion for
well-laid-out workshop is equipped with latest diagnostic the buyer to cherish. They take
& service machines & tools. photo & instant printout of the
Supported by a dedicated, competent team of 100 occasion and fix it in a ready
employees, Sri Sri Sri Automobiles sells around 12,000 two- photo-frame, which is given to
wheelers and services about 50,000 two-wheelers per the customer along with sweets
annum, clocking a turnover of over Rs. 50 crore. at the time of delivery.
With bags of experience in the two-wheeler industry,
people at Sri Sri Sri Hero believe in delivering the absolute

The unwavering commitment of
Sri Sri Sri Automobiles to the
customer satisfaction at all stages
- be it pre-sale, sale or post-sale
service experience - has helped it
become a leading Hero MotoCorp
dealer in India. The dealership
received a special recognition
award from Hero MotoCorp for E Ranganath

highest growth in sales upcountry for the period 2015-16.

Sri Sri Sri Automobiles is currently managed by the young,
energetic E Ranganath, who joined the dealership business
two years ago.

FADA Wishes Sri Sri Sri Hero, E Ranganath and other Team
Members Further Success in their Endeavours

29 March 2017







Upgrades & Variants

TVS Jupiter with BS-IV Engine
Launched

TVS Motor launched the BS-IV compliant TVS Jupiter and 'Power Mode' and the engine delivers best-in-class fuel
added two new colours - Jade Green and Mystic Gold. The economy in 'Eco' mode.
refreshed scooter is now equipped with Auto Headlamp On There is no revision in the prices for the BS IV models of Jupiter,
(AHO) and Sync Braking System (SBS). priced at Rs. 49,666 (Ex-Showroom Delhi), the scooter is
Aniruddha Haldar, VP-Mktg (Scooters), TVS Motor, said, “TVS available across all TVS dealerships.
Jupiter has received great enthusiasm from the consumers, in
response to its credo of Zyada ka Fayda. Living true to this
credo not only is the entire Jupiter range now BS-IV compliant,
it now offers the unique Sync Braking System (SBS) across the
entire range. Further, for our customers, we are adding two
colours, Jade Green and Mystic Gold, giving the customers 10
colour options to choose from.”
TVS Jupiter is powered by a next generation, all-aluminium,
low-friction 110cc engine that delivers an amazing mix of
power, superior acceleration and best-in-class fuel-efficiency.
The metal bodied, TVS Jupiter is styled to have a substantial
on-road presence. The scooter delivers high performance ride
quality with superior ride comfort, making it a perfect, sensible
companion. The scooter also comes with TVS patented
Econometer, which guides riders in both 'Eco Mode' and

Honda Introduces New Activa 4G

Honda Motorcycle & Scooter India Pvt Ltd (HMSI) introduced # 1 selling two-wheeler in 2016. New Activa 4G is ready to
the 4th generation upgrade of 110cc automatic scooter with delight customers once again with added convenience of
new BS-IV and AHO compliance – Activa 4G – on February 28. mobile charging socket & new colours.”
Y S Guleria, SVP-Sales & Mktg, HMSI, said, “With trust of nearly New Activa 4G comes with more appealing style with new
1.5 crore Indian families, Honda’s iconic Activa is the first dynamic front centre cover design.
automatic scooter to become not only India’s but also World’s The new Mobile charging socket ensures that you always
remain connected, while tubeless tyres, large under seat
storage space, comfortable riding position and CLIC
mechanism ensure driving ease.
New Activa 4G comes equipped with Combi Brake System (CBS)
with Equalizer technology.
At the heart of Activa is Honda’s trusted 109cc Honda Eco
Technology (HET) engine. The net power of 8bhp@7500rpm
and torque of 9Nm@5500rpm ensures smooth performance
on road.
New Honda Active 4G now comes in 7 stunning colours viz.
Matt Selene Silver Metallic (new), Matte Axis Grey Metallic
(new), Trance Blue Metallic, Imperial Red Metallic, Black, Pearl
Amazing White and Majestic Brown Metallic.
The new Activa 4G is available for sale at Rs. 50,730 (Ex-
Showroom, Delhi)

33 March 2017

New on Wheels

Honda Launches Life Style Vehicle ‘WR-V’

Honda Cars India Ltd (HCIL) launched new sporty lifestyle • Premium Split Type Rear Combination Lamps
vehicle - Honda WR-V - on March 16 at New Delhi. • Front Fog Lamps & LED High Mount Stop Lamp
• Turn Indicator on ORVM
Speaking at the launch, Yoichiro Ueno, President and CEO, • Silver Finished Roof Rail Garnish
HCIL, said, “The fast-evolving Indian market has shown strong • Armour like protective body cladding with big tyres
demand for compact vehicles that are stylish, comfortable and • High ground clearance
have premium features. With the launch of the Honda WR-V, • Chrome door handles.
we would like to provide joy for recreational usage and
comfortable driving for daily use in the city for customers in INTERIOR
India. We are confident that WR-V will help us to fortify our
premium image in all segments.” The interior design concept of WR-V is “Novelty Urban” that
expresses fun, youthfulness, and progressive feeling. WR-V
POWERTRAIN comes with 2 interior colour themes – Urban Casual: Black
and Bluish grey seat fabric; and Urban Sophisticated: Black &
WR-V adopts the best of Honda’s powertrains to achieve a Silver seat fabric. Based on Honda’s Man Maximum Machine
perfect balance of performance and fuel economy. Minimum concept, WR-V offers luxurious space, which is more
than even cars in higher categories.
Engine Transmission Power Torque Mileage
Key Interior design features
1.5L DOHC 6 MT 100PS@ 200NM@ 25.5 • Advanced Multi-information Combination meter with LCD
i-DTEC Diesel 5 MT 3,600rpm 1,750rpm kmpl
1.2L SOHC 110NM@ 17.5 Display, Blue Backlight and silver finish
i-VTEC Petrol 90PS@ 4,800rpm kmpl • Eco-Assist Ambient Rings on Combimeter
6,000rpm • User-friendly smart interface for automatic climate control
• Sliver finished AC vents, door ornaments, dashboard
EXTERIOR
ornaments
WR-V has exclusive day-time running LED DRL & position lamps • Front console box with separate pocket
and the front grill with solid wing face. All this accentuates its • 3 cup holders and 4 bottle holders.
premium appeal with intense, sharp and stunning look. The
large glass area offers excellent driver visibility and sense of ADVANCED EQUIPMENT (Key Features)
space for all occupants.
• 17.7cm Advanced Infotainment with audio , video and
Key exterior features navigation system - Digipad
• Front Solid Wing Chrome Grille
• Electric Sunroof with One-Touch Open/Close Function • In-built Satellite Linked Turn-by-turn Navigation
• R16 Alloy Wheel design with gunmetal finish • My storage Internal Media Memory 1.5GB
• Headlamp Integrated Signature LED DRLs & position lamps • Mirror Link support for Smartphone Connectivity

March 2017 34

New on Wheels

• Internet access for Browsing, Email and Live Traffic via • Anti-lock braking system (ABS) with Electronic Brake
optional Wifi Receiver Distribution (EBD)

• Voice Commands for Media, Navigation and Calling • Impact mitigating front head rest
• Smartphone Voice Assistant Activation • Pedestrian injury mitigation technology
• Bluetooth and Audio Streaming Support • Intelligent Pedal (Brake Over Ride System)
• AM/FM Digital Radio Tuner, MP3/WAV, i-Pod • Multi-angle rear view camera with guidelines.
• Micro SD Card Slots for Maps and Media & HDMI-IN port
• Steering mounted controls for HFT, Audio, Voice Grades & Colours

command and Cruise control WR-V is offered in two grades - S and VX - in both Petrol and
• Automatic Climate Control with Touch Control Panel Diesel variants.
• One Push Start/Stop Button with white and red illumination
• Honda Smart Key System with Keyless Remote WR-V is available with a choice of 6 colour options: Premium
• Cruise Control Amber Metallic (new), Modern Steel Metallic, White Orchid
• Front Centre Armrest with Storage Console Pearl, Carnelian Red Pearl, Alabaster Silver Metallic and Golden
• Power Steering (EPS) - Tilt and Telescopic. Brown Metallic.

Safety Features Sales, Service and Warranty

WR-V is equipped with a wide range of Honda’s active and Deliveries of the Honda WR-V will begin immediately from
passive safety technologies. the HCIL dealer network of 336 facilities in 224 cities across
• Advanced Compatibility Engineering (ACE) Body Structure the country. Honda WR-V will offer complete peace of mind
• Dual SRS front airbags with 3-year/unlimited kms warranty as standard benefit to
the customer. Additionally, customers can opt for Extended
Warranty for additional 2-year/unlimited kms

MAURYA MOTORS LIMITED

Tata Authorised Dealer for Passenger & Commercial Vehicles

Plot No. C-1, Industrial Area
Patliputra

Patna - 800 013

Phones: 92636 32685 / 92636 39260 / 92346 66948
E-mail: [email protected]
[email protected]

35 March 2017

News Basket

Volkswagen India Announces New Product Line-Up for 2017

Volkswagen, Europe’s leading car manufacturer, announced Tiguan
its India line-up for the year 2017. Strong products backed Safety is integral at Volkswagen and as part of its brand
by an enhanced network of sales and service outlets, DNA, retaining the same elements, Tiguan is set to make a
Volkswagen India is all set to introduce its popular global mark in the Indian market. Based on the path-breaking MQB
products in the Indian market - Tiguan and Passat. Beginning (modular transverse matrix) platform and already making
with the made-in-India, made-for-India Ameo in 2016 and waves in Europe, the second generation Tiguan is the
recent introduction of GTI, Volkswagen continues to expand undisputed best-selling SUV in its class. The body
its product portfolio. Reaching out to a larger audience, proportions of the latest Volkswagen SUV are sporty and
Volkswagen will now have a robust line-up of vehicles across exude charisma with its stylish design. With a 2.0L TDI
segments in India.
engine mated to a 7-speed DSG gearbox,
Volkswagen brings to the Indian market this year, the Tiguan Tiguan delivers impressive driving
that has already won hearts of SUV enthusiasts in Europe and performance and is a perfect blend of
the luxurious new Passat. Packed with elements that form the performance, safety, efficiency and luxury.
core DNA at Volkswagen, both the vehicles will offer superior Passat
safety features, power, performance and class–leading driving The new Passat is positioned as a benchmark-
dynamics and comfort. setting sedan in its segment. Loaded with new
Commenting on the 2017 launch announcement, Michael technologies, the new Passat showcases dynamic
Mayer, Director, Volkswagen Passenger Cars India said, “2017 design and offers advanced entertainment &
marks 10 years for Volkswagen in India and, at this opportune safety features. Based on the path-breaking MQB
moment, we reiterate our commitment with a strong product (modular transverse matrix) platform, Passat will
line-up aimed at fostering our growth momentum in the be powered with a 2.0L TDI engine mated to a
country. With the successful launch of the Ameo and 6-speed DSG gearbox. The new Passat is indeed
introduction of GTI recently, Volkswagen marked its presence a perfect amalgamation of comfort, style and
in the Compact Sedan and Performance car segment. With sophistication with added driving pleasure. For
exciting new products across the segments, we are now ready the first time in India Volkswagen Passat will offer
to enter the SUV segment with Tiguan and luxury segment 9 airbags, providing additional safety for the
with the all new Passat. The slew of launches will ensure every passengers.
car buyer finds a car to meet their requirements at our GTI
showrooms.” Opening a new segment, Volkswagen introduced the hottest
hatch on Indian roads: GTI. This Limited Edition 3-door GTI
that exemplifies power, style and spirited performance comes
equipped with a 1.8L 4-cylinder TSI engine mated to a 7-speed
automatic DSG transmission, producing a blistering 141 kW
(192 PS) of raw power. The perfect combination of a safe and
sporty chassis, agile and economic engine along with unique
and timeless design, it encompasses powerand refined driving
experience.
Over the years Volkswagen has introduced several products
that offer a great driving experience. Marking a strong line-
up with Ameo, GTI, Tiguan and Passat, Volkswagen will have
fresh new products to offer in 2017. Along with these
carlines, Polo, Vento, Jetta and Beetle will continue to remain
frontline products for Volkswagen in the Indian market. The
new range will create a robust portfolio offering customers
a wide variety of products to choose their favourite
Volkswagen carline.

March 2017 36

News Basket

ISUZU Motors Strengthens its Dealership Network

Inaugurates new dealerships facilities in Chandigarh and Vijayawada

Isuzu Motors India Pvt Ltd expanded its footprints and vehicle has already received tremendous traction in the Punjab
inaugurated two new 3S facilities in Punjab and Andhra market and we have several enthusiastic and satisfied
Pradesh with the opening of the new outlets of Krishna ISUZU customers, who have made the V-Cross a part of their
in Mohali on February 25 and Mahavir ISUZU in Vijayawada adventure lifestyle.”
on February 9. Mahavir ISUZU
The new facilities will provide access to world-class ISUZU
vehicles to customers in the regions. The showrooms have
been designed and built according to ISUZU Dealership
Standards and are strategically located so as to provide a
convenient access to the visitors and customers. The
dealerships’ employees have been trained under the
supervision of ISUZU personnel and will provide a quality
customer experience to the visitors. The showrooms are
designed to promote the ‘spirit of lifestyle and adventure’ in
the region.

Krishna ISUZU, Mohali

Krishna ISUZU is the third 3S facility of ISUZU in the region Mahavir ISUZU is the 4th dealership facility of Isuzu Motors in
after Ludhiana and Jalandhar and would cater to the needs of Andhra Pradesh after Vishakhapatnam, Rajahmundry and
Chandigarh Tricity covering, Mohali, Chandigarh and Panchkula. Tirupati. On the occasion of the new dealership inauguration,
Speaking on the occasion, Hitoshi Kono, Deputy MD, Isuzu Isuzu Motors India also launched the ISUZU D-MAX V-Cross
Motors India, said, “We are extremely pleased to inaugurate Adventure Utility Vehicle in Vijayawada.
our new 3S facility in Punjab. Punjab is a progressive state, Hitoshi Kono said, “We are happy to partner with Mahavir
with a growing economy and a modern and discerning Group as our authorized dealer in Vijayawada. The discerning
automobile consumer base. With the inauguration of this customers of Vijayawada will find ISUZU vehicles exceeding
facility, we also continue to strengthen our partnership with their expectations on product quality and service. With the
Krishna Automobiles, one of our key dealer partners in India.” 100% motor vehicle tax exemption extended for ISUZU vehicles
Sachit Passi, Managing Partner, Krishna Automobiles, said, “We manufactured and sold in Andhra Pradesh, we will work at
are delighted to open our new ISUZU showroom and 3S facility making ISUZU the most coveted brand in the region.”
in Mohali. This facility includes a lifestyle showroom that Yashwant Jhabakh, Chairman - Mahavir Group, said, “We have
uniquely showcases the V-Cross Adventure Utility Vehicle. This a long association with ISUZU with dealerships at Hyderabad,
Vishakhapatnam, Rajahmundry, and now in Vijayawada. With
our new dealership, we intend to meet the growing demand
for ISUZU vehicles by adhering to the company’s high
standards of sales and service.”
The entire range of ISUZU vehicles, including the V-Cross are
manufactured, with a high level of localization, in the
company’s state-of-the-art plant at SriCity in Andhra Pradesh.
With annual capacity of 50,000 units, the plant is slated to
become one of the key manufacturing hubs of ISUZU globally.

37 March 2017

News Basket

Galaxy Toyota Launches Road Safety Project for School Children

Galaxy Toyota, based in Delhi, in collaboration with Toyota Speaking on the occasion, Akito Tachibana, said “We are
Kirloskar Motor (TKM) announced on March 9, the delighted to be associated with Galaxy Toyota to support
inauguration of “Safety Model School” project in Montfort this initiative in Montfort Senior Secondary School. As a
Senior Secondary School, New Delhi. committed corporate towards ensuring the highest standards
The inauguration event marked the presence of dignitaries in road safety, it is our responsibility to connect with people
such as Ajay Kashyap – IPS and Special Commissioner of Police from different walks of life and raise awareness to keep our
(Traffic), Ms Garima Bhatnagar- IPS, Joint Commissioner of roads safe for all users. ‘Safety Model School’ program is one
Police, Traffic (HQ), Ashok Sachdev, CMD, Galaxy Toyota, along such unique initiative that will ensure school children learn
with representatives from TKM’s senior management, Akito something every-day. They will practice important safety tips
Tachibana, MD and Akitoshi Takemura, Sr Vice President. within the school, participate in interactive activities by
This initiative as a part of “Team Toyota Activity (TTA)” project continuing to have fun while they learn. With this holistic
undertaken by Team Toyota India, aims to educate and awareness program, we are hopeful to see the children of
sensitize school children, teachers, parents and school vehicle the future become responsible road users and young safety
drivers on responsible safety habits and ensure a safer traffic ambassadors. Together with our dealers and supplier
environment for the next generation. partners we have undertaken various initiatives to strengthen
our road safety initiatives in India. We appreciate the efforts
The newly launched Safety Project in Montfort School is a
unique comprehensive program to help school children learn and leadership taken by Galaxy
about road safety habits in their daily curriculum. The Toyota and the support from
program is aimed at creating Safety Ambassadors in schools Montfort Senior Secondary School to
by creating Safety zone & Safety Park within school, training launch the ‘Safety Model School’
of school vehicle drivers and creation of safety group in the project’.”
school. Commenting on the occasion, Ashok
Sachdev, said, “Road safety is a
growing concern in our country and
the situation has further worsened
due to negligence and lack of
knowledge by our road users.
Therefore, it is indeed a privilege for
us at Galaxy Toyota to be partnering
with Toyota Kirloskar Motor in making
roads of New Delhi safer for the future generation. Through
the “Safety Model School” program we will bring together
teachers, students and also parents to propagate and
encourage awareness on road safety. All-in-all the initiative is
aimed at providing long-term improvements and solutions to
make our neighbourhoods safer for pedestrians as well as
motorists.”

Satish Sharma Elected as New Chairman of ATMA

Satish Sharma was elected as the new Chairman of ATMA, the apex body of the Indian Tyre industry.
new Chairman of the Automotive Having completed two decades at Apollo Tyres, Satish held
Tyre Manufacture’s Association important portfolios including that of CMO and Chief of Indian
(ATMA) on March 16. Operations, before being appointed as the President, APMEA
in early 2014.
Sharma, who is the President of He is also a member of the company’s Management Board.
Apollo Tyres Ltd, Asia Pacific, Set up in 1975, ATMA is national industry bodies representing
Middle East and Africa (APMEA), Rs. 53,000 crore (US$ 8 billion) automotive tyre industry
was unanimously elected as the

March 2017 38





Waste Management

Draining Natural resources are preserved when waste are recycled or
This is the first thing done, as vehicles come to ELV. The reused; as extracted raw material can be re-melted, grinded
outside and the engine area have been cleansed and the or moulded into new forms. This phenomenon goes a long
tyres removed, the automobile is drained by doing away with way to benefit the whole world, as gases know no boundary
vehicle or automotive fluids and the parts surrounding fluids. and petroleum globally will be reserved for the future if the
Draining is important because of the danger involved in likely plastics extracted are reused or recycled again and again into
pollution as fluids finish on the storage area, together with new products.
the danger of subsequent soiling of remaining waste. The MANAGEMENT OF GLASS WASTE
parts, which are not difficult to access from the exterior, are Glass is a high-tech material vital to the safety, security, comfort
dismantled after draining, which include body parts that can and sustainability of modern life, which is used in building,
be retrieved, for example bumpers, plastic fuel tank & transport and automotive applications. The average glass
auxiliary compilations. content in a vehicle is 3% by mass. Motor vehicles contain
two different types of safety glass: toughened and laminated.
MANAGEMENT OF PLASTIC WASTE Typical glazing parts consist of glass together with functional
Plastics are cheap, lightweight and durable materials, which materials such as plastic inter-layers in laminates safety glass,
can readily be moulded into a variety of products that can be ceramic inks, silver printing electrical connectors,
used in a wide range of applications. As a consequence, the encapsulation materials, fixing clips and others, according to
production of plastics and percentage of plastics used in vehicle manufacturer’s requirements for glazing modules.
vehicle has increased markedly over the last year. However, Automotive glass is thinner than constructional flat glass and,
current levels of their usage and disposal generate several therefore, intrinsically more fragile, although it is toughened
environmental problems. Around 4 per cent of world oil and to improve durability and safety. Although safety is the primary
gas production is used as feedstock for plastics and a further consideration, one of the major reasons for using thinner glass
3-4% is expended to provide energy for their manufacture. In is to minimize the weight of their vehicles. All materials and
addition, because of the stability of the polymers involved, components have to contribute to this. In addition, automotive
substantial quantities of rejected end-of-life plastics are glass is subject to very close scrutiny. In the vehicle, occupants
accumulating as debris in landfills and in natural habitats sit very close to the glazing for long period of time; thus, any
worldwide. defects will be much more apparent. Even very small optical
The plastics industry has developed considerably since the defects can result in structural weaknesses and, hence,
invention of various routes for its production from premature failure. In automotive applications wastage arises
petrochemical sources. Plastics have substantial benefits in during the production of the shaped side glasses and
terms of their low weight, durability and lower cost relative windscreens. This wastage is trimmed off and recycled. Very
to many other material types. little work has been performed till date on the recovery of
The selection of the parts can only be manually done at least these waste streams. In domestic industry, glass forms only
on the primary stage but there must be some sort of training one part of the overall material profile in end of life vehicles,
for the people to sort them in the right. A first step of improving estimated to be in the order of 3% by mass. Nationally, this
the plastic waste in automobiles is to control the amount of could amount to as much as 45,000 tonnes per annum most
imported parts into the country and instead reuse the old parts of which is currently landfilled.
from ELVs. Many vehicle dealers import parts like bumpers, Glass is an environmentally compatible material that can be
lights, dashboard to a mention a few in view of making profit re-melted and used as a secondary aggregate material after
but do not carefully consider how these parts will be disposed appropriate treatment. The treatment and recycling of glass
or managed after serving useful purposes. is difficult, expensive and unfeasible. Hence, it is possible to
Recycling is one of the most important actions currently dismantle the glass from ELV, collect and transport the glass
available today to reduce these impacts and exhibits one of to treatment units, purify the glass and obtain clean and
the most dynamic areas in the plastic industry. Recycling reusable glass raw material called cullet. Cullet can be reused
provides opportunities to reduce oil usage, carbon dioxide in making glass products, and is a substitute in other raw
emissions and the quantities of waste requiring disposal. material markets. The glass production industry uses cullet to
Recycling can be done by decrease in material use through two advantages: One, it is relatively cheaper than raw material
down gauging or product reuse, the use of alternative (Silica) and consumes less electrical energy in the furnaces for
biodegradable materials and energy recovery as fuel. melting. Secondly, it saves tons of natural resources from being

41 March 2017



Waste Management

exploited, transported, treated and consumed to make glass management hierarchy includes reduction, reuse, recycling,
products. Thus, the reuse of cullet positively contributes in landfilling and recovery of waste by physical, biological and
several ways to the environment. The principal methods chemical process.
involved in the recycling of ELV glass are Dismantling, Cullet Current Disposal Methods of Automobile Tyres
Processing and Shredding. The current disposal methods of waste tyres include landfill,
Dismantling: The glass must be removed from the vehicle and crumbing, devulcanization, remould, incineration, tyre derived
sorted by type according to the proposed end use i.e. fuel and energy recovery through pyrolysis.
laminated, silver printed rear windows etc. The average time Landfill: Shredding of the waste tyres before disposal is done
for this operation is around five minutes per vehicle. for size reduction before disposal. Presently, about 50% of the
Cullet Processing: The cullet processor selects from the range waste automobile tyres are used for landfill in every country.
of waste glass that is available taking into account factors such Buried tyres in landfill sites cause fire hazards at several places.
as level of contamination, continuity of supply and financial Such fires lead to uncontrolled pyrolysis of tyres, which
factors e.g. costs and selling prices. produces a complex mixture of chemicals. Further knowledge
Shredding: In this operation, the whole vehicle is crushed and of long-term leaching of organic chemicals at the landfill sites
shredded into pieces, which are sorted into product streams. is quite limited at the moment.
Glass left in the vehicle passes into a mixed aggregate stream Crumbing: Crumbing is another method of disposal. In this
consisting of stone and brick, etc. method, the tyres are cut at several stages until rubber attains
MANAGEMENT OF RUBBER WASTE crumb form, which can be used in several applications.
Rubber can be of two types: Natural rubber and Synthetic Although several outlets for tyre crumb are possible, only
rubber. Synthetic rubber can be made from polymerization of around 25% is being used at present. It potentially provides
monomers such as styrene, chloroprene, isobutene and 1, 3- the most effective solution for recycling without causing any
butadiene. Synthetic rubber is often preferred over natural other direct pollution problem.
rubber because synthetic rubber has higher thermal stability Devulcanization: Devulcanization means reverting rubber
and compatibility with petroleum based products. from its thermoset, elastic state back into a plastic, mouldable
Furthermore, synthetic rubber can be modified by using state. This is accomplished by separating the sulphur bonds
various combinations of monomers. Unlike natural rubber, in the molecular structure.
synthetic rubber contains no traces of contaminants, allowing With the proper devulcanization method, a higher percentage
the addition of other materials in order to change its of crumb rubber old tyres can be used as compounding.
properties. Commonly, additives such as carbon black or zinc Remould: It is a costly process for the manufacturer both in
can be used to alter the mechanical properties of the product. terms of economy and physical work. Further, only few designs,
As a result, synthetic rubber is often used to produce more about 20% of tyres are suitable for remoulding, which may
durable products such as hoses, belts and tyres. increase by 5% in future.
For example, changing the percentages of sulphur or additives Incineration: Electrical power can be generated by incineration
will produce different types of tyres to suit various applications. of waste tyres. However, this method requires high investment
costs and further causes a lot of pollution. Thermal recovery
Tyres: Automotive tyres are made of synthetic rubber, which in cement kilns and power plants is an important route for
is obtained from petroleum. The development of tyres was disposal of scrap tyres; hence, legislators may insist on
based on improving the performance of natural rubber, which refurbishing of emission systems of certain users.
is obtained from the liquid latex secreted by certain plants. Tyre Derived Fuel: Since waste tyres are originated from
The growing demand for automobiles has generated huge rubber, which is an organic matter and has high energy
amount of waste tyres and disposing it economically and in content, tyre can be used to generate heat and electrical
an environment friendly manner has become a challenge for power. The usable substance obtained from tyre for this
many local and central governments around the world. The purpose is referred to as Tyre Derived Fuel (TDF). TDF is mainly
continuous increase in the management cost of waste tyres used for heating purpose in cement kilns.
has led to illegal dumping and stockpiling, which are inherent Pyrolysis: Tyre pyrolysis is a process of converting waste plastic
costs to local authorities. Mostly, they are either disposed off and tyres into Pyrolysis oil, Carbon black and hydrocarbon
in landfills or in some inappropriate way such as illegal gas. Pyrolysis is process of molecular breakdown where larger
dumping. Waste minimization includes recycling, reusing and molecules are broken down into smaller molecules. Heat and
developing new process of toxicity reduction. The waste

43 March 2017











PASSENGER VEHICLE SALES - FEBRUARY 2017

Domestic Sales Feb-17 Feb-16 Growth Y-o-Y (%) Exports Feb-17 Feb-16 Growth Y-o-Y (%)
15,688
OEM 319 609 -47.62 OEM 6,300 11,823 32.69
261 Ford India
Fiat India 8,338 354 -26.27 General Motors 748 5,131 22.78
Force Motors 1,809 Honda Cars 10,397
Ford India 5,573 49.61 Hyundai Motor 690 8.41
General Motors 67 Isuzu Motors 6
HM Finance Corp 14,249 2,229 -18.84 Mahindra 722
Honda Cars 42,327 Maruti Suzuki 9,502
Hyundai Motor 71 -5.63 Nissan Motor 11,397 9,013 15.36
Isuzu Motors 109 Renault India 631
Mahindra 20,605 13,020 9.44 Tata Motors 173 - -
Maruti Suzuki 120,599 Toyota Kirloskar 588 753 -4.12
Nissan Motor 40,716 3.96 Volkswagen 6,167 9,336 1.78
Renault India 4,807 13,056 -12.71
Skoda Auto 11,198 25 336.00 Total 62,319
Tata Motors
Toyota Kirloskar 1,206 23,718 -13.13
Volkswagen 13,957
Total 11,543 108,115 11.55
3,965
255,359 3,850 24.86 37 1,605.41

8,834 26.76

1,173 2.81 434 -60.14
905 -35.03
13,135 6.26 6,831
-9.72
10,312 11.94

2,510 57.97

234,244 9.01 58,009 7.43

Domestic Sales + Exports

OEM Feb-17 Feb-16 Growth Y-o-Y (%)

Fiat India 319 609 -47.62 Segment wise (Domestic Sales + Exports)
Force Motors 261 354 -26.27
Ford India 24,026 17,396 38.11 Category Feb-17 Feb-16 Growth Y-o-Y (%)
General Motors 8,109 7,360 10.18
HM Finance Corp 71 -5.63 Cars 223,244 209,953 6.33
Honda Cars 67 13,710
Hyundai Motor 14,997 49,729 9.39 UVs 77,535 66,508 16.58
Isuzu Motors 52,724 6.02
Mahindra 25 360.00 Vans 16,899 15,792 7.01
Maruti Suzuki 115 24,471 -12.85
Nissan Motor 21,327 117,451 10.77
Renault India 130,101 16,906 -4.15
Skoda Auto 16,204 8,871 33.34
Tata Motors 11,829 2.81
Toyota Kirloskar 1,206 1,173 4.13
Volkswagen 14,130 13,569 8.15
12,131 11,217 8.47
10,132
9,341 8.70
Total 317,678 Total 317,678 292,253 8.70
292,253 Source: SIAM

49 March 2017

TWO-WHEELER SALES - FEBRUARY 2017

Domestic Sales Feb-17 Feb-16 Growth Y-o-Y (%) Exports Feb-17 Feb-16 Growth Y-o-Y (%)
142,287
OEM OEM
Bajaj Auto 266
H-D Motor 511,954 151,141 -5.86 Bajaj Auto 102,671 84,141 22.02
Hero MotoCorp 370,122
HMSI 442 -39.82 H-D Motor 264 528 -50.00
India Kawasaki 88 536,928 -4.65 Hero MotoCorp 12,618
India Yamaha 68,104 351,424 5.32 HMSI 23,520 14,064 -10.28
Mahindra 2W -47.31 India Yamaha 14,578
Piaggio 1,735 167 19.56 17,834 31.88
Royal Enfield 4,410 56,960
Suzuki 56,737 9,271 57.24
Triumph 33,641
TVS Motor 8,643 -79.93 Mahindra 2W 2,804 1,309 114.21
90
Total 172,611 2,339 88.54 Piaggio 156 68 129.41
47,567 19.28 Royal Enfield 1,702
23,275 44.54 Suzuki 6,630 1,589 7.11
-2.17 TVS Motor 32,588
92 -5.78 8,841 -25.01
183,199
27,949 16.60

1,362,045 1,362,177 -0.01 Total 197,531 165,594 19.29

Domestic Sales + Exports

OEM Feb-17 Feb-16 Growth Y-o-Y (%)

Bajaj Auto 244,958 235,282 4.11

H-D Motor 530 970 -45.36

Hero MotoCorp 524,572 550,992 -4.79

HMSI 393,642 369,258 6.60

India Kawasaki 88 167 -47.31

India Yamaha 82,682 66,231 24.84

Mahindra 2W 4,539 9,952 -54.39 Segment wise (Domestic Sales + Exports)

Piaggio 4,566 2,407 89.70 Category Feb-17 Feb-16 Growth Y-o-Y (%)
Scooters/ 472,785
Royal Enfield 58,439 49,156 18.88 Scooterettes 457,628 3.31

Suzuki 40,271 32,116 25.39 Motorcycles/ 1,008,558 1,003,177 0.54
Step-Through
Triumph 90 92 -2.17

TVS Motor 205,199 211,148 -2.82 Mopeds 78,233 66,966 16.82

Total 1,559,576 1,527,771 2.08 Total 1,559,576 1,527,771 2.08
Source: SIAM

March 2017 50


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