FADA Journal - January 2018

Office Bearers contents

President PRESIDENT’s MESSAGE 7 Welcome to the Tenth Auto Summit

JOHN K PAUL INDUSTRY TRACK 8 Low Base Boosts Auto Sales
Popular Vehicles & Services Pvt Ltd
Kuttukaran Centre, Mamangalam, Kochi INDIAN ECONOMY 10 Trade Deficit Widened to a Three-year High | WPI, too,
Tel: +91-484-234 1134 / 7872 / 5013 surpasses expectations
E-mail: [email protected];
CONSUMER CASE STUDIES 12 NCDRC : Tata Motors Ltd & Anr - Petitioner
[email protected] Versus

Vice President Bishamber Nath Sikka & Anr - Respondents

ASHISH KALE PERSPECTIVE 15 Facing Digital Disruption in Mobility as a Traditional Auto
Provincial Automobile Co. Ltd Player - McKinsey & Co.
Kingsway, Near Railway Station, Nagpur
Tel: +91 98226 96777 TECHNOLOGY 18 Driving Success - Accenture
E-mail: [email protected];

[email protected]

CEO

SAHARSH DAMANI
Federation of Automobile Dealers Associations
805, Surya Kiran, 19, K G Marg, New Delhi
Tel: +91-11-6630 4852, 2332 0095
E-mail: [email protected]; [email protected]
Web: fada.in

ADVERTISERS’ INDEX UPGRADES & VARIANTS 35 • 2018 Audi Q5 Launched in India
• Hyundai Introduces VERNA with 1.4 L Petrol Engine
Front Inside Cover 2 • Datsun Rolls-Out redi-Go AMT in India
Tata Capital Financial Services • Honda Introduces Special Editions of City, Amaze and WR-V
• Yamaha Introduces New FZS-Fi Motorcycle
Back Inside Cover
Tata Motors 59 40 • Mercedes-Benz Unveils India’s First BS-VI Compliant Vehicles
• Tata Motors Introduces TIAGO AMT in Bangladesh
Inside Pages NEWS BASKET • Hybrid and Electric Vehicle Growth in India Driven by
Government Incentives and Changing Customer Attitudes
• Mahindra & Mahindra Financial Services 3 • BharatBenz Delivers Euro-V Ready Trucks in New Delhi
• SsangYong Global Sales Record 143,685 Vehicles in 2017
• Bagga Link 4 • Kia Motors India Announces Two Senior Management
Appointments
• Provincial Group 6

• Marikar Group 14

• Talwar Group 23

• Maurya Motors 24

• Bhandari Automobiles 26

• Topsel Toyota 28 COMPETITION LAW 45 Competition Law Updates - G R Bhatia

• Shriram Transport Finance 34

• Ralas Automobiles 38

• SAMKRG Pistons & Rings 43

• Carazoo Online Solutions 46 NADA MUSINGS 48 Major developments affecting Automobile Industry in US

• AMPL 47

• Olympia Honda 50

• Prime Honda 50

• United Group of Institutions 51 SALES REPORT 52 Vehicle Sales & Exports and Y-o-Y Growth - December 2017

• Satyam Centre of Professional Excellence 54

• SKF Group 55

• Popular Vehicles & Services 58

For Advertisement query, please contact Printed and Published by G K Ahuja on be5half of Federation JoafnAuuatroym2o0b1ile8 Dealers
Ankush Sethi at [email protected]
Associations, 805, Surya Kiran, 19, Kasturba Gandhi Marg, New Delhi-110001.
Printed at Sita Fine Arts P Ltd, A-22, Naraina Industrial Area, Phase-II, New Delhi-110028.
Editor: G K Ahuja



President’s WELCOME TO THE TENTH AUTO SUMMIT
Message Come, witness and learn how we can “Control Our Destiny”

Dear Dealer Colleagues,
First things first! I am happy to share that after making synchronised moves at both the Centre and
the States, we have succeeded in scratching the tip of the iceberg! The GST Council on 18th January
has decided to reduce the goods and services tax (GST) on used cars to 12% and 18% (depending on
the size of the vehicle) from the existing range of 28% and has also scrapped the cess (varying from
1-15%). Prior to this change, the effective GST rate was in the range of 29% to 53% on the gross
margin including mandatory cess. The new rates will be applicable from 25 January. In addition
there is a relief for all Capitalised vehicles that include Demo cars. The tax needs to be paid only on
the difference between the depreciated value and the sale price. Rest assured that your Federation is
working hard in getting resolution to all the other issues affecting the Auto Retail Industry.
For the first time F A D A in association with SIAM is organising ‘Dealers Day’ exclusively for Automobile
Dealers on Day Zero of Auto Expo i.e. Thursday, the 8th Feb’18. All the delegates who register for Auto Summit will receive one
complementary pass from F A D A. This reserved day will provide a great opportunity to all of us to exclusively network with
our OEM’s and also attend the inaugural function of Auto Expo 2018 in Greater Noida.
As you know that beginning from the year 2000, F A D A has been organizing a biennial Convention of Automobile Dealers, viz.
Auto Summit at New Delhi coinciding with the Auto Expo. All previous summits were hugely appreciated as we witnessed
participation of 700-800 delegates representing dealerships, vehicle manufacturers, oil companies, banks, insurance &
finance companies and media from all over the country and abroad. Practically, all senior Government Ministers & officials
and industry leaders addressed at this forum on various issues, including growth prospects and attendant challenges,
human resource management, customer satisfaction, viability, relationship management, etc. The Summit deliberations
helped in creating a tremendous awakening and identifying the challenges & opportunities for automotive business as a
whole. With F A D A State Chapters now active, we are expecting more than 1000 delegates to grace the upcoming mega event!
The 10th Auto Summit on the theme ‘Control Our Destiny’ is scheduled for Friday, the 9th February 2018 at Hotel Le Meridien,
New Delhi. This Summit will showcase that the future of automobile industry belongs to autonomous and e-mobility. I am
also delighted to share that two Cabinet Ministers will be gracing the Auto Summit. Mr Nitin Gadkari, Union Minister of Road
Transport, Highways & Shipping, has consented to be the Chief Guest in the Inaugural Session and Mr Suresh Prabhu, Hon’ble
Minister for Commerce & Industry, will be the Guest of Honor during the launch of F A D A Academy. The academy programs
will prepare current and future dealer leadership to build front-end and back-end processes, improve customer and technical
operations and enhance financial results of each department in the dealership.
This Summit will see Keynotes, Panel discussions, one-on-one interactions and many such interesting topics getting discussed
with the key industry decision makers who will explore the possibilities which lies ahead of us and how can we, as Industry
stake holders ‘Control Our Destiny’.
Along with the Summit and towards the evening, we are organizing F A D A Awards, powered by Autocar Professional.
Mr Prakash Javadekar, Union Minister for Human Resource Development has kindly consented to grace the evening as its
Chief Guest. This is India’s only platform which recognizes and rewards the excellence in automotive retail. I hope you have
registered your dealership for this Oscar of our Industry.
Seeing the huge response and interest expressed by dealer fraternity, F A D A is taking a delegation of 50 plus dealers to attend
NADA 2018 Convention from March 22-25, 2018 in Las Vegas. I strongly recommend that you attend the same and witness
how the future of auto retail is shaping up. For more details, you can get in touch with F A D A Secretariat at [email protected]
I strongly recommend that you register for our mega event - Auto Summit. You can register online at http://autosummit.fadaindia.org.
You can also register offline by filling the form which is published in this edition. Excited to meet you at the Summit,
With best wishes.
Yours sincerely

John K Paul

7 January 2018

Industry Track Low Base Boosts Auto Sales

The year 2017 was dynamic for the auto industry with series Hyundai Motor India Ltd (HMIL) sold 40,158 units in domestic
of disruptions from Demonetization to GST roll out. Despite market during December 2017, slightly up 0.3% (December
the challenges and a temporary slowdown, industry hit back 2016: 40,057 units). The company’s exports at 22,741 units
with a steady growth in sales. during the month, however, impressively increase by 32.9%
The auto sector also benefited from the year-end discounts y-o-y.
as a precursor to the price hikes ranging between 2-5 per HMIL registered the record sales by surpassing its Calendar
cent, announced by vehicle manufacturers kick-starting from Year 2017 Business Plan with highest-ever domestic sales
January 2018. of 5,27,320 units and Cumulative sales of 6,78,221 Units.
Passenger vehicle sales were a mixed bag in December. OEMs Commenting on CY 2017 Performance, Y K Koo, MD & CEO,
like Maruti Suzuki India, Tata Motors and Honda Cars India HMIL, said, ”The Calendar Year 2017 has been an Year of
registered strong growth while Mahindra & Mahindra, Ford Performance for Hyundai Motor India surpassing its
India and Toyota Kirloskar in negative terrain. The country’s business plan of 2017 registering highest-ever domestic
second-largest carmaker, Hyundai Motor India, posted nearly volume of 5,27,320 units, a growth of 5.4% on strong
flat volume growth. Commercial vehicles have led from the performance of the newly launched super sedan Next Gen
front in domestic sales. CVs witnessed a healthy double-digit VERNA along with GRAND i10, ELITE i20 and CRETA. The positive
growth during December because of good monsoon, improved momentum in Urban and Rural retail sales supported with
rural sentiment and increased production of BS-IV strong After-Sales Service and Low-cost of ownership has
compliance vehicles; signs of revival in three-wheeler sales gained customer confidence to become most loved and
following government’s decision to end permit system and trusted brand in India.”
revival in exports due to improving global economy. Nipping UV major, Mahindra & Mahindra (M&M) witnessed de-growth
at their heels was the two-wheeler segment, wherein the of 7.0% in passenger vehicles segment (which includes UVs,
majority of the OEMs posted a robust performance, mostly Cars and Vans) domestic sales of 15,531 vehicles, against
double-digits. 16,698 vehicles a year ago. However, the total domestic sales
PASSENGER VEHICLE SALES – LEADER CONTINUED ITS MOJO of company stood at 36,979 vehicles during December 2017,
Total passenger vehicle sales in domestic market at 239,712 as against 34,411 vehicles during December 2016, registering
units in December 2017 grew by 5.22% from 227,823 units a growth of 7%. In the Medium and Heavy Commercial Vehicles
during the same month last year. segment, M&M sold 1,193 vehicles for the month, registering
Maruti Suzuki India Ltd (MSIL), which is aiming at a target of an impressive growth of 151%. Exports for December 2017
2.0 million unit sales annually by 2020, clocked a 9.4% uptick stood at 2,221 vehicles, a growth of 8%.
in its passenger vehicle sales that stood at 137,146 units in Commenting on the monthly performance, Rajan Wadhera,
December 2017, compared to 125,418 units a year earlier. President, Automotive Sector, Mahindra & Mahindra, said,
The company’s domestic sales accounted a growth by 11.6 “We are happy to have ended December 2017 with a growth
per cent to 126,416 units from 113,236 units in the same of 8%. Our commercial vehicles growth for December has
month last year. been encouraging at 24% and we are particularly buoyed by
Sales of mini segment cars, including Alto and WagonR, our ongoing strong performance in the MHCV segment which
witnessed a 2.0% uptick to 32,146 units during the month under indicates vibrancy in the economy. Global automotive trends
review from 31,527 units in December 2016. Even the sales such as electric vehicles and shared mobility will be key
of company’s flagship mid-sized sedan Ciaz fell by 35.8%, indicators for 2018 and at Mahindra we would continue to
continuously in two months, to 2,382 units during the month. be a key and innovative player.”
Meanwhile, the compact segment of Maruti Suzuki India Continuing its turnaround, another home-grown player, Tata
featuring offerings like Swift, Estilo, Dzire and Baleno went Motors sold 16,089 passenger vehicle, including cars, utility
on post growth of 23.2% in December. Sales of company’s vehicles and vans in domestic market during December 2017,
utility vehicles, including Gypsy, Grand Vitara, Ertiga, S-Cross which marked a growth of 33.9%, vis-a-vis 12,012 units in
and compact SUV Vitara Brezza increased by 19.9% to 19,276 December last year. The company recorded the highest ever
units in December, from 16,072 units in the same month of December sales for Passenger Vehicles since 2012 and the
2016. retail sales for this month was also the highest in last 6

January 2018 8

Industry Track

years. Strong performance of Tiago, Tigor, Hexa and Nexon Growing faster than industry, Honda Motorcycle and Scooter
drove the growth momentum for Tata Motors. The UV segment India posted a huge surge of 77.1% in the domestic market,
recorded a growth of 406% over last year on the back of with total sales of 390,439 units (including exports) in
strong demand of the newly launched Nexon and Hexa. December 2017, as against 228,763 units in same month
Riding on strong demand of Honda City and WR-V, Honda last year. ”New capacity expansion, three new product
Cars India Ltd (HCIL) clocked sale of 12,642 units in India, launches and increased network penetration in tier-II and
witnessing a growth of 25.5% in December 2017 (December tier-III markets resulted in Honda successfully breaching the
2016: 10,071 units). The model-wise domestic sales break- 5 million sales mark for the first time in 2017,” HMSI Senior
up of HCIL in December was as follows: WR-V – 3,760 units, VP - Sales & Mltg, Yadvinder Singh Guleria said.
City – 4,365 units, Jazz – 1,891 units, Amaze – 1,415 units, BR- TVS Motor registered massive growth of 38.9% with sales
V - 880 units. (including exports) increasing from 184,944 units in
Yoichiro Ueno, president & CEO, Honda Cars India, said, “2017 December 2016 to 256,909 units in December 2017.
has been a milestone year for Honda Cars in India, as our The Pune-based bike maker, Bajaj Auto notched up 29.7%
best seller Honda City completes two decades of success in increase, selling 292,475 units in December.
India. Honda City has emerged as the highest selling mid- Popular motorcycle manufacturer, Royal Enfield clocked
size sedan during 2017.” 16.1% uptick in its domestic sales that added up to 65,367
Toyota Kirloskar Motor (TKM) sold a total of 10,793 units in units in December this year (December 2016: 56,316 units).
the domestic market in December 2017, a negative growth by Domestic sales of India Yamaha Motor at 44,517 units in
15.3% (December 2016: 12,747 units). However, the company Dec’17 were slugging vis-a-vis 49,775 units, a year ago.
recorded a growth of 5% in the annual sales (January to Suzuki Motorcycle India Pvt Ltd (SMIPL) reported a strong
December) in 2017 as compared to 2016 and achieved the 51.0% rise in its total sales at 40,017 units in December as
milestone of recording the highest ever IMV sales in 2017 against 26,497 units in the same month last year.
(73,000 units of Innova and 24000 units of Fortuner) in India. COMMERCIAL VEHICLE RIDES SIGNIFICANT GROWTH
N Raja, Director & Sr VP, Sales & Mktg, TKM said, “Toyota has The commercial sector bounced back strongly after setbacks
sustained a positive growth since last three months. With from demonetization and the BS-IV transition in 2017 with a
maximum utilization of Plant 1 and maintaining lean massive performance of 52.6% in domestic sales at 82,362
inventory, we are trying to reduce the waiting period of Innova units in December 2017 as compared to 53,966 units in
and Fortuner for our customers.” December 2016. M&HCV recorded the sale 39,439 units vis-
Ford India reported a decline of 8.6% in domestic sales y-o-y a-vis 22,788 units in December 2016. The segment grew by
to 5,087 units in December 2017 compared to 5,566 units a 73.0%. However, passenger carriers in this segment have de-
year ago, while exports stood at 22,171 units (December grown by 20.4%.
2016: 17,904 units). Tata Motors’ commercial vehicles sales in domestic market
Likewise, Renault India also registered a negative percentage in December 2017 were at 38,538 units, a growth of 61.8%
rate of 22.1 % y-o-y to 8,763 units (December 2016: 11,244 compared to 35,825 units in December 2016.
units) in its domestic sales in December 2017. Ditto, Ashok Leyland posted a huge surge of 84.4% in December
TWO-WHEELER SALES PICK UP PACE IN DECEMBER 2017 with total sales of 17,884 vehicles, as against the sales
The last month of calendar year 2017 registered healthy of 9,700 vehicles in the same month last year.
growth of 41.5 per cent to 1,287,592 units YoY in the domestic Commercial vehicle sales of Mahindra & Mahindra (M&M) in
two-wheeler market. the Indian market aggregated 17,552 units in November 2017
Hero MotoCorp sold 472,731 units in December 2017, as – up 23.9% y-o-y.
against 330,202 units in the corresponding month last year, V E Commercial Vehicles sold 5,177 units in December 2017
registering a strong growth of 43.2%. Speaking about the sales in Indian market as compared to 2,948 units in December
numbers, Pawan Munjal, CMD and CEO, HMCL said, “2017 2016, recording a growth of 75.6%. This includes 5,045 units
has been a landmark year in our strategic endeavour to further of Eicher brand and 132 units of Volvo brand.
consolidate our market leadership. Despite the challenging
industry environment, we successfully created a series of With the birth pangs of BS-IV and GST left far behind, 2018
benchmarks, not only for the Indian market but also for the will be a year to watch out for as the Indian auto sector builds
global automotive industry.” further on its strengths and gains growth

9 January 2018

India Economics

Trade Deficit Widened to a Three-year indicators like autos and two-wheeler sales. Considering
High | WPI, too, surpasses expectations this favorable growth backdrop, it is expected that the
improvement in aggregate demand to help lift capacity
The trade deficit widened to US$14.9bn, a three-year utilization rates and pave the way for a private capex
high. Exports growth remained in double-digit recovery in this year.
territory, although it did moderate from the highs of
the previous month. Sustained strength in imports Exports Moderated to 12.4% YoY from 30.5% YoY
suggested robust domestic demand conditions as Earlier
well.
1. Non-commodity exports growth moderated: Growth
Exports growth moderated to 12.4% YoY in December from slowed to 9.8% YoY in December from November's29.0%
a high of 30.5% YoY in November: India’s exports growth YoY. The deceleration was fairly broad based across
did decelerate, similar to what was observed in the month’s segments.
data for the rest of the region. However, it is still growing
at a pace that is stronger than other economies. 2. Oil exports growth decelerated: Growth tracked at
Imports accelerated to 21.1% YoY in December, driven in 25.1% YoY in December from 47.7% YoY in November.
part by a lower base of comparison of 10.4ppt: This
compares with 19.6% YoY in November. Oil imports growth 3. Commodity exports (ex-oil) growth slowed too: Non-
decelerated, while gold and silver imports accelerated on oil commodity exports tracked at 15.9% YoY in
base effects. Non-oil, non-gold imports continued to grow December vs. 23.7% YoY in November, driven by the
at double-digit levels, suggesting robust domestic demand. decline in exports of other cereals as well as oil meals.
Trade deficit widened to US$14.9bn: The trade deficit
consequently widened to 6.8% of GDP in December on a Total Imports Growth Picked Up Marginally
3M trailing basis, up from 5.9% in November.
External demand holding up, domestic demand robust: 1. Oil imports accelerated: Oil imports remained strong
Exports growth continued to hold up well, notwithstanding at 34.9% YoY in December versus 39.1% YoY in
the deceleration in the month. It is expected that external November.
demand conditions should remain supportive and will also
lend support to an overall improvement in aggregate 2. Gold and silver imports growth accelerated on a YoY
demand. On the imports front, non-oil non-gold and non- basis: Gold and silver imports picked up to 73.1% YoY
capital goods imports (proxy for domestic demand) in December from -24.8% YoY in November, largely on
recorded robust growth for the 11th consecutive month. base effect. Further, gold imports growth was 71.5%
This trend reflects continued strength in domestic demand, YoY, up from a decline of 26.0% YoY in November. Net
consistent with strong trends in other high-frequency gold imports rose to 1.7% of GDP on a 12M trailing
basis.

3. Non-oil, non-gold imports moderated, but stayed
robust: Non-oil, non-gold imports tracked at 12.5%
YoY in December from 19.1% YoY in November. Capital
goods imports contracted by 5.9% YoY in December

January 2018 10

India Economics

from a rise of 8.0% YoY, driven in part by a higher base large range of pulses and products recorded strong
of comparison. The slowdown in capital goods imports deflation.
was driven largely by a decline in imports of project
goods and transport equipment’s. Consumer goods Contribution to inflation: Vegetables and mineral oils
imports (proxied by non-oil, non-gold and non-capital contributed one-fourth to overall WPI inflation in
goods) decelerated but continued to post double-digit December 2017. Deflation faced by products such as pulses
growth of 18.8% YoY vs. 27.2% YoY previously. and fodder helped containing overall inflation.

Wholesale inflation Assessment and Outlook: Emerging from deep deflation,
wholesale price inflation converged with retail inflation
Contrasting with retail inflation hardening, wholesale a couple of months back. The divergence between
inflation softened in Dec’17. The divergence between wholesale and retail inflation is again widening. While
wholesale and retail inflation is again emerging, reflecting wholesale inflation is stabilizing, retail inflation
relatively higher food and services inflation along with continues to harden. Part of this is base-induced. Apart
modest manufactured price inflation. Softer wholesale from this, much higher weightings of food products in
price inflation seems to provide clues about future the retail index than in the wholesale index coupled with
softening of retail inflation. faster hardening of food prices are also contributing to
this divergence. Equally
important is the fact that
while retail inflation
includes services
activities, these are not
included in the wholesale
index, given that
manufactured products
dominate the wholesale
index (by weight) and
these products are not
facing strong inflationary
pressures. This is another
reason for the divergence.
The retail inflation may
continue elevated and fall
below 5% by March 2018.

Facts: Wholesale inflation in December 2017 came at Implications: With the RBI
3.58%, lower than expected as well as lower than last explicitly targeting retail
month (3.9%). The average inflation at 2.9% is modest. inflation, monetary policy
Food inflation declined from 4.1% in Nov’17 to 2.9% in implications of WPI
December 2017, while non-food inflation was flat at 3.9% inflation have eased.
for the second month running. Consequently, the softening of WPI inflation is unlikely
to have any major policy implication. That said, softening
Inflation internals: Vegetables such as tomato, onion of WPI inflation provides an important clue – wholesale
and cabbage, recorded inflation in the range of 100- food inflation is softening, and this would have a sobering
200% in December 2017 and the overall vegetable feedback effect on retail inflation as well. At the same
category clocked 60% inflation. On the other hand, time, low WPI inflation also reflects the lack of pricing
some of the other agricultural products including a power and, thereby, soft demand for manufactured
products. Both the trends reiterate that revival of growth
is a much bigger challenge than containment of inflation.
At the same time, with high prevailing retail inflation,
the RBI does not have much elbow room to cut the policy
rate

11 January 2018

Consumer Case National Consumer Disputes Redressal Commission, New Delhi
Studies

Dr B C Gupta, President Member and S M Kantikar, Member

M/s Tata Motors Ltd - Petitioner

Versus

Bishamber Nath Sikka & Anr – Respondents

Revision Petition No. 3301 of 2008 Decided on 09.10.2017

(Against the Order dated 01.04.2008 in Appeal No. 453/2006 of the State Commission Delhi)

Consumer Protection Act, 1986 – Section 15, 17, 19 and 21 – Automobile – Manufacturing defect – State Commission
awarded lumpsum compensation of Rs. 4 lakh to complainant – A defect in a vehicle may come under category of manufacturing
defect or otherwise, a vehicle is said to be suffering from defect if there was any fault, imperfection or shortcoming in quality,
quantity, potency, purity or standard, which was required to be maintained under any law in force – Vehicle did suffer from
defects as it had to be taken to workshop of dealer from time to time – Owner of a car is not expected to take such vehicle to
workshop a number of times unless vehicle suffers from a genuine defect – It becomes duty of manufacturer as well as dealer
to solve problem of complainant and ensure that vehicle is delivered back to him in a roadworthy condition free from all
defects – No illegality, irregularity or jurisdictional error in orders passed by the State Commission – Revision petition
dismissed. (Para 6, 11 and 12)

Important Point

Owner of a car is not expected to take such vehicle to workshop a number of times.

Order

1. Dr B C Gupta, Presiding Member - This revision petition defect by the complainant. It is stated that in the month
has been filed under section 21(b) of the Consumer of June 2005, the car was sent to the OP-2 dealer for
Protection Act, 1986 against the impugned order dated repairs, as it had suffered damage from the
01.04.2008, passed by the Delhi State Consumer Disputes malfunctioning of the latch/lock of the hood/bonnet. As
Redressal Commission (hereinafter referred to as ‘the per the complainant, the said car was delivered to the
State Commission’) vide which, the State Commission complainant after about a month i.e. on 29.06.2005. The
ordered to pay a compensation of Rs. 4 lakh to the complainant, however, found that the engine of the car
complainant/respondent for damage to his defective after the repair was rough and erratic. It has been stated
vehicle and also asked the complainant to transfer the in the consumer complaint that when the car was handed
vehicle in the name of the OPs. While passing this order, over to the dealer for accidental repairs, there was
the State Commission modified the order dated smooth running of the car and excellent performance of
04.04.2006, passed by the District Consumer Disputes its engine. However, the problems erupted in the car after
Redressal Forum (East) Delhi, vide which, the said Forum the same had been repaired by the OP-2 dealer. When
had allowed the consumer complaint in question, filed the car was being driven, after taking delivery from the
by the present respondent and directed the OPs jointly dealer on 29.06.2005, it stopped on the way. The OP
and severally to deliver the car in question after repairs. dealer sent his mobile service team to attend and fix the
problem in the car. However, the problem of
2. The facts of the case are that the respondent/complainant malfunctioning in the engine of the car surfaced time
purchased a Tata Indigo Car, bearing Registration No. and again and also resulted in heating of the car. Alleging
DL4C 1341 from the Opposite Party No. 2 (OP-2), Him deficiency in service on the part of the OPs, the
Motors Pvt Ltd, Delhi, authorised dealer of Tata Motors complainant filed the consumer complaint in question,
Ltd (Petitioner), on 11.03.2003. The car was reported to seeking replacement of the car. As stated in the order of
have suffered from the malfunctioning of latch/lock of the District Forum, the basic grievance of the
its hood/bonnet, which was stated to be a manufacturing complainant is as under:-

January 2018 12

Consumer Case Studies

“Overheating resulted in frequent loss/drain of engine department. The learned counsel stated that for two
coolant at short distant/interval. Defect was fresh and years, the car had run without any problem, and that it
new arising from mischief and mishandling of the car by
OP No. 2 while in its custody.” was brought to the dealer about four times for free
service. The car met with an accident in the month of
June 2005 and the entire problem in the car was due to
3. Both the opposite parties i.e. OP-1 Tata Motors Ltd and the said accident only. The learned counsel has drawn
the OP-2 Him Motors Pvt Ltd, filed their written attention to the consumer complaint, in which the
statements before the District Forum, in which, they denied complainant has referred to ‘accidental repairs’ at a
the allegations against them, and stated that there was number of places, meaning thereby that there was an
no force in the complaint and the same should be accident involving the car in question. The first
dismissed forthwith. complaint about the functioning of the car had been

4. The District Forum, after taking into account the averments made on 29.06.2005 only. The learned counsel has
of the parties, directed as follows:- drawn our attention to an order of this Commission in
Classic Automobiles vs Lila Nand Mishra & Anr, as
“In view of above discussion, the Forum orders both OPs reported in I (2010) CPJ 235 (NC), saying that since no
jointly or severally as under:- expert evidence had been produced to prove any

1. Deliver the car after repair (particularly the defect manufacturing defect in the vehicle, the same could
of overheating) free of charges. However, it is not be done at the current stage. The learned counsel
clarified that if battery needs replacement, it shall has also drawn attention to an order passed by this
be done at the cost of complainant. Commission in Revision Petition No. 2854/2014,
Hyundai Motor India Ltd vs Surbhi Gupta & Ors, decided
2. To issue a warranty of one year free of cost in respect on 14.08.2014, in which this Commission observed that
of repair of overheating valid from the date of there was no manufacturing defect in the vehicle, since
delivery of vehicle. the vehicle ran 48,689 kms for a period of 3½ years.

3. OP will not charge any amount on account of parking The learned Counsel, further stated that the dealer had
charges from the complainant. duly repaired the car in accordance with the job cards
prepared and had changed the water pump assembly
4. Both OPs will pay a sum of Rs. 2,000 as symbolical and cleaned the radiator etc., but the complainant did
compensation to the complainant.”
not come forward to take the delivery of the vehicle,
even after repeated telephonic conversation. The learned
5. Being aggrieved against the above order of the District counsel has drawn attention to an order passed by the
Forum, the complainant as well as Tata Motors Ltd, the Hon’ble Supreme Court in Maruti Udyog Ltd vs Susheel
manufacturers challenged the same before the State Kumar Gabgotra & Anr (2006) 4 SCC 644, saying that
Commission in the form of appeal. the replacement of the car was not justified in the

6. Vide impugned order, the State Commission decided to present case, as a direction was given to replace the
award a lump-sum compensation of Rs. 4 lakh to the defective part only. Further, in Premanchal Motors Pvt
Ltd vs Ramdas & Ors, 2009 SCC OnLine NCDRC 45, it was
complainant, who was directed to complete all held that the abandonment of a new vehicle, soon after
necessary formalities for transferring the vehicle in the
name of the manufacturer. Being aggrieved against this its purchase, or after repairs at the premises of a
manufacturer or the dealer concerned, was not a
order of the State Commission, the petitioner is before prudent act on the part of the consumer. The learned
this Commission by way of the present revision petition.
counsel argued that the orders passed by the consumer
7. During proceedings before this Commission, it was fora below should be set aside and the consumer
argued by the learned counsel for the petitioner that complaint should be dismissed.
the car in question had been purchased in the year
11.03.2003 and it carried warranty for 18 months only, 8. The learned counsel for the respondent No. 1/
which was valid till 11.09.2004. The learned counsel complainant stated that the District Forum observed in
stated that as per clause ‘5’ of the terms and conditions
of the insurance policy in question, the warranty would their order that when the OP had repaired the car on
29.08.2005 for the defect of over-heating, the car should
not apply, if the car or any of its parts was repaired or not have developed the defect within 7 days. The
altered, otherwise than by their own sale or service
complainant had got the vehicle repaired from one of

13 January 2018

Consumer Case Studies

the authorised dealers of the petitioner only. The category of manufacturing defect or otherwise, a vehicle
learned counsel further stated that as mentioned in the is said to be suffering from ‘defect’ if there was any
order of the State Commission, the OPs were prepared fault, imperfection or shortcoming in the quality,
to issue warranty of one year for the car from the repair quantity, potency, purity or standard, which was
of over-heating. The learned counsel further submitted required to be maintained under any law in force. We
that the car in question had become quite old now, since are supported in this view from an earlier judgment of
the instant Revision Petition had also been lying this Commission delivered in, Revision Petition No. 7/
pending for the last nine years. The order passed by the 2013, Malwa Automobiles Pvt Ltd vs Sunanda Sangwan,
State Commission for granting him compensation of decided on 20.09.2013. The petitioner/manufacturer
Rs. 4 lakh was based on sound, logical footing and has taken the plea that the vehicle did not suffer from
should be upheld. any manufacturing defect and hence, they had no
9. We have examined the entire material on record and liability in the matter. Considering the view taken in the
given a thoughtful consideration to the arguments orders quoted above, it is very clear that the vehicle
advanced before us. did suffer from defects, as it had to be taken to the
10. The State Commission have rightly brought out in their workshop of the dealer from time to time. The owner of
order that after the repair was got done on 29.06.2005, a car is not expected to take such vehicle to the
the car still was suffering from defects, as it stopped on workshop a number of times, unless the vehicle suffers
the way back home on the same day. Although the defect from a genuine defect. Under these circumstances, it
was repaired by the mobile unit of the OP-2 dealer, the becomes the duty of the manufacturer as well as the
problem of overheating re-appeared on 29.08.2005. The dealer to solve the problem of the complainant and
State Commission have rightly observed that the car did ensure that the vehicle is delivered back to him in a
suffer from fault, imperfection or shortcoming, which roadworthy condition free from all defects. In the
comes under the definition of ‘defect’ as per Section present case, however, the same appears not to have
2(1)(f) of the Consumer Protection Act. The said Section been done.
is reproduced as under:-
“(f) “defect” means any fault, imperfection or shortcoming 12. Based on the discussion above and considering that
the vehicle has already become very old, we do not
in the quality, quantity, potency, purity or standard find any illegality, irregularity or jurisdictional error
which is required to be maintained by or under any in the orders passed by the State Commission.
law for the time being in force under any contract, Accordingly, the said order is upheld and the Revision
express or implied or as is claimed by the trader in any Petition, being without any merit, is ordered to be
manner whatsoever in relation to any goods” dismissed, as there does not seem to be any sufficient
11. It has been held by this Commission in a number of ground to interfere in the exercise of the revisional
cases that a ‘defect’ in a vehicle may come under the jurisdiction by this Commission. There shall be no
order as to costs

January 2018 14

Perspective

Facing Digital Disruption in Mobility
as a Traditional Auto Player

McKinsey & Co.

OEMs and suppliers can compete - but it won’t be Furthermore, the traditional rules of competition are rapidly
easy. Focusing on four dimensions will be crucial. changing, as recent investments highlight players’ desire to
build future auto capabilities. Over the past five years, we
Disruption lies ahead for the auto industry. Significant witnessed significant investment in four emerging
changes in consumer behaviour—namely, a much greater technology-driven trends—autonomy, connectivity,
focus on the in-vehicle experience rather than the driving electrification, and, more recently, shared mobility. Since
experience—will almost certainly upend the status quo. 2010, these four areas have seen $111 billion in disclosed
Specifically, OEMs and major suppliers will need to transform external investments. And technology players are far ahead
their products, as well as their capabilities & organizational of OEMs. In just the past three years, the top four OEMs have
structures, to survive and thrive. These changes present both completed 25 transactions in these areas, but the top two
great risk and great opportunity for the auto industry: while technology players have completed 170 transactions, mostly
we expect the overall value pool to grow to $6.6 trillion in focused on building out capabilities. To remain competitive
2030 from $3.5 trillion today, traditional technologies and in an increasingly crowded and fast-moving space, incumbent
business models are expected to decline from 98 per cent of auto companies will need to fundamentally reinvent both
the market today to 50 per cent in 2030. Growth will be driven their product and technology offerings and their business
by disruptive technologies and business models in autonomy, models.
connectivity, electrification, and vehicle sharing. To survive A decade ago, the automotive version of the “killer app”—
and thrive in this changing environment, auto industry the determining factor in purchase—was driving
incumbents will need to excel across four dimensions:
1. Owning critical control points within the ecosystem
2. Mastering data monetization for both revenue and cost
3. Enabling agile and two-speed R&D
4. Fully adopting Industry 4.0

The shifting terrain

Global auto profits are at an all-time high; indeed, OEM core-
automotive operating profits reached $125.4 billion in 2016,
with an industry operating margin of 7 per cent. However, the
industry is highly dependent on just two markets, as three-
quarters of these profits are concentrated in China and North
America. Many auto insiders are now asking: Has the industry
peaked?
While personal mobility has brought enormous value to
society and enabled profound progress over the past 130
years, there is still room to advance, particularly regarding
utilization, efficiency, and safety.

15 January 2018

Facing Digital Disruption in Mobility as a Traditional Auto Player

experience. Today, the killer app of driving has become the Owning critical control points within the ecosystem
in-vehicle experience: demand for autonomous, connected,
electrified, and shared solutions such as self-driving, As with other disruptions, we expect to see a redistribution
networked parking service, over-the-air updates, early of profits between segments and players within the auto
recall detection, cyber security, and targeted advertising. industry. History has shown that in times of disruption, the
Case in point: McKinsey’s Future of Mobility Survey found highest profits tend to accrue to the owners of critical control
that 86 per cent of consumers would switch vehicles to get points. Auto-industry players need to stake a defensible
some form of an Advanced Driver-Assistance System position and own critical control points—the elements of
(ADAS). And in the McKinsey Connectivity and Autonomous the value chain that have the greatest impact on product and
Driving Consumer Survey, 37 per cent of respondents said service features that customers care about the most.
they would switch to another manufacturer if it was the To get started, each player must evaluate scenarios with
only one offering a vehicle with full access to applications, varying technology and market dynamics to identify the most
data, and media. attractive domains (for example, ADAS, powertrain,
To enable this in-vehicle experience, the industry will need to infotainment, chassis, or in-vehicle networking) based on
shift its focus from a hardware-driven product to a software- several factors, including profit-pool size, the capabilities
driven product. Indeed, the role of software has increased and required to win, and the ability to create a sustainable
will continue to grow dramatically; we estimate that software advantage. And once the vehicle-domain priorities are set,
will account for 30 per cent of total vehicle content by 2030, players must determine the optimal access model for each
up from about 10 per cent today (exhibit). layer in the stack—the cloud, applications and user interface
Future scenarios of personal mobility suggest a dramatic (UI), middleware and services, operating systems,
shift toward disruptive technologies and business models. visualization, and hardware.
We estimate that 50 per cent of the industry’s expected $6.6 For example, in infotainment, UI and cloud content will have
trillion in revenues in 2030 will come from disruptive a significant impact on user experience and therefore will
technology or business models—an exponential increase over emerge as the primary control points. Meanwhile, in ADAS,
today. Indeed, we expect the vast majority of the industry’s cloud content (for high-definition mapping, with a direct
growth to come from these disruptive technologies and impact on ADAS effectiveness and user experience),
business models, while the contributions of traditional algorithms (which directly affect driving experience), and
technologies and business models will remain flat. Given sensors (which are essential for accurate perception and
this impending paradigm shift, OEMs will need to evolve in improved driving experience) are likely to be the critical
everything from R&D to sales to survive. control points.
Mastering data monetization for both revenue and cost
Four dimensions to compete in mobility’s digital The auto industry is witnessing a dramatic increase in both
disruption the amount and diversity of data generated and collected
from vehicles. Today, vehicles generate 25 gigabytes of data
The emerging trends outlined above will combine with new per day, mostly internal telematics and engine control-unit
technologies, changing consumer preferences, and new data. The autonomous car of tomorrow will record anything
players to fundamentally alter the relationship between and everything it can—Intel estimates that this could amount
consumers and the automobile. To survive this disruption, to 4,000 gigabytes of data per day.
industry winners will need to excel at the following four This data will be applied to a wide range of use cases, which
imperatives.

January 2018 16

Facing Digital Disruption in Mobility as a Traditional Auto Player

will represent new potential sources of value for the industry. need to adopt a start-up-like approach to hiring and retaining
In sum, these data-enabled monetization opportunities could talent. Software managers and not HR would be better placed
generate as much as $750 billion in value by 2030. to manage recruiting. The work environment (and possibly
Opportunities for auto players will come from monetizing location) should be set up to be attractive and compete with
rich data sets for business-to-business customers and for top tech players. Auto companies should also be on the
individual consumers. Vehicle data can be used, for instance, lookout for opportunities to acquire talent.
to create targeted paid content or advertisements, say, in Finally, auto players will need to look at artificial
maps around points of interest. Autonomous vehicles in fleets intelligence and automation in software development to
can be programmed to achieve fuel savings of 3 to 5 per cent ensure that valuable and scarce software developer time is
simply by coasting while approaching red lights. For being spent on high-value-add, specialized activities. This
consumers, convenience is king. Automatic searches; could generate 30 to 50 per cent additional development
concierge services, including the ability to make reservations; capacity.
and advanced payment for parking are all examples of Fully adopting Industry 4.0
promising use cases for consumer-direct monetization Industry players must sustain and grow productivity, quality,
opportunities. and operational agility through digital best practices. The
To succeed in capturing both B2B and B2C opportunities, automotive industry has demonstrated impact from
auto players will need to identify which alternative techniques such as lean and Six Sigma, but Industry 4.0 offers
monetization models best suit their strengths. They will also the potential to improve productivity by another 20 per cent
need to overcome key challenges related to data ownership, through a broad set of levers applied not only within the four
use cases, cross-functional execution, pricing models, big walls of plants but across the extended value chain. These
data and advanced analytics, and data security. opportunities are not hypothetical; they are in use today and
Enabling agile and two-speed R&D can be easily accessed without significant capital
Historically, R&D at auto companies has followed a linear, expenditure.
hardware-driven approach. With software content in vehicles For example, one automotive OEM found that applying
increasing, this is unlikely to be sustainable. Additionally, Industry 4.0 principles helped it to achieve transformational
talent access will be a challenge: the industry will need three impact on a mature production process it had considered
times as many software engineers in 2030 as it required in 2016. already optimized. By applying advanced analytics and in-
To become credible software players, auto players will need line automated quality management to a metal-machining
to adopt an agile software-development approach similar to process, it boosted overall productivity by more than 30 per
what tech players have adopted and scaled across their cent, reduced scrap by 80 per cent, and shortened process
development teams. In automotive, agile software time by 50 per cent. The company fitted computer-numeric-
development significantly shortens the development cycle to control machines producing crankshafts with Internet of
6 to 24 months, compared with the 50 to 60 months required Things sensors to extract and monitor performance data and
in traditional R&D. It also enables players to distinguish developed an algorithm to analyze this data in real time to
between the features required at launch and the features detect and immediately correct quality deviations. In addition,
that can be delivered post-launch through over-the-air it analyzed the data to optimize tool positioning to increase
updates or other means. This distinction and flexibility throughput.
minimize the risk of the software being a launch bottleneck Still, many companies have struggled to translate early proofs
and enable a more dynamic customer experience. of concept into substantial bottom-line impact. This research
While the agile methodology provides significant shows four pillars are key to achieving full impact from
performance advantages, it creates inherent conflicts with Industry 4.0. One, the approach: target game-changing impact
the traditional automotive-hardware development model. rather than incremental improvements. Two, the objective:
Given these ingrained differences, organizations will have to focus on fundamentally changing or eliminating work rather
prepare for and embrace “two-speed R&D,” with these two than making it more efficient. Three, the mind-set: think like a
very different but tightly linked hardware- and software- tech entrepreneur, not a large corporation. Four, the
development lanes running in parallel. implementation: approach the effort as you would an agile
To attract developers in this environment, auto players will digital transformation rather than by following a lean or
enterprise-resource-planning playbook

17 January 2018

PEOPLE + TECHNOLOGY =

accenture consulting

The automotive industry is undergoing the most significant change since Henry Ford industrialized automotive
manufacturing. While the past 100 years were largely focused on incrementally enhancing manufacturing to
become more efficient for mass scale, the future is about redefining the role of the vehicle for passengers.

D igital is driving the revolution. Non-traditional Automakers must learn the technologies behind these
automotive companies are entering the industry, bringing advancements, and understand how they can exploit them to
technologies and new services that are disrupting current their advantage. In some ways, they must do all that they can
business models. Market incumbents and new entrants alike to predict disruption and create a new, compelling value
are redefining the role of a “vehicle.” Cars are becoming proposition. Who will they sell to in the future, and how can
offices, gyms, and entertainment centers. they position themselves to gain trust and loyatly? What
New digital automotive business models will democratize features and performance factors will be most important to
vehicle data, both for the rider experience and for vehicle buyers? Sooner than later, automotive companies must stake
performance. Vehicles will use granular, experience relevant their claim in this rapidly changing ecosystem, and accelerate
data to hyper-personalize the riding experience. Data on their progress toward a people first model.
vehicle performance and drivers will give auto manufacturers The Technology Vision 2017 for Automotive explores five
valuable insights to apply in future design enhancements. trends that underscore the importance of technology for
Automotive original equipment manufacturers (OEMs) will people. These trends demonstrate the fact that while
gain real-time analytics on performance design verses actual technology is all around us, people are still in the driver’s
use. Using these insights, they can enhance the next generation seat. By adapting technology to the people, we will define the
of vehicles. future of the automotive industry.

2017 TECH VISION TRENDS Trend 3: WORKFORCE MARKETPLACE: Invent Your Future
Trend 4: DESIGN FOR HUMANS: Inspire New Behaviors
Trend 1: AI IS THE NEW UI: Experience Above All Trend 5: THE UNCHARTED: Invent New Industries, Set New
Trend 2: ECOSYSTEM POWER PLAYS: Beyond Platforms Standards

January 2018 18

Driving Success

BYTES BEAT BRAWN For instance, Tesla responded to customer demand when it
Artificial intelligence (AI) is transforming the driving deployed its version 8.1 software. The update included new
experience by making interactions simpler and smarter. From Enhanced Autopilot capabilities, such as improved Autosteer,
autonomous driving vehicles that use computer vision, to Auto Lane Change, Traffic-Aware Cruise Control, Side Collision
live translations made possible by machine learning, AI is Warning and Blind Spot Detection.
setting a high bar for how future interactions will work in NEW INROADS TO REVENUE
automotive.
Automakers have historically viewed horsepower as a AI can open the door to a variety of new products and
measure of a vehicle’s performance. In the future, vehicle services, thereby creating additional revenue streams. The
Performance - and even brand identity—will center on other data is there to better understand customer preferences—
features and functionality, such as comfort, entertainment, it’s a matter of acting on it.
capacity and high-tech experiences. For instance, Siri- or Alexa-like functionality in cars can deliver
Technology innovations are rapidly transforming the driving personalized recommendations on the best Thai restaurant
experience—and even the concept of a “car”—itself. Today, in town, or the local auto-lube shop with the shortest wait
people drive cars. In the near future, cars will drive people. time—while built-in navigation will guide you right to the
And once cars drive people, what is the role of a “cockpit”? door. Care to stream music? Voice recognition software
Dashboard space could be used for a variety of other services understands a variety of dialects and will fulfill your request—
that enhance the riding experience. no fiddling with knobs required. Is it time for a tune-up?
Startup companies, like Daqri, are redefining the semi- Predictive maintenance analytics will notify the driver in
autonomous rider experience by tracking user physical advance of any necessary service.
activity to offer a safe, distraction-free driving experience.
Even traditional carmakers are investing heavily in Automotive companies are increasingly integrating their core
autonomous driving. For instance, General Motors invested business functionalities with third parties and their platforms.
$500 million in Lyft to help develop a network of self-driving For the first time, major rivals are collaborating to design
cars that can be summoned on demand and available for Lyft future value chains that transform businesses, products and
drivers to rent from hubs. even the market itself. Automotive leaders will use these
Others are directing dollars toward the software that supports relationships to reshape their organizations for growth in a
autonomous driving. Ford alone has invested $1 billion in digital world.
the artificial intelligence company Argo AI, $7 million in the
digital map technology provider Civil Maps, and $150 million
in the sensor company Velodyne.
AI is a critical component of fueling the highly convenient
and hyper personalized experiences that are becoming the
hallmarks of new vehicles. In fact, 73 per cent of executives
agree that AI will revolutionize the way we gain information
from and interact with customers.
Car manufacturers are embedding AI into vehicles to work as
smart sponges that capture data on how the car is used.
What are driver usage and destination patterns? What
features are preferred? How many passengers typically ride
in the vehicle? How does usage compare to patterns seen
across the broader pool of owners of the same vehicle?
The robust data made available from in-vehicle technology
gives car OEMs valuable insights on customer preferences.
Manufacturers can, in turn, optimize R&D activities and create
new offerings that more closely fit the usage patterns and
desired features of customers. Carmakers also can quickly
roll out new capabilities that satisfy customer desires.

19 January 2018

Driving Success

FUELING NEW BUSINESS MODELS services, or with smartphone developers to improve mobility
From conceptualization to the wheels hitting the road, today’s services, or the likes of Zipcar to offer ridesharing services?
automobile requires 36 months—and that doesn’t include Among auto executives surveyed, 76 per cent agree that
being equipped with the latest AI, internet of things and digital competitive advantage will not be determined by an
service technologies that many original equipment organization alone, but by the strength of the partners and
manufacturer (OEMs) and startups are working on right now. ecosystems chosen.
By the time an automobile is manufactured, the initial Ford’s relationship with Argo AI is intended to help Ford meet
concepts are outdated. its goal of having a fully autonomous vehicle by 2021. Fiat
To compete, automotive companies must compress Chrysler is working with Google to install its self-driving
timeframes to bring products to market faster. Technologies technology in a fleet of minivans. When speed is everything,
such as AI, gaze-tracking the crowd, mixed reality, embedded these types of partnerships are what can accelerate the
sensors and generative design can help automate processes. development of new services and features for automakers.
Rather than building these unique capabilities in-house, On-demand labour platforms and online work management
automotive businesses must engage the ecosystem-startups, solutions are dissolving traditional hierarchies and creating a
universities and digital transformation companies - to deliver more fluid workforce. Such flexibility is necessary for
leading-edge capabilities. automotive companies to speed digital development and get
Faurecia is collaborating with others in the ecosystem to compelling offerings to market faster than ever before.
reinvent the cockpit of the future. And Volkswagen is
partnering with Nvidia to develop an AI cockpit that uses a
self-learning intelligent digital assistant to anticipate user
needs based on context and additional smart data. Nvidia is
also working with Bosch to create an autonomous driving
“supercomputer” that integrates Bosch radar with other
sensors to deliver unprecedented AI-powered self driving
technology.
Competitors are increasingly working side-by-side. For
example, Mercedes-Benz, BMW and Audi created an Open
Data Platform to generate dynamic map and traffic data for
drivers. The platform collects and analyzes geo-data from
on-board sensor technology and computing platforms in cars
developed by these brands. The Open Data Platform is a result
of the joint acquisition of Nokia’s HERE business by Audi,
BMW and Daimler. Participating companies can use this
shared data to improve the driving experience by delivering
real-time information about road conditions and hazards.
Other ecosystem players, such as municipalities, road-
authorities, smartphone makers and app developers, can also
tap in to this open platform.
ROLES ARE SHIFTING
The ecosystem economy offers a chance for automotive
companies to rethink their role in the value chain. For
instance, OEMs can evolve from just producing and selling
vehicles to solving the future mobility needs of their
customers. It is not future-forward to simply develop a
reliable product and sell it to a network of suppliers.
The ubiquity of data offers new opportunities to create
ongoing revenue streams. How can OEMs collaborate with
software developers to provide predictive maintenance

January 2018 20

Driving Success

FINDING TALENT Today’s technology is adapting to people and individual human
As cars become more connected and sophisticated, behaviour. Automotive leaders understand that technology
manufacturers need a variety of new skill sets to keep pace can shrink the gap between effective human and machine
with fast-evolving market requirements. Rather than hiring a cooperation. By combining rich data from IoT with technologies
host of data scientists, software engineers and security like artificial intelligence, human capabilities are augmented,
experts, automotive companies can pursue crowdsourcing, allowing customers to do more and enabling workers to
talent marketplaces and other ways to access those skills on achieve more.
demand to expand their resource pool. BUILT FOR YOU
Open talent marketplaces, such as Catalant, Upwork and By the year 2030, autonomous cars could represent about 25
Onforce, and other collaborative forums, will unleash the per cent of all passenger vehicles in mature markets.
power of people. Daimler is using hackathons to regularly Autonomous driving is dramatically influencing the design
convene students and young professionals to explore topics of vehicles and the experiences they deliver. The product is
such as “cloud data and internet of things for future no longer just a car; it’s a personal driver. The front seat
transportation.” Teams share ideas, develop prototypes and becomes a comfortable cockpit, custom-configured for the
pitch them in 24 hours. Last year, the top team developed an user. Some solutions adjust the environment in the car, based
app that allows drivers to use their smartphone to assess on the user ’s preferences. For instance, eyesight has
damage to their vehicle. developed technologies that track a driver’s eyelids and head
ELEVATING EXPERIENCES FOR EMPLOYEES position to warn of drowsiness. Touch-free infotainment
Technology advancements mark the dawn of a connected controls use hand-sensing, allowing riders to control the
industrial workforce that is human-machine-centric. An system with simple hand swipes.
Accenture automotive survey found that 52 per cent of Even traditional safety features, such as anti-lock braking
executives expect improved productivity from a connected systems, will go away as autonomous vehicles become safer.
workforce, and 47 per cent anticipate improved operational The car of the future won’t slam on the brakes, drift into the
efficiency. While this new machine-enabled workforce can next lane or exceed the speed limit. So rather than the
elevate efficiency, 70 per cent of survey respondents are odometer taking up prime real estate in the dashboard, that
concerned about a shortage of skilled human workers. space can be used for high-tech navigation, or it might
OEMs must find new ways to attract and retain the right become the entertainment epicenter of the car.
employees. To do so, businesses must enable staff to feel Amid the growing move toward autonomous cars, building a
connected to and aligned with the goals of the company. high-horsepower vehicle will no longer be the hallmark of
Encouraging innovation and creating a positive environment,
where employees are rewarded for their ingenuity and hard
work will lead to employee satisfaction and long-term
employment.

21 January 2018

Driving Success

high performance. Companies must design for humans, and Automotive companies of today are not just creating new
that means automakers will have to evolve what their brands products and services; they are redefining the industry.
are known for and what their cars designed for. However, the new rules of the game have not been redefined
PERSONALIZATION DRIVEN BY SOFTWARE in tandem. Those automotive players who take the lead in
Now, personalization is largely tied to software, which makes setting new standards will find a place at or near the center
it easier for other ecosystem players to join the effort of of their new ecosystem, while those that do not risk being
designing cars for humans. For example, Bose is developing left behind.
suspension technology that “isolates passengers from road DRIVING STANDARDS
vibrations, shaking and unwanted motion.” OEMs are now Connected vehicles and autonomous driving are new industry
using laminates, carbon fiber, sheet metals and other unique segments, and these vehicles are moving full speed ahead—
materials to give a car personality. Mood lighting is but legislation has yet to catch up. Currently, OEMs are all
transforming car interiors. Exterior lighting can be used to playing by their own set of rules while major unknowns remain.
create a recognizable night time “signature” for a vehicle. What if someone in a driverless car was injured and required
The possibilities for custom configurations are endless. a trip to the hospital? Would the car know? Where would
KEEPING UP WITH SHIFTING PREFERENCES they take the passenger? Where does liability lie if something
Digital-based personalization breaks the link between goes wrong with the car’s software? What about security?
machine and software. Sensors embedded in the vehicle will Manufacturers have a leading responsibility to ensure data
wirelessly receive software updates via the cloud, long after privacy and security with all of the data they are able to
the car is purchased. Owners may even feel as though they retrieve from connected vehicles. However, there are no
are getting a new car with each major software update. standards to define how data can be shared with other parties
Several OEMs will follow in 2018 and release entertainment in the ecosystem.
systems that are regularly updated and equipped with new This year, Ford and Toyota established the SmartDeviceLink
features based on customer feedback and likes. Among Consortium, a non-profit to manage open source software
executives surveyed, 31 per cent strongly agree understanding for smartphone app development for vehicles. Smartphone
customer objectives gives insight into opportunities. app developers can use the open source platform to integrate
Automotive manufacturers can save costs and accelerate the their app functions with in-vehicle technology. Mazda, PSA
launch of new functionality and features because rather than Group, Fuji Heavy Industries and Suzuki Motor Corporation
field-testing and bringing enhancements to market after two were the first automakers to join the consortium followed by
years, they can deploy overnight. Data flowing from the suppliers Elektrobit, Luxoft and Xevo.
vehicle reveals how features are being used. The manufacturer WHO SHOULD TAKE THE WHEEL?
can update products on the fly and generate revenue much The automotive industry is undergoing major transformation,
faster than in the past. but no one is governing the changes. Of executives surveyed,
67 per cent believe their organizations are entering entirely
new digital industries. The ecosystem is wide open, and cars

January 2018 22



Driving Success

are only one piece of the puzzle. Now, software vendors, United States, regulations state that platforms that combine
mobility companies, entertainment providers, car-sharing customer, car and usage data need to be open so that
companies and others are part of the value chain. suppliers, garages and manufacturers can access this data.
Standards are different in Europe.
The European Commission has begun to explore standards to
govern the evolution of vehicle automation, and they will
soon enforce General Data Protection Regulation (GDPR) rules
that apply to personal data. These evolving standards will
address complex issues, such as communication between
the vehicle and surrounding infrastructure, privacy and data
protection safeguards and interoperability.

Someone must assume a lead role in defining standards, The industry is evolving at hyper-speed, and ecosystem
such as how data should connect to shared platforms. Who participants must be proactive in helping to establish standards.
is allowed to connect to the platform—and who is not? These five themes are mile markers on a continually evolving
Government also has a role to play in establishing standards. journey into the digital age for automotive companies. The
Right now, regulations vary from country to country. In the world is changing at speed, and automotive companies can
play a lead role in using technology to improve driving and
riding experiences for customers. By adopting a people-first
mindset, companies can harness the technology innovations
of tomorrow, while having the people to strategically guide
the enterprise on the road ahead

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]

January 2018 24

Attention: 2018 India Dealer Satisfaction Study
Members

Dear Automobile Dealers,

We wish to inform that, for an eighth consecutive year, J D Power Singapore Pte Ltd is conducting the Dealer
Satisfaction with Manufacturers of Passenger Vehicles, Two-Wheelers and Commercial Vehicle study among
dealers in India in association with the Federation of Automobile Dealers Associations of India (FADA).

We kindly invite you to participate in this study in the interest of the retail and dealer fraternity.

As dealers, you have to work within a dynamic marketplace, where you may need the support and direction of
your OEMs (Principals/ Manufacturers). The primary objective of the study is to measure your satisfaction with
the OEM that you represent so as to increase the quality of service and level of support that the OEMs can
provide to you. In addition, the study also examines your views on a variety of issues relevant to the automotive
industry and the retail distribution system which are of importance to both manufacturers and dealers. Hence
your frank opinion is very valuable to this study.

The study is an opportunity for you to share your opinions with automobile manufacturers’ top management,
dealer councils and board of directors. By participating in the survey, you will be taking a role in ensuring that
manufacturers hear the voice of the dealer.

This survey will be conducted through a telephonic interview and should take approximately 45 minutes to
complete. For questions requiring operational knowledge, you may consult with the appropriate staff members
before answering or pass on their name and contact details to the interviewers who will contact them separately.

We would like to assure you that all information collected will be reported at an aggregate level. Individual
dealer information will be kept confidential and will NOT be released without prior approval.

The survey is being conducted by Kadence International on behalf of J D Power Singapore Pte Ltd. If you have any
questions, please send an em ail to: Jacq ueline Teo at Jacquel ine.Teo@j dpa.com or A nita Rao at
[email protected].

Please note that the survey will be conducted in the months of January to March 2018 Your participation during
this period is greatly appreciated.

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 FADA, 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])

25 January 2018



F A D A ALBUM

27 January 2018















Upgrades &
Variants

2018 Audi Q5 Launched in India Interior and luggage compartment
- Elegant, horizontally oriented design, large trim strips,
Audi launched new second generation Audi Q5 in India on
January 18, 2018. With the all-wheel drive quattro system, a new colours and materials
highly efficient engine, a suspension with damper control - Large space, standard rear seat back with three-way split,
and a comprehensive line-up of infotainment systems, the
new Audi Q5 proves to be the perfect vehicle in its segment. horizontal and seat back angle adjustment for rear bench
The new Audi Q5 is priced at INR 53,25,000 onwards. - Leather/Leatherette upholstery
- Electrically adjustable front seats with driver’s side
"2018 will be the year of progression and the launch of the
new Audi Q5 is the perfect example of this. The first Audi Q5 memory function and 4-way lumbar support
was for many years the world’s best-selling model in its class - Luggage compartment : 550/610 to 1,550 litres volume
and with the new Q5, we are setting the bar a notch higher. - Electrically opening & closing luggage compartment lid.
With a lighter body, a whole new design language and a host
of new infotainment & innovative features, new Audi Q5 is Safety
the best vehicle available for our customers,” said Rahil - 8 Airbags and Electronic immobilizer
Ansari, Head, Audi India. - ABS, EBD, ESC System

Engine Infotainment and Audi connect
- 35 TDI engine and fuel-efficiency 17.01 km/l - MMI navigation plus with MMI touch and 21.08 cms
- Power output of 140 kW (1 hp) and torque 400 Nm
- Top speed of 218 km/h, 0-100 km/h in 7.9 seconds MMI monitor
Drivetrain - Audi navigation with personal route assistance
- Automatic Transmissions, 7-speed S tronic - Audi phone box with wireless charging
- quattro drivetrain with further advanced wheel-selective - Smartphone interface and sound system
- 10 GB Jukebox.
torque control.
Exterior design and body Driver assistance systems
- Length 4,663 mm, width 1,893 mm, height 1,659 mm - Hill descent assist and Cruise Control
- Single frame grille, large air intakes - Rear view camera, front and rear parking sensors
- LED headlights with dynamic turn lights at rear - Electromechanical parking brake.
- Panoramic Sunroof
- Lightweight design with high-end steel and aluminium Suspension
- 45.72 cms (18”) Alloy Wheels - New lightweight five-link suspensions
- Exterior mirror with electric folding, heated, kerb - Newly developed electromechanical power steering
- Audi Drive Select dynamic handling system with new off-
function and auto dimming on both sides.
road mode
- Adaptive suspension with damper control

35 January 2018

Upgrades & Varinats

Hyundai Introduces VERNA with 1.4 L Petrol Engine

Hyundai Motor India (HMIL) introduced two new variants Available in two trims - E and EX - with 6-speed Manual
with 1.4 L New Kappa Dual VTVT petrol engine in Next Gen Transmission, the base variant of the car comes equipped
VERNA with starting price of Rs. 7.80 lakh, Ex-Showroom, with standard safety features like dual front airbags, Anti-
Delhi, on January 10, 2018. lock braking system (ABS), central locking, day and night rear
Launched in August 2017, Next Gen VERNA become a view mirror, clutch lock, seat belt pre-tensioners, immobilizer
trendsetter in the Indian market and heralded a new chapter and ISOFIX. The upper EX variant, on the other hand, also
in Hyundai’s success story across the world. Received over gets reverse parking camera with sensors, front projector
30,000 bookings and 2,00,000 enquiries in India and over fog lamps, automatic headlamps, speed sensing auto door
10,500 units of export order from global markets, this super lock, impact sensing auto door unlock and rear defogger.
sedan is most awarded car of 2017 - winning 10 awards
including the prestigious “Indian Car of the Year 2018”.
Commenting on the new engine introduction, Rakesh
Srivastava, Director - Sales & Mktg, HMIL said, “Next Gen
VERNA with 1.4 L Kappa Dual VTVT petrol engine is the perfect
combination of performance and fuel-efficiency and
showcases Hyundai’s commitment to provide products based
on customers aspirations.”
The 1.4 L Kappa Dual VTVT petrol engine is offered with an
output of 100PS @ 6000 RPM and torque of 13.5 Kgm @ 4000
RPM, delivers fuel-efficiency of 19.1 kmpl, improved by 8% to
its predecessor.

Datsun Rolls-Out redi-Go AMT in India

Datsun India announced on January 23, the start of sales of Dual-Driving Mode: Customers can enjoy complete flexibility
Datsun redi-GO Smart Drive Auto at an introductory price of of switching between automated and manual mode during
Rs. 3,80,600. up-hill / down-hill and city traffic conditions.
The new Datsun redi-GO Smart Drive Auto comes with new Rush Hour Mode: provides the optimum cruising speed of
dual-driving mode and rush hour mode to provide an ultimate 5~6 Kmph which helps customers cruise effortlessly in bumper
driving experience with best-in-class ground clearance (185 to bumper traffic conditions.
mm), cabin space, boot space and head room. Jerome Saigot, MD, Nissan Motor India said, “Datsun redi-
GO Smart Drive Auto combines the convenience and flexibility
of dual-driving mode with best-in-class ground clearance,
cabin space, boot space and head room. In line with our
commitment towards our customers, we are launching the
new redi-GO Smart Drive Auto at an attractive introductory
price and rich features in its segment.”
Datsun redi-GO Smart Drive Auto is powered by intelligent
Spark Automated Technology (iSAT), 1.0L three-cylinder
fuel-efficient engine, all black interiors, central locking
system with remote key for convenience. The car is
available in five colours: Ruby Red, Lime Green, White,
Grey and Silver.
Datsun also introduces new Bluetooth Audio System (with
hands-free calling and Audio Streaming) across its range of
redi-GO model in T (O) and S grades.

January 2018 36

Upgrades & Varinats

Honda Introduces Special Editions of City, Amaze and WR-V

Honda Cars India (HCIL) announced on
January 11, the introduction of special
editions of three of its models Honda City,
Honda Amaze and Honda WR-V. These
special editions include Honda City 20th
Anniversary Edition, Honda Amaze Pride
Edition and Honda WR-V Edge Edition.

The 20th Anniversary Edition of the Honda
City celebrates 20 successful years of the
model in the Indian market and offers an
attractive exterior package that further
enhances the appeal of the City. It is
available in the top ‘ZX’ variant. The Amaze
Pride Edition comes equipped with a host
of new features, including an advanced
infotainment system, which increases the
premiumness of the interiors. It is offered
in the ‘S(O)’ variant of the model. The Honda
WR-V Edge Edition offers new value to the
customers with alloy wheels and a safety
package in the ‘S’ variant.

Jnaneswar Sen, Sr VP, Mktg & Sales, HCIL model. The 20th Anniversary edition is based on top of the
said, “We are extremely delighted to line ZX variant of Honda City and will be available at an Ex-
introduce the special editions for City, Showroom, Delhi prices of Rs. 13,74,532 for Petrol CVT and
Amaze and WR-V and are confident that Rs. 13,82,382 for Diesel MT.
these will be appreciated by our Honda Amaze ‘Pride Edition’
customers for the enhanced value they Honda Amaze Pride Edition comes enriched with advanced
offer.” infotainment system, enhanced exterior and safety features.
The edition is based on Amaze S(O) MT grade at an ex-
“We are extremely “Honda City showroom Delhi prices of Rs. 6,29,900 for Petrol and Rs.
delighted to introduce the 7,83,486 for Diesel.
completes 20 years of Honda WR-V ‘Edge Edition’
special editions for City, Honda WR-V, the Sporty Lifestyle Vehicle introduced in 2017
Amaze and WR-V and are unparalleled success recorded strong sales since its launch and well appreciated
confident that these will by its customers. Honda WR-V ‘Edge Edition’ based on S grade
in India and emerged gets enhanced stylish exteriors and additional safety features.
be appreciated by our WR-V Edge edition is available at an Ex-Showroom, Delhi
customers for the as the largest selling prices of Rs. 8,01,017 for Petrol MT and Rs. 9,04,683 for
Diesel MT.
enhanced value they mid-size sedan in
offer.”
2017. The 20th
- JNANESWAR SEN
Anniversary edition

of Honda City

embodies our

appreciation and

gratitude to our

customers,” he added.

Honda City ‘20th Anniversary Edition’
In order to commemorate 20 successful years for Honda City
business in India, a special 20th Anniversary edition of Honda
City introduced with distinctive exterior styling and value
added features, which further enhances the appeal of the

37 January 2018



Upgrades & Varinats

Yamaha Introduces New FZS-Fi Motorcycle

At the onset of
commemorating 10 years
of the iconic FZ series,
India Yamaha Motor (IYM)
announced the launch of
the new FZS-FI (149 cc)
motorcycle, on January 12.

Bringing together Yamaha’s
Blue Core technology and
improved braking system,
the new FZS-FI motorcycle
offers unmatched
experience and
performance efficiency.

Comes in Rear Disc Brake,
FZS - FI is available with a
price tag of Rs. 86,042, Ex-
Showroom, New Delhi.

TECHNICAL SPECIFICATION hydraulic single rear disc brake and 282 mm front brake,
thus, greatly improving stability and control. Adding to the
Engine Air-cooled, 4-stroke, SOHC, 2-valve aesthetics, the FZS-FI now has a sporty wheel design along
with a completely new mirror design. The same is available
Displacement 149cc in a vibrant ‘Armada Blue’ colour.
Speaking on the launch, Roy Kurian, Senior Vice President,
Maximum output 9.7 kW (13.2PS) / 8000 rpm Sales and Mktg, Yamaha Motor India Sales said, “The legacy
of Yamaha’s FZ series in India is all about the inheritance of
Maximum torque 12.8 Nm (1.3 kg f.m) / 6000 rpm a unique motorcycling passion. Immensely popular with
Indian bikers all the way through almost 10 years from the
Suspension (Front/Rear) Telescopic / Swingarm day it was launched in India, and winning over a million
hearts, it was crowned to become the ‘lord of the streets’ by
Dimension (L x W x H) 2,060 X 770 X 1,050 (in mm) the collective culture of the country’s motorcycling. While
its best seller features like build and appearance, superior
Seat height 790 mm engine technology, fuel mileage and suspension are
retained, the new additions will excite the present and new
Wheelbase 1,330 mm customers.”
The new FZS-FI motorcycle is a response to the needs and
Ground clearance 160 mm requirements of Yamaha’s customers, prioritising
performance efficiency and a safe commute while remaining
Kerb weight 133 kg true to the Macho image. The “Triple Muscular Concept”
(Muscular silhouette, Muscular Body parts and Muscular
Fuel tank volume 12L Chassis) was developed to inherit and strengthen this “Macho
Image” while creating an added impression of lightness and
Available across all authorized Yamaha dealers in the sportiness to the final design. Other features like superb
country, the new FZS-FI motorcycle will be manufactured by suspension for added comfort, advance midship muffler, skid-
India Yamaha Motor and marketed by Yamaha Motor India free split seat, multi-function instrument panel with eco
Sales. indicator have made FZS-FI a must-buy this season
Retaining its other best seller features including a 149 cc, air
cooled, fuel injected, 4-stroke, SOHC, 2-valve, single cylinder
engine, the new FZS-FI motorcycle now offers 220 mm

39 January 2018

News Basket Mercedes-Benz Unveils India’s First BS-VI
Compliant Vehicles

Mercedes-Benz India achieved a historic milestone in the that early introduction of BS-VI vehicles will further accelerate
Indian automotive industry, by being the first automobile the adoption of cleaner vehicles in the market and thereby
brand in India to launch the first ever BS VI compliant vehicles, achieving the Government’s clean air initiative.” Folger
‘Made in India, for India’. The Certificate of Compliance to elaborated.
the CMVR for Mercedes-Benz India was presented by ARAI Benefits of BS VI standards
Director, Rashmi Urdhwareshe to Roland Folger, MD & CEO, BS-VI standards are far-reaching in scope and incorporate
Mercedes-Benz India, in the honorable presence of Nitin substantial changes to existing Bharat Stage IV emission
Gadkari, Minister of Road Transport, Highways & Shipping standards. Of particular note is the tightening of Particulate
and Abhay Damle, Joint Secretary, Ministry of Road Transport Matter (PM) & NOx mass emission limits. In a BS VI vehicle
Highways and other dignitaries. the NOx limit reduction is upto 68% and PM limit reduction
is achieved at 82% in BS-VI, compared to that in BS-IV.

Stringent tests related to BS-VI emission norms

Roland Folger stated, “We are glad to fulfil our commitment Mercedes-Benz S 350 d has undergone stringent emission
to the customers and to the Government’s vision of ‘Make in test related to BS VI emission at ARAI, Pune and has been
India’, by introducing the first ever ‘Made in India, for India’ certified as BS VI compliant. Following are some of the tests
BS VI compliant vehicles. Mercedes-Benz vehicles are world- done at ARAI for the certification of the BS VI engines:
class products and they comply with the most stringent • Tail pipe emission test in laboratory – limits lowered to
emission standards, and the ARAI certified new BS VI vehicles
reiterate this high benchmark. The introduction of India’s 68 to 82% as against BS-IV
first BS VI vehicles for the Indian market is a significant • Engine power test – BS-VI fuel based test
milestone and we strongly believe that this will pave the way • On board diagnostic (OBD) test – Stringent OBD test
for other manufacturers to introduce their BS VI vehicles in • RDE (Real Driving emission) - On road emission
India. This, we believe would also be beneficial for the end
customer as they could use the latest technology available.” performance test
Nitin Gadkari commented, “To mitigate the rising pollution
in Delhi and adjoining areas, the Government is trying to Key highlights of BS VI engine in the Mercedes-Benz S 350 d:
advance BS VI grade fuel availability in Delhi NCT by April, S 350 d vehicle comes with a state-of-art engine and exhaust
2018 and shift to BS VI norms by April, 2020 across the after treatment technology, such as refined engine, EGR, DPF,
country. This will drastically reduce pollution and help us SCR etc. These technological measures lead to reduce the
advance to better technologies used globally. I want to emissions significantly and meet the BS-VI regulations with
congratulate Mercedes-Benz for their efforts towards not only huge margins. The S 350 d features the most powerful diesel
making safe vehicles but also for a greener vehicle, by car in Mercedes-Benz history.
introducing the first BS VI vehicle in India much ahead of the
regulations.” The new six-cylinder Diesel engine is designed to comply
“Mercedes-Benz has introduced BS-VI vehicles in India almost with future emissions legislation. The integrated technology
2 years in advance of the regulations. We strongly believe approach combining the new stepped-bowl combustion
process, dynamic multi-way exhaust-gas recirculation and
near-engine exhaust-gas after treatment, for the first time
combined with variable valve-lift control, makes further
reduced consumption with low emissions possible.

Although the output has increased noticeably compared to
the preceding model, the new engine consumes up to six
percent less fuel. The special traits of the top-of-the-line engine
in the diesel family include the stepped-bowl combustion
process, two-stage turbo charging and, for the first time, the
use of CAMTRONIC variable valve-lift control. Its design
features a combination of aluminium engine block and steel
pistons as well as further improved NANOSLIDE coating of
the cylinder walls.

January 2018 40

News Basket

Tata Motors Introduces TIAGO AMT in Bangladesh

Tata Motors announced the commercial launch of its new to the need of the ever-evolving customer, we are happy to
hatchback, TIAGO Easy-Shift AMT at a starting price of 14.95 launch the TIAGO AMT in Bangladesh.”
Lakh Taka, Ex-Showroom, Dhaka, for the Revotron 1.2L (petrol) TIAGO Easy Shift AMT comes equipped with four gear positions
variant, on January 16, 2018 – Automatic, Neutral, Reverse and Manual. In addition, it
Mayank Pareek, President, PVBU, Tata Motors, said, “TIAGO boasts of 2 drive modes- Sports and City, for a peppy driving
is the first car to embody our new IMAPCT Design language. experience. While the first-in-class sports mode is for
This globally benchmarked car, represents the next big leap performance oriented drivers, the City mode helps zip through
in our transformation journey. TIAGO has been instrumental traffic with complete ease. The Manual mode helps shift gears
in the growth of Tata Motors’ brand across the PV market. In at a flick of a gear stick for an engaging experience.
line with our commitment of launching products that cater TIAGO will be available in all new petrol engine – Revotron
1.2L (petrol engine).
TIAGO comes equipped with an infotainment system designed
by HARMAN and boasts of new segment-first applications
like the Turn-by-Turn Navi app and the Juke-Car app.
Available in 1 variant – XTA, TIAGO will come in six exciting
colour options – Striker Blue, Berry Red, Sunburst Orange,
Espresso Brown, Pearlescent White and Platinum Silver. Tiago
offers a warranty of 3 Years / 1,00,000 kms (whichever is
earlier) with 6 free services.

Hybrid and Electric Vehicle Growth in India Driven by Government
Incentives and Changing Customer Attitudes

Electric two-wheeler segment set for 38% growth by 2020, finds Frost & Sullivan’s Mobility team

Frost & Sullivan estimates sales of approximately 1.4 million Program Manager, Mobility (Automotive & Transportation)
electric vehicles (EVs) in India by 2030, accounting for about Practice, Frost & Sullivan.
18% of the new vehicles market. While EVs are expected to
account for about 15%, full hybrid electric vehicles will have For long-term growth of electric and hybrid vehicles in India,
about 3%. players should:
Frost & Sullivan’s “Electric and Hybrid Vehicles Market in • focus on affordable electric / hybrid technologies;
India”, finds that the two-wheeler segment will constitute • keep a close watch on government plans;
nearly 60% of the electric vehicle market with a healthy • reduce the price gap between conventional vehicles and
growth of nearly 38% by 2020. It provides a strategic
overview of the global as well as Indian electric and hybrid full hybrids;
market, including drivers and restraints, future market, • create better awareness of hybrid/electric technologies
government regulations, technology trends & challenges and
charging infrastructure. to alleviate fears relating to safety and cost of ownership;
A macro-micro overview showcasing insights relative to and
global trends across industries is available for the South • integrate technologies such as high-efficiency motors
Asian (India) and Middle Eastern & North African (MENA) and low-cost battery packs with the help of suppliers by
markets. jointly investing in research and development for
“The low speed of technology adoption can be attributed to industry consolidation and economies of scale.
limited cooperation between OEMs and suppliers. Increased “We expect a lot of permit driven business like auto rickshaws
cooperation in the future should improve economies of scale and unorganized ones like rickshaw market to lead
and accelerate the use of technology,” said Aswin Kumar, electrification in terms of last mile connectivity,” noted Kumar.
“Sales in electric rickshaws in recent years have been a major
double-digit growth contributor in this segment.”

41 January 2018

BharatBenz Delivers Euro-V Ready (NOx) emissions are reduced by more than 40 per cent
Trucks in New Delhi compared to BS-IV.
Rajaram Krishnamurthy, VP, Mktg and Sales DICV, said:
Latest new product introduction from BharatBenz “Reducing air pollution is the need of the hour especially in
illustrates fast track to further air quality improvements a city like New Delhi and the NCR region. At BharatBenz, we
offer solutions - our Euro-5 ready trucks bring down NOx
Daimler India Commercial Vehicles (DICV) with BharatBenz levels by more than 40% compared to the new BS-IV standards.”
brand handed over the first units of its new, eco-friendly Ram Rattan Singhi, Director, Sure Cargo Control, said, “We
medium-duty trucks in the Delhi and NCR region. The customer, have opted for BharatBenz based on our experience of better
logistics firm M/s Sure Cargo Control Pvt Ltd received the reliability and cost of operation. With our new Euro-V ready
keys of two units of BharatBenz 1014R E5 trucks at Dhingra trucks, we want to demonstrate our support for their eco-
Trucking, one of the brand’s authorized sales and service friendly strategy, which can help to improve the dramatic air
partners in the region. pollution in Delhi and NCR.”
In line with the Euro-V emissions standard, nitrogen oxide

SsangYong Motor Global Sales Record 143,685 Vehicles in 2017

SsangYong Motor Co., part of the Mahindra Group, announced In terms of domestic sales, the G4 Rexton surpassed 2,000
that the company sold a total of 143,685 vehicles in 2017 – units again in 6 months since June (2,708 units). This result
106,677 units in domestic sales and 37,008 units in exports. was attributed to the Eurasia Special Edition as well as the 7-
SsangYong’s 2017 domestic sales recorded continuous seater version, which provided a competitive price.
growth for eight straight years helped by strong sales of the Overall, in December 2017, the company’s domestic sales
Tivoli brand and successful launch of the G4 Rexton. However, recovered to the 10,000 unit level but decreased 0.5 per cent
SsangYong’s 2017 global sales were down 7.8 per cent year- over December 2016. Its exports also dropped 40.7 per cent
on-year due to decreased exports over December 2016, even though the exports exceeded 3,000
Especially, its domestic sales posted a growth of 3.0 per cent units every month since August, thanks to global launches of
over 2016, thanks to the popular G4 Rexton and Tivoli brand. the G4 Rexton.
The brand-new G4 Rexton’s 2017 sales grew over 200 per SsangYong continues to hold regional launch events of the
cent compared to the earlier model’s 2016 sales. Tivoli brand, G4 Rexton in more countries, and accelerates to entering
which established a young and trendy brand image through new markets such as resuming shipping to Sudan in 8 years
constant changes, sold over 50,000 units for the second Choi Johng-sik, CEO of SsangYong Motor Company,
straight year. commented, “In 2017, SsangYong achieved continuous growth
Meanwhile, in the overseas market, SsangYong’s 2017 exports for eight straight years in domestic sales thanks to strong
witnessed a drop of 29.2 per cent from a year earlier affected sales of the Tivoli brand and successful launch of the G4
by the stagnant global economy and shrinking sales in Rexton,” adding, “In 2018, we will not only expand our global
emerging markets. However, the exports showed a steady sales but also maintain domestic sales growth with the
recovery after the G4 Rexton’s global launches. upcoming Rexton Sports.”

January 2018 42



News Basket

Kia Motors India Announces Two Senior Management
Appointments

Manohar Bhat as Head of Marketing & Sales and Yong S Kim as Executive Director

Kia Motors India (KMI) announced on Janaury 16, the overseeing the sales function, mid-to-long-term strategic
appointment of Manohar Bhat as Head of Marketing & plans of KMI, and coordination with Kia Motors
Sales and Yong S Kim as Executive Director, effective Corporation head office in South Korea. He will
immediately. They will be a part of the core senior coordinate marketing and sales requirements of KMI at
management team at KMI and will be instrumental in a corporate level, equipping KMI to strengthen its position
setting up the India operations for marketing and sales. in the Indian market.
Kim has thirty years of auto experience with various
Manohar Bhat joins Kia Motors India as Head of global country positions in KMC. With his deep
Marketing & Sales. He will be responsible for marketing, understanding of the Indian market since set up
sales, and aftersales service operations. He will work operations in the initial days of his career, he is well
towards building the brand Kia as a household name in poised to play a vital role in making Kia a success in
India. India, what will be the third largest auto market in the
An automotive industry veteran with twenty-five years of world soon.
experience, Manohar has headed various marketing and “The appointments of Manohar Bhat and Yong S Kim to
sales functions nationally with major Indian automakers. pivotal senior roles at KMI is the next step in forming an
In his new role, Yong S Kim will be responsible for experienced top management team, who will realize KMI’s
vision and the big plans we have for India,” commented
Kookhyun Shim, MD & CEO of KMI. “With a positive can-
do attitude lying at the heart of everything that we do,
Manohar is a perfect fit for our brand ethos and I am
confident he will take us from strength to strength”, he
added.
Commenting on his joining KMI, Bhat said, “It is indeed a
challenging role and I am excited about making Kia the
preferred choice in all segments across India. We are
confident that we will not only capture substantial
market-share once we launch the brand, but also be a
player who delights and has the power to surprise its
new Indian customers.”

January 2018 44

Competition Law NGK spark plug’s Canadian The COMPAT by its order dated 09.12.2016 concurred with
Update subsidiary fined by Canadian the findings of the CCI and directed Ford, Toyota and
High Court Nissan, to remove all restrictions imposed through
agreements on auto parts suppliers so as to open up market
NGK spark plugs Canada, a for spare parts, remove all restrictions on supply of spare
subsidiary of NGK spark parts by original equipment suppliers to authorized dealers
plugs, Japan has admitted to etc.
bid-rigging for agreements it On appeal, Hon’ble Supreme Court has stayed the operation
entered with fellow Japanese of the COMPAT’s order and the matter will be taken up for
spark plug supplier Denso, arguments on 22 February 2018.
over a decade ago. It has Nine Japanese auto-part manufacturers file writ petitions
agreed to pay a fine of before the Delhi High Court
$550,000 (€363,500). These petitions inter-alia challenge the order of investigation
passed by the Competition Commission of India (CCI) under
NGK purposely submitted a Section 26(1) of the Competition Act, 2002 (Act) and the
higher bid than Denso in notices sent by the Director General, CCI (DG) requisitioning
2005 for supply of sparks information pursuant to the order of investigation.
plug to General Motors (GM) The broad contention of the petitioners is that (a) they
G R Bhatia, Partner & Head, with the intent to get the have not been informed whether they are charged parties
Competition Law Practice Group, tender allocated to Denso as or third parties; (b) by rejecting their inspection
it had entered into an MoU applications, the CCI is violating the principles of natural
Luthra & Luthra Law Office justice by not allowing the petitioners to have access to
case material in order to effectively respond to the DG’s
with NGK that NGK will win all the other tenders with GM. notices.
The matters will now come up for consideration on 17
The Canadian Competition Bureau levied a relatively modest January 2018.
fine on the sparks plug manufacturer taking into account the Brazilian anti-trust agency starts more investigations against
leniency application filed by it which was at 5% of its total Brazilian car parts makers
volume of commerce as compared to earlier imposed fines Brazil’s Antitrust agency, CADE, has commenced
on other auto parts manufacturers which ranged between 10 investigations against several Brazilian companies. It
to 15% of their total volume of commerce. believes that these companies may have colluded on pricing
policies for aftermarket sales of various car parts between
Korean anti-trust watchdog fines fuel pump manufacturers 2004 and May 2012. The enforcer also alleged that during
for collusive bidding sales to automakers, the companies may have divided up
customers, agreed prices and commercial conditions and
Korea’s Fair Trade Commission (KFTC) fined Denso Korea exchanged sensitive information.
Automotive, Aisan Industry’s subsidiary-Hyundam Industrial According to CADE, the alleged collusion may have affected
and Delphi Powertrain, the Korean branch of US carmaker as many as eight separate distribution chains within the
Delphi Automotive for colluding to squeeze competitors out national car parts market: pistons, bearings, liners,
of Korea’s engine fuel pump and variable valve timing systems connecting rods, door rings, sealing rings and gaskets, and
markets. engine piston rings.
It is believed, CADE has opened 14 investigations of alleged
The KFTC recorded that Denso Korea Automotive and Hyundam conspiracies affecting multiple auto parts since 2014. It has
Industrial rigged bids for engine fuel pumps from August also conducted raids in four other markets that have not yet
2007 to February 2009. In a simultaneous decision, the resulted in formal investigations in the automotive lighting,
antitrust agency found a subsequent collusion between Denso emergency switches, access mechanisms, and automotive
Korea Automotive and Delphi Powertrain, over bids for clutches sectors
variable valve timings systems from June 2009 to May 2012.

The KFTC imposed a fine of 16.9 billion won (€13 million) on
Denso Korea Automotive for its role in both cases. It also
ordered Hyundam Industrial and Delphi Powertrain to pay
16.82 billion won (€12 million) and 3.88 billion won (€3
million) as fine respectively.

Supreme Court stays COMPAT order that imposed penalty
on 3 car companies

45 January 2018





Musings Ford, Chevy and Ram Unveil New Pickups:
Why America Loves Them

When Aaron Bieber bought a pickup a few weeks ago, he Bieber said he drove a BMW coupe when he was “a young
raised a few eyebrows. dotcom guy and single.”
“I’m a software engineering manager who works in Boston, I But those days are over. After getting married, having a baby
ride the train every day, and I go buy a pickup truck,” he said. and moving to the Boston suburbs, he needed something with
“And my whole family is surprised about it.” the practicality of a hatchback he owned recently.
But Bieber, who bought a 2011 Nissan Frontier from a CarMax “I got a lot of utility out of the extra space, and I thought,
dealership, is not alone. ‘Why stop there?’ “ Bieber said.
American families and workers are piling into pickups at a He soon found himself diving into online automotive research,
feverish rate, and automakers are responding with absorbing the ins and outs of crew cabs, bed styles and
innovations and comfortable design packages that translate interior creature comforts.
directly into profits. “One thing that surprised me is the huge range of price,” he
At the North American International Auto Show on Monday, said. “You can spend an awful lot on a pickup truck.”
General Motors, Ford Motor and Fiat Chrysler are all showing That you can. For example, the average sale price of Ford’s F-
off new pickups: series pickup — the most popular model in the US - hit a
• Ram 1500: Fiat Chrysler is introducing a new version record $47,800 in December, Ford US sales chief Mark LaNeve
said.
that is nearly 225 pounds lighter and more aerodynamic Pickup prices have soared in part because buyers want their
for better fuel economy yet capable of handling higher vehicles outfitted with the same types of features as high-
payloads. end sedans and crossovers, such as soundproofing and a
• Ford Ranger. The midsize pickup returns to the Ford lineup slick interior.
for the first time since it was discontinued in 2011. It “I remember testing the Chevy Silverado, and I was towing an
will come with a turbocharged engine option and 10- empty horse trailer and I couldn’t hear the rattle,” Kelley Blue
speed transmission. Unlike the F-150 full-size truck, Book analyst Rebecca Lindland said. “It was amazing.”
Ranger will be aimed at “a little more of an urban Automakers have also responded with luxury variants of their
customer” who may use it for weekend fun, said Raj bread-and-butter pickups, including GM’s GMC Sierra Denali,
Nair, Ford’s President for North America. Ford’s F-150 King Ranch and Fiat Chrysler’s Ram Ltd Tungsten.
• Chevrolet Silverado. The 2019 version of the truck was And for good reason: Automakers need pickups to pay the
unveiled at a splashy event by GM. It will come in eight bills. The F-series, for example, is widely understood to deliver
different versions for different kinds of pickup buyers. the lion’s share of Ford’s profits in a given year.
The trio of new pickups underscores the industry’s heavy The average GM pickup truck was raking in a profit of about
reliance on tried-and-true models that continue to pay the $11,000 in 2016, according to Citigroup analyst Itay
bills, enabling companies to invest in futuristic but costly Michaeli, while the average GM SUV or crossover was turning
self-driving technology and advanced electric vehicles. a profit of $500 to $1,000. The average passenger car was
losing a few hundred dollars.
Sales still rising It’s just not just a sandbox for the Detroit Big 3 automakers.
Americans can’t get enough. U.S. pickup sales rose 4.8% in Foreign brands are grabbing a piece of the pie, as well.
2017 to 2.69 million, according to Kelley Blue Book, resisting
the overall industry’s 1.8% decline after a record overall 2016. Toyota’s full-size Tundra and midsize Tacoma pickups have
“Nobody knows if we’ve reached peak pickup truck yet,” the most loyal following in the business, according to
AutoPacific analyst Dave Sullivan said. “But we haven’t hit” CarGurus. Nissan is likely to redesign the Frontier soon. And
that point yet. Honda’s new Ridgeline won the 2017 North American Truck
Especially not if Boston software engineers are now buying of the Year Award.
pickups.

January 2018 48

NADA Musings

Even Silicon Valley automaker Tesla, known for its ultraluxury Pickup tradition
electric vehicles, is set to get into the mix. CEO Elon Musk Despite the influx of lifestyle buyers, the American tradition
recently reiterated that he’s “dying to build it.” of towing, hauling and offroading with a gritty full-size pickup
“I promise that we will make a pickup truck,” he pledged in a is going strong.
tweet last month, saying he has “had the core design/ One factor currently driving pickup sales is the flourishing
engineering elements in my mind for almost 5 years.” economy. With the housing sector in good shape, the job
Midsize boom market at essentially full employment and interest rates
GM’s introduction of midsize pickups, the Chevy Colorado still relatively low, the mix is right for strong pickup sales.
and GMC Canyon, several years ago proved to be savvy And if Washington pulls together a bipartisan package to
timing, putting to rest any fears they would swipe market invest in the nation’s infrastructure, that could provide
share away from full-size pickups. Ford is now playing catch- yet another boost to pickup sales, Autotrader.com analyst
up with its plans to resuscitate the Ranger. Michelle Krebs said. But even without an infrastructure
Sandor Piszar, director of Chevy truck marketing, said buyers plan, Krebs added, “2018 is going to be a huge year for
of midsize trucks are different from buyers of full-size pickups. pickups.”
“The person buying a midsize isn’t settling because they can’t Just don’t expect the feverish competition to lead to sharp
afford a full size,” Piszar said. “They are usually a little more shifts in market share.
urban, a little younger — looking for something that works 9 About 40% of pickup truck owners say they are “not at all
to 5 and something that enables the lifestyle on the weekend.” likely” to switch brands with their next purchase, according
Midsize trucks have become part of “work and recreation,” to CarGurus.
Ford truck marketing manager Brian Bell said. Owners “work “Whether there are ups or downs in the economy, you can
all week, then use this truck to go out where they go climbing count on the core group of buyer who needs to have a pickup
and hiking.” truck,” Piszar said.

Ford Goes “All In” on Electric Cars

Ford Motor Co. will more than double spending on electrified automakers have been rushing to step up their game with
vehicles, amplifying its investment in a segment that the auto regards to all-electric models. While the segment comprises
industry sees growing from what’s now just a fraction of the less than 1 per cent of annual deliveries in the US, global
market. demand is expected to rise as governments phase out
The carmaker will shell out $11 billion bringing 40 electrified gasoline and diesel engines and batteries reach price parity
vehicles to market by 2022, Jim Farley, president of global with traditional powertrains.
markets, said during a presentation at the Detroit auto show. Tougher Standards
That’s up from the $4.5 billion that Ford said in late 2015 it Ford expects fuel economy and pollution standards to get
would invest through the end of the decade. tougher, “and rightfully so,” said Raj Nair, head of Ford’s North
“This $11 billion you’re seeing, that means we’re all in now,” American operations.
Executive Chairman Bill Ford told reporters in Detroit. “The “aWndewbee’lvieevgeomt aonu-rmpaadrtetCoOp2laisyc,”ohnetrsibauidt.ing to climate change
only question is will the customers be there with us and we Of the 40 electrified models planned, 16 will be battery-only
think they will.” vehicles. The company identified just one model by name
After electric-vehicle darling Tesla Inc. surpassed Ford in coming in 2020, called the Mach 1, that will be a performance
market value last year, the second-largest U.S. automaker battery-electric SUV.
replaced then-Chief Executive Officer Mark Fields. His “The real news for me is not just the doubling of investment,
replacement Jim Hackett has vowed to cut costs and drop it’s where we’re playing,” Farley told reporters. “We’re starting
some car models from the lineup to refocus the company’s to telegraph where we’re going to play in electrified business
future on sport utility vehicles, trucks and electrification. around the world, and that is to electrify iconic nameplates,
With battery costs declining rapidly and regulators around and it’s going to be higher transaction-price vehicles.”
the globe cracking down on the internal combustion engine,

49 January 2018

January 2018 50