F A D A Journal - August 2018

President’s Message

Auto Sector Continues Healthy Demand

At F A D A, let’s do our bit to re-build Kerala

Dear Dealer Colleagues, Coming to the State issues, the Government of West Bengal
recently came out with a notification which makes Driving
Kerala is in the midst of an unprecedented flood havoc. The License compulsory for purchasing a two wheeler. The impact
calamity has caused immeasurable misery and devastation. of this was instant, as sales of Two Wheelers nose-dived by
Many lives are lost. Hundreds of homes are totally destroyed up to 70% in less than 45 days. MIA and F A D A have taken up
and many more are damaged. For the first time in history, 27 this issue with both, the State Transport Ministry and SIAM.
dams in the State had to be opened. Never before had the We are at it and am sure that soon there will be light at the
State witnessed a calamity of this scale. In the fight against end of the tunnel.
the flood, we have to brave the odds.
While on the subject, Transport Ministry of Bihar has
Now it is our duty to help the affected rebuild their lives. The proposed for 4 slabs of tax for vehicle registration and has
path to recovery can be long & arduous, but you can make a called for suggestions on the same. The current increase
difference by joining the rebuilding efforts. I request you to proposed, goes up from 8% to a range of 9-12%. If the same is
contribute generously to the Chief Minister's Distress Relief gazetted, the number of vehicles getting registered in Bihar
Fund. You can send your donation cheques to the F A D A will not only slow down due to lower registration tax in
Secretariat. Once a generous amount is collected, I will neighbouring states, it will also decrease the state revenue
personally hand-over all the cheques to Sri Pinarayi Vijayan, in terms of tax collection. F A D A has taken up this matter
Hon’ble CM of Kerala. In the meanwhile, we are also working and has written to the State Transport Ministry. As I write, a
to provide immediate relief in business terms to our Members meeting is also getting scheduled with them. I hope that at
from OEM's, Financial Institutions and Insurance Companies the end of the discussion, the Ministry will re-think on the
and have appealed to them with specific requests. More proposal and not make any changes.
details can be found on page 10 of this issue.
CIIs Associations Body ASCON held its first meeting for the
Coming to the health of our Industry, July’18 continues to be Financial Year. The same is being Chaired by Mr Vikram
on strong footing with robust volume growth across segments Kirloskar. F A D A has once again raised the twin issues of
except the passenger vehicle segment. While demand is Lowering the GST on Used Cars and Removal of E-Way Bill for
relatively broad based across markets, rural India appears Intra State. The meeting was also attended by top GST
to be doing particularly well which is reflected in strong representatives. As a follow up, we have once again sent our
growth in the two wheeler and tractor segment. Most of the representation to them.
OEMs have reported double digit YoY growth in July’18.
After a vacuum of 10 years, Kolkata once again witnessed
one of the largest gatherings of Auto Retailers. Vyapar Bengal
on the theme ‘Rising East’ took place on 20th August’18 at
The Lalit Great Eastern. As expected, the conference was an
instant hit as we witnessed attendance in huge numbers
making the hall go house full.

The biggest event of the year, F A D A AGM is being planned for
5th October. It will be followed by Auto Retail Conclave 2018,
the next day, on 6th October in Nagpur. As an outgoing
President, I once again personally request you to come and
be a part of the same. I am sure that as always, with the
quality speakers on board, the event will do full justice to
your presence!

With best wishes.

Yours sincerely

John K Paul

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6 F A D A Journal August 2018 | fada.in

Industry Track

Auto Sales Moderates in July 2018

The automobile industry ended the first month of the second HMIL registered a cumulative sale of 59,590 units for the
quarter with a decent 10.35% growth across segments. The month of July 2018.
industry’s domestic sale grew by 7.97% at 2,244,875 units;
and exports by 26.09% at 397,782 units. Commenting on the July sales Y K Koo, MD & CEO - Hyundai
Motor India Ltd. said, ”Hyundai continues strong growth
Passenger Vehicle sales experienced de-growth in the trajectory with cumulative volume of 59,590 units
domestic market by 2.71% at 290,960 units. Both, cars and registering a growth of 7.7% on the strong performance
Utility Vehicles were in negative terrain while Vans posted of GRAND i10, New ELITE i20, New 2018 CRETA and Next Gen
a growth of 2.79%. Total sales(domestic + export) during VERNA. .”
the month was at 354,886 units.
UV major, Mahindra & Mahindra witnessed de-growth of 5.8%
Commercial Vehicles sales in the Indian market, was up by in passenger vehicles segment (which includes UVs, Cars
29.65% with M&H CVs growing 24.50% to 28,299 units and and Vans) in the domestic market. M&M sold 19,739
upswing by LCVs at 32.88% to 48,198 units in July 2018. In vehicles, against 20,962 vehicles a year ago. However, the
the international market also the segment achieved 30.85% total sales of company (including exports) stood at 20,447
uptick YoY. vehicles during July 2018, as against 21,484 vehicles during
July 2017, registering a negative growth of 4.8%.
Two wheelers also recorded growth of 8.17% at 1,817,077
units while Three Wheeler segment notched 46.24% at 60,341 Commenting on the monthly performance, Rajan Wadhera,
units during the month of July 2018 in their domestic sale. President, Automotive Sector, Mahindra & Mahindra, said,
“The auto industry has been subject to certain
Auto sales moderated during the month due to the eight day uncertainties with the truckers strike and sluggishness on
long transport strike, uncertainties created by the revision the retail front which has impacted the passenger vehicle
in axle load norms and the high base in July 2017 due to the segment.”
post GST implementation when dealers had restocked
inventory. Another home-grown player, Tata Motors sold 19,410
passenger vehicle, including cars, utility vehicles and vans
Maruti Suzuki India (MSIL), clocked a 0.6% downtick in its in domestic market during July 2018, which marked a growth
domestic passenger vehicle sales that stood at 152,427 of 15.6%, vis-a-vis 16,793 units in July last year. This was
units in July 2018, compared to 153,298 units a year earlier. driven by continuous strong demand for Tiago, Tigor, Hexa
MSIL’s export also faltered by 10.8% at 10,035 units against and Nexon. The recently launched Nexon AMT by the
11,256 units exported during the same month in the previous company witnessed an overwhelming response and good
year. Company’s total sales slided by 1.3% at 162,462 units traction in the market. Cumulative sales of PV in the
against 164,554 units sold in the same month last year. domestic market for the fiscal (April-July 2018) was at
70,016 units, a growth of 41% compared to 49,791 units for
Sales of mini segment cars, including Alto and WagonR, the same period, last fiscal.
and even the sales of company’s flagship mid-sized sedan
Ciaz fell by 10.9% and 99.2%, selling 37,710 units and 48 Riding on strong demand of City, WR-V and new Amaze,
units respectively during the month. Honda Cars India Ltd (HCIL) clocked sale of 20,608 units in
India, witnessing a growth of 18.2% in July 2018 (July 2017:
Meanwhile, the compact segment of Maruti Suzuki India 17,435 units). The domestic sale of HCIL in July at 19,970
featuring offerings like Swift, Celerio, Ignis, Dzire, Baleno units registered an uptick of 16.9%. In the international
and Tour S went on to post growth of 17.8% in July’18. Sales market also the company achieved whopping 82.3% growth
of company’s utility vehicles, including Gypsy, Ertiga, S-Cross against sale of 638 units.
and Vitara Brezza however, decreased by 4.9% to 24,505
units in July, from 25,781 units in the same month of 2017. Rajesh Goel, SVP & Director, Marketing & Sales, Honda Cars
India, said, “We have recorded our best ever July sales,
Hyundai Motor India Ltd (HMIL) sold 43,481 units in thanks to the overwhelming response to the All New Amaze
domestic market during July 2018, slightly up 1.1% (July and sustained momentum for City and WR-V. We have been
2017: 43,007 units). The company’s exports at 16,109 units maximizing the supply of new model Amaze in the market to
during the month, however, impressively increased by 30.9% reduce its waiting time.”
y-o-y.

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Industry Track

Toyota Kirloskar Motor (TKM) sold a total of 13,677 units in Honda Motorcycle and Scooter India (HMSI), which was
the domestic market in July 2018, a negative growth by 23.0% marginally 0.7% lower than the corresponding sales figure
(July 2017: 17,758 units). The company exported 747 units of 511,960 units for July 2017. HMSI’s exports, however,
of the Etios series during the month thus clocking a total was in positive trajectory gaining 23.3% growth to 40,162
sale of 14,424 units in July 2018. units during the month.

Commenting on the sales performance, N Raja, Deputy TVS Motor registered decent double growth of 16.8% with
Managing Director, Toyota Kirloskar Motor said, “We are sales (including exports) increasing from 263,336 units in
happy that we have achieved a growth of 36% in the July 2017 to 307,516 units in July 2018.
combined sales of June-July as compared to the same period
last year. With the dedicated efforts of all our stakeholders, The Pune-based bike maker, Bajaj Auto notched up 22.1%
we have registered a significant growth in June-July 2018 increase, selling 201,433 units in July.
irrespective of the highest July sales last year. Also Jan –
July 2018 we have posted a growth of 13% as compared to Popular motorcycle manufacturer, Royal Enfield clocked
first seven months last year.” 6.1% uptick in its domestic sales that added up to 67,001
units in July this year (July 2017: 63,157 units).

Ford India reported a decline of 7.2% in domestic sales y-o- Domestic sales of India Yamaha Motor at 69,097 units in
y to 7,816 units in July 2018 compared to 8,418 units a year July’18 gained traction by 4.5% at 69,097 units vis-a-vis
ago, while exports stood at 17,212 units (July 2017: 17,657 66,135 units, a year ago.
units). Ford India’s combined domestic wholesales and
exports in July registered 25,028 vehicles, compared to Suzuki Motorcycle India Pvt Ltd (SMIPL) reported a strong
26,075 vehicles in July 2017, a 4% decline. 56.7% rise in its total sales at 53,321 units in July 2018 as
against 34,037 units in the same month last year.
“The transport strike impacted both the production as well
as shipment of Ford vehicles in July. In the same period, The commercial vehicle manufacturer, Tata Motors’
we reached One million customers in India and remain commercial vehicles sales in domestic market in July 2018
thankful for their continued faith and trust. Our were at 32,486 units, a growth of 25.0% compared to 25,982
unrelenting focus on India strategic pillars - Strong Brand, units in July 2017.
Right Products, Competitive Cost and Effective Scale –
continues to ensure that we grow faster than the industry Ashok Leyland notched up sales growth of 35% in July 2018
& bring more customers to the Ford family in the time to with total sales of 14,205 vehicles (which includes M&H
come” said Anurag Mehrotra, President and Managing CV, LCVs & UVs), as against the sales of 10,524 vehicles in
Director, Ford India. the same month last year.

Likewise, Renault India and Nissan India also registered a Commercial vehicle sales of Mahindra & Mahindra (M&M)
negative percentage rate of 30.6 % y-o-y to 6,217 units (July in the Indian market aggregated 19,284 units in July 2018 –
2017: 8,961 units) and 35.7% y-o-y to 2,802 units (July 2017: up 28.3% y-o-y. In the Medium and Heavy Commercial
4,360 units) respectively in domestic sales during July 2018. Vehicles segment, M&M sold 941 vehicles for the month,
registering an impressive growth of 24%; and in the Light
Domestic two-wheeler maker Hero MotoCorp sold 663,283 Commercial Vehicle segment the company sold 18,343
units in July 2018, as against 611,307 units in the vehicles registering 28.6% uptick YoY. M&M exports vroomed
corresponding month last year, registering a growth of 8.5%. with the sale of 1,752 Commercial Vehicles achieving growth
of 61%.
Speaking about the sales numbers, Pawan Munjal,
Chairman, MD, and CEO, Hero MotoCorp, said, “We are VECV sold 5,158 units in July 2018 in Indian market as
confident of carrying the growth trajectory forward and against 3,714 units in July 2017, recording a growth of
expect to grow at double-digit in the upcoming festive 38.9%. Exports by the company achieved a whopping 25.9%
season. The normal monsoon in most parts of the country, growth YoY.
and the consequent agricultural harvest will keep the
sentiments buoyant and help maintain the momentum. With good monsoon, increased customer confidence in
Economic growth, rural investments and initiatives such as purchasing new vehicles, stabilisation of macro-economic
MSP, MNREGA etc. augur well for the future growth of the factors and festive season round the corner, positive growth
industry.” momentum in automobile sales is sure to keep pace with in
times ahead

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India Economics

Core Inflation Comes Down as a
Positive Surprise!

CPI inflation for July came in at 4.2% YoY, down 70bps
from June, helped by rising base.

CPI inflation for July came in ~20bps lower than expected
at 4.2% YoY, down from 4.9%

in June. The decline was largely led by food inflation,
although core inflation also softened modestly during the
month.

Within food, a large part of the decline was led by Core inflation to moderate further
vegetables inflation, which fell sharply from ~8% in June to
-2% in July. This was predominantly on account of a sharply The rise in core inflation over the past several months may
rising base. But outside vegetables as well, inflation not be reflective of strong demand conditions and pricing
remained contained in most components, especially power and rather, it may be a result of low base (temporary
cereals, which is hovering between 2% and 3% for several loss of pricing power in the six months post-demonetization)
months now. and input price pass-through. Over ensuing months,
economists expect the adjusted core inflation to continue
Adjusted core slows for first time in five months to soften gradually towards 5% by 2018 end and 4.5% by
April 2019. While food inflation is expected to normalize
Adjusted core inflation (ex HRA and commodities) slowed from the currently depressed level, then also expect
to 5.2%, about 20bps lower than June, which should bring headline inflation to remain contained and hover around
some comfort to RBI. After all, adjusted core has been on 4.0-4.5% in ensuing months.
a rising trend for several months now and has been a cause
of concern for policymakers. Among components, while
inflation in education picked up, it slowed in several other
components.

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Attetion: Members

Let's Help in Re-Building Kerala

Dear Members,
F A D A urges you all to donate generously to Kerala Chief Ministers Distress Relief Fund (CMDRF). You may do so by
sending your cheques in favour of “Chief Minister’s Distress Relief Fund” to F A D A office which shall be handed over
to the Hon’ble Chief Minister directly by our President, Mr John K Paul on behalf of Auto Retail Industry in India. Apart
from this, we have written to all the OEMs, Banks and Insurance providers with the following request:

To OEMs:

- To provide 30 days of Special Credit on Spare parts despatches in August and September, as we expect a heavy rush
in all workshops which in turn will create Huge Temporary demand for Spare Parts which No Dealer would have
planned in his regular working Capital.

- To regulate supply of vehicles to dealers who are already holding large inventories, this shall help dealers to
correct stocks thereby reducing inventories and holding costs. In the present context, poor levels of retails will
have a huge impact on the Cash Flow and the Dealerships are going to be burdened with unforeseen Expenses due
to the Flood situation.

To Banks & Financial Institutions:

For Extension of the Repayment Tranche of the Inventory Funding Accounts of our Dealer Members by at least four weeks
without any penalty to the dealers to keep the accounts healthy and not get Categorised as delayed repayment as the
Cash Flow during this time will be drastically low and there will be huge unforeseen expenses which the dealership has
not planned for. This would help Our Members to Regulate their Working Capital Effectively in the Short Term, till the
situation returns to near normalcy in a month’s time.

To Insurance Companies:

1) Faster processing of claims of auto customers as well as dealers by disbursing -

- 70% of the claim amount immediately on Receipt of the Claim Form along with the Claim Estimate; and

- 30% of the balance amount on receipt of complete set of documentation. This will help dealers in Regulating
the Extra Working Capital, which was not anticipated or planned for.

2) Appointing One Point Contact for Auto Dealers, within Your Regional or Divisional Offices with whom they could
Co-ordinate for Assisting them in Expeditious settlement of claims.

Engagement of GST Consultant

A GST consultant – Ms Puloma Dalal, FCA based in Mumbai, has been engaged by F A D A on retainership to help
members deal with the complexities of GST law and procedures. She will, on reference made by F A D A, guide and give
legal opinion on various issues relating to GST as applicable to automobile dealers.

F A D A will forward the queries raised by members to Ms Puloma Dalal for her opinion.

While Ms Puloma Dalal will, essentially, give legal position and clarification, supported by case law, on various GST
issues raised by F A D A members, those wanting to engage her as counsel to fight their cases in litigation, will have to
pay separately as per terms that may be mutually agreed to.

Members seeking clarification or legal position relating to GST as relevant to automobile dealers, may send their
queries to Federation of Automobile Dealers Associations (F A D A), 804-805, Surya Kiran Building, 19, K G Marg, New
Delhi - 110 001 (E-mail ID: [email protected])

10 F A D A Journal August 2018 | fada.in



Dealership Profitability

Online Marketing Tactics to Increase Sales

1. Post compelling content frequently part and you’ll gradually establish your brand as an authority
in the space.
To grow your social following over time, it’s crucial to post
content consistently. Studies suggest that audiences respond Tip: Pick a hashtag related to the Twitter chat and ask your
differently depending on your posting frequency, so make community to use it within their tweets. This helps with
sure you test to figure out the best cadence for your brand. branding, makes the practice familiar to those who choose
You can also compare your posting frequency and to take part, and allows you to search the chat later for content
engagement rates to your competitors. and recaps.

Numerous companies have looked into the optimal number 5. Run a Pinterest treasure hunt
of times to post on each channel, and it’s worth pointing out
the potential appetite of users on each platform. Your daily One powerful way to use Pinterest to drive online sales is to
or weekly cadence is minutiae compared to having a plan use it to run a “treasure hunt” promotion.
and a process to create genuinely compelling posts on a
regular basis. There are no “neutral” reactions, so if it’s not How it works: You contact a few partners and ask each of
good, don’t post it. them to pin an image on one of their Pinterest boards. Each
image is meant to provide clues to the next image in the
2. Automate word-of-mouth with social reviews treasure hunt.

Using product reviews to create trust and gain insights into You get the ball rolling by publishing a blog post about the
your products is a great way to increase online sales. promotion and a link to the first image. Fans who get to the
last image are forwarded to a hidden page where they enter
The review apps encourages customers to leave reviews after in their credentials to take part in the raffle.
they’ve made a purchase. The process is automated, so you
don’t have to manually reach out to customers yourself. 6. Make it easy to share your products

Connect your business’s social accounts and post the reviews Social share buttons are a key element to increasing the
directly to your pages. These reviews provide fresh content “virality” of your site, which can, in turn, drive traffic and
and help drive traffic from social to your site, which in turn boost online sales. Make sure the buttons to the popular
boosts online sales. social networks—Facebook, Twitter, and Pinterest—are easy
for users to find.
3. Create micro content for social feeds
You might want buttons that match your store’s visual
Consider the context in which most users are browsing social aesthetic. But if you find visitors aren’t using the social share
media. Maybe they’re on a mobile device during their buttons enough, it could be worth swapping them back to
commute, taking a quick brain break at their desktop at work, their original colors, like how The Wilde Merrion has on
or killing time as they wait for their show to come back on their product pages.
after the commercials.
To implement this social media marketing tip on your own
There’s one thing those scenarios have in common: Social online store, consider an app like AddThis, which has its
media users are often scrolling in-between other tasks. That’s own analytics and can help you optimize positioning & layout.
why bite-sized content is an effective way to captivate your
audience. This social media marketing strategy works 7. Be active on the right #hashtags
particularly well on platforms made specifically for quick
experiences, such as Snapchat. The hashtag has organized a big part of the social web
according to conversations, making it easy to join in on
4. Host a Twitter chat with your audience discussions and events by posting under the ones that are
relevant to your brand.
Engagement is critical to keep any online community alive
and well. A great tactic to grow your Twitter following and A social media monitoring tool like Hootsuite can help you
boost online sales is by hosting a weekly Twitter chat. find, like, retweet and reply to posts under several hashtags.
You can use a tool like Hashtagify to find other hashtags
You can either co-host an existing Twitter chat or start your related to the one you're trying to target, such as these food-
own. Co-hosting allows you to tap into an existing audience, related hashtags below.
while you’ll need to do more work promoting it if you were to
host on your own. Over time, others in the space will take Be careful not to treat hashtags the same on every channel.
Here are some general best practices from various studies:

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Dealership Profitability

Twitter posts with a single well-placed hashtag tend to bottles and sunscreen. The other brands and sites you're
generate more engagements than tweets with three or more promoting on your board will take notice of the incoming
Instagram posts, on the other hand, see the most engagement traffic from your Pinterest account; if they don’t, make sure
when using multiple hashtags, even 10+ in a single post you reach out and let them know. They may even adopt the
Facebook posts do better without hashtags. same strategy and send traffic back your way.

If you know of a high-profile event coming up, you can prepare 11. Make your Instagram shoppable
in advance to make sure you're ready to get in on the action.
The more targeted, the better. If you’re a fashion brand, for One of the biggest challenges for brands on Instagram is
example, consider live-tweeting or covering high profile linking. And when the main goal is to drive traffic and,
events and commenting on what celebrities are wearing. ultimately, sales, that can be a big hurdle. One way to work
around this to boost online sales is to make your Instagram
Most events are accompanied by hashtags that you can hop shoppable.
on. But the key to hijacking a hashtag is not to hijack it at all.
Instead, you should aim to contribute to the conversation in Essentially, you put virtual product “tags” on your product
a meaningful, natural way. photos. Mobile users can then click on these price tags to see
how much it costs, and they can tap to learn more and make
8. Align your posts with a trending topic a purchase. It’s one of the most seamless ways to blend
Instagram and ecommerce.
You can also reach new people with your social content by
aligning your posts with trends that are relevant right now. If 12. Participate in or own a Facebook group
you pay attention to hashtags and news cycles, you can likely
find an opportunity to add your voice to a conversation or Facebook groups are online communities that Facebook users
parody what's happening in the world. can join. These groups are usually based on shared interests,
so it’s best to join and contribute to a group that’s relevant to
9. Pin your best posts to the top of your profile your industry and target customer.

Any time you engage with others through a social profile, The key is to add value through your participation, not jump
you're not just building your online presence. There's also a in and start selling your products. Over time, you can nurture
chance that those people you engage with might quickly check those relationships and establish your credibility in the
out your social profile feed and click through to your site or group, and other members will naturally become interested
content. in what you do.

Be sure you’re using all the features at your disposal so your 13. Test out retargeted ads
profile communicates what you want and funnels clicks
where you want: As it becomes increasingly more difficult for business pages
to gain traction in the News Feed organically, paid retargeted
Update your cover photo to something eye-catching like a ads on social media have become a crucial component to
product image or a banner to promote a sale many websites’ marketing strategies.

Include links back to your site in your bio or profile You also have more control over targeting who you want to
see your content, as opposed to being limited to your existing
Strategically feature or "pin" a post at the top of your feed audience for your organic efforts.

While you might be inclined to pin a post about one of your When you run retargeted ads, you send ads to users who
products or promote a sale, also consider pinning posts that have been to your site. These ads can be personalized based
did particularly well so they can continue to show off your on their behaviour.
engaged audience plus generate retweets, likes and shares
for you instead of simply getting buried. 14. Open a Facebook shop

10. Create a complementary board on Pinterest Did you know that you can sell your products directly from
Facebook? Adding the shop section to your Facebook
A great way to provide additional value to your customers is business page opens a brand new sales channel—one that
by providing them with information and deals on can help you meet your customers where they already are.
complementary products, which you don’t necessarily sell.
The Facebook shop section connects with your online store
If your store sells hiking shoes, for example, your Pinterest so that users can purchase your products from within
board could feature related items, like backpacks, water Facebook’s interface

fada.in | August 2018 F A D A Journal 13

Chart of the Month

The Tesla Model 3 is Blowing Away the Competition

Tesla's efforts to ramp up production are paying off and the endeavour estimated at 16,000 vehicles. The Mercedes C-
company produced more than 53,000 cars in Q1 2018, Class is the closest individual model to the Tesla Model 3
doubling its output compared to the same quarter in 2017. In with estimating July sales of 6,029 units. Even when sales
a major landmark, production of the Model 3 (28,578) from multiple vehicle models produced by the same company
exceeded combined production of the Model S and X (24,671) are added together, the Model 3 remains untouchable. For
with total deliveries to customers amounting to 40,740. The example, July sales of the BMW 2, 3, 4 and 6 Series are
Model 3 is now outselling other small and midsize luxury expected to reach 12,811 at the end of the month while
car models in the US. customers will get behind the wheel of 11,835 new Mercedes
C, CLA, CLS and E-Class vehicles. All of that means that Tesla
He claims that the Model 3 is crushing its "competitors" in would command a 23% of the small and midsize luxury car
that segment with total sales of the company's mass market market in July, ahead of 17% each for BMW and Mercedes.

Source: Statista Charts and F A D A Research

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Surveys & Studies

The Global Vehicle Sales Expansion Continues in H1 2018: JATO

Global vehicle sales continued to grow during the first half car market, which posted the second highest first half of its
of this year. The data collected by JATO for 57 markets around history this year. The volume was boosted by more SUVs
the world indicates that sales totalled 44 million units, up (+13%) and trucks (+6%), which counted for 60% of total sales,
by 3.6% compared to the same period of last year. The positive in contrast to the decline posted by cars, down by 10%
results coincided with a global economy threatened by the counting for 33% of total.
uncertainty of a potential trade war between its largest
economies. However, the good economic mood in the USA
along with improved indicators in Europe, and the continuous
expansion of the Chinese economy, are three key factors that
have boosted the vehicle market.

Despite the importance of these three markets, there is one
overarching winner in this story. India has finally emerged
as a key market for the auto industry as its sales growth was
confirmed during the first six months of 2018. The data shows
that 29 states and 4 union territories registered increases,
with double digit growth in 27 states. India outsold Germany
and became the world’s 4th largest vehicle market behind
China, USA and Japan. According to our partner LMC
Automotive, Indian vehicle sales are expected to outsell Japan
in 2021.

China maintained its position as global leader with 12.23
million units (the figures exclude some LCV) and positive
growth at +3.9%. However, the largest vehicle market in the
world posted the second lowest sales growth for H1 since
2009. The latest figures for June show that vehicle sales
remained stable as the gains posted by sedans (+8%) were
offset by lower sales of SUVs and MPVs (-7%). China is facing
tougher times due to the uncertainty over the trade war with
the USA, as well as the government’s tightened controls on
bank lending to curb surging debt. However, SUVs counted for
42% of total car sales.

Growth in the USA has been more moderate, despite the
economy performing above expectations. The strong economy
combined with low unemployment and tax cuts boosted the

fada.in | August 2018 F A D A Journal 15

Surveys & Studies

Europe-29 was once again the world’s second largest market The strong results for VW Group were followed by strong
with 9.77 million cars and LCVs. The good economic mood performances from Hyundai-Kia (+8%) and Suzuki, which was
among consumers in most of the markets, and a bigger range able to post a double-digit growth and confirmed its place in
of choices led to an increase in registrations by 3% and the top 10 biggest car makers in the world. Outside the top
resulted in the highest first half result of the last ten years. 10, Geely registered an impressive 35% increase, exceeding
Following the trend in the USA and China, the whole economic the 1 million mark for the first time at 1.09 million units. It
bloc continues to be fuelled by more SUVs (+24%) and fewer was also a good first half for Tata Group, which sold 517,000
cars (-4%), counting for 30% and 50% of total cars and LCV units, up by 18%. The Chinese car makers controlled almost
sales respectively. 11% of total sales in the 57 markets.

Other key markets include Japan, which is still the world’s
third largest car market despite the 2% decline in H1. The
popular kei-cars couldn’t offset the big declines posted by
other segments, which counted for two thirds of the market.
Japan is one of the few remaining markets where SUVs don’t
play a key role. Latin America also had a positive half thanks
to the outstanding performance of Brazilian car sales and
improvements in Chile and Ecuador. The Latin American car
market is now bigger than the Japanese.

Growth was also seen in the Asia-Pacific region, where JATO The biggest news from the first half of the year was the
has data for 8 markets. Vehicle sales totalled 2.28 million increase in the dominant position of SUVs, which now count
units, up by 5%. Most of the growth was explained by the 11% for almost 36% of passenger cars sales. Almost 15 million
increase recorded by SUVs, the top-selling segment in the SUVs were sold in the first six months of 2018, up by a solid
region. Canada, Korea and Russia are the other 3 big markets 14%, a record for this vehicle type. Volume grew in 10 of the
in the top 10, with only the latter showing positive results. 11 key regions, with double-digit growth in 8, and a drop of
4% in Japan. SUVs are very popular in the USA, China, Canada
JATO’s information on 57 markets shows that Volkswagen and Russia, but are still lagging behind other segments in
Group was the top-seller with 5.45 million units, growing Latin America, Japan and India. This is good news however,
faster than its two closest competitors. In fact, the Germans as it shows that SUVs still have growth potential in those key
grew by almost 7% in H1, compared to the 4% posted by markets.
Renault-Nissan in second place and 2% registered by Toyota.
However, the analysis excludes key markets for Renault-
Nissan and Toyota, like Iran, some African markets, the
Philippines and the Gulf Cooperation Council. However, in
the 57 markets covered by JATO, the gap between VW Group
and Renault-Nissan was 535,000 units.

16 F A D A Journal August 2018 | fada.in

Surveys & Studies

Compact cars followed SUVs in the segments ranking, but the market since 2013. The focus is on the top 10, allowing
their volume fell by 4% to 7.1 million units. The timid the Chevrolet Silverado (all versions) to appear in the list in
growth posted in China (+0.4%) wasn’t enough to offset H1 2018.
the declines coming from Europe (-5%) and USA (-8%). China
is still their biggest market in both volume and market Among the big improvers were the Nissan Qashqai (aka Rogue
share. The subcompacts remained the most popular cars Sport in USA) boosted by its arrival to USA and Canada. Its
in Latin America and India, but their volume increased by rival the Mazda CX-5 also posted a big increase thanks to
only 2% to 5.4 million units. Meanwhile, MPVs continued double-digit growth in 7 of the 9 regions where it is available.
to lose ground as their sales volume fell by 13% to 3.13 The Baojun 510, the small SUV produced by GM in China,
million units. Their demand shrank in China (-19%) and more than doubled its sales and was the world’s 29th best-
Europe (-23%), their biggest markets. The MPVs are still selling passenger car. The Jeep Compass has also performed
popular in Japan and Asia-Pacific, with a double-digit well, with the new generation proving popular in the USA
market share. In contrast, they are a rarity in Russia and (+240%), Europe (40,800 units), Latin America (+40%) and
Latin America. India (11,100 units). The Compass was FCA second best-
selling product and the world’s 33rd best-selling passenger
The model ranking shows some changes. While the podium car.
is unchanged with the Ford F-Series, Toyota Corolla (excludes
the hatchback version called Auris in some markets) and Special mention must be given to the Volkswagen Tiguan
Volkswagen Golf, the Honda Civic and Toyota RAV4 posted big Allspace with 201,400 units, the Ford Ecosport (+48%), Jeep
increases and occupied the 4th and 5th positions. This means Wrangler (+37%), Peugeot 3008 SUV (+42%), Chevrolet
that the Nissan X-Trail/Rogue lost its place as the world’s Cavalier (+67%), the 113,000 units sold of the Suzuki Dzire,
best-selling SUV, with this position now occupied by the and the 91,200 units sold of the Changan CS55. Hyundai sold
compact SUV from Toyota. However, the gap between the two 88,500 units of the Kona, BYD sold 81,100 of the Song Max,
SUVs is very small (less than 4,000 units). While the RAV4 is Volkswagen sold 72,100 units of the T-Roc, and Geely sold
already having a model changeover, the Nissan has been in 63,200 units of the Vision X3

fada.in | August 2018 F A D A Journal 17

Competition Law Updates

Hyundai faces Rs. 420 Cr penalty after the Madras The CCSA has proposed a draft Code of Conduct (CoC),
High Court rejects challenge to the Director General’s which has been drafted by the Right to Repair
(DG) powers Campaign. The CoC seeks to end unfair pricing practices
in the light of several allegations against car
An information was filed in dealerships, such as tie-in agreements wherein
January 2011 against dealerships are forcing consumers to buy expensive
Honda, Volkswagen and maintenance and service plans, failing which
FIAT before the warranties are cancelled. To eliminate such practices,
Competition Commission of the CoC aims to offer some relief to consumers to select
India (CCI) alleging that the where their vehicles are serviced, maintained and
car manufacturers were repaired.
engaged in anti-
competitive/abusive Supreme Court stays Competition Appellate
practices in the spare parts Tribunal’s (COMPAT) order that imposed penalty on
market. 3 car companies

G R Bhatia, Partner & Head, The CCI enlarged the The COMPAT by its order dated December 09, 2016
Competition Law Practice Group, scope of its investigation concurred with the findings of the CCI and directed
Ford, Toyota and Nissan, to remove all restrictions
Luthra & Luthra Law Office imposed through agreements on auto parts suppliers
so as to open up market for spare parts and remove
to other car all restrictions on supply by original equipment
suppliers to authorized dealers. On appeal, the
manufacturers, and on August 25, 2014, it found 14 Hon’ble Supreme Court has stayed the operation of
the COMPAT’s order and the matter, last listed on
car manufacturers (Maruti, Nissan, Honda Cars India, July 18, 2018, will now be taken up on September 06,
2018.
Volkswagen India, Fiat India Automobiles, BMW India,
Litigation initiated by U.S. auto dealers against
Ford India, General Motors India, Hindustan Motors, German car manufacturers

Mahindra and Mahindra, Mercedes-Benz India, Skoda U.S. auto dealers and consumers have filed a
complaint before a Federal Judge of California that
Auto India, Toyota Kirloskar Motor and Hyundai Motor Audi, Volkswagen, Mercedes-Benz, BMW and Porsche
have engaged in an antitrust conspiracy on car
India Ltd.) to be violating trade norms in the spare technology, costs and emissions equipment. The
dealers have alleged there was collective overpricing
parts and after-services market, in India and imposed of auto-parts and cars with such pre-fixed parts.
Additionally, they were unable to pass on all of these
a total penalty of Rs. 2545 crores on them. increased costs to their customers. In an interim
order, the Court has observed that the car
In this regard, Hyundai Motor India Ltd (Hyundai) manufacturers cannot dodge Multi-District Litigation
approached the Madras High Court and challenged the (MDL), which aims to speed the legal process in
powers of the DG by which it had extended the scope certain complicated cases. Additionally, a settlement
of investigation to other car companies. The Single between the manufacturers and the dealers could be
Judge of the Madras High Court ruled against the car a possibility
manufacturer and held that there was no overstepping
of jurisdiction in the case.

Hyundai appealed this decision and recently, the
Division Bench of the Madras High Court upheld the
decision of the Single Judge and observed that the DG
had proceeded based on the direction issued by the
CCI on April 26, 2011. Therefore, the challenge to the
DG’s powers of investigation was not a valid one.

Competition Commission of South Africa (CCSA)
proposes a Draft Code of Conduct for the automobile
industry

18 F A D A Journal August 2018 | fada.in



F A D A News

Vyapar Bengal: Rising East

F A D A held its 5th edition of Vyapar: Vyapar Bengal on the retail industry in the State. He added that though the intent
theme – Rising East, on August 20, 2018 in the City of Joy- of the Government behind this was good but had affected
Kolkata at Hotel The Lalit Great Eastern. ease of doing business. He said the auto retail industry

Delegates primarily would always work
with the Government
from East & North in achieving common
goals like the
East regions Gatidhara scheme.

participated making Mr Amit Manaktala
said that the intent of
Vyapar Bengal holding Vyapar
Bengal in Kolkata was
having the highest not only to educate
and equip dealers in
number of paid better understanding
the policies and
delegates amongst meeting with the
disruptions but also
Vyapar’s held by F A to create better networking opportunities among dealers. He
hoped the delegates enjoyed and experienced great learnings
D A so far. What was from the Sessions and exciting Speakers.

heartening was the Mr V inkesh Gulati, Hony Secretary, F A D A while
welcoming all to the 5th edition of Vyapar, appreciated
overwhelming the solidarity shown by the Automobile Dealers by
attending the event in huge numbers. He also thanked the
enthusiasm and sponsors in supporting F A D A in organising the event
in such a grand scale for the first time in the State of
interest shown by the West Bengal. He appraised the gathering about initiatives
and activities being undertaken by F A D A in
delegates in strengthening the ‘Voice of Dealer’ and that Vyapar
happened to be one such initiative.
attending all the
A galaxy of eminent speakers representing the industry, auto
sessions. retail trade and academia participated at the Vyapar Bengal.
The deliberations centred on the theme: “Rising East”.
Chief Guest, Mr Suvendu Adhikari, Hon’ble Minister in
Charge, Transport and our Special Guest, Mr Narayan Around 200 automobile dealers, including Council Members
Swaroop Nigam, IAS, MD WBTC were unable to attend due of F A D A from other States attended the half a day program.
to the week-long mourning announced upon the demise Besides automobile dealers, the representatives of OEMs,
of Shri Atal Bihari Vajpayee, former Prime Minister of allied businesses and media were also present in good
India. numbers.

Mr John K Paul, President, F A D A who hails from Kochi was The highlights of the program of Vyapar Bengal included
also unable to join due to the unprecedented flood situation Panel Discussion on ‘Auto in East: Version 2.0’ and three
in Kerala. individual keynote sessions.

A small video clipping on the ravages caused by the floods The panel on Auto in East: Version 2.0 was moderated by
in Kerala was shown requesting Dealerships & Dealer Mr Udayan Ray, Fundoo Money and the other panellists
Associations from across the country to join hands with F A included- Mr Pankaj Agarwal, Associate Director-Indirect
D A in making a joint contribution on behalf of the auto Tax, Grant Thornton; Mr Praveen Surendiran, MD, 21 North,
retail industry under F A D A banner to the Kerala Chief
Ministers Distress Relief Fund (CMDRF) thereby extending a
helping hand to the State machinery.

After lamp lighting, Mr Amit Manaktala, Chairman, F A D A
West Bengal and Motor Industries Association (MIA)
welcoming all to Vyapar Bengal said that MIA was founded
in 1960 and was one of the founding members of F A D A. He
added that F A D A and MIA have always been working in
tandem with the Government policies and initiatives like
the Gatidhara scheme.

However, a recent advisory related to the sale of 2-Wheelers
by the West Bengal Transport Ministry has created lot of
confusion and sufferings to both the customers and auto

20 F A D A Journal August 2018 | fada.in

F A D A News

Mr Nikunj Sanghi, President, Automotive Skills The conference also gave an opportunity to F A D A West
Development Council (ASDC) and Past President, F A D A; Bengal Chapter to express gratitude to the sponsors by
and Mr Sharad Gupta, Dealer Principal, Hitech Motors, presenting plaques to teams from - Yes Bank, ICICI Lombard,
Kolkata. The Panel discussed on the way forward for the Axalta Coating, CarDekho, 21North, ATS Elgi, 3M India and
auto retail industry amidst major disruptions faced by Siti Cable.
the industry in last two years and times ahead; on
Sustainability; on understanding the Opportunities created Before Mr Vinayak Nayar, Council Member, F A D A, presented
by the Disruptions and making most of it; on increasing the Vote of Thanks, a photo session of F A D A Council Members
the Bottom Lines by becoming leaner and cost efficient; & and Vyapar Bengal Core Committee was held.
on Mergers and Acquisitions.
The half a day programme concluding with playing of Band
Dr Arokiaswamy Velumani, Founder, Thyrocare Technologies The Phoenix with networking cocktails and dinner was not
Ltd shared his story of how he, as a son of a landless farmer only exciting but also enriching experience for the automobile
went on to become not only rich but has built from his testing dealers and others connected with automotive business.
lab, with Rs. 1 lakh investment, a company whose current
market valuation is around Rs. 3,600 crore in a span of just Interactive Meeting between MIA and F A D A
20 years. held on August 20, 2018

Dr Velumani, shared that he grew up in poverty at a village Dovetailed with Vyapar Bengal, an interactive session was
near Coimbatore, worked as a scientist at Bhabha Atomic organised by Mr Amit Manaktala, Chairman MIA and F A D A
Research Centre (BARC), Mumbai, for 15 years before West Bengal between MIA members and F A D A Council
taking voluntary retirement to set up a thyroid lab in members in the same hotel in the morning.
1995 with his PF money. His quotes included, “When you
charge less and cut down the costs then you become the The focus of the interaction was deliberations on the burning
most powerful brand on this earth. Volumes help you issue plaguing the 2-Wheeler retail industry in the state of
become rich’; ‘Success in life is Delta. Delta (?) = X2 – X1. West Bengal. The West Bengal Transport Ministry had issued
X2 is where you are today and X1 is where you were when an advisory on June 28, 2018 making:
you started. So, if X1 was zero, you wouldn’t lose
anything, which simply means, those born to poor have 1) Driving Licence mandatory for registration of 2-
nothing to lose.” He shared his success tips to be: Focus, Wheelers; and
Learn, and Grow & Enjoy.
2) Dealers of 2-wheelers have to submit a profile of the
Mr C S V igneshwar, MD, Annamalais Toyota, a third proposed buyer and ensure presence of the buyer
generation entrepreneur gave an individual keynote address before the RTA so that the profile may be approved by
on ‘Annamalais Way: Change the Discourse’. He emphasised the RTA.
on ‘Employee Engagement & Employee Satisfaction’;
‘Customer Engagement – Personalised Service’ and Though the intent of the Government behind this was noble-
‘Enhanced Review- Multi Outlet Organisation’ to be the three to ensure safer roads but the dealer fraternity felt that the
pillars on which his organisation has achieved and advisory in itself would not help in either keeping roads
sustained success. safer or deter under age kids from driving 2-Wheelers.
Creating awareness on safe driving and helping citizens
Dr Anil Lamba, Author & Financial Expert gave discourse on act responsibly by reframing under age kids from driving
how to keep balance sheet healthy. He said that most would go a long way to curtail road mishaps, members felt.
businesses failed according to him due to financial
mismanagement and not primarily due to technological MIA would be taking this up with the concerned Transport
obsolesce and/or marketing inefficiencies. He shared two Department officials in resolving the issue.
rules, if followed to teeth would ensure sure success.
Among other things – Auto policy and E-way bill provisions
Golden Rule #1: Always Remember Money is not free. Sources under GST were also discussed.
have a cost. Investment in assets must earn equal to or more
than the cost of capital invested. Mr Vinkesh Gulati, Hony Secretary, F A D A requested MIA
members to attend F A D A’s upcoming 54th AGM and F A D A
Golden Rule #2: Investment in assets must bring in cash flow Auto Retail Conclave 2018 on the theme - Nation Building
before the liabilities ask for it. Through Employment Creation - which is scheduled to be
held in Nagpur on 5th & 6th October, the planning for the same
was in progress and the programme and other details would
be shared once the same was finalised.

fada.in | August 2018 F A D A Journal 21







F A D A News

Forthcoming Event



Membership

We Welcome Our New Members

No. Dealer Principal Name Dealership Name City State Franchise

1 Mr Anand R Ishana Automobiles Pvt Ltd Tenkasi Tamil Nadu HMSI

2 Mr Dilshad Ahmad Indian Auto Wheels Gorakhpur Uttar Pradesh Ashok Leyland

3 Mr Pamulapati Rajesh Subhalakshmi Motors Pvt Ltd Guntur Andhra Pradesh Ford India

4 Mr Chennupti Srinivas Rao Pioneer Automotives Ongole Andhra Pradesh HMSI

5 Mr Gaurav Surana Surana Motors Ltd Silchar Assam Tata Motors

6 Mr Binod Kumar Duradhar Enterprises Darabhanga Bihar Mahindra Tractors

7 Mr Neeraj Agrawal AVN Ventures Bhilai Chhattisgarh Bajaj Auto

8 Mr Subodh Kumar Jain Eternal Motor Pvt Ltd Bhavnagar Gujarat Hyundai

9 Mr Dipen D Shah Modheshwary Motors Una Gujarat Hero

10 Mr Mukesh C Gupta Deepkamal Corporation Pvt Ltd Ahmedabad Gujarat Bajaj Auto - 3W

11 Mr Junaid Beigh Himalayan Motors Srinagar J&K M&M

12 Mr Ovees Qadir Jamie Jamie Power Pvt Ltd Srinagar J&K Force Motors

13 Mr Dinesh Parikh J M A Stores Pvt Ltd Jamshedpur Jharkhand Tata Motors

14 Mr J P Kamani Narbheram Motors Pvt Ltd Jamshedpur Jharkhand Honda Cars

15 Mr Rohti Deshpande Mangesh Motors Belgaum Karnataka HMSI

16 Mr Ramgopal Aroor Rao United Cars Pvt Ltd Mangaluru Karnataka Toyota

17 Mr Naveed Abdul Sajid Hercules Automobiles Alappuzha Kerala Maruti

18 Mr Jithin Thomas Panachamoottil Motors Trivandrum Kerala HMSI

19 Mr Shaji K S Pioneer Motors Trivanduram Kerala Bajaj Auto

20 Mr S Sivakumar Rajasree Motors Pvt Ltd Cochin Kerala Mercedes

21 Mr John A Thayyil Johns Automotives Pvt Ltd Thrissur Kerala Honda Cars

22 Mr Gopal Krishna Miglani Kunal Motors Chhindwara Madhya Pradesh Maruti Suzuki

23 Mr Rahul Mishrikotkar Arihant Auto Lines LLP Aurangabad Maharashtra HMSI

24 Mr Sunil R Patil Shripal Traders Sangli Maharashtra Yamaha

25 Mr Neeraj Deepak Kudale Ace Kudale Car Pvt Ltd Pune Maharashtra Maruti Suzuki

26 Mr Shailendra Varma Varma Tractors Nagpur Maharashtra Eicher Tractors

27 Mr Arjun K Sonavane KR Motors Kolhapur Maharashtra TVS Motor

28 Mr Hemant C Khivansara Raj Auto Aurangabad Maharashtra Hero

29 Mr Sumatiprasad M Bafna Bafna Motors (Mumbai) Pvt Ltd Mumbai Maharashtra Tata Motors

30 Mr Nitin Dada Dada Motors Ludhiana Punjab M&M

31 Mr Harsh Jain Parasavnath Motors Pvt Ltd Sri Ganganagar Rajasthan TVS Motor

32 Mr Sharvik Shah Rajesh Motors (Auto) Pvt Ltd Jaipur Rajasthan Toyota

33 Mr V ikas Gupta Rajasthan Tractor Machinery Alwar Rajasthan Escorts Tractors

34 Mr Sai Giridhar Saisha Motors Pvt Ltd Jaipur Rajasthan Skoda

35 Mr Arun Kumar J R A Agency Tirupur Tamil Nadu TVS Motor

36 Mr Manivannan S Susee Motors (India) Pvt Ltd Vellore Tamil Nadu Volkswagen

37 Mr Subramaniam Annamalai Annamalai Motors Pvt Ltd Thanjavur Tamil Nadu Renault

38 Mr R Ranjit Govindraj Chandra Automobile (I) Pvt Ltd Coimbatore Ta m i l n a d u Hyundai

39 Mr A V Jayachandran Jai Automobiles Chennai Ta m i l n a d u Bajaj Auto

40 Mr A V Jayachandran Jai Autos Chennai Ta m i l n a d u Bajaj Auto

41 Mr A V Jayachandran Sri Jai Autos Pvt Ltd Chennai Ta m i l n a d u Bajaj Auto

28 F A D A Journal August 2018 | fada.in

Membership

No. Dealer Principal Name Dealership Name City State Franchise

42 Mr Nirav P Modi Fortune Motors Pvt Ltd Secunderabad Telangana HMSI
Tata Motors
43 Mr Rajesh Malik Malik Cars Pvt Ltd Hyderabad Te l a n g a n a Maruti Suzuki
Bajaj Auto
44 Mr Gautamchand Jain Autofin Limited Secunderabad Telangana Hero
General Motors
45 Mr Mainpal Singh Tripura Automobiles Pvt Ltd Agartala Tripura Hyundai
Piaggio
46 Mr Utkarsh Kohli Superb Automobiles Lucknow Uttar Pradesh Hero
HMSI
47 Mr Vikram Garg Cross Road Auto Pvt Ltd Kanpur Uttar Pradesh Hero
Mahindra T&B
48 Mr Anoop Aggarwal Kanhaiya Beverages Pvt Ltd Varanasi Uttar Pradesh Hyundai
Tata Motors
49 Mr Rahul Govil Jai Gopall Auto Bulandshahr Uttar Pradesh Bajaj Auto
Bajaj Auto
50 Mr Vikas Chaudhary Vikas Auto Wheels Aligarh Uttar Pradesh Hero
Royal Enfield
51 Mr Vinamra Agarwal Brijlax Auto Pvt Ltd Varanasi Uttar Pradesh Bajaj Auto
Maruti
52 Mr Saurabh Chopra Unnao Motors Unnao Uttar Pradesh Maruti
Bajaj Auto
53 Mr Amit Gupta Meru Infrastructure Pvt Ltd Varanasi Uttar Pradesh Royal Enfield
Maruti
54 Mr Jatin Verma JSV Hyundai Lucknow Uttar Pradesh Bajaj Auto
Hero
55 Mr Abhishek Agarwal Nawal Motors Mathura Uttar Pradesh Hero
Hero
56 Mr Imtiaz Middya Middya Auto Centre Howrah West Begnal Royal Enfield
TVS Motor
57 Mr Rajesh Kumar Daruka Auto Moovers Bajaj Asansol West Bengal HMSI
Hero
58 Mr Sharad Gupta Hitech Motors Kolkata West Bengal Hero
TAFE
59 Mr Jogesh Chowdhary Birbhum Riders Suri West Bengal TVS Motor
Tata Motors
60 Mr Bishweshwar Debnath Brahmachari Auto Cooch Behar West Bengal Yamaha
Bajaj Auto
61 Mr Arun Maheswari J K Wheels Pvt Ltd Malda West Bengal Hero
Yamaha
62 Mr Anup Maheswari Planet Wheels Pvt Ltd Malda West Bengal HMSI
HMSI
63 Mr Rajesh Goel Rolta Motors Kolkata West Bengal Skoda
HMSI
64 Mr Kushal Bajoria Bishnu Oil Company Kolkata West Bengal Yamaha
Hero
65 Mr Nirmal Kumar Goyal OSL Motocorp Pvt Ltd Kolkata West Bengal

66 Mr Narayan Kumar Shroff Auto Bazar Hooghly West Bengal

67 Mr Rohit Chitlangia Durga Auto Centre Malda West Bengal

68 Mr Sintu Das Super Auto Ta r a ke s w a r West Bengal

69 Mr Ajoy Gupta Sandeep Auto Lines Cooch Behar West Bengal

70 Mr Sankar Prasad Pradhan Shivani Automobiles Medinipur West Bengal

71 Mr Anurag Agarwala RS Automotives Siliguri West Bengal

72 Mr Anup Kumar Lodha Jaibaba Motors Pvt Ltd Kharagpur West Bengal

73 Mr Aditya Kumar Moda Ridhi Motors Howrah West Bengal

74 Mr Amar Paul Avik Motors Asansol West Bengal

75 Mr Anup Kumar Agarwala Agri Manisha Malda West Bengal

76 Mr Prasanta Dey Bankura Wheels Bankura West Bengal

77 Mr Partha Priya Banerjee Gati Motors Pvt Ltd Durgapur West Bengal

78 Mr Debashis Dhabal Shreya Automobiles Bankura West Bengal

79 Mr Arnab Banerjee Banerjee Auto Corporation Durgapur West Bengal

80 Mr Swapan Kumar Ghosh Srikrishna Automobiles Kolkata West Bengal

81 Mr V ivek Mahansaria Mahansaria and Sons (P) Ltd Kolkata West Bengal

82 Mr Ritesh Agarwal Rajkumar Automobiles Sales Midnapore West Bengal

83 Mr Jigar Shah Shah Automobiles Kolkata West Bengal

84 Mr Kunal Agarwala Global Motocorp LLP Kolkata West Bengal

85 Mr Prasanta Mavai Prasant Auto Ta m l u k West Bengal

86 Mr Sourav Chatterjee SNC Udyog Howrah West Bengal

87 Mr Manish Chitlangia Shankar Auto Centre Raiganj West Bengal

fada.in | August 2018 F A D A Journal 29

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32 F A D A Journal August 2018 | fada.in



Consumer Case Study

National Consumer Disputes Redressal Commission, New Delhi

Dr B C Gupta, Presiding Member and Dr S M Kanitkar, Member

Honda Siel Cars India Ltd and Anr. - Petitioners

Versus

Savita Jerath and Anr. - Respondents

Revision Petition No. 4614 and 4615 of 2012 Decided on 16.05.2018

Consumer Protection Act, 1986 – Sections 15, 17, 19 and 21 – Automobile – Manufacturing defect – District Forum
allowed consumer complaint and directed OPs jointly and severally to replace entire engine of car without charging any
amount from Complainant – OPs were also directed to pay sum of Rs. 50,000 as compensation and Rs. 15,000 as cost of
litigation – Once Complainant has placed reports from two technical experts on record, onus had shifted to OP to prove
that defects in vehicle had been fully removed after they carried out repairs in the same – Petitioners failed to convince
complainant that defects in vehicle had been fully removed – Moreover, they did not take any steps to get BHP test etc.
done, so as to remove all doubts about vehicle not working to its full efficiency – It was duty of Opposite Parties to ensure
that vehicle was free from any fault, imperfection or shortcoming in the same after necessary repairs were carried out –
No justifiable reason for making any change in orders passed by Consumer Fora below which are based on sound and
logical reasoning – Revision Petitions dismissed.

Important Point

One Complainant has placed reports from two technical experts on record, onus had shifted to OP to prove that defects in vehicle had
been fully removed after they carried out repairs in the same.

Order

1. Dr B C Gupta, Presiding Member - These Revision complaint that there was a manufacturing defect in the
Petitions have been filed under section 21(b) of the application of gears in the said vehicle, which was
Consumer Protection Act, 1986 challenging the legality noticed right from the beginning. The said defect could
and correctness of the order dated 03.09.2012, passed not be rectified during regular servicing of the vehicle,
by the UT Chandigarh State Consumer Disputes done by the Opposite Party (OP) dealer. The matter was
Redressal Commission (hereinafter referred to as 'the brought to the notice of the other OP, i.e., the
State Commission') in First Appeal No. 150/2012, "M/s manufacturer M/s Honda Siel Cars Ltd through letter
Honda Siel Cars India Ltd versus Savita Jerath & Anr." dated 06.03.2009, duly acknowledged by the said party.
and First Appeal No. 137/2012, "M/s Harmony Honda It is alleged that the said vehicle suddenly stopped on
vs Savita Jerath & Anr.", vide which, both the appeals 03.10.2009 in the middle of the road at a traffic
were ordered to be dismissed and the order dated intersection in Chandigarh and had to be towed away.
07.03.2012, passed by the District Forum-I, UT The matter was brought to the notice of both the
Chandigarh, allowing the consumer complaint No. 282/ Opposite Parties and they were requested to replace
2010, filed by the Complainant, Savita Jerath against the complete engine of the vehicle, as there was
the two Appellants/Revision Petitioners mentioned manufacturing defect in the same. It was stated that
above, was upheld. due to the said defect in the body of the engine, the
coolant had leaked into the engine head, got mixed up
2. Briefly stated, the facts of the case are that Savita Jerath, with the engine oil and entered the cylinders of the
the Complainant, purchased a Honda City car for a sum engine, thereby causing damage to the whole engine.
of Rs. 7,23,500 on 29.02.2008 from the dealer, M/s On the advice of the manufacturer, the dealer decided
Harmony Honda, Joshi Automobiles Private Ltd, to replace the 'Head Assembly' of the engine of the
Chandigarh, manufactured by the Petitioner, M/s Honda vehicle. However, the Complainant took the stand that
Siel Cars (India) Ltd, Greater Noida (UP). The extended the Head Assembly was one of the components of the
warranty cover for the car is stated to be valid upto engine and when one of the components was found to
29.02.2012. It has been stated in the consumer

34 F A D A Journal August 2018 | fada.in

Consumer Case Study

have a manufacturing defect, the whole engine needed 5. During proceedings before this Commission, the

to be replaced. However, despite sending letters to Petitioners in RP No. 4615/2012, M/s Harmony Honda

various functionaries of the OPs, they refused to appeared on some of the hearings, but none were

proceed in accordance with the demand of the present for them since hearings done on 17.03.2016

Complainant and ultimately delivered the vehicle to and afterwards. In the interest of justice, a notice was
her on 10.11.2009, after replacing the head compressor sent to them for appearance on the next date of hearing,
cylinder, which was termed as Head Assembly. The but despite due service of the notice, none was present
Complainant, however, maintained that there was dip for them on any of the hearings subsequently. RP No.
in speed after the repairs carried out by the OPs. The 4615/2012, therefore, deserves to be dismissed on
Complainant has further stated that although joint grounds of non-prosecution, as well.
inspection of the vehicle was carried out on 26.02.2010

and a joint drive done, the defects in the vehicle could 6. During arguments before us, the learned counsel for

not be rectified. It is also alleged that after replacement the Petitioner in RP No. 4614/2012, M/s Honda Siel Cars

of the Head Assembly, the BHP test was not carried out India Ltd submitted that the OPs had already replaced

to determine, whether the vehicle was in perfect running the Head Assembly of the engine free of cost, and hence,

condition. The Complainant then filed the consumer there was no need to replace the entire engine of the

complaint in question, seeking directions to the OPs to vehicle. The learned counsel argued that it was an

replace the complete vehicle, because of the defects in established legal proposition that a manufacturer or a

many parts of the vehicle. dealer was required to replace the defective part of the

3. The complaint was resisted by the OPs by filing their vehicle only. The learned counsel has drawn attention
written reply before the District Forum. The OP-1 dealer to the vehicle inspection report dated 10.09.2010, made
stated that there were no defects in the vehicle at the by their technical personnel, according to which, all
time of its sale. As and when, any defect was pointed technical parameters of the vehicle were found to be in
out, the same was promptly attended to by them. There order. The learned counsel further stated that the
was no problem in the application of the gears and the vehicle was being run by the Complainant or her
same was communicated to the Complainant after representative in perfect condition and hence, there
conducting the test drive jointly. The OP-1 maintained was no chance of any manufacturing defect in the same.
that there was no need to replace the engine, as the The learned counsel has drawn attention to an affidavit
vehicle was running perfect. It was also stated that the filed by Jasminder Singh, Service Advisor of their dealer,
engine of the vehicle consists of various parts and in Joshi Automobiles Private Limited, in which it has been
case a problem is found in a particular part, the relevant categorically stated that the OPs were ready to get the
part in engine is to be replaced, rather than replacing vehicle inspected from any independent agency or
the whole engine. There was no defect in the gear engineering institute to ascertain the allegations
operation and dip in speed after the repairs carried regarding the noise in the engine or dip in the speed of
out by them. It was also stated that during joint test the vehicle. Referring to the opinion expressed by L D
drive on 26.02.2010, no defect was found in the vehicle. Garg from the Department of Mechanical Engineering,
The written reply was also filed by the OP-2 on similar lines. Punjab Engineering College, Chandigarh, the learned
counsel stated that the said person had not inspected

4. The District Forum, after considering the averments of the vehicle before giving his report. Moreover, L D Garg

the parties passed their order on 07.03.2012, by which was not an Automobile Engineer and hence, his report

they allowed the consumer complaint and directed the did not carry any weight. Similarly, the technical

OPs jointly and severally to replace the entire engine opinion of Ravi Nandan Malhotra placed on record by

of the car, without charging any amount from the the Complainant, was of no value, because Ravi

Complainant. The OPs were also directed to pay a sum Malhotra was also a Mechanical Engineer only.

of Rs. 50,000 as compensation and Rs. 15,000 as cost Moreover, he had not conducted any test on the vehicle

of litigation. Being aggrieved against the order of the and the report was also prepared without their

District Forum, both the OPs challenged the same by knowledge. The learned counsel further stated that the

way of separate appeals before the State Commission. vehicle might have travelled 1,50,000 kms by this time

The said appeals having been dismissed vide impugned and hence, the presumption is that it was in a perfect

order, both the OPs are before this Commission by way running condition. The representative of the

of the present Revision Petitions. Complainant replied that the vehicle had run about

fada.in | August 2018 F A D A Journal 35

Consumer Case Study

80,000 kms. The learned counsel for the Petitioner 9. We have examined the entire material on record and

further stated that the onus to prove that there was given a thoughtful consideration to the arguments

manufacturing defect in the vehicle, was upon the advanced before us.

Complainant only.

10. The main issue for consideration in the matter is

7. In support of his arguments, the learned counsel for whether the vehicle in question suffered from any

the Petitioner, inter-alia, relied upon the following manufacturing defect or not. The version given by the

judgments made by the Hon'ble Supreme Court of India Complainant that the vehicle suddenly stopped on the

and this Commission:- road on 03.10.2009 during the warranty period, has

(I) Maruti Udyog Ltd vs Sushil Kumar Gabgotra & Anr, not been denied on record by the Opposite Parties. The
Citation - 2006 (IV) SCC 644; (II) Classic Automobiles vs Opposite Parties have taken the plea that on receipt of
Lila Nand Mishra & Anr, Citation - I (2010) CPJ 235 (NC); complaint about the defects in the vehicle, they
(III) Swaraj Mazda Ltd vs P K Chakkappore & Anr, Citation conducted repairs by replacing all concerned parts
-II (2005) CPJ 72 (NC); and (IV) Sushila Automobiles Pvt which could lead to any future trouble. They also stated
Ltd vs Dr Birendra Narayan Prasad, Citation - RP No. that the vehicle was absolutely road-worthy, after the
1652/2006 decided on 07.05.2010 repairs were carried out in the same and there was no
manufacturing defect etc. However, since the

8. The authorised representative for the Respondent/ Complainant was not satisfied with the repairs made
Complainant stated that the vehicle in question suffered and continued to highlight the defects in the vehicle, a
from manufacturing defect from the very beginning and joint inspection was carried out on 26.02.2010 in
hence, the direction given by the Consumer Fora below which, the representative of the OPs recorded the
for replacement of the entire engine of the vehicle, was remarks that no abnormality was found. However, the
in accordance with law. The vehicle had been Complainant recorded her dissatisfaction note saying
purchased by them from M/s. Harmony Honda, that, " the operation of second gear continues to be
Chandigarh on 29.02.2008 and it was within the extra hard and troublesome. The engine BHP be checked

warranty period, when it stopped suddenly on to eliminate the problem of dip in speed especially
03.10.2009 at the traffic light point located at the because the head assembly has been replaced because

intersection of Section 15 and 16, Chandigarh. He of a manufacturing defect in the engine."

immediately contacted the Opposite Party and asked 11. It is made out from above that the Petitioners failed to
them to take required action in the matter. The convince the Complainant that the defects in the vehicle
authorised representative explained that being an had been fully removed. Moreover, they did not take
experienced engineer himself, he could say with any steps to get the BHP test etc. done, so as to remove
certainty that once water had entered the head all doubts about the vehicle not working to its full
assembly, it had entered the cylinders also and caused efficiency. It has been stated in the reports produced
damage to the whole engine. It was necessary, therefore, by the Complainant that the original efficiency of the
to replace the entire engine. The authorised engine cannot be restored if the "Head Assembly" alone
representative stated that they had placed on record is replaced. It has further been stated that once the
expert technical opinions from two persons, who were coolant gets mixed up with the engine oil, a serious
both mechanical engineers and had stated categorically damage is done to the engine and under those
that if the coolant gets mixed up in the engine oil, a circumstances, it is necessary that the whole engine
serious damage is done to the engine. The experts had should be replaced. These reports have been given by
also opined that the replacement of head assembly experts who are qualified mechanical engineers,
alone, cannot restore the original efficiency of the expected to have an in-depth knowledge about the
engine. The authorised representative stated that the working of the automobiles. One of the experts, L.D.
Opposite Parties had failed to carry out the requisite Garg is a retired officer from the Mechanical Engineering
tests like the BHP test etc. and hence, they could not

take the stand that the vehicle was in perfect running department of a reputed Institute, known as the Punjab

condition. The authorised representative admitted that Engineering College (PEC), and now the PEC Institute of

the vehicle was being used by them, but it was not Technology. In the absence of any other technical/expert

running to its full efficiency. report to the contrary, it would be unfair to say that

36 F A D A Journal August 2018 | fada.in

Consumer Case Study

these reports should not be relied upon, while taking a 14. The learned counsel for the Petitioner/manufacturer
decision in this matter. has vehemently argued that as per settled law laid
down in various judgments/orders of the Hon'ble
12. One of the main thrusts of the argument taken by the Supreme Court and this Commission, it was incumbent
learned counsel for the Petitioner/manufacturer says upon them to replace only the defective part of the
that the onus to prove that there was manufacturing engine. However, the consumer fora below had
defect in the vehicle was upon the Complainant. In this directed them to replace the entire engine of the
regard, we would like to place reliance on a view taken vehicle, which was neither fair nor just. However, we
by this Commission in RP No. 381 of 2012 decided on would like to emphasise here that it was the duty of
17.10.2014/05.11.2014, "Ankur Seeds Private Limited & the Opposite Parties to ensure that the vehicle was
Anr. vs. Moti Lal & Anr.", in which it has been stated as free from any fault, imperfection or shortcoming in
follows:- the same after the necessary repairs were carried out
and for that purpose, they should have placed
"It is cardinal principle of law that ordinarily the sufficient evidence on record in the shape of technical/
burden of proving the fact rests on the party who asserts expert reports that the vehicle did not suffer from any
the affirmative issues and not on the party who denies defect. We, therefore, do not find any justification to
it. Nevertheless, there is distinction between the phrase make any modification in the findings recorded by
burden of proof and onus of proof. Explaining the said the Consumer Fora below.
distinction, in A. Raghavamma & Anr. Vs. A.
Chenchamma & Anr. AIR 1964 SC 136, a three-Judge 15. Further, it is a settled legal proposition that interference
Bench of the Hon'ble Supreme Court held that: there is in the exercise of the revisional jurisdiction can be
essential distinction between burden of proof and onus made only, if there is material defect or jurisdictional
of proof: burden of proof lies on the person who has to error in the orders passed by the Consumer Fora below.
prove a fact and it never shifts, but the onus of proof Such a view has been taken by the Hon'ble Supreme
shifts. Such a shifting of onus is a continuous process Court in their judgment in "Rubi Chandra Dutta vs
in the evaluation of evidence." United India Insurance Co. Ltd. [(2011) 11 SCC 269]". In
the present case, considering the concurrent findings
It has further been stated in the said order as follows:- given by the District Forum and the State Commission,
there does not seem to be any justification in making
"In my view therefore, to give effect to the Objective of any modification in the orders passed by them in the
the Act, its provisions have to be construed by resorting exercise of Revisional Jurisdiction.
to the Doctrine of 'Purposive Construction'. Considered
from that perspective, in my opinion, if a Complainant 16. It is further observed that in RP No. 4615 of 2012 filed
is able to create a high degree of probability of by the dealer M/s. Harmony Honda, the Petitioner made
deficiency on the part of the Opposite Party, the onus appearance on first few days of hearing and then
would shift on to the Opposite Party (the defendant) to stopped appearing. It is very clear, therefore, that they
discharge the onus to prove his denial." are no longer interested in pursuing the Revision
Petition any more, meaning thereby that they have
13. It is made out from the above that once the Complainant accepted the verdict given by the consumer fora below.
has placed reports from two technical experts on RP No. 4615 of 2012 deserves to be dismissed on ground
record, the onus had shifted to the OP to prove that the of non-prosecution as well.
defects in the vehicle had been fully removed, after they
carried out the repairs in the same. The contention of 17. Based on the discussion above, we do not find any
the Complainants that once coolant gets mixed up with justifiable reason for making any change in the orders
the engine oil, serious damage is done to the engine, passed by the consumer fora below, which are based
has not been controverted by the Petitioner by on sound and logical reasoning. The present Revision
producing any tangible evidence or technical report in Petitions are, therefore, ordered to be dismissed and
their favour, neither they have furnished any substantive the orders passed by the consumer fora below are
proof that the engine of the vehicle is working to its full upheld. There shall be no order as to costs
efficiency.

fada.in | August 2018 F A D A Journal 37



Perspective

The Future of Mobility in India’s McKinsey & Co.
Passenger Vehicle Market

Incumbents in the automotive industry should prepare for a million people living in cities by 2030—1.5 times the current
changing landscape as India grows into the world’s third- US population. Rising incomes will also play a role, as roughly
largest passenger-vehicle market and global trends disrupt 60 million households could enter the consuming class
the sector. (defined as households with incomes greater than $8,000
per annum) by 2025. At the same time, more people will join
India is expected to emerge as the world’s third-largest the workforce. Participation could reach 67 percent in 2020,
passenger-vehicle market by 2021. It took India around seven as more women and youth enter the job market, raising the
years to increase annual production to four million vehicles demand for mobility.
from three million. However, the next milestone—five
million—is expected in less than five years. Hitting that mark Some of them would leap straight into four-wheeler segment,
will depend on today’s rapid economic development and others will graduate from two- to four-wheelers. Over 44
continuing, with a projected annual GDP growth rate of 7 percent of the consuming-class households will be in 49
percent through 2020, ongoing urbanization, a burgeoning growth clusters—for example, Delhi is expected to have the
consuming class, and supportive regulations and policies. same GDP per capita at purchasing power parity as the entire
country of Russia in 2025. Cities like Delhi are a sweet spot
With this growth in mind, we set out to build a perspective on for car manufacturers to target.
the trends shaping the Indian market, the value proposition
for the automobile industry in India, and imperatives for In the future, these macroeconomic and demographic trends
winning in the market. This article explores all three. could shift pockets of growth in passenger-vehicle market.
Mini cars and hatchback cars have been the mainstay for the
Key trends shaping the Indian passenger-vehicle automobile industry in India, with share around 50 percent
market and growth of 6 to 7 percent between financial year 2014
and 2017. These segments will continue to maintain a
The market for passenger vehicles in the country will evolve dominant position, but the majority of growth is expected to
in the context of several larger trends, some specific to India, come from new segments such as compact SUVs, sedans, and
and some relevant globally. luxury vehicles.

Favourable macroeconomic and demographic trends Continued government focus on supporting the industry

Currently, the automotive sector contributes more than 7 Through the Automotive Mission Plan, the National Electric
percent to India’s GDP. The Automotive Mission Plan 2016– Mobility Mission Plan (NEMMP), and other initiatives, the
26 sets an aspiration to increase the contribution to 12 government seeks to achieve two objectives—facilitate long-
percent. term growth in the industry and reduce emissions and oil
dependence.
A number of economic trends could help in meeting this target.
Rapid urbanization means the country will have over 500

fada.in | August 2018 F A D A Journal 39

Perspective

In the Automotive Mission Plan 2026, the government and Furthermore, to enable immediate adoption, a lower goods
industry set a target to triple industry revenues, to $300 and services tax of 12 percent is applied to battery electric
billion, and expand exports sevenfold, to $80 billion. To meet vehicles, compared with 31 to 48 percent for other vehicles.
these aims, it is estimated that the sector could contribute
more than 60 million additional direct and indirect jobs, The development of India as a manufacturing hub
and the result could be improved manufacturing
competitiveness and reduced emissions. The World Economic Forum ranks India 30th on the global
To tackle emissions, the government seeks to bring local manufacturing index, which assesses the manufacturing
standards up to par with global standards, enabling India to capabilities of more than 100 countries. The government’s
leapfrog from BS-4 to BS-6 emissions (the Euro 6 equivalent) “Make in India” initiative has played an important role in
by 2020 (Exhibit 1). Additionally, India has implemented elevating country’s position. In the past three to four years,
Corporate Average Fuel Efficiency norms in which the India improved on nine out of ten parameters for ease of
manufacturers have to improve their fuel efficiency by 10 doing business.
percent between 2017 and 2021 and by 30 percent or more
from 2022. Although there is still a long way to go before India becomes
a leader in the manufacturing arena, companies in the
Additionally, to address pollution from old vehicles, the automotive sector are embracing this opportunity to leverage
government is working on an initiative that focuses on
formulation of end-of-life or scrappage policies. It plans to India as a hub for low-cost, high-quality
give incentive for the adoption of these policies with the help products. After creating a strong value
of lower taxes, discounts on purchase prices, and simple proposition in mini cars, India is gaining
compliance processes. global recognition in the compact sedan
To reduce dependency on oil imports, the government is and SUV category.
promoting adoption of alternative fuels through FAME2,
which is an extension of the original FAME (Faster Adoption The potential for global disruptions
and Manufacturing of Hybrid and Electric Vehicles) initiative.
Where “FAME1” offered incentives to electric vehicles (EV) The global automotive industry is
and hybrid EV buyers, FAME2 is expected to incentivize undergoing a cascade of disruptions that
electrification of the public-transport fleet of buses and taxis, will reshape it in unexpected ways, and
as well as facilitate demand for all types of alternative fuel. India will be no exception to this. Four
key trends will shift markets and revenue
pools, change mobility behavior, and
build new avenues for competition and
cooperation.

Electrification. Electrification has just
started to take off in India (Exhibit 2).
Factors such as declining prices of
batteries and supportive policies from
the government are stimulating the
segment’s growth. In 2017, only 2,352
units of electric vehicles were sold. However, early signs of
growth are visible through an order for 10,000 electric
vehicles by the government’s energy-service company known
as Energy Efficiency Services Limited. Likewise, local
governments in ten cities, with populations of one million or
more people, have placed orders for 390 electric buses during
phase one. In the next phase, the order book is expected to be
in the range of 1,000 e-buses.

The pros and cons of electrification continue to evolve.
Reduction in emissions and less dependency on oil imports
are clear advantages of electrification. The level of adoption
of electric vehicles will determine its impact on the
automobile industry. According to industry experts, people
carriers like buses, two- and three-wheelers, luxury passenger

40 F A D A Journal August 2018 | fada.in

Perspective

cab aggregators agree that the
industry will continue to grow,
becoming a significant alternative to
commuting in growing urban areas.
For example, two of the major cab
aggregators covered 500 million
trips together in 2016; that number
is expected to rise with innovative
models like cab-pooling and pay-
later options.

vehicles, and light commercial vehicles could see maximum The pace of this change likely depends
penetration by 2030. This will be followed by other passenger on three main triggers: first is asset
vehicles, medium- and heavy-commercial vehicles, and utilization, where cab aggregators’
construction equipment, which will take longer for EVs to ability to sweat their assets will
penetrate (Exhibit 3). determine their ability to expand and
offer more competitive rates to
From a customer point of view, the value proposition of electric customers while letting drivers earn.
vehicles will be reduced total cost of ownership, particularly Second, clarity in regulations will
in applications where asset utilization can be high. India is simplify compliance and encourage
yet to see mass-market EV platforms, but both incumbents more people to join the movement.
and new entrants are making efforts and the inflection point Third, several cities in India are
of volume growth may not be too far out. investing heavily to upgrade their
transport infrastructure. This is not
However, this trend requires careful planning and execution, just limited to building metros in big
as there are certain risks associated with it. These include cities. The role of shared-mobility players will evolve as
dependence on China for raw material, competitive transport infrastructure becomes mature. At the moment,
disadvantage in power electronics and battery rides and driver incentives are funded by private capital,
manufacturing, and lack of infrastructure—for example, there which makes the model economically viable. It will be
are fewer than 1,000 charging stations in India. Moreover, important to see how the industry fares once private capital
many consumers remain wary of electric vehicles because of dissipates.
the cost, range anxiety, and lack of options.
Connected vehicles. Connectivity is still in the early stages of
Shared mobility. Penetration of shared mobility in India adoption in India. A minuscule share of vehicles sold in India
remains low compared with China and the United States, come with factory-fitted connectivity features, but the mass
but a major shift is under way in densely populated cities adoption of smartphones, coupled with low data costs, could
where the use of e-hailing cabs costs less, comparatively, enable connectivity features to proliferate.
than driving a personal car. Major stakeholders from the
government to automakers to venture-capital funds and There are several connectivity-linked applications that are
picking up in India. Basic in-car entertainment, navigation,
and in-car connectivity (for example, through Bluetooth) have
evolved rapidly over the last decade. More advanced
telematics features that utilize car sensor data, driving
behavior, and vehicle-health parameters are also evolving,
particularly with aftermarket solutions. Several start-ups are
leveraging this data coupled with proprietary hardware and
algorithms to build solutions centered on improving safety
and security, tracking vehicle activity or theft, monitoring
and influencing driver behavior, and enabling timely repairs
and maintenance.

Car connectivity also leads to several risks around which
protocols and guidelines are at very early stages, not just in

fada.in | August 2018 F A D A Journal 41

Perspective

India but also globally. Data security, privacy concerns, Center for frugal engineering
cyberthreats are new challenges that vehicle connectivity
creates. Moreover, car connectivity affects not just OEMs but For a long time, India has been known as a hub for frugal
also several ecosystem players, including insurance engineering. Many global companies have used jugaad
companies, telecom operators, and technology companies. (roughly translated, frugal engineering) to develop products
that cost a fraction but offer enough value to attract demand.
We see some early signs of adoption visible in the ecosystem. For example, a leading global automobile company selected
For example, one major vehicle-insurance player in India a team of engineers in India to build a car for emerging
offers discounts on premiums if the vehicle has an antitheft markets. The team was asked to focus on ground-up
device. Several automakers have recently introduced innovation, heavy local sourcing, and local tastes and
connectivity features, including infotainment, navigation, and preferences. The result of this effort was a mini car sold for
communication interfaces. IRDA, the insurance regulatory around $5,000 that offered all the latest features, technology
body, has also invited views on pay-as-you-drive insurance comparable to industry leaders, and localization levels of
products that use telematics to affect premium prices. 98 percent. The company has been selling more than 8,000
vehicles every month and has become an attacker for
Autonomous vehicles. Autonomous vehicles (AVs) offer incumbents in the small-car segment.
promise to resolve some of India’s road-safety challenges.
Drivers and passengers in India see about 12% of global Embedded software
road fatalities, and more than 80% of road accidents involve
some aspect of driver error. AVs have the potential to reduce In the near future, most automobile manufacturers will have
traffic congestion and improve safety and fuel efficiency. to embed software in their vehicles to manage the complex
system of hardware such as sensors, processors, and
However, neither industry nor regulatory players are storage devices. This is a great opportunity for Indian IT
confident of rapid AV sales uptake due to fear of job loss, and auto-component players, many of whom have started
weak infrastructure (for instance, traffic), lack of developing a global play to gain the first-mover advantage.
technological readiness, and lack of self-discipline in the For example, Sasken Technologies is working with more than
driving culture. That said, certain advanced driver-assistance 100 Fortune 500 companies to apply embedded software in
systems features such as park assist, navigation service, anti- their products. In one such case, the company collaborated
lock brake assistance, electronic stability program, and with a North American Tier 1 supplier to develop a testing
others have started to make their way into vehicles in India. framework for telematics in a vehicle. Similarly, AllGo
And once the Bharat New Vehicle Safety Assessment Program Embedded Systems, which was acquired by Visteon
comes into full force these features will see significant uptake. Corporation in 2016, was one of the first movers in the
embedded multimedia and connectivity solutions space and
Value proposition of India became an important supplier to global automobile
manufacturers and tier-one suppliers. Its patented
Given these trends, what role might India play in the technology gave Visteon Corporation a strong play in Linux
automobile industry of the future? A few themes could emerge. and Android-based solutions.

Win here, win all Hub for low-cost, high-quality managerial talent

In many ways India is an archetype for emerging markets in For a number of years, multinationals have been using India
regions such as Latin America, Southeast Asia, and Africa. as a hub for low-cost talent. However, in the past few years,
The scale might be different, but these markets experience India has also been recognized for high-quality managerial
similar opportunities and challenges—a burgeoning talent. Indians are starting to occupy major positions across
consuming class, value-focused tastes and preferences, and industries such as consumer goods, automotive, banking
an evolving manufacturing ecosystem, among other and pharmaceutical, among others. Moreover, many such
attributes. companies are also leveraging local talent for driving
innovation through R&D centers. In the case of a leading
Companies that have developed products in India and for global conglomerate, more than a quarter of their
India have been able to find markets in other continents as innovations are done by the team in India. Likewise, in the
well. For instance, Ford India Private Limited is exporting case of an automotive OEM, the local team of managers
over 90,000 EcoSport cars per year, almost twice the amount and engineers are working on products that will drive growth
of domestic sales. Similarly, Hyundai and Volkswagen are in the medium to long run.
using their factories in India as a global hub for compact
hatch and sedans.

42 F A D A Journal August 2018 | fada.in

Perspective

Imperatives for winning in India embrace an operating model that involves nontraditional
partners as high-tech and automotive worlds merge. The sheer
As various local and global players expand their positions size of the opportunity in the industry has attracted many
in India, companies need to design winning strategies for the large tech companies and start-ups. As a result, incumbents
market. The following suggestions can improve the chances will have to adjust their operating model and prepare to
of winning. work closely with nontraditional companies in the value
chain.
Reimagine and move fast. Reinvent the business because
disruptions are either on the way or already here. It makes Empower the organization in India and invest in talent. Prepare
sense to adopt lean operations, bundle new products with a top team of 10 to 15 leaders and give them the autonomy to
solutions and services, and explore additional value-chain drive change. Invest in talent to avoid a skills war in the
opportunities. future.

Make in India for India. As Indian consumers move up the Embrace technology. Develop a clear and time-driven strategy
income ladder, their definition of value will evolve. It will lie for embracing digitization, big data analytics, and
in higher quality and features but lower prices when connectivity. Appoint a chief technology officer to build and
compared with global markets. manage the integration of new technologies.

Go granular. As pointed out earlier, a large share of demand India’s automotive industry and market are on the cusp of
in India will come from 49 clusters and rural pockets. It is major change. The opportunities generated by the disruptions
important for companies to outline their addressable ahead can change the competitive game for players willing to
clusters up front and invest in appropriate products. step beyond their traditional roles and engage with customers
in this new, digital environment.
Partner to build relevant assets. Prepare the organization to

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]

fada.in | August 2018 F A D A Journal 43

Global News

China's EV Startups: Boom or Bubble?

Hans Greimel of Automotive News

When setting up a would-be Tesla rival in China, a couple of But survival, is still a long shot for most of these startups.
factors are key. The field is crowded, and the technology is still in its infancy.
A fledgling electric vehicle maker needs, of course, oodles of Moreover, the growing pains for Tesla, which is still struggling
cash. It also must have unblinking government backing. And, with mass production and has yet to book an annual profit,
crucially, it must be steeped in entrepreneurial ambition. are sober warnings of the hurdles ahead.

Be it boom or bubble, China's EV outbreak is perfectly China already is the world's biggest EV market. Sales soared
embodied by one wannabe, Byton. 96 percent to 313,000 vehicles in the first half of this year,
The aspiring brand was founded only last September. It hasn't according to the China Association of Automobile
sold a single vehicle, and it is still building its first factory, Manufacturers. But some 110 EV makers are chasing that
on a muddy field here just northwest of Shanghai. But Byton pie, and most, like Byton, have yet to sell a single vehicle.
plans to start selling a high-tech EV crossover in China late Many industry watchers warn the bubble is bound to burst.
next year and, in 2020, ship it stateside.
That vehicle, to be called the M-Byte, is envisaged as a China plays by its own rules. Beijing is fixated on EVs as a
smartphone on wheels. crucial next-generation technology China must dominate.
Concepts are replete with a mammoth dash monitor — more
than 4 feet wide and 10 inches high — navigated by gesture Its authoritarian government has an action plan called Made
control. The battery, offered in two sizes, will deliver a driving in China 2025 that spells out that ambition and calls for
range up to 329 miles. And, costing a modest $45,000. China to lead in autonomous driving & artificial intelligence.
If that all sounds too good to be true, executives hope to have
their Nanjing factory ramped to peak production of 300,000 By 2022, Beijing wants annual production of new-energy
vehicles within five years. Oh, and that output will span at vehicles to reach 2 million units. The category includes plug-
least two nameplates — including an upcoming K-Byte sedan in hybrids and green alternatives such as fuel cell vehicles,
with Level 4 autonomous driving ability. but in practice, it means mostly battery-powered full electrics.
What makes CEO Carsten Breitfeld, a former BMW Group
Vice President, think he has any chance in pulling it off? In a New players
word, China.
Indeed, China has emerged as a global incubator for next- Such top-down policies make EVs must-haves for old-guard
generation electrified driving and a potent Silicon Valley rival. manufacturers, but they also entice new players such as Byton
The roster of upstarts is long and growing. into the game. A California-style carbon trade program, for
Byton's founder and Co-Chairman, Feng Changge, is a Chinese example, begins next year & adopts more stringent requirements
auto dealer who was inspired to start making cars for himself in 2020. EVs get the most generous credits — the longer their
after a one-hour sit-down with Tesla CEO Elon Musk. range, the more points they generate for their OEM.

China further stokes EV sales with subsidies of up to 67,500
yuan ($9,800) per vehicle and other gimmicks, such as special
allowances for limited license-plate registrations in big cities.

Local governments compete for factories and jobs by doling
out sweetheart loans.

To understand how China does it, take a closer look at Byton.

Feng found his EV inspiration only in 2014. As chairman of
Harmony Group, one of China's largest luxury-brand auto
retailers, he had just begun collaborating with Tesla in aftersales.

Feng wanted to play a part and soon began assembling what
are known in China as the "four haves": capital, technology,
product and factory. They are considered the keys to success.

A scant four years later, he is nearly there.

Capital

In the beginning, Feng took the natural approach for China.
He partnered with two of its biggest tech moguls: Tencent

44 F A D A Journal August 2018 | fada.in

Global News

Chairman Ma Huateng and Terry Gou, Chairman of Foxconn, vehicles ready for commercialization around the end of 2020
the electronics giant best known for assembling the Apple or early 2021. Customers will be able to use that hands-off
iPhone. driving feature only in limited areas that support it, Breitfeld
said.
They began recruiting talent and aimed high.
Byton sees a crossover as key to a strong launch because
In their sights was the BMW team that engineered the i series consumers are flocking to the segment, not only in the U.S.,
of electrified vehicles, including the i3 and i8. They poached but in China.
Breitfeld, a German mechanical engineer who was head of i8
development. Other BMW colleagues soon followed. Crossovers are the leadoff products for a host of EV
newcomers, including Singulato, WM Motor, Xpeng and Nio.
But they joined with a caveat. The foreign managers wanted Many are due this year. Pricing is expected to run the gamut,
unencumbered control, without the interference of big but most, like Byton, are seeking to undercut Tesla's Model X
external investors tied to Tencent and Foxconn. So Byton with sticker prices less than $50,000.
turned to traditional capital markets and more hands-off
investors. Byton seeks to contain cost partly by adopting a direct-to-
consumer retail model similar to Tesla's. Breitfeld says Byton
As of June, the haul from those funding sources, including a can trim costs by up to 20 percent that way.
large state-owned automaker and the world's largest
producer of lithium ion batteries for vehicles, totaled around In China, Byton plans to open up to 30 brand stores by year end.
$800 million, Breitfeld said. That's not a lot by global
standards; it's less than Toyota's annual R&D budget. Before selling any cars, Byton must make them. And here's
where things get tricky.
But the secret sauce in China is sometimes unseen.
Government assistance rang up to the tune of $800 million, As of June, a prototype trial workshop was the only building
Breitfeld said, including subsidies and guaranteed loans from at the site of Byton's future assembly plant in a sprawling
Nanjing to build the plant. Byton doesn't have to repay the industrial park on the outskirts of Nanjing. About two dozen
loan until it turns profitable, and its own investment amounts vehicle bodies occupied the sparkling premises, but workers
to less than 20 percent of the plant's cost, Breitfeld estimated. had built just three complete prototypes. Those were heading
to crash tests.
Breitfeld and his international team of engineers, designers
and production specialists seek to channel their wealth of Before starting production next year, Byton plans to build
expertise into cutting-edge technology, not just another car. just 200 crossovers for validation and other prototype testing,
a mere handful compared with the way old-school players
Byton's cars make a hard sell on technology, from the operate.
expansive display panels — as wide as the entire car — to
the tablet embedded in the steering wheel. Instead, he camped out stateside, in a kind of self-imposed
exile, to feverishly raise more money. He eventually did. But
That's a top strategy for all of China's EV startups. They the chastened Faraday Future downsized its ambitions and
position themselves as a new breed born from the convergence opted to build the FF 91 at a refurbished former Pirelli tire
of old-school automakers and futuristic tech companies. factory in central California.

Byton's very name seeks to telegraph technology. It is short Even that modest achievement is miles ahead of most aspiring
for "bytes on wheels," a nod to its ambition of developing an competitors from China. Analysts caution that it is too early
automobile that is a next-generation smart device. to say which startups are making it and which are faking it.

Product Zhang is among those expecting an industry shakeout.

Byton's planned crossover and sedan will use the same The ranks of EV players could thin as early as 2020, he said,
platform and electric powertrain, and the batteries will come when Beijing starts pulling the plug on its generous EV
in two variants. subsidies. At the same time, the threat of U.S. tariffs looms
over hopefuls such as Byton that are counting on exports to
The base model M-Byte crossover gets a 71-kilowatt-hour buttress the business.
battery with a 249-mile range; a more powerful 95-kWh
battery option will achieve 329 miles. The K-Byte sedan will But those that survive still will be able to tap a vast pool of
use the same batteries but have a longer range because of young, wealthy customers salivating for something fresh.
better aerodynamics and a lighter weight, Breitfeld said. EV optimists say capturing just a sliver of the biggest and
fastest-growing auto market on earth guarantees handsome
Byton plans to start rolling out autonomous K-Byte prototypes returns
as early as this year, with an eye toward making Level 4

fada.in | August 2018 F A D A Journal 45



News Basket

Ashok Leyland Unveils BS4 Engine - ‘Innoline’

Ashok Leyland unveiled Innoline, its latest innovation for operating cost, lower maintenance and no hassles of AdBlue.
commercial vehicles on August 16. iEGR is already a success in the Indian market, with more
than 1 lakh vehicles sold last year. And now we are making it
After the stupendous success of the first mechanical pump even simpler by introducing the Innoline technology for our
for BS3 engines in India, and the very well received iEGR H-series engines. This technology will have an inline pump
(Intelligent Exhaust Gas Recirculation) technology, Ashok for our BS4 engine, taking iEGR further and giving our
Leyland has combined both these indigenous innovations to customers an even simpler system, enabling easier
successfully introduce the inline pump for BS4 engines for maintenance and other cost efficiencies. This technology is
the first time in India. Innoline combines the efficiency and also future-ready as this can also be upgraded to BS6
performance of the iEGR technology with the simplicity of the emission norms.”
renowned “sada” or ‘Inline’ pump. Ashok Leyland is the only
OEM in the world to achieve this innovative feat, which would Ashok Leyland wins order for 300 Double Decker
bring immense benefits to its customers. buses in Bangladesh

Ashok Leyland announced on August 17, the winning of an
order from Bangladesh Road Transport Corporation (BRTC)
for the supply of 300 Ashok Leyland buses. The order is for
Double Decker buses which will help in decongesting the
busy roads of Dhaka. This procurement is against a tender
under Indian Line of Credit. The delivery will take place within
eight months from now.

Innoline, as the name suggests, is the innovative inline pump Announcing the order win, Vinod K Dasari, said, "Bangladesh
or the upgraded “SADA” pump. This inline pump is well known is one of our key export markets and this order further
in the Indian commercial vehicle industry and is preferred strengthens our position. This order win in Bangladesh is yet
by the drivers and service mechanics alike. Apart from the another testimony of our leadership in the country. Our in-
benefits of the iEGR technology, like lower cost of operations depth understanding of public transport and understanding
and no hassles of AdBlue (Urea), Innoline makes the of the market and customers is what differentiates us and
maintenance of the engine much simpler for the mechanics, has helped us win this order.
and gives a hassle-free service experience to the customers.
These will result in higher profits for Ashok Leyland customers, “Exports has been a strong focus for us to de-risk from
delivering on the brand promise of ‘Aapki Jeet, Hamari Jeet’. cyclicality in Indian market and to globalize our product
portfolio. This is a significant win for us and builds on the
Vinod K Dasari, Managing Director, Ashok Leyland, said, strong export growth we had last year”
“Innovation is making things simpler and less complicated.
With BS3 inline fuel pump and iEGR, this is exactly what we
did – delivering several benefits to our customers like lower

fada.in | August 2018 F A D A Journal 47

News Basket

Maruti Suzuki Swift AMT Introduced in Top Variants

Maruti Suzuki India announced on August 8, the introduction pedestrian safety and child safety. At the launch, AGS
of Auto Gear Shift (AGS) option in top-end ZXi+ and ZDi+ transmission was offered in VXI, ZXI, VDI and ZDI variants.
variants of its best seller – new Swift.
Introducing AGS on Swift top-variants, R S Kalsi, Sr ED (Mktg
& Sales), MSIL, said, “Swift has always scored high on
customers’ expectations. With the latest evolution, the all-
new Swift has reached the next level of customer delight.
AGS has been very well appreciated by our Swift customers.
We had customer feedback seeking convenience of AGS in
the high-selling top-end variants. Accordingly, we are now
offering AGS in the top-end ZXI+ and ZDI+ variants. This will
further strengthen the brand Swift and enhance the
popularity of Maruti Suzuki’s acclaimed two-pedal
technology.”

Maruti Suzuki had launched the third generation of its iconic Customers opting for ZXI+ and ZDI+ variant will get the
and blockbuster brand – Swift at the Auto Expo in February convenience of two-pedal technology bundled with superior
2018. The all-new Swift comes with a new exciting design, features such as LED Projector headlamps, auto headlamps,
enhanced performance and advanced passenger safety, LED DRLs, precision cut two-tone alloy wheels, reverse
parking sensors with camera, smartplay infotainment system
with navigation and voice command, among others.

Honda Cars Introduces Special Editions of WR-V, City and BR-V

Honda Cars India Ltd (HCIL) announced the introduction of new features are: Special Edition - Alive Emblem; 16-inch
special editions of three of its models Honda WR-V, Honda Diamond Cut Alloy Wheel; Rear camera with IRVM display;
City and Honda BR-V on August 6. These special editions Rear parking sensors; Premium seat cover with special edition
include include Honda WR-V - Alive Edition, City - Edge Edition logo; Premium steering wheel cover; and Honda Connect
and BR-V - Style Edition and have been introduced to mark (With 1st Month Subscription free).
the beginning of festive sales in India.
Additionally, WR-V now comes with a new exterior colour
Speaking about the introduction of these special editions, - Radiant Red Metallic and is available in all grades of
Rajesh Goel, SVP & Director, Mktg & Sales, HCIL, said, “With WR-V.
the onset of festive season, we are extremely delighted to
offer the special editions of Honda WR-V, Honda City and Honda City - Edge edition
Honda BR-V. We are confident that these will be appreciated
by our customers for the enhanced value they offer.” The The Honda City - Edge edition is based on SV grade and
comes enriched with: Special Edition Emblem; 15-inch
Honda WR-V - Alive edition Diamond Cut Alloy Wheel; Rear parking sensors; and Rear
camera with IRVM display.
The Honda WR-V - Alive edition comes with a host of comfort,
convenience and safety features and is based on S grade. The Honda BR-V - Style edition

Honda BR-V Style edition with
its enriched and stylish looks
will be available across
grades. The key features
include: Special Edition
Emblem; Front Guard; Tailgate
Spoiler; Body side moulding;
and Front & rear bumper
protector.

48 F A D A Journal August 2018 | fada.in

News Basket

Volvo Cars Expands its Footprints in India

Inaugurate new dealership - Central Volvo in Indore

Volvo Cars debuted in Madhya Pradesh by opening its first Spread in an area of 18,500 sq ft, the new state-of-the-art 3S
dealership – Central Volvo in Indore. The new showroom Showroom and Service facility is located in the automotive
was inaugurated by Charles Frump, MD, Volvo Car India. hub of Dewas Naka.

Speaking at the inauguration, Charles Frump, said, “The
market for luxury cars is growing rapidly in Madhya Pradesh
and the future is very promising. We believe our presence in
this region will help us reach our mid-term goal of doubling
our segment share by 2020. I am confident our partner Central
Volvo will support us in achieving great success here.”

Narendra Singh Tomar, Dealer Principal, Central Volvo said,“It
feels wonderful to be associated with Volvo Cars and we are
confident in providing class-leading customer experience in
Madhya Pradesh. There is already a keen interest in Volvo
with deliveries lined-up today and I am sure all our products
will be extremely well received herein the region as Central
Volvo contributes to the growth of Volvo Cars in India.”

BMW Opens First Integrated Dealership Facility - Krishna
Automobiles - for BMW, MINI and BMW Motorrad

BMW India announced the opening of Krishna Automobiles, in all processes of Service, Spare-parts and Business Systems
its first integrated dealership facility for BMW, MINI and to ensure that customers receive best-in-class post sales
BMW Motorrad in Chandigarh. ownership experience.

Located at 125 Industrial Area, Phase 1, Chandigarh, Krishna The BMW showroom has a seven car display and a four car
Automobiles is headed by Satchit Passi. display zone for BMW Premium Selection cars. The MINI
showroom features a three car display along with display of
Vikram Pawah, Chairman, BMW Group India said, “The BMW MINI Lifestyle and Accessories. The BMW Motorrad area will
Facility NEXT Concept is our view of how retail will shape showcase 12 motorcycles along with exciting lifestyle
and play a crucial role in the brand’s interaction with the merchandise and accessories
customers. With this concept, we have integrated all three
brands - BMW, MINI and BMW Motorrad under one roof,
providing a full spectrum of our products and services. We
are delighted to bring the first BMW Facility NEXT Concept
showroom in the country to Chandigarh.”

Sachit Passi, Dealer Principal, Krishna Automobiles, said,
“Krishna Automobiles is proud to present India’s first BMW
Facility NEXT concept in Chandigarh. The culmination of BMW,
MINI and BMW Motorrad in a unique format offers an
unrivalled dealership experience. Krishna Automobiles will
be instrumental in offering the renowned ownership and
aftersales experience to our customers. We will further tap
the growing luxury car market potential of the city and serve
our esteemed clientele with greater passion.”

Spread over a total area of 50,500 sq. ft., the ultra-modern
dealership facility delivers extremely high quality standards

fada.in | August 2018 F A D A Journal 49

Upgrades

New Generation Mitsubishi Outlander Launched in India

Mitsubishi Outlander returns to India in an all-new avatar language. The new Outlander comes with LED powered
with a premium design language, more features, seven headlamps, daytime running lights, taillights, and even
seats and only a petrol engine option. fog lamps. The multi-spoke alloys look very premium and
Bringing back its popular nameplate to India, Mitsubishi the simple yet sharp styling makes it an urban-centric
Motors has introduced the new generation Outlander SUV offering. The new SUV is also wider and longer than the
in the country on August 20. The new Mitsubishi Outlander older model.
SUV is available in a single variant and is priced at
Rs. 31.95 lakh (Ex-Showroom, Mumbai). The cabin too has been completely reworked on the new
generation Mitsubishi Outlander with the model getting a
The new model gets a complete overhaul over the previous
generation version that was discontinued in India in 2013, beige and black
but this time too, the SUV comes to the country as a colour scheme, and a
Completely Built Unit (CBU) with only a petrol engine seven-seat layout.
underneath. The Outlander takes on the Skoda Kodiaq, With the affinity
Toyota Fortuner, Volkswagen Tiguan and the likes in the towards multiple
segment. seats in the country
Uttam Bose, Managing Director, Hindustan Motors Finance in SUVs, the
Corporation Ltd, said, "The Outlander has established itself Outlander fits right
as an outstanding product in the premium SUV segment. in. The cabin also
With its contemporary new look, the dominant toughness gets a 710-watt
of Outlander has never been more appealing and we believe Rockford Fosgate
that it will set new benchmark in its segment." audio system and a
While the previous generation version was inspired by 6.1-inch touchscreen
the Lancer Evo X design language, the new generation infotainment display
Mitsubishi Outlander (on sale globally since 2015) gets a for controlling all
more plush and premium look. The front grille is wider the functions. The
and more chrome rich while retaining the sleek design SUV also comes with
dual zone climate
control, electric
sunroof, electric
parking brake with
auto hold function, auto headlamps and rain sensing
wipers. The seats are upholstered in leather completing the
premium look.

Powering the new Mitsubishi Outlander is a 2.4-litre MIVEC
petrol engine that is capable of belting out 165 bhp and
222 Nm of peak torque. The SUV is offered only with a 6-
speed CVT with Multi Select 4WD system and comes with
paddle-shifters. The Outlander can do the 0-100 kmph
sprint in 11.1 seconds.

With respect to safety, the Mitsubishi Outlander is loaded
with all the goodies including seven airbags, ABS with EBD,
ASC and Hill Start Assist. The new Outlander will come
with a set of 16-inch alloy wheels which will get an
ornament design, and will be standard. Moreover, the new
Outlander will come in 7 exterior colours- Black Pearl,
Cosmic Blue, Orient Red, White Solid, White Pearl and
Titanium Grey.

50 F A D A Journal August 2018 | fada.in