Aftermarket - April 2012

68
INDIA’S FIRST MAGAZINE FOR THE AUTOMOTIVE AFTERMARKET Vol. 1 No. 10 April 2012 68 Pages `50 FACILITY VISIT TVS & Sons INTERVIEW Sumit Sawhney, GM India Auto Monitor Brought to you by NEWS CarZ plans 300 by 2017

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Aftermarket is India's first business magazine for the automotive aftermarket . Brought to you by Auto Monitor, it acts as a vital link between manufacturers and dealers and fulfills the communication needs of significant section of automotive professionals and entrepreneurs.

Transcript of Aftermarket - April 2012

Page 1: Aftermarket - April 2012

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

Vol. 1 No. 10 April 2012 68 Pages `50

Brought to you by

FACILITY VISITTVS & Sons

INTERVIEWSumit Sawhney, GM India

Auto MonitorBrought to you by

NEWSCarZ plans 300 by 2017

Page 2: Aftermarket - April 2012
Page 3: Aftermarket - April 2012
Page 4: Aftermarket - April 2012

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Page 5: Aftermarket - April 2012

APRIL 2012 AFTERMARKET 5

WHENEVER the market winds affect the sales of new vehicles, it is the aftermarket seg-

ment that shows positive signs—be it better sales of used cars or increased footfalls at the

organised aftersales service network. It can be a recession or a slowdown or even on account

of the impact on some announcements, the aftermarket always responds positively. And now,

this segment is going to witness a little more cheer than usual, especially since the Union

Budget presented by the Finance Minister Pranab Mukherjee has nothing significant to directly

encourage the auto industry. Every statement pertaining to the industry was discouraging,

except that the diesel car was left untaxed. The silver lining on the cloud is the weighted

deduction of expenditure on R&D and skilling—a positive thrust given to the manufacturing

sector—especially the MSMEs, infrastructure and skill development.

Shortage of skilled manpower has been an issue of significant concern to the auto industry,

especially in the aftermarket. It is far easier for the OEMs and the component manufac-

turers to attract talent than the dealerships and the service centres—perhaps due to the

image differentiation.

The passenger car industry that is slumping received another blow as the overall excise

duty for cars has been increased to 12 percent from the existing 10 percent. This has com-

pelled most of the OEMs to increase the prices of their products. In addition, the FM has

increased the excise duty for large cars—both petrol and diesel—to 24 percent from the cur-

rent 22 percent. The large cars with engine capacity above 1.5 litre will attract an additional

three percent ad valorem rate, which is significantly higher than the previously fixed `15,000

additional excise duty on such vehicles.

Altogether, the aftermath of Budget will trigger the inflation rate to soar further, which

had otherwise shown moderation in the last two months. And it will certainly impact the

sales of new vehicles. However, there will always be growth in the aftermarket due to its

unique characteristics. Those who postpone their new vehicle purchase will try to maintain

better by approaching organised service centers and using genuine spare parts. The success in

the aftermarket, however, depends on the individual attention paid to the customers at the

service points. Stay focused on customer service and the customers will stay with you during

the life cycle of the vehicle.

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

Aftermarket Always Wins

T. Murrali [email protected]

EDITORIAL

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APRIL 2012 AFTERMARKET 7

NEWS

Service Channel Preference – By type of Service

NEWS

IN CONVERSATION

FOCUS SPECIAL REPORT

COVER STORY

CONTENTS

10 CarZ plans 300 by 2017

13 Liqui Moly propels towards industrial pool

14 Valeo joins Anand Group to enter aftermarket

17 Mobis to diversify exports 18 Dutch navigation service provider to show way

34 Aftermarket speaks to VP, Sales, Marketing and Aftersales, General Motors India, Sumit Sawhney about the company’s attitude towards servicing

20 Why did TVS Group acquire Universal Components UK?

41 Aftersales service top priority for car buyers: Frost & Sullivan

10

14 18

24

34

20

41

24 The Great Indian Used Car Race Aftermarket turns the lens on the burgeoning demand for diesel cars and makes sense of the factors that spark the demand for used cars

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

Vol. 1 No. 10 April 2012 68 Pages `50

Brought to you by

FACILITY VISITTVS & Sons

INTERVIEWSumit Sawhney, GM India

Auto MonitorBrought to you by

NEWSCarZ plans 300 by 2017

Cover DesignMahesh Talkar

13

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APRIL 2012 AFTERMARKET 9

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10 AFTERMARKET APRIL 2012

NEWS

CarZ plans 300 by 2017

MULTI-BRAND car servicing st ations

seem to be growing, slowly but st ead-

ily. Today, only one-third of the cars that

are sold by the dealerships go back to the

dealerships, post -warranty. Th e rest is

an opportunity for the aftermarket serv-

ices networks, which the multi-brand

car servicing st ation chains are trying to

tap and these companies are successful,

based on their penetration levels.

As part of its expansion programme

the Hyderabad-based multi-brand car

service st ation CarZ is planning to

increase the number of outlets to 300

by the end of 2017. Th e company’s

immediate plan is to open 26 new serv-

ice outlets in South India in addition

to few st ates including Maharashtra,

Goa and Odisha by 2012-2013.

Recently, the company also forayed

into Bangalore by opening two st ate-

of-the art service outlets in Rajajinagar

and Sarjapur road. Th e expansion into

Karnataka is part of the company’s

aggressive plans of st rengthen its foot-

prints across the country and bring its

unique value proposition to car owners

through its service and

solution off erings.

Commenting on their expan-

sion plans, the Founder & Managing

Direct or of CarZ, Venu Donepudi

said, “We also have plans to spread

across India by increasing the number

of outlets to 300 by the end of 2017.

Bangalore, for inst ance, is an important

growth market for us, with its huge IT

population and high disposable income.

At CarZ, our const ant endeavor is to

provide end-to-end solutions to the dis-

Bhargav TS

The company has

partnered with a European

company called Akzono-

bel, to outsource full body

painting requirements for

their cars. It has also tied

up with a Germany-based

chemical company BASF to

outsource paint for

full-body painting

of branded cars

CarZ Bangalore Outlet

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12 AFTERMARKET APRIL 2012

NEWS

cerning Indian car owner through our

st ate-of-the-art workshops located across

the country and our unique business

verticals. Cust omer centricity has always

been the key to our delivery model and

we promise the same unique experience

to our cust omers in Karnataka.”

According to company sources, the

service centre off ers express and mobile

service to its cust omers. It is equipped

with the latest diagnost ic scanner, elec-

trical and mechanical syst em, lifts, body

and paint shops among other equip-

ments. It provides numerous services

ranging from maintenance to collision

repair to car wash. Th e modern garage

equipment used by CarZ has been

imported from Japan, Korea

and Germany.

Th e Founder & CEO of CarZ, Vijay

Gummadi, said, “We plan to create

new benchmarks in cust omer service

and product off erings in the automo-

bile indust ry. It’s our endeavour to

provide complete auto care solutions to

our cust omers which include preventive

maintenance, elect rical and mechani-

cal repair, accident repair—denting and

painting, tyres and services, battery,

variety of st yling and performance acces-

sories, interior and exterior detailing.“

To ensure satisfact ion and prompt

delivery of the vehicle to cust omers,

CarZ has tied-up with several public and

private insurance companies for process-

ing cashless insurance claims as well as

insurance renewals. CarZ also off ers

express and mobile service to cust omers

for their convenience, where one can get

their car picked up from their doorst eps

at night and get it back (in case of minor

maintenance repair) the next day before

leaving home, at no extra cost .

Painting PartnerTh e company has partnered with a

European company called Akzonobel, to

outsource all full body painting require-

ments for their cars. It has also tied up

with a Germany-based chemical compa-

ny BASF to outsource paint for full-body

painting of branded cars. Besides, it has

associated with HPCL for supply of

lubes and oils. CarZ also uses advanced

software StockTrack for managing an

inventory for 340 models of cars of diff er-

ent brands and multiple variants.

Th ough, there are hundreds of unor-

ganised car care centres mushrooming

across the country they lack the where-

withal to handle the technologically

rich modern cars. Adequate training

of the personnel, along with st ock-

ing of genuine auto parts and garage

equipment are tad bit expensive and

cumbersome process, which these

small players can't aff ord. Th erefore,

companies such as CarZ, Carnation,

Mahindra First Choice and other play-

ers have a win-win situation, as these

companies are armed with a range of

equipment and machines to cater to the

service requirements of vehicles of dif-

ferent brands under one roof.

As of December 2011, CarZ had

eleven own outlets and one franchise in

Nizamabad dist rict of Andhra Pradesh.

Currently, the company operates in four

locations in Hyderabad. In the sec-

ond phase, CarZ had launched these

two outlets in Bangalore, thus entering

the Karnataka market. Eventually, the

company is planning a nationwide roll-

out of its outlets soon, sources said.

To become a franchisee of CarZ,

the company looks forward to having

st rong ethics, appreciation for cus-

tomer service values, the prowess to

leading the team by const antly moti-

vating them, a hunger for humungous

growth. Besides, they should have

adequate experience in retailing busi-

ness and a proven management skill

with sound fi nancial credentials, the

sources added. �

As part of its expansion

programme, Carz has

added another outlet to its

network by foraying into

Bangalore. The company

recently opened two tech-

equipped service outlets in

Rajajinagar and Sarjapur

road. Its expansion into

Karnataka is part of the

company’s aggressive plans

to strengthen its footprints

across the country CarZ Service station

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APRIL 2012 AFTERMARKET 13

NEWS

Our Bureau

THE motor oil and additive

manufacturing company Liqui Moly

(LM), together with its subsidiary

company Meguin, is set to expand its

industrial business. With this in mind,

the two brands will be represented for

the fi rst time at the Hannover trade fair

at the end of April.

“Th is is the curse of success. In the

automotive sector in Germany, we have

acquired such a large market share that

we can hardly grow any further there. So

we are moving on to new pastures and

will increasingly focus our attention on

industrial customers. We want to allow

our industrial customers to profi t from

our experience in the automotive sector”,

says CEO, Liqui Moly, Ernst Prost.

Th e industrial business is no new

ground for Liqui Moly as the company

along with its subsidiary provides

lubricants, greases and special products

to a host of industrial customers.

Despite being one of Europe’s leading

manufacturers of contact lubricants,

the company is planning to expand its

industrial business.

Th e company group is presenting the

form oil WT01 for the asphalt industry

as a trade fair innovation. It ensures that

the material doesn’t adhere to loading

areas and asphalt chutes. Th e form oil is

obtained from renewable raw materials

and is biologically degradable. Its usage is

not only economical; it is also especially

environmentally-friendly. According to

the company release, Liqui Moly and

its subsidiary are the fi rst providers of a

product on this basis. Several innovations

from the areas of lubricant greases,

corrosion protection oils and coolant

lubricants will also be presented. Th e

company will also present its ideas for the

lube shuttle concept.

Th e formulae for success are the same

as those for the core business such

as quality, extensive aftersales service

and the fl exibility of a medium-sized

company that can implement customer

wishes in an uncomplicated fashion.

Th e Liquily and Meguin group, which

composed of the two companies based in

Ulm and Saarlouis, off ers an assortment

of about 4,000 products encompassing

motor oils, additives, care products and

chemical technology problem solvers

for the automotive sector. Th e group

develops and tests the products at its

own laboratories and manufactures in

Germany. In addition to the German

market, the products are already sold

in more than 100 countries across

the world. Th e customers of the high-

tech assortment include wholesale and

specialty traders, consumer markets,

home-improvement markets, industry,

automotive businesses and single brand

automotive dealerships, as well as

independent gas stations. �

We are moving to

new pastures and will

increasingly focus our

attention on industrial

customers. We want to

allow them to profi t from

our experience in the

automotive sector— Ernst

Prost, CEO, LM

Liqui Moly propels towards industrial pool

LM Meguin Trennoel

Page 14: Aftermarket - April 2012

14 AFTERMARKET APRIL 2012

NEWS

IN a bid to target the fast-growing

automotive independent aftermarket

business in India, auto component

manufacturer, Valeo has forged an

alliance with Anand Group. Th e newly

formed company—Valeo Service India

Auto Parts Private Limited will be based

out of Chennai and distribute automotive

products manufactured by the two groups

under Valeo.

Th e JV agreement will enable both

the companies to leverage the existing

opportunities and to work closely in a

complementary manner. Valeo started

its Indian innings in the year 1997 and

currently employees 2,000 members

working out of fi ve production sites in

Chennai and Pune and a Research and

Development Centre in Chennai.

Th e Anand Group, India is among

India’s leading manufacturers of

automotive systems and components

supplying a range of parts across vehicle

categories. Speaking to Aftermarket, the

Managing Director of Valeo Service India

Auto Parts, S Balasubramanian said that

the aftermarket division of Valeo already

exists in many countries in Europe, the US,

Japan and China. In India, the company

has been present since 1997. In order

to target the fast-growing automotive

independent aftermarket business in India,

Valeo Service has been launched.

Valeo Service sees a huge aftermarket

potential in India, which is growing at a

rapid pace of 12 to 15 percent every year.

“Th ere is opportunity in maintenance,

crash repair and heavy-duty servicing

business. Valeo also recognises that

India is a large market In order to

provide effi cient logistics service, Valeo

Service will supply

material through

12 warehouses

across the country

which could be

further increased

in future,” he said.

Th e aftermarket

company plans to

sell its in-house

m a n u f a c t u r e d

products like cutch

assemblies, starter

and alternators, wiper blades, lighting and

climate control products. “In addition,

Valeo Service plans to outsource and

sell certain maintenance products, ride

control products and engine components

to off er a bigger basket of products to its

customers,” he said.

To a question whether the company

will look at importing products to cater to

aftermarket, Balasubramanian said, “Yes,

Valeo Service plans to import products

from its plants in Asia. Also we plan to

import parts for the premium segment

cars from its most modern factories

in Europe.”

Globally, Valeo Service supplies

original equipment spares to automakers

and replacement parts to the independent

aftermarket in cooperation with the

business groups/product families. Its role

is to off er to all aftermarket channels

worldwide a wide range of products

and services to help make repairs easier

and to provide greater safety, comfort

and pleasure to drivers and passengers.

Besides, it also off ers support and services

that are constantly being enhanced and

developed, in areas such as diagnostics,

training, sales & marketing and technical

support.

Valeo Service off ers 176 product

ranges covering 12 product functions

for light, commercial and industrial

vehicles and trucks such as wiper systems

(under the brand names Valeo, Marchal,

PJ, and SWF), transmissions, lighting

systems, climate control, engine cooling,

electrical systems, electrical accessories,

security systems, switches, braking and

engine management. �

Valeo recognises that

India is a large country

and to provide effi cient

logistics service, Valeo

Service will supply materi-

al through 12 warehouses

across the country, which

could be increased in the

future—S Balasubrama-

nian, MD, Valeo Service

India Auto Parts

Valeo joins Anand Group to enter aftermarket

Bhargav TS

A range of Valeo components

Page 15: Aftermarket - April 2012
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16 AFTERMARKET APRIL 2012

NEWS

DR VOLKMAR DENNER, has been

appointed the new chairman of the Bosch

board of management. He joined Robert

Bosch GmbH in 1986, and has been a

member of the board of management

since 2006. Before he joined the board

of management, Denner, who has a

doctorate in physics, was president of

the Automotive Electronics division

from 2003.

He was initially responsible for the

automotive electronics, car multimedia,

starter motors and generators, and

electrical drives divisions.

Since July, 2010, he has been responsible

for the corporate sector research and

advance engineering, for product

planning and technology coordination,

and for the “user experience” issue across

all three business sectors. In addition,

he is responsible for the automotive

electronics and car multimedia divisions.

Eff ective July, 2012, Denner will also join

Robert Bosch Industrietreuhand KG as a

shareholder.

For a number of years, Denner

has focused on the issue of dynamic

technological change and the

opportunities arising for Bosch from

services and solutions that are increasingly

web-enabled. One example of this is

vehicle interconnectivity.

Professor Dr Ing Hermann Scholl is

to resign from offi ce eff ective 30 June,

2012. At the same time, he will retire

from Robert Bosch Industrietreuhand

KG. Franz Fehrenbach, who has been

a member of the board of management

since 1999 and its chairman since

2003, will step down from the board of

management. Following a resolution

of the shareholders of Robert Bosch

GmbH, he will join the supervisory

council of Robert Bosch GmbH eff ective

July, 2012. Th e supervisory council has

elected him its chairman as of July, 2012.

At Robert Bosch Industrietreuhand KG,

of which he has been a shareholder since

2003, Fehrenbach will in future be a

general partner and take over the chair of

the shareholders’ meeting.

Dr Ing Dirk Hoheisel will join the

Bosch board of management from July

this year. A qualifi ed electrical engineer,

Hoheisel has been with Bosch since

1990, and has held various engineering

positions. Hoheisel is currently Executive

Vice President Engineering at chassis

systems control in Abstatt, near Stuttgart.

From 1 July, 2012, Hoheisel will be

the board of management member

responsible for automotive electronics

and car multimedia. �

ASIA MOTORWORKS (AMW) has

entered into an agreement with MyTVS

to allow AMW customers to obtain

service at MyTVS outlets across the

country. Th e agreement covers all AMW

haulage and tractor models operating on

Indian roads.

With this agreement, AMW gains

access to MyTVS’ service network

which includes 1,157 outlets across 763

locations. Th e types of services to be

provided include minor repair jobs that

would allow the vehicle to continue on

its journey until it reaches an AMW

authorised service outlet.

MyTVS is part of the TVS Group

and off ers multi-brand car services and

emergency breakdown assistance for

mechanical and electrical faults. It also

off ers ambulances, cabs, winch and towing

services as well as and legal coordination

assistance. AMW would also be using

these MyTVS outlets to sell spare parts,

which would add to customer convenience

and enhance vehicle uptime.

AMW has a network of around 113

dealerships and over 1,500 touch points

across India. Th is network includes sales

and service centres, authorised service

outlets, mobile vans, workshops and a

24X7 helpline. Th e company off ers trucks

ranging from 16 to 49 tonne. �

Volkmar Denner to take over as Bosch chairman

AMW, MyTVS join forces Skoda conducts summer check-up SKODA AUTO INDIA has organised

a month long comprehensive car check-

up camp, starting April, 2012. As part of

the camp, areas like the air-conditioner,

engine, electrical systems, tyres, wheel

rims and other such essential areas of

the vehicle will be thoroughly examined.

Th e company is aiming to cater to around

28,000 cars during this month long check-

up camp. It had previously organised

monsoon car care camps, pollution check-

up camps and festival camps. Skoda Auto

India has a network of around 100 outlets

across the country and has sold over

138,341 units since December 2001. �

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APRIL 2012 AFTERMARKET 17

NEWS

Mobis to diversify exports

SOUTH KOREAN auto parts major,

Mobis is looking to diversify exports

by st rengthening its presence in the

emerging markets of China and India

through a ‘Two-Track’ export st rategy,

according to a company release.

Th e company opened a local branch

in India, which would be responsi-

ble for auto-part orders from local car

manufact urers in and around New

Delhi, India. Th e company, which

has local branches in North America

(Detroit), Europe (Germany), Japan

(Tokyo) and China (Shanghai), has

est ablished an exclusive global sales

network in leading and emerging mar-

kets following the opening of a local

branch in India.

Th e local branch in India is a part

of the company’s st rategy to increase

the company’s presence in emerging

markets. Th e company plans to lever-

age this competitiveness to become

the leading international fi rm through

diversifi cation, securing cust omers in

emerging markets including China

and India and accelerating auto-part

exports in leading markets. Th e com-

pany is a major supplier to international

automakers including GM, Chrysler

in North America, and BMW,

Volkswagen, and Mercedes in Europe.

Th e company plans to reinforce busi-

ness act ivity in China and India to

secure cust omers in these emerging

markets. It plans to gradually expand

sales offi ces in China to other regions by

next year while carrying out business to

obtain component orders primarily with

the local Indian branch.

It has completed a detailed analysis

of the Indian market and its competi-

tors and est ablished a business st rategy

targeting the Indian market with safety

syst ems, including airbags, automotive

syst ems and audio as st rategic

company product s.

Th e airbag market is expect ed to

grow 37 percent annually in India, as

the Indian government enforces tougher

measures to inst all airbags in India’s ten

major cities commencing this year. As

local auto manufact urers demand high

quality audio syst ems, the market is

expect ed to grow 19 percent annually.

Vice President, Mobis International

Business Department, Lee Jun Hyung

said “Th e company will develop these

st rategic product s tailored to the Indian

market in cooperation with a research

inst itute in Hyderabad, India, while

reinforcing price competitiveness

through design improvement and

on-site development of major com-

ponents, and promoting aggressive

business act ivities”.

In addition to Hyundai Motors,

Mobis is targeting Maruti Suzuki, Tata

Motors and M&M, India’s three major

companies accounting for more than 60

percent of the Indian market. Th e com-

pany has est ablished a branch offi ce in

Delhi for best access to these companies

and best use of exist ing R&D personnel.

Mobis has expanded exports to over-

seas car manufact urers to 10 percent of

overall sales by increasing major auto-

part exports to leading car manufact urers

in North America and Europe. Th e

company now aspires to be one of the

global top fi ve leading companies in the

car component indust ry by expanding

its share to 20 percent of the market by

2020 through a st rategy of diversifi cation

across leading and emerging markets. �

Our Bureau

Mobis has completed a

detailed analysis of the

Indian market and

established a business

plan targeting the Indian

market with safety

systems, including

airbags, automotive

systems and

audio, as strategic

company products

Page 18: Aftermarket - April 2012

18 AFTERMARKET APRIL 2012

NEWS

18

Shambhavi Anand

WITH a strong belief in the growth

potential of the Indian market, TomTom,

a Netherlands-based in-car navigation

solutions provider, is building a team of

400 employees in the country to localise

its services and solutions in the region.

Th e company is also planning to invest

substantially in the country in order to

have a grip on the market. Th e company,

which is already a partner with major car

companies such as BMW, Renault and

GM is talking to other global companies

about forming alliances in India. Founded

in the early nineties, the company is listed

on the Amsterdam Stock Exchange and

earned total revenue of €1.27 billion in

2011. It has a presence in more than

100 countries.

“Our goal for India is very clear. We, as

a consumer product company and digital

map maker, believe that the market has

tremendous growth potential, and plan to

invest to serve our customers better,” said

General Manager and SrVP, India, Tom

Tom, Jocelyn Vigreux to Aftermarket.

Th e company entered the Indian

market in September 2011 when

it unveiled the Via Series of PND

devices, catering specifi cally to Indian

requirements. “Th e market is still very

nascent but developing rather rapidly,

going by the data we obtained for 2011.

Th e PND market here last year was

valued at approximately $80,000. We

also detect that the awareness about

such products is increasing amongst

consumers,” Vigreux added.

StrategyTh e investments that the company

is envisaging are to primarily increase

awareness and availability of its

products in the local market. “First, it

is important to build a robust channel

to introduce our products and brand to

the market. Second, we have to educate

the market on the benefi ts it off ers to

the consumers. We believe that we are

executing well on all of these aspects,

as we have already created a pan-India

distribution channel that is giving

our company a true national reach,”

Vigreux said.

TomTom has recently partnered with

Reliance Digital to sell its products

through its 100 distribution channels

across the country. Th e products will be

sold through Reliance’s retail division

for automobiles—Reliance Autozones,

besides, independent car accessory dealers

and car dealers. Realising the importance

of localisation, every device of the Dutch

company comes with comprehensive

maps of India, with more detailed Points

of Interest (POIs), and coverage of more

than 5,000 cities and towns across the

country. It is also working on making

the interface user-friendly for the

Indian consumer.

TomTom has introduced three portable

navigation devices from it’s Via series —

Via 100, Via 120 and Via 125. It has

also introduced Landmark Navigation

feature for the Indian market through

which, drivers can search for the nearest

landmark to their destination. Th ese

devices also have a ‘Help Me’ feature

in them that lists an emergency menu,

providing them with local emergency

service information. �

Tom Tom has introduced

a Landmark Navigation

feature for the

Indian market through

which, drivers can

search for

the nearest

landmark to their

destination

Dutch navigation service provider to show way in India

Jocelyn Vigreux, GM & SVP India , Tom Tom

Via 125 degree Angle ViewVia 125 degree Angle View

Page 19: Aftermarket - April 2012
Page 20: Aftermarket - April 2012

20 AFTERMARKET APRIL 2012

FOCUS

Why did TVS Group acquire Universal Components UK?

MADURAI headquartered TVS

Group has recently acquired Universal

Components UK Limited, Britain’s

leading independent wholesale

distributor of commercial vehicles’ parts

and accessories.

TVS Group had already made

acquisitions in UK through TVS Logistics

Services Limited in 2009 to acquire the

capability in the logistics business. Post

that deal, the distribution and services

business had been looking at possible

acquisitions to increase its relevance to its

stakeholders (suppliers) and also acquire

new capabilities.

As part of this intent, the group

created a special purpose vehicle in

the UK—TVS Europe Distribution

Limited, which has purchased 90

percent of Universal Components’

stake. Th e total investment towards

this deal is `100 crore including

its proposed spending on its

expansion plans.

The Rationale Well, what is the reason for TVS to go

ahead with the acquisition? Is it because

the company is keen in inorganic

growth to enhance volumes or is it due

to its intent to expand globally? It is

much more beyond all these reasons,

said Joint Managing Director, TVS &

Sons, R Dinesh.

Established in 1911, TVS Group is one

of the leading business conglomerates in

the country with interests in automobile

dealerships, distribution of spares for

aftermarket, sales and service support

for garage equipment, products for off -

highway applications like construction

and material handling. TVS & Sons,

which is the holding company of the

group, is one of the largest distributor

T Murrali

R Dinesh, Jt MD, TVS & SonsRichard Slee, CEO, TVS Supply

Chain Solutions, Europe

The parts aftermarket

in Europe for LCVs and

HCVs in 2010 was

$33 billion, while

it was `4,500 crore

in India and set

to double by 2015

Page 21: Aftermarket - April 2012

APRIL 2012 AFTERMARKET 21

FOCUS

of automobile spare parts in India,

handling more than 35,000 part numbers

from 80-odd suppliers and catering

to the requirements of about 8,100

customers, besides, marketing in-house

branded products.

Discerning Distributors Dinesh is of the view that the structure

of the Indian automotive aftermarket

indicates a strong role for independent

distributors, which is similar to Europe

and the UK. Elaborating the synergies,

he said that original equipment

suppliers contribute 39 percent of

parts manufacturers, 34 percent is by

OEMs and the rest is by generic parts

manufacturers. However, OEMs cater

only to OEM sales units and part dealers

while the generic manufacturers support

independent part dealers. Th e one

segment that caters to both distributors

is the original equipment suppliers, he

said, referring to a study conducted by

ACMA—McKinsey.

While 45 percent of their lot goes to

OEM sales units and part dealers, the

rest goes to independent part dealers. Th e

retail segment is only catered to through

independent part dealers. Th e OEM sales

units and part dealers refrain from retailers

that are largely unorganised, and directly

support the needs of owned / franchised

dealers and multi-brand dealers, which

according to the study, account for 46 and

four percent respectively of authorised sales

and service centres. Original equipment

suppliers and generic manufacturers

support the remaining 50 percent of the

market that comprises small garages

and gas stations. Th e study states that

distributor/wholesaler is indispensable

in the network providing market access

to OEMs, original equipment suppliers

and third-party suppliers. In addition, it is

also vital in fulfi lling supply chain, source

of credit to customers and the ability

to source a wider product range than

any supplier.

Similarities, SynergiesDinesh said that the European

aftermarket, baring minor variations, has

a similar structure. It is this synergy that

made TVS group to acquire Universal

Components, he said. Th e acquisition

will help TVS enhance its presence in

the commercial and light commercial

vehicles spare parts range in other Asian

markets (except India) as well as help

acquire best practices in dealing with its

customers (small retailers). It will also

further improve its forecast and planning

capabilities and deploy state-of-the-art

IT systems in India and other countries

including Sri Lanka and Bangladesh

where the distribution of spare parts is

currently undertaken.

Th e parts aftermarket in Europe

for LCVs and HCVs in 2010 was $33

billion while it was `4,500 crore in India

and set to double by 2015. Th e positive

contributors to the growth include entry

of global truck manufacturers in HCV

segment, increasing range and variety

in the growing LCV segment and the

independent aftermarket distributors

that occupy about 50 percent of space

despite being fragmented and sub-scale.

“Th is acquisition will give increased scale

and size to strengthen our relationship

further with global suppliers, which will

The TVS group has

purchased 90 percent of

Universal Components’

stake. The total invest-

ment towards this deal

is `100 crore including its

proposed spending on its

expansion plans

David Kernahan, MD, Universal Components

Page 22: Aftermarket - April 2012

22 AFTERMARKET APRIL 2012

FOCUS

benefi t both Universal Components

and TVS. We will utilise Universal

Components’ marketing expertise and

best practices in our businesses in India

and other Asian markets. It would also

help us to have wider range coverage of

parts to distribute in the aftermarket,”

Dinesh said.

Modern Marketing Th ough the company has been in the

parts distribution for over fi ve decades,

what was missing is the marketing using

the web or adopting diff erent methods to

reach the customers. Secondly, in terms of

the range coverage, it had its limitations

based on the suppliers. Th irdly, TVS

currently honours 75 percent of the

orders placed within 24 hours while

Universal Components is at 95 percent.

Th is is due to the superior forecasting

ability, which will be a key learning,

he said.

Management bandwidth will increase

eventually benefi ting TVS while entering

new markets beyond boundaries. It will

help address the market in the shortest

possible time, he said. In the domestic

market, despite being a seasoned player in

parts distribution, the range availability

across diff erent segments, especially for

global brands is less. Th e acquisition will

help address these issues, he said.

TVS has a vision to be a focused

aftermarket distributor in Asia

having global scale and strong brand

marketing capabilities. With Universal

Components, it saw the relevance to

accomplish its objective in terms of

scale, range and marketing of the brand.

Leveraging the inherent potential,

the group is looking at acquiring few

key capabilities such as integrating

companies, global sourcing of parts

especially from low cost countries,

fulfi lling orders through effi cient supply

chain and understanding international

market dynamics.

Europe ExpansionUniversal Components, headquartered

in Sheffi eld, has 420 customers in the UK

being serviced through 650 distribution

outlets. It sells parts worth approximately

`200 crore and employs around 100

people selling both manufacturer-

branded parts and its own range of in-

house branded parts. It currently has

more than 12,000 part numbers and

plans to double this number in the next

three to fi ve years.

Yet another synergy TVS saw in

the deal is the opportunity to tweak

the supply chain of acquired company

through its existing operations. Th e

CEO of TVS Europe, Richard Slee

said, “With Multipart (now renamed as

TVS Supply Chain Solutions), we will

be able to provide signifi cant benefi ts

to Universal Components on the supply

chain and backend logistics.” Besides, it

will also help the company to become the

market leader and grow its relationship

with its customers.

SymbiosisAccording to Managing Director,

Universal Components, David Kernahan,

the business deal will support the

company in its growth plans and become

a larger player in the international and

domestic CV sector. TVS can support

the company in furthering the range

of its supplier relationships and also

bring in low cost country sourcing. TVS

compliments the sourcing eff orts of

Universal Components not only in trailer

range but also in the CV range, which is

one of the growth drivers identifi ed by

Universal Components in UK and other

parts of Europe.

Universal Components is the second

acquisition by TVS group in the UK

after its successful buyout of Multipart

Holdings in 2009. With these two

acquisitions, TVS group hopes to

register a turnover `1,000 crore in UK.

It is also planning to employ nearly

500 people. �

The European automotive aftermarket has a similar structureEUROPE

2010

Owned and fran-chised dealers

OEMs (50%)

OEM branded

C

OEM affiliated ASSPs (55%)OEM sales units

and part dealers (50%)

Service provider1Distributor2Manufacturer3 CustomersIntermediaries

OEM

chised dealers

Multibrand dealers

Mainly OEM or OES branded

Commer-cialInsurances

Automobilel bdealers

OES brandedOESs

(43%)Fleet

Independent ASSPsS t h i

clubs

Leasing

Mainly OES branded

iGeneric Individual

Independent part distributors (50%)

S ystem chains (33%)

Small garages/Generic

or gener icmanu-facturers (7%)

Small garages/ gas stations/ DIY (12%)

SOURCE: ZDK; DAT Report; GVA (BBE); Bundesverband Tuning VDAT; GDV; Datamonitor; Global Insight;

The structure of the

Indian automotive

aftermarket indicates

a strong role for

independent

distributors, which is

similar to Europe

and the UK

Page 23: Aftermarket - April 2012

APRIL 2012 AFTERMARKET 23

SPECIAL REPORT

Abhishek Parekh

MOTOREXCHANGE is looking to

enhance its technology platform and

notch up a turnover of around $one

billion over the next two to three years.

“We are looking to make this the most

robust and sought after used car auction

platform in India. Th e value addition and

connectivity is the diff erentiation that this

platform from any similar endeavours,”

said Founder and CEO, Motorexchange,

Vinay Sanghi.

Currently, more than a million

customers visit the consumer site cartrade.

com and around 1,200 automobile dealers

are registered users on the B2B platform

cartradeexchange, which is the online

auction marketplace for cars that connect

institutions like banks, fi nance companies,

insurance companies and auto dealers to

trade used and repossessed cars.

Value added services including

price guides on used cars, inventory

information and listing by dealers,

registration information and dealer

management system are integrated with

cartradeexchange platform to help faster

decision making process. To strengthen

the appeal of the platform, the entire

inventory of used cars is visible on the

B2B and consumer websites.

Th e consumer website is largely geared

to generate leads on individual buyers

with transaction on used car buying and

selling done offl ine.

“Features like inventory sharing by

dealers on regular basis are helping to

enhance the transparency in the market

and better price discovery for the used

car pool,” said Sanghi. He added that in

addition to enrolment of larger number

of dealers on the platform, the company

is also looking to enhance the scalability

of auction and lead generation business.

MotorExchange was launched towards

the end of 2009 as an online platform for

transacting used vehicles. Th e site enables

business (fi nancial institutions and fl eet

owners) and consumers to sell their pre-

owned vehicles. It claims to off er an

effi cient price discovery mechanism to

sellers in addition to defi ned timelines

and transparency. Buyers on the platform

are used vehicle dealers who gain access

to a large pool of vehicles. It also focuses

on repossessed vehicles from commercial

banks (that come from loans defaulters).

Th e B2B platform charges buyers a

commission fee and provides the services

to sellers for free. �

Features like inventory

sharing by dealers on

regular basis are helping

to enhance the transpar-

ency in the market and

better price discovery for

the used car pool—

Vinay Sanghi,

CEO, Motorexchange

Motorexchange to provide value added services

Currently, around 1,200

automobile dealers use

the platform, which is

the online auction mar-

ketplace for cars that

connect institutions like

banks, fi nance, insurance

companies & auto dealers

to trade used cars

Vinay Sanghi, CEO, Motorexchange

Page 24: Aftermarket - April 2012

24 AFTERMARKET APRIL 2012

COVER STORY

24

The fuel price differential between petrol and diesel is distorting the used car market across geographies. However, experts feel that the burgeoning demand for diesel powered cars may be a transitory phenomenon. Aftermarket turns the lens on the market winds, to make sense of the factors that spark the demand for used cars.

Page 25: Aftermarket - April 2012

APRIL 2012 AFTERMARKET 25

COVER STORY

25

SPEAK to any used car dealer these

days and one may be perplexed at the

discounts off ered on the petrol powered

cars. Th ough it is not an unprecedented

situation, the scenario is unusual given

its wider impact across geographies

and segments in a market that are

characterised by segmentation and

local taste.

Market players are of the opinion that

the fuel price diff erential scenario in the

new car market and tighter fi nancing

norms are playing their part in keeping

demand under check. Aftermarket

conducted an extensive survey on the

ground to assess the situation.

“Th e demand for diesel cars is

ruling steady but the demand for

petrol powered cars has come down

signifi cantly. Th e rush for new and

used diesel cars is helping keep the

prices steady whereas prices of petrol

cars in the used car market have fallen

signifi cantly over the past one years

so,” said Founder and Chief Operating

Offi cer, Motorexchange, Vinay Sanghi.

Currently, there are more than a

million hits on the consumer site

cartrade.com, and around 1,200

automobile dealers are registered users

on the B2B platform cartrade, which is

the online auction marketplace for cars

that connects institutions like banks,

fi nance companies, insurance companies

and auto dealers to trade used and

repossessed cars.

Value added services including

price guides on used cars, inventory

information and listing by dealers,

registration information and dealer

management system are integrated

with cartradeexchange platform to help

hasten decision making processes. To

broaden the appeal of the platform, the

entire inventory of used cars is visible

on the B2B and consumer websites.

Th e consumer website is largely geared

to generate leads on individual buyers

with transaction on used car buying and

selling done offl ine.

MotorExchange was launched

towards the end of 2009 as an online

platform for transacting used vehicles.

Th e platform site enables business

(fi nancial institutions and fl eet owners)

and consumers to sell their pre-owned

vehicles. It claims to off er an effi cient

price discovery mechanism to sellers

in addition to defi ned timelines and

transparency. Buyers on the platform are

connected to used vehicle dealers who

gain access to a large pool of vehicles.

It also focuses on repossessed vehicles

from commercial banks (that come from

loans defaulters).

Petrol WoesTh e falling demand for petrol cars is

also leading to an earlier arrival of the

latest models in the pre-owned segment.

According to the sales executive of a pre-

Value added services including price guides on used cars, inventory information and listing by dealers etc are integrated with

website platforms to help hasten decision making processes

Anil Bagaria, KB Motors, a Tata Motors Assured Dealer

Page 26: Aftermarket - April 2012

26 AFTERMARKET APRIL 2012

COVER STORY

owned dealer, even petrol cars that were

recently launched, such as Toyota Etios

& Liva, Volkswagen Polo & Vento and

Ford Figo, have found their way into the

second-hand market.

A resident of Ambattur in Chennai

who runs a small business, Sampath

Kumar, wants to sell his petrol car—

Maruti SX4 and buy the diesel version.

He said, “My monthly fuel bill, which is

running up to `15,000, is pinching me

hard.”

An automobile ‘consultant’ based

in Chennai, Mohan Rajabather said,

“In the last one year, the demand for

used cars has grown around 1.5 times

compared to that for new ones. Th is

means there is demand, but aff ordability

is an issue.” He further elaborated that

the expectations of those selling diesel

cars are running high. Th ere is a gap of

at least `50,000 between what sellers

want and what the buyers are willing to

pay. Mohan also said, “Till August 2011,

the ratio of petrol and diesel cars used to

be 45:55 in Chennai. It is now 25:75 and

this shows the demand in diesel cars.”

In Bangalore, which is considered one

of the biggest used and new car markets

in the country, the diesel cars sales have

increased by 25 percent, as per some

dealer estimates. A manager at a leading

pre-owned car showroom in Bangalore

says that the inventory holding period

for petrol models has gone up from

around 10-15 days last year to anywhere

around 35-40 days currently. Meanwhile,

the growing demand for diesel cars has

led to supply constraints, leading to

an increase in their prices by eight to

ten percent.

Car Financing“Easy availability of loans for pre-

owned cars is the reason that this

segment is growing at a fast clip. Not only

the loans but also insurance is available

and easy to get. Th e down payment and

In the last one year, the

demand for used cars has

grown around 1.5 times

compared to that for new

ones. This means there is

demand, but affordability

is an issue. There is a gap

of at least `50,000

between what sellers

want and what the buy-

ers are willing to pay

Page 27: Aftermarket - April 2012

APRIL 2012 AFTERMARKET 27

COVER STORY

the loan instalments have been aligned

to the needs of the buyers,” pointed out

Mohan. Customers feel that the there

are a lot of benefi ts in buying second

hand or pre-owned cars. Th e value of a

used car is lower than that of a new car

of the same make due to depreciation.

As the value of a new car is higher

compared to a used car of the same

make, the depreciation is also higher in

the initial years of the purchase. For a

pre-owned car, the depreciation cost is

lesser as compared to the new car and

used cars can be modifi ed according to

the owner’s preference.

With an increasing number of fi nancial

institutions coming in, the segment has

got a boost. Most banks such as Kotak

Mahindra, HDFC Bank are pursuing

used cars with aggressive strategies.

Currently, around 25 percent of used

cars that are sold are fi nanced. Th e used

car market is already larger than the

new car market in terms of volume and

is set to grow further as overall vehicle

population or ‘car parc’ increases.

According to some estimates, the

used cars segment has grown faster

than the new car segment over the last

fi scal. A domain of service stations till

very recently, pre-owned cars have now

become lucrative enough to attract new

car dealers as well. As per the estimates

of a leading car fi nancier, the used cars

industry is expanding at 25-30 percent

against around 13 percent or so growth

in the new car sector.

Th e Indian buyer has shed his/

her emotional inhibition of buying a

second hand car in favour of practicality

and economic consideration. Wider

presence of used cars brands certifi ed

by manufacturers including Maruti

True Value, Hyundai Advantage, Tata

Motors Assured provides comfort to the

customers opting for used cars. OEMs

have been increasingly focussing on

widening their presence in the used car

business by enrolling more pre-owned car

dealers, providing assistance on valuation

and refurbishments, regular exchange

programmes for buyers looking to upgrade

their existing cars and other value added

services to the existing owners. Free service

warranties are also provided on purchase of

used cars from OEM certifi ed used vehicle

brands. Despite signifi cant and growing

involvement of OEMs in the used car

market, unorganised players continue to

have a major presence accounting for 50-

60 percent of the total volumes in all Tier

I cities across the country.

Established players like Mahindra First

Choice Wheels Ltd (formerly Automart

India) which has around 180 outlets, is

focussing on increasing its dealership

network further and looking to compete

with dealers of new cars. “It is imperative

for customers to realise the benefi t of

opting for a used car. For the price of

a new hatchback, a potential customer

could get a pre-owned premium sedan

without compromising on warranties and

quality that comes with a new car,” said

Vice President–Operations & Network,

Mahindra First Choice Wheels,

Yatin Chadha.

He added that one of the biggest

challenges for any used car dealer is

establishing his/her credibility and

‘diff erentiation’ factor in a competitive

market. He considers ‘stable’ demand

or growing preference for diesel cars to

be a transitory phenomenon due to fuel

price diff erential and other factors. Older

diesel cars also require more maintenance

compared to similar aged petrol cars and

A domain of service

stations till very recently,

pre-owned cars have now

become lucrative enough

to attract new car deal-

ers as well. As per the

estimates, the used cars

industry is expanding

at 25-30 percent against

around 13 percent growth

in the new car sector

Page 28: Aftermarket - April 2012

28 AFTERMARKET APRIL 2012

COVER STORY

hence the price diff erential may not grow

beyond a point.

Fuel PricesDue to the successive increase in

petrol prices over the last 12 to 16

months, the sales of petrol powered cars

has gone down not only in the new car

segment but also the used car market.

Maruti True Value and Mahindra First

Choice Wheels dealers point out that

the inventory of petrol cars has doubled

even as demand has been dropping in

the past six months.

Around 40 percent of the enquiries are

for diesel vehicles but the availability is

falling short of the demand leading to a

premium for diesel cars in the pre-owned

market, according to a dealer in Mumbai.

He added that in certain pockets or

geographical areas there could be a major

demand-supply imbalance. Moreover, the

demand for cars fi tted with CNG/LPG

retrofi tment is less in used car segment.

Customers prefer to buy petrol version

and then get a CNG/LPG kit fi tted

themselves, according to dealers.

“In a used car business, the main profi t

lies in how much we procure a car for.

Since there is lesser demand for petrol cars

in used car market, we cannot off er prices

that we would have otherwise off ered

had there been no major price diff erential

between petrol and diesel. Th is could also

be leading to lesser number of vehicles

coming for sale in the used car market,” said

a Maruti True Value dealer in Mumbai,

N Venkatramani.

Th e benefi t of customers opting to

buy cars from a manufacturer certifi ed

used car brand is that the available

cars are refurbished with fi nancing and

warranties thrown-in, while this may

not be the case with cars purchased

from the unorganised segment. Several

bottlenecks to functioning of the

market exists. It is diffi cult to source

cars to resell in the used car market.

Additionally, trained evaluators are hard

to fi nd for most dealers. “A dealer has

to be careful about the kind of car to

be sourced. Th e ownership ‘history’ of

the car is very important and so are the

documents and that is why it takes some

time and we have to hire good people

for that. We have some yardsticks based

on our experience,” said a used car dealer

from Bangalore.

“A major issue is sourcing of pre-

owned cars. Not only is it diffi cult

to source cars with ‘clean’ history,

but the process of sourcing is also

dependent on market vagaries like

price revision of the new car, model

discontinuation and other factors,” said

Motorexchange’s Sanghi.

“Since the disparity between diesel

and petrol price has widened, there is a

signifi cant rise in the demand of diesel

cars. However, the petrol cars are still

preferred in the below `two lakh price

range,” said KB Motors, a Tata Motors

Assured dealer, Anil Bagaria based

in Kolkatta. He added that there is a

diff erence of around four to fi ve percent

in the rate of interest when compared

with new cars. Th e loan for new cars

is available at the interest rate of 12

percent, while this goes up to 17-18

percent in case of used cars. “Around

eight months ago, we use to sell 70

percent petrol vehicle and 30 percent

diesel but now there has been a shift in

favour of diesel vehicles and the current

ratio of diesel and petrol cars is 50: 50,”

according to the CEO, Topsel Toyota,

Deepak Gupta. Topsel is an affi liate of

Toyota’s pre-owned brand U-Trust.

Th ough it may be a while before used

car dealers compete with new car dealers

on relatively equal footing, their growing

prominence is noteworthy. �

Since the disparity

between diesel and petrol

price has widened, there

is a signifi cant rise in the

demand of diesel cars.

However, petrol cars

are still preferred in the

below `two lakh price

range,” said Anil Bagaria,

KB Motors, a Tata Motors

Assured dealer

Page 29: Aftermarket - April 2012

APRIL 2012 AFTERMARKET 29

FACILITY VISIT

TVS & Sons: Adapting to changing dynamics

WITH the vehicle parc increasing, the

demand for aftersales service is set to

rapidly grow triggering the increasing

requirements of spare parts not only in

diff erent varieties and volumes but also

at diff erent parts of the country.

Th e dist ribution and reach are going

to be critical and making parts avail-

able to cust omers when they want,

is crucial. TVS & Sons is looking at

expanding its network, creating more

space at its central warehouses and also

adding a new warehouse to its spread.

It is also looking at introducing bar-

coding parts for speedier operations

and hand-held devices to enhance over-

all product ivity of its sales force.

Vice President,TVS & Sons

(DSBU), KR Sridhar said that with

the OEMs launching more models and

variants the need to maintain a wide

range of parts has become quintessen-

tial, though a diffi cult proposition. It is

hard to maintain st ocks of all the parts

all the time and therefore it is necessary

to work with suppliers to disperse the

responsibility of maintaining the st ocks

while ensuring supply of parts to cus-

tomers within 24 hours.

ChallengesTo achieve better results, the sup-

ply chain effi ciency must improve. “One

must be able to look a little ahead and

create those alignments and alliances and

work better. For example, if we are plan-

ning to work with some manufact urers, it

is necessary to st art thinking in terms of

aligning our planning syst em with that

of the manufact urers,” he said. Th e com-

petition from overseas is set to increase,

especially in parts for passenger cars.

Tech-Up Currently, the company handles

around 50,000 part numbers. However,

on an average, it is managing around

20,000 SKUs (Stock Keeping Units).

In order to optimise the effi ciency the

company is looking at introducing bar-

coding syst em due to sheer quantity of

parts being handled.

Secondly, it is st udying possibili-

ties of aligning the supply chain in the

T Murrali

The Madurai headquartered TV Sundram Iyengar & Sons Limited, is one of the largest automobile spare parts distributors in India. It sells over 35,000 part numbers, manufactured by close to 100 suppliers and caters to over 7,000 customers across the country. The company has state-of-the-art central warehousing facilities with IT infrastructure ensuring smooth procurement and deliveries. It is now gearing up to prepare itself to address the changing market dynamics by introducing new concepts, leveraging its inherent capabilities and next generation technologies.

(L) Lubricants stored at the warehouse(R) An inside view of the facility

Page 30: Aftermarket - April 2012

30 AFTERMARKET APRIL 2012

FACILITY VISIT

entire form. It is also looking at provid-

ing handheld devices for the sales force,

which is connect ed to the warehouse

or branch. Th e company already has an

ERP syst em with which, the sales force

get to know about the st ock position etc

at a click of the mouse. However, the

impediment, it feels, is the time taken

for the sales person to reach his offi ce

and log on to fi nd out these parameters

before placing the order. According to

Sridhar, the handheld device will help

the sales personnel to fi nd the st ock

position across the country and assure

the cust omer of the latest availability.

Besides, it will help him to spend more

time in the fi eld and generate better

business.

Evolution It all began when TVS & Sons fore-

saw the demand for spare parts soaring

in the early ’60s due to increase in vehi-

cle population and set-up workshops to

service the vehicles. And every work-

shop had its own spare parts counter. In

addition to captive consumption, these

workshops had a retail counter too.

Wherever TVS & Sons opened dealer-

ships, the spare parts counter followed

along with the service centre. As the

requirement of parts began to snowball,

the company felt the need to have a

central control to dist ribute parts to

the workshops.

ReorganisationDuring early ’90s, TVS & Sons reor-

ganised its business by making every

operation as a Strategic Business Unit

(SBU). For inst ance, the business that is

dealing with sales and service of Ashok

Leyland has become a separate SBU.

In the process the ‘parts dist ribution’

has become a separate SBU. Today, it is

called Dist ribution SBU or DSBU. And

in the evolution of things it brought in

a new concept—a central warehouse

based in Madurai.

Th e company has branches in nine

locations in Tamil Nadu with each

branch having several departments

including sales, spare parts, back offi ce

etc. Once the DSBU is formed, the

company brought in all the st ocks to

the central warehouse in large scale in

Madurai. Th ough major reorganisation

was required, it helped in managing the

inventory and supply chain better while

catering to the cust omers promptly at

the same time.

Currently, it has its central ware-

houses in Tamil Nadu (Madurai) and

Kerala (Kochi) with about 50,000 sq

ft of space each. It st ill follows the

older ‘branch’ concept in Madhya

Pradesh, Uttar Pradesh, Chhattisgarh,

Uttarakhand and Rajast han.

Ef� ciency tweakedWith the central warehouse syst em,

it is convenient for the company to have

overnight delivery syst em. Th e goods

from the vendors st art fl owing in to the

warehouse during the day while the

despatch commences from the evening.

During the day, the sales representa-

tives meet the cust omers and procure

orders that are catered to the next day.

All orders that are placed and entered

until 3 pm everyday is executed and the

goods despatched before end of the day.

Th e warehouses have dedicated bays

for the scheduled fi nal dest inations such

as Salem, Coimbatore, Tirunelveli and

the st ocks piling up during the course

of the day. Th e trucks st arts coming

from about six pm in the evening and

after loading the goods they take a

scheduled route covering many towns

on the way to deliver goods. For some

dest inations, the company has sched-

uled two or three diff erent routes in

order to periodically cover more places

between major cities.

Cyclical SystemTh e entire syst em typically operates

like a post offi ce. Th e company deliv-

ers goods twice a day in Madurai due

to sheer volume of requirements, while

to other major cities it does on a daily

basis. It has dedicated logist ics service

provider to handle the transportation of

goods and it has a dedicated ERP sys-

tem to handle the overall operations.

TVS & Sons deals with all types of

parts for almost all kinds of vehicles.

TVS & Sons is looking at

adding a new warehouse

to its spread. It is aims

to introduce bar-coding

parts for speedier opera-

tions & hand-held devices

to enhance the productiv-

ity of its sales force

KR Sridhar, VP, TVS & Sons

Page 31: Aftermarket - April 2012

APRIL 2012 AFTERMARKET 31

FACILITY VISIT

Depending up the season it also han-

dles spare parts for tract ors, marine

and rigging applications. According to

Sridhar, the company has two major

kinds of cust omers—the retailers,

which accounts for about 80 percent of

the business and fl eet operators contrib-

uting to about 15 percent. Th e rest is

inst itutional sales.

Stock Planning With the choice of vehicle user

increasing the OEMs are churning out

many models and the need to main-

tain adequate spares is key considering

the space it occupies and the profi t-

ability. Stock Keeping Units (SKUs)

is a major challenge for those involved

in spare parts business and retail as

the requirements are highly fl uct uat-

ing. TVS & Sons’ ERP syst em takes

the hist orical sales data for the last six

months and those that the company

could not execute due to non-availabil-

ity of parts. Besides, it also takes the

average sales, lead-time taken by the

vendors to supply the parts, which is

depending upon the season-related to

a range of product s. Th ese parameters

are compiled against the st ock in hand

and back order lying with the manu-

fact urers. Th e reorder level is set based

on these parameters, Sridhar said. Th is

exercise is done typically on two ways—

for a fi xed period and fi xed quantity.

Th erefore the SKUs are maintained

based on these methodologies depend-

ing upon the sales charact erist ics of the

product s. If the parameter of one of the

indicators goes below the st ipulated

level, then the syst em triggers MOQ—

minimum order quantity. Th e company

sources from about 100 vendors across

the country.

Central Warehousing As the company has garnered

expertise in its central warehouse con-

cept, it is mulling options to replicate

the model in others st ates where it

has operations now. “We are getting

towards this model in some st ates,”

he st ated. Th e company has three

branches in Madhya Pradesh (Bhopal,

Indore and Jabalpur) and two (Jaipur

and Jodhpur) in Rajast han. Th e third

one is in the offi ng. Th e company will

look at those st ates that have potential

to have fi ve branches, for putting up

a central ware house. It also depends

upon the size of the st ate as the ware-

house needs to supply parts overnight.

“I think with fi ve branches with a

fairly well centrally located ware-

house will work,” he said. Currently,

it is present in Kanpur and Waranasi

in Uttar Pradesh and in Haldwani in

Uttarkhand, Raipur in Chattisgarh.

Th e company is looking at entering

Bihar and Jharkhand as, “we are get-

ting the right vibes from the market

and people,” he said.

Future PlansAccording to him, a growth rate of

eight to 10 percent is considered nor-

mal in parts business earlier. Th is is

not true anymore, as the business has

begun growing at more than 15 percent.

Growth in spare parts for two-wheelers

leads the pack followed by passenger

cars and commercial vehicles. However,

in the case of dist ribution it will be

two-wheelers followed by commercial

vehicles and passenger cars as the spare

parts for passenger cars are st ill largely

with the OEMs. Moreover, the com-

petition from overseas is set to increase,

especially in parts for passenger cars.

Th e option is either to fi ght that by

putting barricade or act proact ively by

making better supplies.

In order to address the emerging

challenges, TVS & Sons is looking

at expanding its central warehouse in

Madurai. It is mulling with two options

—either to expand the current one or

to set up another warehouse as Sridhar

feels that the intensity of dist ribution is

good. “I see this happening in the near

future, if not immediately,” he said.

Est ablished in 1911, TVS & Sons

is currently the holding company of

TVS Group, which has a diversifi ed

presence in the automobiles. Th e com-

pany has JV operating in Sril Lanka

called TVS Auto Parts (TVS AP).

Th e company, which is 65:35 joint

venture between TVS Lanka and

World Wide Trading, Sri Lanka, is in

the business of dist ribution of spare

parts for Indian made vehicles across

the island. Over a period of time, it

has est ablished a wide network of 150

dealers across the island. �

With the central warehouse system, it is conven-ient for the company to have overnight delivery system. The goods from the vendors start flow-

ing in to the warehouse during the day while the despatch commences from the evening

Page 32: Aftermarket - April 2012

32 AFTERMARKET APRIL 2012

FACILITY VISIT

Brand-finance-service mix ensures success

IT all st arted with the business of

providing fi nance to commercial vehi-

cles. Manish Jain and his maternal

uncle, Lalit Choudhry, perceived an

opportunity in the business of selling

commercial vehicles. Th e duo was look-

ing for ways of leveraging

the opportunities.

Th eir initial venture took off in

2001, when they st arted selling used

vehicles (most ly commercial vehicles).

“Ten years ago, the market for sec-

ond-hand commercial vehicles in and

around Surat was huge. Being in the

business of fi nancing, we got numerous

enquiries about used vehicles. So we

took the plunge,” Direct or Sreelaxmi

Motors, Surat Manish Tiwari said.

Jain purchased vehicles from across

the st ate of Gujarat, refurbished and

then sold them. Th ey also provided

fi nance for the used vehicles from their

own fi nance company.

In 2007, when Jain fi rst applied for

the dealership of Atul Auto, his appli-

cation was reject ed. However, Jain did

not give up and determination proved

to be Jain’s st rength; he kept try-

ing until he succeeded. Finally, on 2

November, 2009 saw the inauguration

of his fi rst showroom in Surat.

Th e showroom, which st arted after

much eff ort, sold 40 vehicles in the fi rst

month, and has not looked back since.

An additional advantage for those who

came to Jain was easy availability of

Shambhavi Anand

There are three things

that make a dealership

successful: fi rst, a well

known brand & second,

fi nancing facilities. Ear-

lier, we had only our

fi nancing services, but

today, major banks have

relations with us. Finally,

third, is service centres. A

good mix of three, paves

the way to success—

Manish Jain, Founder

Sreelaxmi Motors facility

Page 33: Aftermarket - April 2012

APRIL 2012 AFTERMARKET 33

FACILITY VISIT

fi nance from his own fi nance company.

Today, Sreelaxmi Motors has 12 outlets

across Surat.

Th e idea behind opening a chain of

outlets across the city was to expand its

reach to the cust omers. “We wanted to

go to our cust omers rather than making

them come to us,” Jain pointed out. Out

of the total 12 sales offi ces in Surat, one

has a showroom and fi ve service centres.

Jain’s expansion plans do not end there.

He intends to open more outlets. Two

such outlets are in pipeline in Baruch

and Navsari.

Five of the outlets of Sreelaxmi

Motors also have service centres; service

being a vital element especially when

it comes to commercial vehicles. On

these vehicles depends the earnings

of a person and so it is very impor-

tant that cust omers do not have to face

hiccups while getting them repaired

—Commercial vehicles are a source of

income for their owners. And so it is

necessary that the service centres are

prompt in doing repair work.. Th e rest

of the outlets cater most ly to the sales

division of the dealership.

While talking about his cust omer

profi le, Jain explained, “Th is segment is

extremely diff erent. Th e level of educa-

tion is not very high. And so the way

one deals with them is also very dif-

ferent,” he added. One has to have an

underst anding of their lifest yle, prob-

lems and mindset to st rike a rapport.

To underst and the cust omer and his

lifest yle, the sales execu-

tives have to be proact ive

and take personal inter-

est in each cust omer.

Conversation and small

talk about family, daily

routine, even sharing of

anecdotes can help in

gaining an insight into a

cust omers’ life. His fi nanc-

ing business has always

given him an edge, which

Jain, keeps in mind while recruiting

st aff members also. Education level for

him is not a criterion. What matters is

the skill to st rike a chord with the seg-

ment that he deals with. He has a total

of 135 st aff members in all his outlets.

Around 25 employees are engaged in

sales and up to 70 in service centres.

Th e rest facilitate fi nancing, insurance

and other paperwork.

Monthly meetings are a regular

at the dealership. “We learn through

sharing our learnings. Th ere are no

st ruct ured training modules. However,

we share our ideas, talk to each other

and try to hone our skills at these meet-

ings to become better. We discuss each

one’s experiences, share anecdotes, talk

about the cust omers and the deals they

have closed recently. Th e seniors guide

the juniors and tell them how to go

about convincing clients. We work like

a family,” Jain revealed.

Challenges were many, but looking

beyond the obst acles, the team kept

on marching like a family. Today they

sell upto 200 vehicles each month.

Sharing his secret of success, the

founder of the dealership said, “Th ere

are three things that make a dealer-

ship successful: fi rst , a well known

brand and second, fi nancing facili-

ties. Earlier we had only our fi nancing

services, but today, major banks have

relations with us. Finally, third is

service centres. A good mix of three,

paves the way to success.” �

In 2007, when Jain fi rst

applied for the Atul Auto

dealership, his applica-

tion was rejected. How-

ever, he kept trying until

he succeeded. Two years

later, he inaugurated his

fi rst showroom in Surat

Atul Auto vehicles lined-up Inside the facility

Five of the outlets of Sreelaxmi Motors also have service centres; service being a vital element especially when it comes to commercial vehicles

Page 34: Aftermarket - April 2012

34 AFTERMARKET APRIL 2012

IN CONVERSATION

34

“Every customer complaint is taken up at the management level”

Page 35: Aftermarket - April 2012

APRIL 2012 AFTERMARKET 35

IN CONVERSATION

35

What kind of role does the dealership

network and aftersales support services

play in the GM’s growth story in the

country?

Like for every manufacturer,

distribution network and aftersales

support is very important for us. We

are now one of the fastest growing

automotive nameplates in India and

provide consumers with fuel-effi cient,

safe and reliable vehicles that deliver

high quality, expressive design, spirited

performance and value. We want to have

an impeccable service support for our

customers to back all this up.

What kind of distribution network and

service network do you currently have?

At our distribution network and the

aftersales support network we have been

working pretty hard and we have grown

our network three times. We have more

than 280 outlets currently. And by the

end of this year we will have more than

310 outlets across the nation. We will

keep expanding in future also. Th at’s

the service network we are providing to

our customers.

Which are the cities you focus on?

We have presence in all the major

towns and cities across the country in all

the regions. And when I say major towns

and cities, we are present even in Tier IV

cities. We are moving to much smaller

locations to ensure that our customers in

these areas get after sales service in the

vicinity of around 100-200 km.

As a manufacturer, how do you ensure

that good service is provided to your

customers?

Chevrolet has won three top awards

in the India Automotive Initial Quality

Study (IQS) and Vehicle Dependability

Study (VDS) 2010 announced by

JD Power and Associates. We have

improved our position from seventh to

third in the ranking for good service

support. We work very hard with our

dealer partners and other authorised

service stations to give to our customers

the best possible service. Even at the

management level, we are concerned

about what the consumer is getting.

We believe in responding back to our

consumers as fast as possible.

I think the hard work our dealers

and our team had done on the previous

years has helped us in improving our

position from seven to three. Any

customer can reach us directly. In

case of adversity, we provide our call

centre numbers and customer support

number and email address in all our

advertisements. Our website also has

all numbers. Every customer complaint

is taken into account individually at

the management level.

How do you evaluate on the spare parts

availability and pricing aspects?

Our spare parts availability is more

than satisfactory. Th e way one evaluates

spare parts we are extremely competitive.

We are one of those leading ones when

it comes to spare parts. Pricing is also

competing. We value our customers and

want to respect their requirements.

Have you tapped the potential of the

online media on the sales side?

We have not tapped this

media currently.

Any plan to sell through the internet in

near future?

Not currently. And there are no

immediate plans that I can share.

What is the roadmap for future?

Th e strategy is very clear we are

expanding our width and the quality

of service we off er to our customers the

best. We will have presence in more and

more locations. �

Good aftersales support is the key to customer retention. In order to attain new customers and retain the old ones, it is imperative for a vehicle manufacturer to build a strong service network as this is one of the most important factors that customers consider while purchasing a vehicle. Shambhavi Anand speaks to Vice-President, Sales, Marketing and Aftersales, General Motors India, Sumit Sawhney about the company’s service network.

Sumit Sawhney at New Tavera launch

Page 36: Aftermarket - April 2012

36 AFTERMARKET APRIL 2012

TYRES & RETREADING

36

MICHELIN India will contribute a

signifi cant portion of revenue that the

French tyre manufacturer gets from the

emerging markets, Managing Director,

Michelin India, Th om Clark has said.

Speaking to Aftermarket, Clark said,

at a global level, the group has spelt out

its ambition to grow by 25 percent in

sales volumes by 2015 and a signifi cant

portion of this growth will be contributed

by emerging economies like India. “We

have just started out in this market

and we believe that we are taking small

but signifi cant steps in that direction.

We have ambitions to grow and be a

signifi cant player here,” he said.

Th e company has launched a new

range of tyres—Michelin Energy XM2,

for the Indian market. Th e product,

which has already been launched

globally, is targeted at the compact and

lower-mid size passenger car segments

in the country. Michelin India, which

is predominantly an aftermarket player

in India, is also focusing on catering to

the emerging demands with a relevant

product portfolio that will cater to the

specifi c requirements of the aftermarket

in the country.

Th e company claims that its products

have up to 28 percent more tyre life as

compared to the other products that are

available in the Indian market thereby

leading to less frequent tyre replacements.

It also has 18 percent reduction in rolling

resistance and so provides improved fuel

savings and cost benefi ts to the user. Th e

product is available in a wide range of

sizes, starting from the 12” to 15” seat

size.

“In a country like India, where

traffi c is very heavy, road networks are

either under construction or needing

repair, and distances

between the city and the

countryside are long, car

owners can rely on our

innovation to give them

a tyre that provides

them three most sought

after benefi ts–longevity,

fuel savings and safety

(strength and reliability),

all in one,” said Clark.

Prior to its launch in India, the tyre has

been launched in other Asian markets

such as Th ailand and China.

Th e Energy XM2 tyre incorporates

‘ironfl ex’ technology, which provides a

combination of strength and fl exibility.

Due to an optimised casing design,

XM2 is better able to absorb and

dissipate peak stresses generated when

it comes into contact with any type of

road hazard. Alternative bridging

in the tyre, reinforces the rigidity

of tread blocks. Also, the silica-

based compounding gives 18 percent

less rolling resistance and the new

formulation of micro resilient tread

compound provides a fi rm grip with the

road surface which helps to reduce the

braking distance and improving safety.

Michelin India is setting-up its

manufacturing unit at Th ervoy Kandigai

Industrial Park in Th iruvallur district

with an investment of `4000 crore over a

period of seven years, the manufacturing

facility in India is being set up on 290

acres of land and will produces radial

tyres for the truck and bus segment.

TyrePlus“Right now, we are focusing on

creating the demand, creating product

off erings that will cater to what the

consumer needs are in the aftermarket

scenario. We have our presence across

the country and are expanding our dealer

network rapidly. We have brought in our

most popular distribution programmes

in India in order to increase our network

throughout the country,” Clark said.

“Since the last decade we have

witnessed in India, an exceptional rise

in consumer demand for quality services.

Th e objective for bringing TyrePlus to

India is to make available the a wide

choice of tyres, other automobile related

needs and tyre related services to Indian

car owners under one roof,” he added.

India is an important market for the

company and the objective is to continue

expansion on both sides—truck and

passenger car tyres. Th e aim behind

setting-up these stores is to reach out

to consumers and educate them about

choosing the right tyre that is suitable for

their needs.

Michelin has set-up 21 concept stores

across India. Some of the recent openings

include—TyrePlus in Delhi and Bangalore,

MTSC in Panvel (Maharashtra). Th e

other locations where it has a presence

are Tamil Nadu, Maharashtra, Karnataka,

Gujarat, Rajasthan, Uttarakhand and

Delhi. It will continue to expand its

footprint in the coming months. �

Shambhavi Anand

Energy from Michelin

Michelin XM2 launch

Page 37: Aftermarket - April 2012

APRIL 2012 AFTERMARKET 37

AUTOMOTIVE TRENDS

Abhishek Parekh

PASSENGER CAR makers are likely

give increasing attention to road safety

even as the overall vehicle population

has been going up. Th e renewed focus is

likely to spawn major opportunities for

safety equipments and systems suppliers

in the OEM and replacement market,

according to a recent report from Frost

& Sullivan.

According to data available from

Ministry of Shipping, Road Transport

and Highways, around 130,300 people

were killed in road accidents in 2008 and

this number is likely to go up to 200,000

by 2015. Number of serious injuries is

also likely to increase from 2,206,000 to

as high as 3,092,000 in the same period.

Even though vehicle manufacturers

in India have a huge list of safety

equipment to choose from, they would

initially focus on bringing safety to

driver and front passengers and children,

according to Senior Research Analyst,

Automotive & Transportation Practice,

Frost & Sullivan, Aswin Kumar. It

has been proven several times that

airbags can save thousands of lives but

there are many cars sold in the Indian

market without driver airbags, whereas

these features are mandatory in all the

developed markets and some developing

countries with smaller sales volumes than

India. Government of India is likely to

make air bags mandatory for passenger

cars in a couple of years’ time.

Th e other systems that could also

gain increased attention from vehicle

manufacturers include Electronic

Stability Control (ESC) and Antilock

Braking Systems (ABS); both these

systems are standard in developed

markets already. Given this growing

awareness, infotainment is likely to get

huge push from vehicle manufacturers

and after-market suppliers. Vehicle

makers should also look into introducing

active safety systems like lane departure

warning, blind spot detections, and other

radar-based safety systems for making

cars safe, the report added.

Fuel Pricing DisparityWith increased polarisation between

petrol and diesel prices over the last few

years, the market share of diesel vehicles

has been edging steadily upwards.

Th ere exists a very strong correlation

between increased petrol prices and their

declining market share. In 2011, the

price diff erence hit an all time high when

petrol was priced 1.6 times more than the

price of diesel. Due to this, the talks of

‘Dieselisation’ of Indian car market have

been growing louder.

What used to be a huge market for

petrol vehicles has seen a remarkable

reversal of fortunes in the past few years.

Some vehicle manufacturers are looking

to set-up diesel powertrain plants for

capacity augmentation. Last year, the

market share of diesel vehicles inched

close to 40 percent.

Going by current fuel price disparity,

diesel cars are outselling petrol cars in the

volume segment and inventory of petrol

cars have increased substantially. In the

Budget, the government has added an

additional excise duty on diesel vehicles in

2012, which means that the demand for

diesel cars may be aff ected due to higher

prices of diesel cars. In the long term, the

government is likely to deregulate diesel

prices which would ensure equal price

parity between petrol and diesel. �

Safety equipments to getincreased attention from vehicle makers

There are many cars sold in the Indian market without driver airbags, whereas these features

are mandatory in all the developed markets

Page 38: Aftermarket - April 2012

38 AFTERMARKET APRIL 2012

TECHNOLOGY

DENSO CORPORATION, in

collaboration with Tongji University

(Shanghai), will begin testing vehicle-

to-vehicle and vehicle-to-infrastructure

(V2X) technology on public roads in

Taicang, Jiangsu Province, China.

Field TestingTh is is Denso’s fi rst V2X technology

fi eld test on public roads in China. Th e

company has been conducting fi eld tests

in Japan, the US and Europe for the past

several years. “Due to the rapid increase

in vehicles on China’s roads, chronic

congestion and safety are the two

largest issues, particularly in the larger

cities. V2X technology, which allows

cars to wirelessly communicate with

other cars and roadside infrastructure,

such as traffi c signals, is expected to

help alleviate traffi c congestion and

help prevent collisions,” said executive

director in charge of the Engineering

Research & Development Center,

Denso, Yasushi Yamanaka.

Short Range Communications V2X technology will be used to

wirelessly communicate the vehicle

position and speed of emergency

vehicles—like ambulances and fire

engines–to the surrounding vehicles

and roadside infrastructure. When

an emergency vehicle is approaching,

the technology will change the

traffic light at intersections and alert

surrounding vehicles to switch lanes.

The experiments are intended to give

the right of way to authority vehicles in

case of emergency and to help prevent

vehicle collisions.

Denso has been globally researching

and developing V2X technology

since 2003. One of the central focus

points is Dedicated Short-range

Communications (DSRC), which

is the primary enabling component

of V2X communications. At its test

track in Japan, Denso has simulated

an urban road environment to check

the communication performance and

to develop and evaluate applications

with actual vehicles. Th e results have

been used to develop in-vehicle devices

which have been provided to various

demonstration experiments involving

collaboration among automakers and

government agencies in Japan, the US

and Europe.

Integrated SupplierHeadquartered in Kariya, Aichi

prefecture, Japan, Denso is a leading

supplier of advanced technology, systems

and components in the areas of thermal,

powertrain control, electric, electronics

and information and safety. Its customers

include global carmakers. It employs

approximately 120,000 people and

notched up consolidated global sales for

the fi scal year ending March 31, 2011,

totalled $37.7 billion. �

Our Bureau

Denso to test VTX technology in China

Denso has been

globally researching

and developing V2X

technology since 2003.

One of the central focus

points is Dedicated Short-

range Communications

(DSRC), which is the

primary enabling

component of V2X

communications

Dedicated Short-range Communications

Page 39: Aftermarket - April 2012

APRIL 2012 AFTERMARKET 39

TECHNOLOGY

CONTINENTAL’S VDO brand

has introduced DLKPro family to

make the handling of data from digital

tachographs easier. Th e target-group-

oriented products of the new DLKPro

family is the practical key to the

professional handling of data in the

DTCO mass memory, the driver card,

the workshop card, the control card for

authorities, and all competing products.

Th e latest generation off ers numerous

innovative supplementary functions

and, with the integral smartcard reader,

renders additional peripheral devices

superfl uous.

Fleet Product FamilySix years since its initial introduction,

the DLKPro product family has

developed from a relatively simple

memory stick into a vest-pocket

computer. As handy as a mobile phone

and just as easy to operate, the software

and hardware of the new download

products combine all data handling

functions in one device and make

external card readers unnecessary. And

owing to the integrated accumulators, no

batteries are needed. Th e 2.2-inch full-

colour touchscreen display (approx.5.6

cm) enables direct data evaluation on

the key. Downloads can be controlled

and data evaluated by means of an easily

understandable menu that can output 29

languages. Th e software required for this

is preinstalled. All data records get a time

stamp, and a new timer function reminds

the driver when downloads are due.

Parallel to this, the memory has been

enlarged so that now, as many as 6,000

quarterly downloads can be captured.

Fleet operators and managers thus

fulfi l their legal requirements to archive

tachograph data with DLK Pro. In

addition, there is the DLKPro TIS-

Compact, designed for smaller fl eets

of fi ve to ten vehicles and containing

preinstalled software for data analysis.

Driver and vehicle data thus can be

quickly and simply visualised and

evaluated directly in the DLKPro

TIS-Compact and at the offi ce. Th e

DLKPro Inspection Key completes

the portfolio: authorities and fl eet

managers can use it for the simple

monitoring of permissible driving

time and identify possible violations

at a single glance. Th e individual

members of the product group easily

can be distinguished from each other

due to their diff erent colouring.

Aftermarket BusinessContinental Commercial Vehicles and

Aftermarket and Continental Tyre the

Americas, LLC’s Commercial Vehicle

Tyre business unit presented technologies

Our Bureau

Continental to widenfl eet management portfolio

Solutions for trucking

operations presented by

the company at the show

included the new HSL2

Eco Plus steer tyre & HDL2

Eco Plus Wide Base drive

tyre in super single sizes

to replace duals and the

HTL1 trailer tyre in

the category

DLKPro Product family

Page 40: Aftermarket - April 2012

40 AFTERMARKET APRIL 2012

TECHNOLOGY

for trucking fl eets and drivers at the Mid-

America Trucking Show in Louisville

recently.

Its “Untamed Innovation” mobile

tyre exhibit targeted customers looking

for the latest tyre technologies and

aftermarket systems that drive their

business and create opportunities for

fuel savings, cost savings and regulatory

compliance, said Continental’s Director

of truck tyre marketing in the Americas,

Clif Armstrong.

Solutions for trucking operations

presented by the company at the show

included the new HSL2 Eco Plus

(Heavy Steer Long-Haul) steer tyre, the

new HDL2 Eco Plus Wide Base (Heavy

Drive Long-Haul) drive tyre in super

single size to replace duals and the HTL1

(Heavy Trailer Long-Haul) trailer tyre in

super single category.

Continental’s new

“ContiGOODSCasing”, will be

introduced with 2012 product launches

and provides lower rolling resistance, a

wider platform for increased mileage and

deeper treads and advanced capabilities

for re-treading through a more durable

shoulder, bead and belt package.

Th e company’s robust portfolio of new

tyres is complemented by fl at precure

tyre products that have the same tread

pattern and compounding for consistent

performance. ‘Axle’ is the new mascot for

Continental’s TrukFix emergency road

service programme for national accounts.

TrukFix provides one-call access to

Continental’s entire network of more

than 1,000 dealers and points of sale and

predictable, national pricing for tyres and

related services.

Th e company is looking to introduce

ContiPressureCheck, a tyre pressure

monitoring system for commercial

vehicle tyres. It integrates its sensors,

communication system and data processor

into a single module placed inside a

rubber container and glued to the inner

surface of the tyre. “Compatible with

all tyre makes, the ContiPressureCheck

system immediately detects any changes

in air pressure or temperature, and

sends warnings directly to the display

in the driver’s cab to avoid a tyre-

related breakdown before it occurs,” said

Armstrong.

Additionally, the company launched

VDO RoadLog Electronic On Board

Recorder (EOBR), an all-in-one solution

for daily log book and other compliance

reporting. RoadLog is designed to allow

drivers and fl eets to record and report

Hours of Service (HOS) and other key

compliance data quickly, easily and without

monthly fees. It automatically tracks the

driver’s on and off duty time and can provide

an instant paper report of accurate daily

log book data during road checks. VDO

RoadLog can also record data for a variety

of reports that can help make commercial

vehicle operations safer and more effi cient,

including Vehicle Maintenance and

Inspection (DVIR), International Fuel

Tax Agreement (IFTA) and International

Registration Plan (IRP).

“From OE quality replacement parts

to products that enhance safety and

profi tability, we are delighted to be able

to deliver a broad range of aftermarket

solutions that fl eets and independent

operators can use to keep their

commercial vehicles on the road and

operating effi ciently,” said Director of

sales, Continental Commercial Vehicles

& Aftermarket Business Unit, NAFTA

Phil McEwen. �

The target-group-oriented

products of the new DLK-

Pro family is the practical

key to the professional

handling of data in the

DTCO mass memory, the

driver card, the workshop

card, the control card for

authorities, and all com-

peting products

Fleet Application

Page 41: Aftermarket - April 2012

APRIL 2012 AFTERMARKET 41

SPECIAL REPORT

QUALITY, wider availability of

aftersales service will not only increase

the number of vehicles coming for repair

and maintenance at the dealerships

but also gives impetus to the car sales.

According to a recent survey by Frost &

Sullivan, over 62 percent of the new car

buyers put aftersales service as the top

priority and another 31 percent consider

it somewhat important.

Th e study also revealed that for 72

percent of the new car buyers, brand

image plays key role while for 67 percent

fuel effi ciency of the car is on the top

priority. Quality of the product is the

most important element for 66 percent

people and for 31 percent it is somewhat

important factor. While manufacturers

reputation is the top priority for 54

percent of the new car buyers.

According to the study, prior

experience with the brands play a key

role for over 47 percent of car buyers

and for 39 percent of the car buyers

fi nds recommendations on the top of the

priorities. For 42 percent of the new car

buyers it is somewhat important factor.

Servicing TrendTh e shift from authorised service

centres to local repair shop and

organised independent service centres

Source: Frost & Sullivan analysis

Nabeel A Khan

Aftersales service top priority for car buyers: Frost & Sullivan

For regular repair jobs,

around 57 percent of

people go to the local

service centres, while 62

percent go to these places

for minor repairs. In case

of unscheduled mainte-

nance, 36 percent visit

local workshops while for

major or accident repairs

only 13 percent visit

local workshops

Service Channel Preference – By type of Service

Where do you generally take your vehicle when it comes to the followinWhere do you generally take your vehicle when it comes to the following?

Page 42: Aftermarket - April 2012

42 AFTERMARKET APRIL 2012

SPECIAL REPORT

has been growing in recent years.

Th e authorised service centres have

been attracting only 39 percent of

the customers. While the organised

independent workshops have been

doing well, as around four percent of car

users avail of their services. However, a

whopping 57 percent of vehicle users go

to the local independent repair shops.

In diff erent categories of available

aftersales services, the preferences of the

customers vary based on the requirements.

Authorised workshops are preferred in

critical mechanical works as 83 percent

of car users go to authorised dealerships

for accidental repair and 78 percent of car

owners visit them in case of major repair.

For accidental repairs, customers

do not prefer independent organised

service centres, and only four percent of

customers or car owners opt for these

garages for accidental repair.

For regular repair jobs, around 57

percent of people go to the local service

centres while 62 percent go to these places

for minor repairs. In case of unscheduled

maintenance, 36 percent of users visit local

workshops while for major and accident

repairs, only 13 percent of the vehicle users

visit local workshops. In case of unscheduled

maintenance, around 48 percent of car users

visit authorised workshops.

“As over 70 percent of people service

their cars at local workshops, they

should have something unique to retain

their customers. So the organised multi-

rand and authorised service centres

should learn best practices like retaining

clients from the local repair shops.” said

Senior Research Analyst, Automotive

& Transportation Practice, Frost &

Sullivan, Aswin Kumar.

Part Reason Cost is the biggest deterrent for

71 percent of the car owners for not

visiting authorised service stations.

There is a perception among significant

proportion of vehicle owners that

the authorised service centres charge

higher prices for servicing compared

to unorganised or multi-brand

garages. Moreover, service warranty is

another major factor leading to

vehicle owners visiting the authorised

service stations.

Th e perception of getting overcharged

for basic maintenance at authorised

workshops keeps 41 percent car users

away. However, 35 percent of the car

users do not go to authorised workshops

because they think the dealerships

focused mostly on replacement and not

repair, according to F&S survey.

Timing For ShiftEighteen percent of car owners go to

authorised service centres for the fi rst 18

months and this percentage increases to

29 percent for the fi rst 19 to 24 months.

From the fi rst to third years after the

vehicle purchase, around 20 percent of

car buyers go to the authorised service

centres and the percentage dives to two

percent between fi fth and seventh year.

Services off ered at the local garages are

much better than the authorised service

centres according to 34 percent of the car

users. 20 percent of car users moved from

authorised service centres to the local

garages based on the recommendations

by friends and family.

Adding to this Kumar of F&S said “Word-

of mouth marketing is very important for

OEMs, if you make one customers happy,

then he will probably call his friends for

the service.” Authorised service station

has been priority in the Tier II cities, 83

percent people in Vizag and Lucknow,

while 79 percent in Patna go to authorised

service centres. Local independent service

stations are most popular in Ahmedabad

where over 94 percent people visit

unauthorised local workshops. Around 87

percent and 86 percent of people in Bhopal

and New Delhi respectively frequent

unauthorised workshops. �

Service Channel Preference by City for Scheduled Servicing

Where do you generally take your vehicle when it comes to regular servicing?

Cost is the biggest deter-

rent for 71 percent of car

owners for not visiting

authorised service sta-

tions. There is a percep-

tion that the authorised

service centres charge

higher prices for

servicing compared

to unorganised or

multi-brand garages

Where do you generally take your vehicle when it comes to regular servicing?

Page 43: Aftermarket - April 2012

APRIL 2012 AFTERMARKET 43

INSIGHT & OUTLOOK

ONE of the goals of the recent white

paper from the European Commission is

that 30 percent of road freight transport

over 300 km should shift to other modes

such as rail or waterborne transport by

2030, and more than 50 percent by 2050

(European Commission, 2011). For the

purpose of a discussion on the feasibility

and implications of this target, this paper

reviews its rationale and the mechanisms

by which a substantial modal shift could

be achieved. Several concrete questions

emerge as to the realisation of the modal

shift target.

Modal shift: A Trend BreakClearly, the new target calls for a major

trend break in modal split. Looking back,

the autonomous trend in modal split over

the last 13 years shows an increase in the

share of road and sea transport. Th ere are

diff erent underlying trends that together

make up this picture, including:

• Increased value density of goods

and values of service, favouring road

transport

• Privatisation of transport markets in

Central & Eastern Europe countries,

also favouring road

• Strong internalisation and a modest

growth in domestic transport fl ows

• Decreasing shares of rail and

waterways transport

Th ese autonomous trends indicate that

an increase in rail and waterways was

not favoured by the market and that any

modal shift policies of the past have been

unable to change the share of the modes.

Th ere are, however, some autonomous

future tendencies within the logistics

and transport sector that might help

to break this trend; these occur both

on the demand and supply sides of the

transport system.

The Impact Of The Shift In order to get an idea of the impact

of this policy goal on the transported

volumes by transport mode in Europe, a

European trend scenario for the year 2030

based on a Trans-Tools run is analysed.

Th is analysis focuses on the transport

fl ows within the EU27 for the year 2030;

the year 2050 is not included. In the

European trend scenario, limited policy

measures are included to infl uence the

modal split. Th e 2030 database contains

information about origin regions,

destination regions, transport modes,

commodities, volume in tonnes and the

distance between regions.

As expected, most of the transport

volumes are carried over a distance of less

than 300 km. For road transport and all

commodities, 89 percent of the volume

is transported over a distance of less than

300 km, while 11 percent of the volume

is transported over a distance greater

than 300 km. Per commodity, the share

of transport above 300 km diff ers. Th e

commodities “other products”, chemicals,

metal products, crude oil and solid

mineral fuels have relatively high shares of

transport over distances above 300 km.

Note that these numbers refer to

tonnes lifted; the distribution of transport

performance (tonne/km) over distance

shows quite a diff erent picture: here the

majority of tonne-km (56 percent) is

moved below distances of 300 km.

In a next step, we focus on the transport

fl ows over a distance greater than 300

km. Since the European trend scenario

contains only a few policy measures that

infl uence the modal split, these results

can be regarded as the expected modal-

split baseline.

Of the total volume of over all

commodities, 75 percent is transported

by road, 21 percent by rail and four

percent by inland navigation (note that

the accessibility of inland navigation is

limited in the EU27). Commodities like

solid mineral fuels, petroleum products,

ores and metal waste, fertilisers and metal

products show relatively high shares of

rail and inland navigation.

If the modal split objective is applied

to these results, the modal split for the

Modal shift target for freight transport

In a TNO study from 2006,

the theoretical potential

for rail transport, inland

navigation and short

sea was determined for

Netherlands. The study

determined limiting fac-

tors, which helped deter-

mine the potential of rail,

inland navigation & short

sea for shipments

Lorant A Tavasszy TNO and Delft University of Technology, the Netherlands

Jaco van Meijeren TNO, the Netherlands

Page 44: Aftermarket - April 2012

44 AFTERMARKET APRIL 2012

INSIGHT & OUTLOOK

total over all commodities will change

as indicated in the fi gure below. Th e

reduction of road transport by 30

percent leads to a decrease in the share

of road from 75 percent to 52 percent, an

increase of rail transport from 21 percent

to 39 percent and an increase of inland

navigation from four percent to eight

percent (if the shift of road transport is

equally distributed over rail and inland

navigation). Th is means that the volume

of rail and inland navigation increases by

88 percent. Th e question whether this is

a feasible scenario, from the perspective

of available railway capacity, is discussed

further in the paper. Th e commodities

with the highest potential of this

shift–simply in terms of volume of road

transport—are in the “other products”

category, in building minerals, chemical

products and foodstuff s.

To the extent that the market cannot

absorb the burden of internalisation of

external costs itself (ie, consumers are not

willing to pay extra for greener products),

this can be enforced through government

regulation, emissions trading schemes

or additional taxes or levies. Here,

government is needed to select, introduce

and maintain the fi nancial schemes,

limiting investments to those cases that

create a net social benefi t.

In a TNO study from 2006, the

theoretical potential for rail transport,

inland navigation and short sea was

determined for the Netherlands. From the

perspective of the demand of transport

fl ows (logistical requirements of the goods

to be moved), the study determined the

limiting factors for the theoretical potential

of alternative modes. Th ese factors were

used to determine the potential of rail,

inland navigation and short sea from the

perspective of shipments. Th e maximum

share for alternative modes of transport

in the Netherlands, according to these

criteria, came to 34 percent.

As this was a theoretical exercise, it is

only a crude indication of the potential.

For inland waterways, the realisation is

higher than the potential, due to factors

not taken into account. For rail transport,

the realisation was below the potential.

A doubling of fl ows for rail and inland

waterways would be an extreme scenario,

however, which would not fi t well to the

known characteristics of the goods.

In the study, the theoretical potential

for rail, inland navigation and short sea

was determined from the perspective

of the demand side of freight fl ows.

Of course, the supply side is also an

important factor: the availability of

capacity is an important requirement

and increasing congestion on the road or

transport charges can have a substantial

impact on the shares of the diff erent

transport modes.

In a CE /TRT study from 2011–

focusing on the potential of rail

transport—a literature study was

performed on studies of modal-shift

potential. A lot of studies were reviewed,

SOURCE Eurostat

Air | Pipelines | Inland Waterways | Rail | Sea | Road

500

1000

1500

2000

2500

3000

3500

4000

4500* 1000 mio tonnekm

0

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Modal spl it development 1995-2008 in the EU27

Of the total volume com-

modities, 75% is trans-

ported by road, 21% by

rail and 4% by inland

navigation. Commodities

like solid mineral fuels,

petroleum products, ores

& metal waste, show rela-

tively high shares of rail

and inland navigation

Page 45: Aftermarket - April 2012

APRIL 2012 AFTERMARKET 45

INSIGHT & OUTLOOK

but in the end, it was concluded that

only two studies covered the maximum

potential in Europe. Th e other studies

had diff erent objectives, scope and

methodologies. Th e two relevant studies

are briefl y discussed below: Vassalo and

Fagan (2005). In addition to supply

and demand factors, several policies are

mentioned that infl uence the share of rail

in Europe:

• Insuffi ciently open markets

• Lack of interoperability

• Th e national focus of European

railways

• Allocation of railway capacity in

favour of passenger transport

• Lack of productivity-enhancing

infrastructure (longer trains, double

stack)

In a scenario with new policies that

repaired all the above-mentioned

defi ciencies, rail freight transport could

grow by 100 percent. Th e base potential

of road transport that can be shifted to

rail was estimated by EEA at 19 percent.

Two approaches are applied. In the fi rst,

a theoretical potential is based on trip

length and the assumption that the share

of rail can rise signifi cantly over longer

distances, leading to a growth in rail

transport of 100 percent. In the second,

factors such as distance, costs, quality of

supply and rail access are also included,

leading to a growth in rail transport in

Europe of seven percent.

Besides the demand side factors,

another important question that

determines the potential is whether there

is enough capacity in the other modes of

transport to absorb a doubling of fl ows.

In the EC /TRT study, an analysis was

made of the available free capacity of rail

infrastructure. Th e main fi nding was that,

if rail freight volume increased by more

than 30 percent to 40 percent, the current

rail network would not have suffi cient

capacity. We note that the free capacity

depends strongly on whether fl ows are

concentrated on corridors, the primary

network or the whole network. A recent

study on rail potential (CE, 2011) fi nds

that an increase in rail capacity is only

possible if the whole network can be

employed to absorb freight growth.

In a historical context of shrinking

infrastructure and service networks by

rail in Europe, this would require a re-

direction of investment, developing

terminal networks, upgrading technology

outside main lines and corridors and

a higher prioritisation of freight with

respect to passenger traffi c.

A Simple Mode Choice ModelBelow we discuss the eff ects of policy

using a simple theoretical model for mode

choice. Th e choice of mode in freight

transport has been well researched over

the past decades. Th e textbook model of

mode choice applied most often is based

on the trade-off between the out-of-

pocket costs of transport (the tariff paid

by the shipper) and the lead-time between

origin and destination. Transport time is

Evolution Of Logistics Networks Through Time*

s• direct shipping• v ertical disintegration

external collaboration• multi -user hub networks• h orizontal bundling

1990 2000 2010 2020

internal rationalisation• s tock reduction• outsourcing 3PL => 4P L

* The dark dots (top, left) indicate suppliers, the light ones (right, bottom) indicate consumers,and the black triangles warehouses and cross-dock locations

Improved interoperability

will not only infl uence

strategic mode choice de-

cisions by improving the

service level of rails, but

also allow new dynamic

approaches to emerge,

within shipping and

forwarding companies

Page 46: Aftermarket - April 2012

46 AFTERMARKET APRIL 2012

INSIGHT & OUTLOOK

weighted by the value of time (measured

in euro/hr, per shipment or tonne). Th e

weighted sum of tariff s and time is

called the generalised costs of transport

and determines the attractiveness of

transport modes. Shippers will choose

those alternatives that have the lowest

generalised costs. In mathematical

notation:

GCm,g = VOTg*Tm + Pm where

GC = Generalised Costs;

VOT = Value Of Time; T = Time;

P = Price and subscripts:

M = Mode of transport;

G = good

Th e value of time of transport is closely

related to the logistics characteristics of

goods (see e.g., Blauwens and Van de

Voorde, 1988 for a discussion). Time-

related cost drivers include physical

characteristics, such as the value density

of goods, their perishability, as well

as other characteristics, such as order

lead-time and production technology.

An indication of the infl uence of value

density on mode choice is that the value

density of goods decreases for slower

and cheaper modes of transport. Th is

distribution is not fi xed, however, and

may change if prices or transport times

change in the system.

Supply Side ChangesTh ere are many changes on the supply

side of the transport market that are

relevant for modal shift; examples of

these include the following:

• Deterioration in the performance of

road, through pricing, changes in cost

components such as driver wages or

fuel prices, increased regulation and

congestion

• Improvement in the performance

of rail and waterways transport, in

time dimension (through increased

frequency, reliability, etc.) or tariff s,

information availability (transparency

of schedules).

Th e eff ect of changes in transport times is

less well studied. Elasticities for changes

in the transport time of other modes

of transport in competition with road

transport vary widely (dependent on

the type of product), but may be around

unity (a 10 percent decrease of transport

time or increase in frequency can result

in 10 percent increase in volume).

It is questionable, however, whether

these elasticities could be applied to

major changes in transport times. In

any case, a doubling of fl ows would

require a substantial improvement in

transport performance.

In addition to policy, there will be

autonomous trends that will determine

future modal split:

• New technologies will change the

appearance of the por tfolio of transport

services on the European network:

modes will be able to provide better

service through seamless integration.

• Improved interoperability will not

only infl uence strategic mode choice

decisions by improving the service level

of rail, as intended by the policy; it will

also allow new dynamic approaches

towards mode choice to emerge, within

shipping and forwarding companies.

• Real-time information on network

performance and open, a modal

transport booking systems will allow

fl exible consolidation schemes and

dynamic switching between modes.

Demand Side ChangesChanges on the demand side that

can lead to a modal shift are less

straightforward to explain than supply

side changes, as they require a change

in the logistics processes. In our choice

model, a move away from road transport

would be achieved if the VOT, or

time sensitivity of the goods were to

decrease.

Where fi rms are able to reduce the

VOT, their generalised costs of transport

would already decrease even if they used

the same mode of transport. Examples of

measures to slow down fl ows include:

• Reduction of perishability with

improved conditioning (example:

fl owers in reefer containers)

• Increasing slack in the supply

chain with higher inventories,

increasing shipment sizes and

lead -time (example: urban

consolidation centres)

• Horizontal cooperation with other

shippers to consolidate shipments

(example: Dutch GreenRail system)

Note that these changes are very

diffi cult, if not impossible, to induce

or infl uence through public policy.

Th ese measures are not even easy to

implement for companies themselves,

as they require a careful reconsideration

and reorganisation of logistics structures

and operations. Companies are

generally well aware of typical issues,

such as the trade off between transport

and inventory costs, or the benefi ts of

improved conditioning.

However, other measures are more

complex, such as the creation of hybrid

networks, where logistics channels are

split into two or more parallel channels,

according to demand volume and

variability. Currently, such innovations

are still decades away for many

companies. At the same time, it is part

of a long term autonomous evolution of

supply chains and will, sooner or later,

transform the industry. �

What determines the po-

tential is whether there

is enough capacity in

other modes of transport

to absorb a doubling of

fl ows. An analysis found

that if rail freight volume

increased, the current rail

network would not have

suffi cient capacity

Page 47: Aftermarket - April 2012

APRIL 2012 AFTERMARKET 47

PAINT & REFINISH

Bhargav TS

Bosch offers fi nishing edgeBANGALORE-BASED Bosch Power

Tools has entered into the paint and

refi nishing business to support the Indian

automotive aftermarket business. After

acquiring the SIA Abrasives, Bosch has

access to all its products comprising

painting and refi nishing systems.

With the help of SIA Abrasives, the

Bosch Power Tools division intends to

strengthen its focus on surface technology,

and to extend its existing portfolio. Bosch

Sanders assures the smoothening of

rough and hardened edges that are made

by using body fi llers and primers to fi ll

dents, scratches and marks on the vehicle

exteriors. Th e varied accessories such as

buffi ng and polishing pads from SIA

Abrasives along with the new range of

Bosch Polishers help in further enhancing

the fi nish.

“When it comes to innovative abrasives,

SIA Abrasives is one of the world’s top

three suppliers,” said Country Manager,

Marketing, Bosch Power Tools, Rakesh

Handoo. He also added that the time

consumed for the paint and refi nishing

work will be less when compared to the

normal tools used in the industry.

Elaborating on the denting procedure,

Handoo said, “Normally the dents in

the vehicles are mechanical in nature

because it is a metal body, which can

be removed either by using the vacuum

suction on the dent or it can be removed

by tinkering process. Th en the body

fi llers were used to fi ll the gaps. For the

fi nishing process, Bosch Sanders will be

used for body fi ller for sanding. After the

putty has been dried, again the sanders

are used for fi nishing. Once the putty is

done one uses the primer spray, which

will be coarse in nature, to remove these

coarse materials, again the Bosch sanders

are used to remove the same. For all

these applications, the tool remains the

same except the grade of the sand paper

varies. Th is eliminates the changing tool

time and enables better fi nish.”

While painting the vehicle, there will

be lot of dust particles present in the

atmosphere like dust snips and orange

peel, which causes damages to paint and

peel of easily. To avoid it, Bosch’s rubbing

compound plays a vital role in removing

the dust snips. Once the clear coat is done,

wool backup pad is used as a fi rst process

to take out the dust snips and take out the

orange peel. Following this, the fi nishing

compound which is normally called it as

polish is done to make the fi nal process.

With the help of SIA products, Bosch

Power Tools make the process easier and

faster and the quality is also maintained

on par with the OE fi nish.

Handoo said, “While using the manual

spray guns in the paint shop, there will

be a lot of orange peel on the paint and

there might be dust particles present in

the atmosphere, which will aff ect the

quality of the paint. Th erefore with the

help of wool backup pad, we can enhance

the quality of the painting process. Th ere

are many workshops which are in the

roadsides and have more dust in the air.

With the help of these products we can

address those workshops needs.”

Normally the paint fi nishing process

comprises three steps—One is the rubbing

compound, then fi nishing compound and

fi nally hand waxing. For these processes,

generally the workers require three diff erent

kinds of tools to be used. However, with

the help of Bosch tools, one can execute

the same with a single tool that reduces the

time by 50 percent when compared to the

regular tool.

For drying the primers and putty

surfaces faster, Bosch has hot air guns that

are extensively used in the paint booths.

Th e tool is perfectly suited to thawing,

drying, speeding-up the drying process

of glued connections, shaping, and dust-

free removal of paint. Th is gamut of tools

assures to deliver results even on curved

surfaces with ease and convenience. �

Bosch Power Tools

division intends to

strengthen its focus

on surface technology

with SIA Abrasives, and

to extend its existing

portfolio

Bosch’s pain and refinish solution

Page 48: Aftermarket - April 2012

48 AFTERMARKET APRIL 2012

SPECIAL REPORT

THERE is mixed response for the

Union Budget 2012 presented by the

Finance Minister Pranab Mukherjee,

from the automotive aftermarket players.

Th e increase in service tax has become

a worry, however, it has been increased

across board and so the impact is not

only for the auto industry.

Except for not directly taxing the

diesel vehicle, the Budget has very little

cheer, especially for the auto industry.

And it is evident from the muted

response elicited from the auto sector

for the Budget. While the pundits say

that the minister has tried to strike a

balance between the necessity for growth

and fi scal compulsions, the impetus for

growth should be more to achieve the

GDP target of 7.6 percent in 2012-13.

Th e FM has outlined concrete steps

towards implementation of Direct Tax

Code (DTC) and the GST. Customs

duty remains unchanged for auto

components—however, it may not help

the sector as the expenditure will be

increased due to increase in service tax

and excise duty. Increase in customs duty

on the fl at-rolled steel from fi ve percent

to seven percent could unfavourably

impact the auto component sector as this

is one of the key input materials for the

industry.

According to the Chairman of Vikas

Group and Auto Vikas Sales & Service

Pvt Ltd, Praveen Agarwal, “the service

tax has been increased for all the sectors

at the equal levels, so it will impact the

automobile aftermarket in the same

manner as any other industry. However,

I don’t see much adverse impact of the

budget on the dealership or aftersales

business. Th e increase in excise duty

was even less than what the industry

was expecting.” Auto Vikas owns GM

dealerships and workshop in Delhi.

Similarly, Amit Manaktala who owns

Topsel Toyota in Kolkata said, the

increase in service tax is going to impact

the sales of vehicles. “Th e increase is

excise duty for big car is unfair, especially

for products like Innova which is also

used for public transport,” he said.

Timeline For GST In the Budget, the body-building of

commercial vehicles has now got an ad

valorem duty of three percent, but “I need

to go through the fi ne print to comment

on this. If it is promoting the unorganised

sector then it is not very healthy, the

President of SIAM, S Sandilya has said.

Th ere were several positive outcomes that

the auto industry had expected that the

FM will come out with specifi c timelines

for introduction of DTC and how

petroleum subsidies would be addressed.

Th e road map for implementation of

Goods & Services Tax (GST) has not

been given except for stating that the

necessary constitutional amendments

will be taken up and the platform for

implementation will be operationalised

by August 2012. Th e Executive Director,

ACMA, Vinnie Mehta said, “We are glad

that the Finance Minister has outlined

concrete steps towards implementation

of DTC and the GST. We do hope that

these critical reforms are undertaken and

implemented at the earliest.”

Another aspect that SIAM had not

expected was the increase in customs

duty on non-alloy fl at rolled steel

products, which will infl uence price of

steel and impact costs of manufacturing

in India. According to Mehta, this

could unfavourably impact the auto

component sector as this is one of the

key input materials for the industry. He

said the enhancement of excise duty

would adversely impact the prices of

vehicles and in turn their consumption.

Th is is of concern to the auto component

sector as the sector grows in tandem

with the vehicle industry. Th ese changes

in taxes and duties will increase the

cost of ownership for the customers

Our Bureau

The Budget Effect?

Anand Sundaresan, MD, Schwing Stetter

Vinnie Mehta, Executive Director, ACMA

Page 49: Aftermarket - April 2012

APRIL 2012 AFTERMARKET 49

SPECIAL REPORT

when they go for after sales service for

their vehicles.

Jt MD, Hero MotoCorp, Sunil Munjal

said the excise and service tax should not

have been increased, especially at a time

when the growth is nebulous already. Th is

may lead to increased pricing. But the

focus on SMEs and other manufacturing

sector is positive.

“I am disappointed that due to political

compulsions, the FM has not been able

to implement the many steps required

to give a strong boost to the economy.

One would wish that the politics of the

country was better coordinated, with a

consensus on economic policies among

various political parties, to enable bold

economic measures to be implemented,”

said Chairman, Force Motors, Dr

Abhay Firodia.

According to the General Manager

(Market Development), Maha India

Automotive Testing Equipment Private

Limited Rengarajan, the increased service

tax, excise duty and custom duty has not

aff ected the company much. Th e company,

which is primarily into automation

inspection certifi cation and also supplying

testing equipment such as brake testers,

suspension testers for OEM authorised

service stations, has been importing testers

for the less than two years. So far it has not

aff ected badly with the increased duties

especially on imports.

MD, Scania Commercial Vehicles India,

Henrik Fagrenius said the government

has taken a step in the right direction

in placing emphasis on developing the

infrastructure in the country. However,

“we believe that this will gain momentum

when the GST regime is implemented

and the FDI into multi-brand retail entry

into the country is approved. We do hope

to hear positive news on this at the earliest

that will go a long way in the development

of the Indian economy.

According to the Managing Director

of Schwing Stetter, Anand Sundaresan,

the increase in service tax and excise

duty from 10 percent to 12 percent was

expected and didn't come as a surprise.

According to the Director, Metals &

Minerals Practice, Frost & Sullivan—

South Asia, Middle East and North Africa,

Venkatesan Subramanian, the steam coal

(classifi ed under CTH 2701 19 20) is

being fully exempted from basic customs

duty along with one percent CVD; full

Basic Customs Duty (BCD) exemption

is being extended to coal mining projects.

Basic Customs Duty (BCD) is being

reduced to 2.5 percent for the capital

goods/ equipment required for setting up

or substantial expansion of iron ore pellet

plants and iron ore benefi ciation plants.

On account of these initiatives, steel

plants will benefi t through since good

quality coal imports could be used as fuel.

With the exemption of customs duty

and CVD, price of coal will reduce and

keep domestic coal prices under check.

Th is will in turn reduce the production

costs of steel and thereby improve steel

companies’ profi tability. Also, the duty

exemption for coal mining projects and

duty reduction of mining equipment

for iron ore plants would promote coal

mining activity and iron ore pellet plants

and enhance the availability of coal and

iron pellets for the steel industry.

Secondly, the BCD on fl at-rolled

products of non-alloy steel whether

or not clad, plated or coated falling in

headings 7208, 7209, 7210, 7211, and

7212 is being increased from fi ve percent

to 7.5 percent. Due to this the imported

fl at rolled products will become more

expensive. Th is will protect domestic

steel plants as it will shield them from

the competitive pricing from imports.

Warehousing Programme Manager, Transportation &

Logistics Practice, Frost & Sullivan, South

Asia, Middle East and North Africa,

Srinath Manda said that the measure

announced in the Budget of investment

linked deduction of capital expenditure

is likely to make investments into

warehousing a further attractive option

driving their development and growth.

Th ough there is no direct impact to

the aftermarket, the increase in excise

duty and service tax will infl ate the cost

structure. Th e overheads for the service

centre will shoot up further aff ecting

the bottom line of every business in the

aftermarket value chain. Moreover, there

will be slight surge in the aftermarket

activities due to postponement of new

vehicle purchase.

Th ere is no doubt that the Budget is

indirectly infl uencing the automotive

aftermarket. �-With inputs from Abhishek Parekh,

Nabeel A Khan, Shambhavi Anand and

Bhargav TS

Pawan Goenka, President, Automotive & Farm Equipment Sectors, M&M

Praveen Agarwal, Chairman of Vikas Group & Auto Vikas Sales & Service

Page 50: Aftermarket - April 2012

50 AFTERMARKET APRIL 2012

GLOBAL

50

Honda Institute conferred ‘outstanding’ gradeHONDA (UK)’s apprenticeship

programme, delivered by its training

facility, the Honda Institute, has been given

an ‘outstanding’ grading from Ofsted—the

Offi ce for Standards in Education.

Inspectors carried out the report in

January 2012 using a variety of methods

such as questionnaires, observing learning

sessions and group and individual

interviews. A key paragraph from the

reports states that “the overall eff ectiveness

of Honda’s apprenticeship programme is

outstanding and the programme provides

exceptional value for money. Learners

enjoy their training and develop excellent

occupational skills, making a highly valued

contribution to their workplace”.

Th e report uses a four point scale

to grade the report (From one =

outstanding to four = inadequate) and

the record of main fi ndings state that the

apprenticeship programme scores a grade

of one in each of the following main areas

such as overall eff ectiveness, outcomes

for learners, quality of provision and

leadership and management.

Th e Honda apprenticeship programme

takes place over two years for Lawn and

Garden and Marine; and three years for

cars, parts operations and motorcycle/ATV.

During this time, apprentices are employed

by their local Honda dealership and attend

block training at the Honda Institute

working on products within one of the fi ve

divisions. Qualifi ed apprentice graduates

achieve an Intermediate Apprenticeship

for Lawn & Garden and Marine; and an

Advanced Apprenticeship for Cars, Parts

Operations and Motorcycle/ATV.

Technical Training Operations

Manager, Paul Taylor at the Honda

Institute commented, “Th e Honda

Institute is the home of Honda’s people

development and we work hard to support

skill and knowledge in our car, motorcycle

and power equipment networks. A good

understanding of both the economics

of our industry and people’s desire to

learn and improve is fundamental to our

operation. Having the right skill and

knowledge to look after our products

is key to maintaining performance and

reliability. Our customers expect highly

trained and skilled technicians in our

network of dealerships and that’s exactly

what we deliver through apprenticeships.

“Th e grading from Ofsted is a real

testament to the professionalism and

passion of our people and underpins

everything we do. Graduates from the

Honda Apprentice Programme make

up 20 percent of Honda (UK)’s car and

motorcycle technicians, a grading of

‘outstanding’ reinforces that we are getting

it right.” Honda (UK)’s apprenticeship

programme has recently scored 90.8

percent—14.4 percent above the national

average—for its completion rates and 89.8

percent—24.5 percent above the national

average—for its ‘timely success’ score. As

their titles suggest, completion rates show

how many apprentices actually fi nish the

apprenticeship programme and timely

success rates show how many apprentices

complete within the time frame promised

by Honda (UK). Scoring is carried out

quarterly by the Skills Funding Agency

(SFA)—the funding body for national

apprenticeships.

Th e Honda Institute was opened

in 2001, and is the home of people

development for Honda in the UK.

Working with sector skills and industry

bodies, the Honda Institute provides

a measurable contribution to business

performance. Some 10,000 people are

employed in Honda dealer networks, and

the Institute delivers around 25,000 days

worth of training every year. �

Honda Institute gets outstanding grading from Ofsted

Page 51: Aftermarket - April 2012

APRIL 2012 AFTERMARKET 51

GLOBAL

CITROEN UK has started a new

interactive direct mail campaign to raise

awareness for its new fl agship DS5—

the third model in Citroen’s distinctive

DS line. Th e campaign was designed

by creative agency We Are Acuity,

and incorporated digital watermarks

and attached digital content created

by print-to-mobile specialists Digital

Space. Th e digital watermarks are used

in conjunction with the Digital Space

smartphone app, to provide an interactive

experience direct from the page to a

smart phone.

Over 200,000 target customers

will receive the interactive mailer, of

which, there are 192 versions, each

personalised with a dealer’s details and

invisible digital watermarks for DS3,

DS4 and DS5—making a total of 576

individual watermarks. To experience

the mailer in action, customers can

download the ‘Digital Space’ app

on their phones and scan the digital

watermarks embedded in the images

on the mailer. A dealer personalised

phone app is shown to the customer

upon scanning the image, helping to

drive leads and traffi c direct to the

relevant retailer.

From the app, customers can view nine

images and three videos for each of the

DS line models, as well as their local

dealer’s full address. Th ey also have the

ability to participate with a number of

calls to action. Th ese include making a

call to their dealer, requesting a brochure,

requesting a call back, booking a test

drive or expressing an interest in a ‘DS

Discovery Day’.

Citroen dealerships have organised

DS Discovery Days since last month,

as part of the offi cial launch of New

DS5 this month. With a DS-focused

display in showrooms, or at off -site

venues, the DS Discovery Days are a

stylish and engaging way for customers

and prospects to discover and experience

DS5 with the full DS line up.

Th e app also allows Citroen to help

measure the success of the mailing piece,

with insightful reporting dashboards

enabling a clearer understanding of how

the customer engaged with the content.

All interactions within the app can be

collected, managed and directed to the

relevant dealers.

Acuity’s Managing Director, Peter

Cronin said, “Brands in this space

are particularly keen to engage with

customers and to build themselves into

a lifestyle. Social media is particularly

topical, as well as other emerging

technologies and apps. However, print

is still a great method of communicating

with customers en masse. Inspite of the

unprecedented levels of personalisation

now achievable by digital print, the

vast majority of direct mail still follows

a fairly generic model of a standard

print piece, possibly personalised with

a dealer’s details. Th is new approach

represented a great opportunity for

Citroen UK to further stand out from

its competitors.”

Director at Digital Space, James

McIntosh said, “We were delighted

to be involved with Citroën in such

a campaign and off er our expertise in

bridging the gap between offl ine and the

mobile web. We delivered a solution that

enables the consumer to access mobile

content directly from the creative piece,

with clearly defi ned and measured calls

to action.” �

Digital watermarkingdrives Citroën campaign

New direct marketing campaign for Citroen uses interactive digital watermarking

Page 52: Aftermarket - April 2012

52 AFTERMARKET APRIL 2012

GLOBAL

52

EUROPE car hire service company,

Europcar, is inviting motorists to test

electric vehicles. It believes that by

hiring, business and leisure renters would

discover electric cars off er a really cost-

eff ective and environmentally-friendly

way to get around the Capital and this

could help in encouraging more motorists

to buy electric in the future. Th ree years

since Boris Johnson announced his plan

to make London the electric car capital

of Europe, it was reported last month

that only 588 extra electric cars have been

registered in the city.

Managing Director, Europcar UK

Group, Ken McCall said, “It could be the

ideal option for motorists keen to reduce

their fuel costs and avoid congestion

charges. Buying an electric car is a big step

to take, but hiring one enables motorists

to check that the new technology can

meet their expectations without taking an

expensive risk. New fi gures suggest that

London is being slow to embrace electric

cars.” But it could be the ideal option for

motorists keen to reduce their fuel costs

and avoid congestion charges.

Europcar has recently added the

100 percent electric Nissan Leaf to its

fl eet in London. With 400 charging

points now installed across the city,

the company believes that the ideal

time for motorists to test out the

new technology has arrived. Hiring

a Leaf could be the ideal option for

motorists keen to reduce their fuel

costs and avoid congestion charges.

At the forefront of electric vehicle

technology, it fi ts perfectly with our

philosophy of pioneering sustainable

car hire solutions, giving customers a

real choice when it comes to car hire.

Th e LEAF has a homologated range

of 108 miles (175 km), which is more

than 90 percent of Europeans drive

in a day. And although it is as easy

to drive as a conventional car, every

Europcar customer hiring a Leaf will

be given a face-to-face handover by

a Europcar representative who has

been fully trained on the car and its

workings. Plus, Europcar will recharge it

completely free of charge, even waiving

the standard service fee usually made for

vehicle refuelling.

“Europcar continues to invest in the

quality of our fl eet and that includes

electric cars, to ensure we off er the widest

possible choice of vehicles. With access

to the new generation of electric vehicles,

Europcar customers can try before they

buy or just enjoy the cost savings on short

city trips,” concluded McCall. �

Europcar to help charge EV usage

Buying an electric

car is a big step

to take, but hiring one

enables motorists to

check that the new

technology can meet their

expectations without

taking an

expensive risk

Nissan Leaf available for rental at Europcar Nissan

Page 53: Aftermarket - April 2012

APRIL 2012 AFTERMARKET 53

GLOBAL

MERCEDES-BENZ UK has launched

its revamped national fl eet website—

www.mercedes-benz.co.uk/fleet—as

part of a new campaign, designed to

continue raising the profi le of the brand

amongst the fl eet and leasing market.

Comparative AnalysisTh e new fl eet site is designed to be

an easy-to-use tool to highlight that

Mercedes-Benz vehicles are a cost-

eff ective solution for fl eet and small

business, by showing all current off ers on

the cars, tax calculators and information,

model cost comparison charts, price lists

and e download brochures.

Head of Fleet at Mercedes-

Benz, Nick Andrews said: “We are

delighted to launch our refreshed and

restructured fleet website, which now

has the ability to serve content to all

audiences—company car drivers, small

business, fleet managers and chauffeur

business. We have also added a new

‘meet the team’ page to launch our

great fleet sales team to the market and

make it much easier for people to get

in touch.

“Th is new website highlights our

commitment to make Mercedes-Benz

UK much easier to deal with for the

fl eet market; this is an important step

in making our fl eet strategy a reality.”

Mercedes-Benz UK is the sales and

marketing organisation responsible for

all Daimler products and services in

Britain.

Wider CoverageAs well as selling cars, vans, trucks,

parts, and service, the company runs

Mercedes-Benz World at Brooklands -

a brand experience centre in Weybridge,

Surrey. Mercedes-Benz World has

welcomed 1.5 million visitors since it

opened in 2006.

Th e Mercedes-Benz UK group

of companies directly employs over

4000 people, and 11,000 colleagues

at independent retailers. Over

500 Apprentices have passed their

professional qualifi cations at the

company’s in-house Training Academy.

Th e UK is also home to Mercedes-

Benz HighPerformanceEngines and the

Mercedes AMG Petronas Formula 1

team, where 1000 dedicate their work to

Grand Prix Engineering. �

We have also added a

new ‘meet the team’

page to launch our fl eet

sales team to the mar-

ket and make it much

easier for people to get

in touch— Nick Andrews,

Head Of Fleet, MB

New online avatar to raise Mercedes-Benz profi le

The new site is designed

to be an easy-to-use tool

to highlight that MB

vehicles are a cost-effec-

tive solution for fl eet &

small business, by show-

ing all current offers on

the cars, tax calculators &

other information

Page 54: Aftermarket - April 2012

54 AFTERMARKET APRIL 2012

GLOBAL

MERCEDES-BENZ has retained

the contract to supply HSS Hire, the

national supplier of tool and equipment

hire and services, with its fl eet of

commercial vans. In 2009, HSS selected

Mercedes-Benz as its sole van supplier,

having been impressed with the safety,

reliability and environmental credentials

of the range. As the vans come to the

end of their lease, Mercedes-Benz has

now secured the contract to supply all

replacement units, as well as a range of

new vehicles.

HSS trials have shown that Mercedes-

Benz vehicles are out on the road, rather

than in a workshop, for twice as long as

other vans, off ering better reliability and

fewer maintenance issues. In addition,

the use of Eco-Start in the Sprinters

has lead to a signifi cant reduction in

fuel consumption for the company; a

major saving for running expenses and

environmental impact.

Further reductions were also seen

in the number of vehicle accidents,

which dropped considerably thanks to

the extensive safety systems, including

Adaptive ESP stability programme,

seat belt tensioners and adaptive

brake lights, all fi tted as standard on

Mercedes-Benz vans.

Th e latest consignment consists of

170 Sprinter 313CDI Long Chassis

cabs as well as 25 Vito 113CDI Long

Panel vans. Th e Sprinters, which will be

used for collection and delivery of HSS

hired equipment, feature a 13 ft 6” alloy

dropside Arnold Clark body with a 500

kg column tail lift and towing upgrades

to 6,300 kg.

Alongside the Sprinter, 313CDIs

are the brand new addition to the HSS

fl eet, in the shape of 25 Vitos with

tailgate and internal racking and storage

solutions, which will be used primarily

for onsite maintenance and repair of

hire equipment. Fleet Manager, Lee

Jackson at HSS, said, “At HSS, safety

is paramount so making sure that the

vans we chose off ered sophisticated

safety features played a large part in our

decision making process. In addition,

the reliability of Mercedes-Benz

vehicles and the service and support

they off er will help keep us on the road

and make sure we are better equipped

to serve our customers.

“We’ve introduced the Vitos to our

range as they off er an increased payload

and better mpg, which will mean our

fi tters can carry more parts and attend

to more customers in any one trip”.

Van Sales and Marketing Director for

Mercedes-Benz UK, Steve Bridge, said,

“HSS is a perfect example of why keeping

a business moving is so important,

especially in the current climate, and

thanks to the team at Mercedes-Benz

UK and at Enza Motors, we have been

able to provide the right vehicles to

deliver the right results for HSS.” Th e

vehicles, sold by Enza Motors, based in

Warrington, will be maintained via the

Mercedes-Benz dealer network. �

HSS Hire renews MB fl eet contract

Trials have shown

that Mercedes-Benz

vehicles are out on the

road, rather than in a

workshop, for twice

as long as other vans,

offering better reliability

and fewer maintenance

issues

Mercedes Benz retains HSS Hire fleet contract Mercedes

Page 55: Aftermarket - April 2012

APRIL 2012 AFTERMARKET 55

GLOBAL

TOYOTA has introduced a new

Approved Used Car Warranty

programme to give even greater peace

of mind and support for customers

buying older and high-mileage vehicles.

Th is refl ects how built-in Toyota quality

is giving owners the opportunity to

purchase extended warranty cover for

used cars.

Under the new programme, customers

buying a Toyota Approved Used Car

with up to 150,000 recorded miles

will be given a minimum 12 months'

warranty, with the easy option to top-up

the extended warranty to provide up to

fi ve years' cover. Th is is a Toyota-backed

warranty, not a third-party insurance

product.

Easy Payment OptionsIf the used car is less than five years

old when purchased, up to 48 months'

warranty can be added; if it is between

five and eight years old, up to an extra

24 months can be purchased. To make

access to the extended warranty options

more flexible, Toyota has launched new

monthly payment plans. Customers

can spread the cost of their cover

across a fixed term of up to 48 months,

subject to the age and condition of

their vehicle.

Th e terms of the Toyota Approved

Used Car Warranty mean that, should

any part covered by the warranty fail,

it will be fi xed at an offi cial Toyota

Service Centre, using genuine Toyota

replacement parts. Th ere is no charge to

the customer for parts or labour; they

are only required to pay for scheduled

annual servicing and maintenance (more

frequently for higher mileage use).

Club ToyotaTh e warranty includes MoT test

cover and it can be upgraded to include

roadside assistance through membership

of Club Toyota. Th e extended warranty

includes 12 months' club membership.

Manager Vehicle Remarketing &

Cost of Ownership, Iain McCall, said:

"We believe our new extended

warranty programme gives our customers

what they really need, with similar protection

and peace of mind that come with the fi ve-

year warranty on all our new vehicles. �

The terms of the Toyota

Approved Used Car Warranty

mean that, should any part

covered by the warranty fail,

it will be fi xed at an offi cial

Toyota Service Centre, using

genuine Toyota replacement

parts. The warranty includes

MoT test cover and it can

be upgraded to include

roadside assistance through

membership of Club Toyota.

Toyota’s new programme warrants customer support

Toyota’s used car outlet

Page 56: Aftermarket - April 2012

56 AFTERMARKET APRIL 2012

GLOBAL

THE Institute of Customer Service

has honoured BMW Group UK for its

commitment to excellent and innovative

customer satisfaction presenting the

company with the prestigious Kcom

Customer Feedback Strategy Award.

Presented to BMW Group UK's

fi rst Customer Director, Richard Price,

the award recognised in particular the

customer service system in operation in

all BMW and MINI UK dealerships

that allows every customer to rate their

experience on a fi ve star scale and write

specifi c comments on dealer websites.

"Th is award recognises our commitment

to providing the very best service for our

customers and there is absolutely no

doubt that satisfi ed customers drive the

success or failure of businesses," said

Managing Director of BMW Group UK,

Tim Abbott. "We are determined to put

the customer at the heart of everything

we do and Richard's appointment to the

new role of Customer Director is key in

making sure this is a fundamental part of

our overall business strategy."

With eleven categories, award

submissions are scored against pre-set

criteria by a panel of industry experts and

fi nalists are assessed by an independent

group of judges selected for their business

knowledge and acumen.

Customer Director, BMW Group

UK, Richard Price added: "We are

delighted by this award, particularly as

BMW Group was the only automotive

organisation across all categories to make

it into the fi nals. Our star ratings, a fi rst

of its kind in the automotive industry,

help all BMW and Mini customers

to make informed choices and inspire

everybody in the company and in our

dealer network to strive constantly to

provide better customer service." �

JOHNSON Controls Inc will implement

an eight percent price increase on lead-

acid batteries sold in the United States

and Canada from May this year.

Air Quality Standards“Johnson Controls supports the

rational tightening of standards such

as the National Ambient Air Quality

Standard and the National Emission

Standards for Hazardous Air Pollutants,”

said President, Johnson Controls Power

Solutions, Alex Molinaroli. He added,

in a press statement, that the standards

have tightened ten-fold and would

require signifi cant investment from

manufacturers.

More stringent national air standards

for lead emissions were issued by the

United States Environmental Protection

Agency in 2008 and again as recently as

January 2012. Johnson Controls also

anticipates increased standards related

to employee safety and employee blood

lead levels. According to Molinaroli, the

company is investing $162 million on its

North American recycling centres to be

sure they meet the latest environmental

standards, as well as an additional $50

million to further improve the company’s

already industry-leading employee blood

lead levels at its battery manufacturing

facilities.

Johnson Controls is a global auto

component supplier employing around

162,000 people. It supplies lead-acid

automotive batteries and advanced

batteries for hybrid and electric vehicles

as well interior systems for automobiles.

Johnson Controls Power Solutions is a

leading lead-acid automotive batteries

and advanced batteries for start-stop,

hybrid and electric vehicles. Th e

company’s 50 manufacturing, recycling

and distribution centres supply more

than one-third of the world’s lead-

acid batteries to major automakers and

aftermarket retailers. �

BMW Group UK honoured by Institute of Customer Service

Johnson Controls raises batteries prices

Award submissions are

scored against pre-set

criteria by a panel of

industry experts and

fi nalists are assessed by

an independent group of

judges selected for their

business knowledge

and acumen

Page 57: Aftermarket - April 2012

PRODUCTS

APRIL 2012 AFTERMARKET 57

Vehicle Security and Tracking DevicesTCOP is a GSM-based vehicle security and track-ing device. At the core of GSM-based tracking solution is a proprietary hardware device that has com-ponents, like power adapter, antenna, central processing unit, device software. Th e device is fi tted in each of the mobile assets to be tracked and it contains a GSM communication engine that stays in synchronised contact with the GSM network, via SIM. Th e central processing unit in the device runs on custom software that communicates with the GSM network and gets location information from the nearest GSM tower. Th is information translates into a user-readable format and sends an SMS using the GSM network to a mobile phone.

i-Trans Technologies Pvt Ltd Bengaluru - Karnataka Tel: 080-26788000

Email: [email protected]

All-Purpose Foam Cleaners THE Cyclo MaxClean is all-purpose foam cleaner that contains specialty deter-gents, which cleans and restores colour and appearance. With deep-cleaning foaming action the foam cleaner works as great as spot carpet cleaner. Boosted with orange oil it is a natural cleaner and has a pleas-ant citrus fragrance. Th e cleaner removes bad odours from the seat, covers, and car-pets. Th e Cyclo MaxClean foam cleaner is used on plastic, vinyl, carpet and fabric. It is available in packaged form of 624 gm.

Pidilite Industries Ltd Mumbai - Maharashtra Tel: 022-33087000

Email: [email protected]

Website: www.pidilite.com

Stacker Parking Systems THESE are st acker parking sys-tems for parking of two cars. Th e parking syst ems are equipped with a single platform, allowing long-term parking on the upper level and short-term parking on the lower one. For use of the upper platform vehicle from the lower parking space is removed. Th ese syst ems are suitable for medium and large buildings and can also be inst alled into exist -ing buildings. A lengthwise or breath wise arrangement may be select ed according to the condition of the site.

Kamex Mechanised Parking Jaipur - RajasthanTel: 0141-6511501

Email: contact @kamexparking.com

Website: www.kamexparking.com

Composite Impact Wrenches

THE new Chicago Pneumatic CP7748 is a durable and powerful ½” impact wrench in the entry level composite range. It is an aff ordable tool yet very reliable for tyre shops, general maintenance on vehi-cles and light industrial maintenance. Features

include: extreme torque of 922 ft lbs to 1250 Nm of maximum torque in reverse, durable steel aluminum alloy back housing, thermoplastic rubber injected in housing for a durable and comfortable grip, universal & durable twin hammer mecha-nism, full teasing ergonomically developed trigger, ergonomic handle in composite material, decreases fatigue of the opera-tor, and 360-degree swivel air inlet.

Chicago Pneumatic Thane - Maharashtra Tel: 022-39982731,

Mob: 09967047733

Email: [email protected]

Website: www.cp.com

Page 58: Aftermarket - April 2012

PRODUCTS

58 AFTERMARKET APRIL 2012

Trailers

A complete range of trailers from 20 ft to 40 ft, 2/3 axles, skeletal and fl atbed trailers is off ered. Standard features are Rolled Jindal I-Beam 455 with additional reinforcement used to avoid bending and increase central st rength, 12 twist lock with 150 I-beam reinforcement, 10 leaf YTE 75 York sus-pension, 15 ton suspension, tool box (900 x 750 x 475 big size to fi t all tools easily), air tank of 50 litre capacity to avoid break grabbing issues at slope areas, York king pin, mechani-cal parking brakes, etc.

Seamless Autotech Pvt Ltd Pune - Maharashtra Tel: 02135-662431,

Mob: 09881254788

Email: [email protected]

Silent Blocks A wide range of silent blocks are fabricated using opti-mum quality raw materials. Th ese blocks can be off ered as per specifi cations provided by client. Th e silent blocks play a fundamental role in the suspension syst ems. In

these silent blocks, the rubber is bonded to the outer tube and the outer tube is press-fi t/interference fi t to the moulded inner tube. Applications are in automotive and refrigeration indust ries. Salient features include: high-degree of torren-tial st iff ness; wear & tear-free; durability; high-performance; resist ance to oxidation, ozone & radiation; indefi nite shelf life; and anti-abrasive.

Shalaka Polymers Nashik - Maharashtra Tel: 0253-2380057, Mob: 09822080157

Email: [email protected]

Website: www.shalakapolymers.com

Automotive Air-Conditioning

AIR-CONDITIONING involves more than cooling. Th e most air-conditioned vehicle is the automobile and millions of syst ems are sold annually. Most of the automobiles today are fi t-ted with air-conditioners at the manufact uring st age. But many other conveyances are air-conditioned as well including buses, ambulances, vans, trailers, trucks, recreational vehicles, trac-tors, crane cabs, aircrafts and ships. Air conditioning is a natural choice while cust omising a vehicle. Th e vagaries of climate and pollution necessitate insulating the cabin from outside environs.

Kotkar Energy Dynamics Pvt LtdPune - MaharashtraTel: 020-25815315

Email: [email protected]

Website: www.kotkar.com

Triplex Plunger Pumps THE high-pressure triplex plunger pump (series 8000) with unloader and safety valve is coupled with elect ric motor or diesel engine and assembled with centrifugal pump and fi lter to ensure supply of pressurised clean water at the pump inlet. Th e com-plete pump unit with local control panel, inst rumentation and safety controls is mounted on a vibration-free fi xed base frame or towable trolley with solid/pneumatic wheels. Th e unit is suitable for operation in hazardous area with fl ame-proof elect rics. Th e pump is compact in design and rugged in const ruct ion with quieter operation. UT Pumps & Systems Pvt Ltd Mumbai - MaharashtraTel: 022-32992488, Mob: 09322658363

Email: [email protected]

Website: www.utpsl.in

Page 59: Aftermarket - April 2012

PRODUCTS

APRIL 2012 AFTERMARKET 59

Exhaust Gas Recirculation TubesIN these exhaust gas recirculation (EGR) tubes a fl exible bellow is incorporated as an integral part of the structure. Th ese tubes are designed and developed as per customers’ requirements and tested to withstand the vibrational stress of high temperatures. Th e EGR tubes are provided with accessories, such as coupling clamps in order to couple with the mating castings. Th ese tubes are custom-designed on individual requirements for after treatment of exhaust gases.

Alfa Flexitubes Pvt LtdBahadurgarh - HaryanaTel: +91-1276-268119,+91-01686-267175

Mob: 09811209178

Email: alfafl [email protected]

Website: www.vanjax.in

Cage PalletsTHESE supreme quality cage pallets are completely designed with extreme quality raw material and are procured from renowned industries. Th e cage pallets come in diff erent

specifi cation with respect to application. Base is made of MS tubular structure with sides of wire mesh provided at the bottom for forklift or pallet truck entr wire mesh pallets are used in automobile industries as well as warehouses of large factories. It has up to 1000 kg weight bearing capacity with even load distribution.

Ahlada Industries Pvt LtdHyderabad - Andhra PradeshTel: 040-2309 4301/302

Mob: 0810075011

Email: indust [email protected]

Website: www.ahlada.com

Page 60: Aftermarket - April 2012

PRODUCTS

60 AFTERMARKET APRIL 2012

Studs And SpindlesTHE studs are available from 3 mm to 75 mm, 1/8” to 3” and 6BA to 0BA diameter. Slotted type, full thread studs, drill hole type, hex and square head type studs are available from 2” to 12” and 50 mm to 300

mm full thread roll threaded stud spindles six mm to 12 mm and 1/4” to 2½” diameter. Th ese products are made as per IS, BS, JIS, GOST, ASTM, ISO, ANIS and DIN standards or as per customer’s drawings and samples. Th reads are in mm size standard, coarse, fi ne or special pitch, BSW, BSF, UNC, UNF, A-193-B7 and B8. Materials used are MS 4.6 grade, EN-8, 6.6, 8.8 grades, EN-19, 10.9 grade, EN-24, 12.9 grade, brass, copper, SS-304/316, A-193-B7, R, S, T and V grades. Applications are in machine tools, light and heavy engineering industry, pumps and valves, hydraulics and pneumatics, automobiles, chemical, injection moulding machines, diesel generators and other service industries.

Zenith Industrial ProductsMumbai - MaharashtraTel: 022-2847 0806

Mob: 09924566887

Email: [email protected]

Website: www.zip-india.com

Easy Shine PolishTHE SONAX Easy Shine is an innovative product. It is a wax polish with advanced formula, which is used in direct sunlight and on hot paintwork. Th e Sonax Easy Shine makes polishing eff ortless and provides a long lasting, with high gloss shine. It cleans & polishes and protects.

Methods Automotive Pvt Ltd Bengaluru - KarnatakaTel: +91-080-22217879

Mob: 09413303674

Email: [email protected]

Website: www.methods.co.in

PVC And Nylon FastenersHEX HEAD BOLTS, hex head screws, nuts, washers, slotted machine screws, etc, of commercial quality made from p o l y p r o p y l e n e and nylon are off ered. Th ese fasteners are available in BSW, mm size, standard and coarse pitch. Materials of construction include PVC, nylon and polypropylene. Applications of the fasteners are in industries, such as petrochemical, fertilizer, chemical, cement, machine tool, textile, automobile, etc.

ABC Industrial Fasteners, Mumbai - MaharashtraTel: 022-2847 0806

Mob: 0810075011

Email: [email protected]

Website: www.precibolts.com

Impact Hex SocketsTHE heavy-duty six-point impact hex sockets are used with pneumatic/electric impact wrenches and nut runners. Th ese have a single hex broaching for good grip on nuts and bolts to avoid tools slipping during high speed tightening operations. Th e extra wall thickness of the sockets, together with special steel and heat treatment process, helps to absorb shock transmitted to the socket while in use with impact wrenches. Th ese sockets are also provided with two cross holes and groove for locking onto the impact wrench using O-ring and pin arrangement. Th ese are ideal for operating with hydraulic wrenches and are most suitable for use in automobile industry.

Tulex Industrial Tools (P) Ltd, Thane - MaharashtraTel: 0251-2436207

Mob: 0810075011

Email: [email protected]

Website: www.tulextools.com

Page 61: Aftermarket - April 2012

PRODUCTS

APRIL 2012 AFTERMARKET 61

Circlip PliersTHESE assembly pliers are developed especially for safe and economic work. Th e pliers guarantee easy, precise and effi cient work, mainly in the automobile industry and workshops. Th ese pliers are manufactured from chrome–vanadium steel and then burnished black. Tips are precision manufactured to very fi ne tolerances. Th e functional design and practical construction allow work to be done safely and sensibly, even in awkwardly accessible conditions. Various other torque tools and assembly tools are also available.

Summit Engineering Technology Pvt LtdNavi Mumbai - MaharashtraTel: 022-2764 2776, 2769 9667,9821150858

Mob: 0810075011

Email: [email protected]

Website: www.summitengg.com

Water Pump Seals THESE seals are usually of the st ationary fl oating face design with a single coil spring surrounding the elast omer bellows. Th ey are also normally supplied as a cartridge assembly, or in automotive indust ry terminology a cassette, complete with a sleeve ready to be assembled direct ly onto the water pump shaft.

Avon Seals Pvt Ltd Chennai - Tamil Nadu Tel: 044-26880225,

Mob: 09381009070

Email: [email protected]

Hydraulic Car LiftsTHESE hydraulic car lift is designed as per cus-tomers’ specifi cations and developed with the help of premium grade of raw materials using most sophisticated technology. Th e range of car lifts fi nds application in diff erent sectors, like automobile, heavy engineering, etc. Some of the salient fea-tures include multi-utility, highly durable, lifting height up to desired height, etc. Th e hydraulic car lift has a haulage height of up to 12 meters with a capacity of three tons, which makes it suitable space saver as modular car parking equipment.

Servo Tech (India)Delhi - DelhiTel: +91-011-23259123

Mob: 09810287375

Email: [email protected]

Die LoadersTHE model model TL-4M Truckman hydra trucks (also called die loaders) is effi cient and ideal material handling e q u i p m e n t , designed for quick loading and unloading of press tools or machine parts, crates, oil drums,

components, etc. Pump is manually operated and is of double acting type complete with oil tank with release valve capacity of 500 to 1000 kg. Maximum height of lift from the ground level is 1400 mm. Lowered height is 140 mm. Platform size is 700 x 700 mm. Th e unit is mounted on polymer wheels for easy movement and long life. Applications are in tool rooms, godowns, engineering units and chemical and petrochemical industry, automotive industry, etc.

Textile Machinery Manufacturing CompanyAhmedabad - GujaratTel: 91-079-22941389

Mob: 094284 07325

Email: [email protected]

Website: www.truckmanindya.com

TMMC

Page 62: Aftermarket - April 2012

PRODUCTS

62 AFTERMARKET APRIL 2012

Safety Hand ShieldTHE durable safety hand shield protects welders’ faces while welding. It is made up of cotton fi bre and is designed to provide safety to users. Th e hand shield provides heat resistance, chemical resistance and durability. It possesses excellent quality and comes at competitive prices. Also off ered is safety hand shield as per customers’ specifi cations and requirements.

Atul ArcNew Delhi - New DelhiTel: 011-2573 6102,9811825256, 9810273058 (SK Jain)

Mob: 0810075011

Email: [email protected]

Website: www.atularc.com / www.atularc.net

Lifting EquipmentTHE Hercules 4.0 CF clear fl oor lift is complete-ly electro-hydraulic and made according to accurate structural calculation, with a capacity of four tonne. High-pressure cylinders in each column provide mximum lifting force and smooth operation. Th e lift is equipped with safety valve to prevent overloading and in case of hydraulic pipe fracture. Other features include mechanical safety catches with automatic engagement, automatic arm restrain, perfect synchronisation between cyl-inders regardless of load distribution, self-controlled lowering speed, and special overhead padded limit switch to prevent dam-aging vehicle being raised too high.

ARO Equipments Pvt LtdGurgaon - HaryanaTel: +91-0124-4585400

Mob: 0810075011

Email: [email protected]

Website: www.aroequipments.com

Cockpit Spray (Lemon)THE Sonax cockpit spray lemon cleans and maintains all car interior plastics. It has a dust-repellent eff ect. It is antistatic and even maintains wooden fi ttings. It brings a new shine and fresh fragrance to the cockpit. Th e Sonax cockpit spray lemon protects plastics against brittleness and is silicone-free.

Sonax GmbH, NeuburgTel: +49-8431-530

Mob: 0810075011

Email: [email protected]

Website: www.sonax.com

Wheel BalancersTHE commercial wheel balancer offers features required by most of the operators. Model WB-VL-65 professional wheel balancer comes with 15.5” TFT monitor suitable for 10”-24” rim dia and maximum 65 kg

wheel weight. It is suitable for car and LCV wheels. Features include TFT monitor, static and dynamic balancing, simultaneous display of inner and outer plane results, two modes of measurement (normal & fine), five modes of alloy wheel functions, self-checking, online error display facility, dimension setting in inch or mm, unit conversion in grams/ounces, self-calibration, automatic distance input mechanism, mid-centering device for positioning and rim accuracy, quick change lock nut to ensure fast mounting & removal of wheels, etc. Manatec Electronics Pvt LtdPuducherryTel: +91-0413-2248926

Mob: 09344643104

Email: [email protected]

Website: www.manatec.net

Page 63: Aftermarket - April 2012

PRODUCTS

APRIL 2012 AFTERMARKET 63

Gas TorchesTHE gas torch is light-weight and convenient to handle, made of high quality brass stamping, which makes it sturdy, dependable and dura-ble. Th e stainless steel spindle with a tapered nylon seal is an excellent leakproof device. Silver soldered joints make it trouble-free, leakproof and strong. Prolonged service life and its ability to work on low-pressure gases make it an excellent tool for welding. Th e torch is avail-able with Swage-type nozzles in varying sizes of 2, 3, 5 and 7 for welding mild steel up to 8 mm thickness. It is available in high-pressure and low-pressure ranges as well as premium and standard range. Th e gas torch is ideal for sheet metal work and pipe welding in garages and workshops.

Pilot India, Mumbai - MaharashtraTel: 022-6697 8900

Mob: 0810075011Email: [email protected]

Website: www.pilotindia.com

Hydraulic Pumps PULSAR hydraulic pumps are designed to meet or exceed the original equip-ment they replace. Th ese pumps are manufact ured with all new materials and components and are test ed under rigorous qual-ity control. Th e pumps are

made to ensure trouble-free service life. Tight process con-trol ensures consist ency of product . Th ese are made from special alloy extruded aluminium, which ensures long serv-ice life. Th e pumps are 100 per cent test ed with endurance test ing carried in house periodically. Th ese are available in st andard mountings and provide effi cient pumping without air pockets. Th e hydraulic pumps are assembled and test ed in dust proof assembly room, all gears hardened and shaved for best results.

Shriram Automotive Products Ltd,New Delhi Tel: 011-40433111, Mob: 0810075011

Email: [email protected]

Hydraulic Presses THESE are multi-purpose press-es used in general workshops and automobile workshops for st raighten-ing, press fi tting, bending, forming, punching, assembling, dismantling, etc. Th e presses are operated with manual hand pump or with power pack. Th ese are also available with adjust able daylights. Specifi cations

are altered as per individual needs. Exclusive benefi ts and features include: heavy-duty const ruct ion, moveable work table, large day light, hydraulic return concept, rigid frame under full load, operated manual or with separate power pack. Technical specifi cations include: capacity of 5 to 200 tons, st roke 150 to 600 mm, and daylight from 300 to 2000 mm.

Hydropack India Pvt Ltd Belgaum - Karnataka Tel: 0831-2442559, Mob: 09449595040

Email: [email protected]

Website: www.hydropackindia.com

Automobile Engineering ComponentsA wide range of auto-mobile engineering components are off ered that include CNC machine parts, bear-ing assemblies, machine nuts, elect rical rivets, washers & pins and seat camshafts. Cust omers can also avail preci-sion engineered self-tapping screws, brass screws, hex bolts, insert bolts, metal rivets and hex nuts. Th ese components are fabricated from diff erent grades of brass, aluminum and copper. Besides, these can be cust omised as per cust omers’ specifi cations.

Sakshi Engineering Works Ghaziabad - Uttar Pradesh Tel: 0120-3940428, Mob: 09811900822

Email: [email protected]

Page 64: Aftermarket - April 2012

DATA

6464 AFTERMARKETAFTERMARKET APRIL 2012APRIL 2012

CA

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Page 65: Aftermarket - April 2012

DATA

APRIL 2012 APRIL 2012 AFTERMARKETAFTERMARKET 6565

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Page 66: Aftermarket - April 2012

66 AFTERMARKET APRIL 2012

LIST OF PRODUCTS & ADVERTISERS’

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

6 .........ADEA .................................................... . .............................................................................................. www.adea.in

19 .......Endurance Technologies Ltd ................................................................................................................ www.endurancegroup.com

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

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

11 .......Google India Private Limited ...............+1800-266-3000 .................................................................... www.indiagetonline.in

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

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

3 .........Madhus Garage Eqpts ..........................+91-80-26660656 [email protected] .......... www.madhusindia.com

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

FIC ......Pidilite Industries Ltd ...........................+91-9619488533 [email protected] ................. www.pidilite.com

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

� Our consistent advertisers

ABS sensor cable and grommet ............................................ 4AC service equipment ........................................................... 3All-purpose foam cleaners .................................................... 57Automobile engineering components .................................. 63Automotive air-conditioning................................................. 58Automotive Dealership Excellence Award ............................ 6Brake testing equipment ...................................................... 3Braking ................................................................................. 19Cage pallets .......................................................................... 59Circlip pliers .......................................................................... 61CNC/VMC machines .............................................................. BCCockpit spray ........................................................................ 62Collision repair system ......................................................... 3Composite impact wrenchers ............................................... 57Dashboard polishes .............................................................. FICDie loaders .......................................................................... 61Dust cover ............................................................................. 4Easy shine polish .................................................................. 60Exhaust gas recirculation tubes ............................................ 59Exhibition - Engineering Expo .............................................. 8Filter cleaning unit ............................................................... 59Fuel bowl .............................................................................. 4Gas analyser.......................................................................... 3Gas torches ........................................................................... 63Go-jack system...................................................................... 59Heating solutions .................................................................. .bicHeavy duty bike lift .............................................................. 59Hydraulic car lifts ................................................................. 61Hydraulic presses.................................................................. 59,63Hydraulic pumps .................................................................. 63Impact hex sockets ............................................................... 60Instant drying and curing technology .................................. BIC

Laptop trolley ....................................................................... 59Lifting equipment ................................................................. 62Mobile sevice van ................................................................. 59Online business .................................................................... 11Paint protection fi lm ............................................................ 4Parts washer ......................................................................... 59Piston ................................................................................... 15Polishes ................................................................................ FICPVC and nylon fasteners ....................................................... 60Rubbing compound .............................................................. FICSafety hand shield ................................................................ 62Shampoo .............................................................................. FICShift lever screen .................................................................. 4Silent blocks ......................................................................... 58Spot welding equipment ...................................................... 3Stacker parking systems ....................................................... 57Studs and spindles ................................................................ 60Suspension ........................................................................... 19Tool trolley ........................................................................... 59Trailers .................................................................................. 58Transmission ......................................................................... 19Transmission jack ................................................................. 59Triplex plunger pumps ......................................................... 58Tyre care ............................................................................... FICTyre changer ......................................................................... 3Tyre infl ation equiment ........................................................ 3Vehicle security and tracking devices ................................... 57Waste oil disposer ................................................................. 59Water pump seals ................................................................ 61Wheel aligner ....................................................................... 3Wheel balancer ..................................................................... 3,62

FIC : Front Inside Cover BIC : Back Inside Cover BC: Back cover

Page 67: Aftermarket - April 2012
Page 68: Aftermarket - April 2012